Why Auto Insurance is Higher for an SUV: Ways to Save BIG
Driving an SUV has several advantages. From carrying all your gear to taking you on off-road adventures, a sports utility vehicle is versatile and convenient. But, be ready to pay more for your auto insurance. Insurance factors like higher liability and repair and replacement costs can cause your insurance to go up. While SUVs might be safer for drivers, the liability risk increases.
Here are a few reasons why auto insurance is higher for SUVs and ways you can save money on insurance.
Why Auto Insurance is More Expensive for SUVs
SUVs are reliable and safe. But, to insurers, they can result in larger claims and financial losses. A few factors cause them to be seen as risks to insurers.
The Safety Concern
Rollover accidents where the vehicle flips onto its side or roof are more prevalent with SUVs. That’s because SUVs are taller than other vehicles so their height and width make them prone to flipping over if they’re hit. However, more recent versions include electronic stability control (ESC). This can reduce the loss of control in an accident.
Replacement Parts are More Expensive
Another drawback with having an SUV is if it’s damaged in an accident. Luxury SUVs like Land Rovers, Lexus and Mercedes have more expensive parts. Insurers recognize that they can cost more for repairs and replacements if the vehicle is considered a total loss.
The Liability Risk
Because SUVs are bigger than standard vehicles, they can cause more damage in an accident. This can lead to higher injury claims and property damage in an accident. For insurers, you’re paying for the losses that the vehicle would cause others and this can lead to higher premiums.
Theft Risks are Greater
The theft risk for SUVs is also greater. SUVs and crossover utility vehicles (CUVs) are stolen more because they are popular vehicles with thieves. Hence, they cost more to insure because they are more likely to be stolen.
How to Save on Auto Insurance
While having an SUV can lead to higher insurance rates, there are ways to save money on insurance. From insurance comparison shopping tools to asking for discounts, these tips can help you save on premiums.
Use a Comparison Shopping Tool
If you’re searching for a way to save on insurance payments, try using an online insurance comparison tool. This is one of the biggest ways to save on insurance. The average driver can save up to 20 percent on their premium.
To use it:
1. Visit Kanetix.ca.
2. Enter details about your vehicle.
3. Compare rates from Canada’s leading insurers.
4. Select the cheapest rate or plan you want.
5. Contact the insurer and have an agent lock in your new insurance rates.
Drop Insurance Products for on Older Vehicles
When vehicles are totaled in car accidents, the insurance pays the cash value of the vehicle. If you have an older vehicle worth less than $1,000, and your deductible is $1,000, consider dropping the collision coverage.
Invest in a Vehicle That’s Cheaper to Insure
That hot, convertible sports car might cause your rates to go up. If you want to lower your insurance premiums, buy a vehicle that’s cheaper to insure. You might find a small SUV offers lower monthly payments.
Best Selling SUVs and Crossovers in Canada that are cheapest to insure include:
• Ford Escape
• Honda CR-V
• Hyundai Santa Fe
• Hyundai Tucson
• Jeep Cherokee
• Jeep Wrangler
• Mazda CX-5
• Nissan Rogue
• Toyota RAV4
• Volkswagen Tiguan
Raise Your Deductible
Want to reduce your car insurance payments by 5 to 10 percent? Consider increasing your deductible. Your deductible is what you pay out-of-pocket for claims. While you might have a deductible that’s $250 or $500, if you raise it to $1,000, it can save you up to 40 percent in monthly premiums. However, you have to make sure you can come up with that amount if you file a claim. Let’s look at an example.
You’re in a fender-bender and the damages total $5,000. Your deductible is $1,000. Your insurance sends you a check for $4,000. You have to come up with the remaining $1,000 (your deductible). Some people set aside money in an emergency fund while others might put the bill on a credit card in an emergency.
Ask for a Discount
There are several ways to get an insurance discount. Check with your insurer to see if they offer these:
• Good student discount for earning good grades if you’re a student.
• Good driving record discount if you have no accidents or claims after a year or five years.
• A lower premium for having good credit. People with good credit tend to file fewer insurance claims.
• Driving education discount for taking a driver safety course.
• Low mileage discount for predetermined driving.
• A usage-based insurance discount for letting your insurer monitor your driving habits with telematics.
• Car safety discount for a newer vehicle with advanced safety features.
• Being over twenty-five-years old discount as you’re seen as less of a risk when driving.
• Getting married discount if you are recently married.
• Bundling insurance if you have home, motorcycle, life and/or travel insurance with the same insurer.
Are You Ready to Find for the Best Auto Insurance Rates?
SUVs are fun for off-road adventures and they are durable and reliable vehicles. The downside is they can lead to higher insurance premiums. But, shopping for a smaller SUV can increase your savings. Other ways to save include using an insurance comparison tool and asking for a discount. For help with auto insurance or if you have questions, contact Kanetix.ca.
With Kanetix.ca, you can compare insurance rates from over 50 of Canada's best insurers.