Car insurance costs can become a major part of a vehicle’s ownership expenses, and the brand on the grille can make a significant difference. Recent data from Consumer Reports and Insurify shows that choosing the most expensive brand to insure instead of the cheapest can cost the average owner an additional $2,100 per year.
Subaru Has the Lowest Average Insurance Premium
According to Consumer Reports, Subaru has the lowest average annual insurance premium at $2,182. Mini, Jeep, Buick and Chevrolet follow, with average premiums ranging from about $2,500 to $2,700.
These mainstream automakers produce vehicles that are relatively inexpensive to repair or replace if they are completely totaled, reducing the financial risk for major insurance providers and contributing to lower premiums.
The type of vehicle also plays an important role. Pickup trucks generally carry lower insurance premiums than standard sedans and family SUVs. Strong safety ratings, effective anti-theft features and standard automatic emergency braking can also help reduce insurance costs.
By contrast, vehicles associated with high-speed crashes or reckless driving behavior can face higher premiums based on insurance companies’ risk calculations.
Tesla Has the Highest Average Premium
Luxury and high-performance brands sit at the opposite end of the insurance-cost spectrum. Tesla has the highest average annual premium at $4,294, according to the cited data.
Porsche, BMW and Mercedes-Benz follow Tesla among the brands with the most expensive premiums. Dodge also appears on the higher-cost side, with its high-powered muscle cars contributing to higher overall brand averages.
Insurance Costs Can Change the Ownership Equation
Insurance pricing continues to shift, making it important for shoppers to obtain quotes before purchasing a vehicle. The monthly loan payment alone does not capture the full cost of ownership, particularly when insurance premiums can add thousands of dollars each year.
A vehicle that appears inexpensive to buy can become significantly more costly once insurance is factored into the monthly budget. Comparing premiums alongside the purchase price can therefore provide a clearer picture of long-term ownership costs.
Advanced Technology Could Change Insurance Pricing
New vehicle technology could eventually disrupt traditional insurance pricing models. Tesla currently has the highest average premiums, but the broader adoption of driver-assistance technology such as Full Self-Driving could affect how insurers assess risk.
Until autonomous systems demonstrate that they can eliminate human error and substantially reduce crash rates, the article recommends sticking with a safe, mainstream vehicle as a way to manage insurance costs.
