The Washingtonian’s View

Gas prices have began to drop, but is that a sign of more things to come?  Or, can we expect thing to get worse before they get better?  People will be more to believe that the price gas is driving you to the poor house, not your auto insurance.

If you are looking to decrease your outflow of income, insurance experts says its simple:  stay away from small, fast cars.  Vehicles with the highest losses are generally smaller, sportier vehicles.

“It’s very simple economical mathmatics that these small cars have the highest loss,” says Russ Rader, spokesman for the Insurance Institute for Highway Safety. “If you feel like you have a vehicle that can zip in and out of traffic, chances are you’ll do that,” he further stated.

The data shows that small cars get into more accidents.” he says.

Each year, the Insurance Institute for Highway Safety, and its sister organization, the Highway Loss Data Institute, analyze the actual insurance losses associated with the most popular vehicle makes and models. Since insurance companies use similar kinds of data to set premiums, the rankings give consumers a window into how their vehicle choices affect their auto premiums.

It’s regarded as a very accurate system.  One that determines pricing for insuring all makes and models.

And, once again, the data suggests that small cars and speed are an expensive combination for insurers — especially with a young driver behind the wheel.

The numbers suggests what most psychologists have believed for decades, that sporty cars tend to be driven in ways that lead to more crashes.  They also tend to be driven by younger, riskier drivers.

A large part of it is pricing.  Smaller cars also tend to be more affordable, which makes them more attractive to those same younger drivers.

The 10 Most-Expensive Cars to Insure are listed below.  These vehicles have the highest dollar amount of losses for insurance companies (starting with the most expensive).

1. Cadillac Escalade EXT 4WD
2. Subaru Impreza WRX 4WD
3. Hyundai Tiburon
4. Mitsubishi Lancer
5. Scion tC
6. Acura RSX
7. Nissan Sentra SE-R
8. Suzuki Forenza
9. Nissan Sentra/Mitsubishi Eclipse
10. Chevrolet Cobalt two-door
Source: Insurance Institute for Highway Safety, based on 2004-2006 models

The 10 least-expensive cars to insure are listed below.  These are the vehicles with the lowest dollar amount of losses for insurance companies (starting with the least expensive).

1. Ford Five Hundred 4WD (now the Ford Taurus)
2. Buick Rendezvous 4WD
3. Buick Lucerne/Buick Rainier 4WD/Honda Odyssey
4. Ford Freestyle 4WD/Subaru Outback 4WD
5. Buick Rendezvous/Honda Pilot
6. Chrysler Town & Country LWB
7. Honda Pilot 4WD
8. Buick LaCrosse/Chevrolet Uplander/Ford Escape/Volvo V70
9. Dodge Grand Caravan/Ford Freestyle 4WD
10. Ford Explorer 4WD/GMC Sierra 1500 4WD/Toyota Highlander/Toyota Sienna
Source: Insurance Institute for Highway Safety, based on 2004-2006 models

Suprisingly, the car that comes in fifth on the “most expensive to insure” list, the Scion tC, has one of the youngest demographics. “Lost of young kids want this car based on it’s appeal and it’s pricing,” said Kyle Dierks of International Auto.  Amazingly, thirty-five percent of drivers are under 25.  Kim Hazelbaker, senior vice president for the Highway Loss Data Institute says, “The vehicle is not high on the safety list – it is somewhere in the middle.  In seeing that young people are quickly running to this car, there should be more to ensure the driver’s safety.”

The giant among those that are the most expensive to ensure, the Cadillac Escalade, bucks the trend. It’s big.  It’s a bit cumbersome.  It’s a luxury car.  So why is a luxury SUV most commonly driven by a more affluent and comparative older clientele on the list? That can be summed up in two words: theft magnet.

Criminals, carjackers specifically, look at the Escalade to steal because of popular resale value in the underground market.  The car has been made attractive by it’s popular setting in the entertainment industry.  These days its impossible to see a celebrity, or an episode of MTV’s ‘Cribs’ and not seeing an Escalade too far behind. Plus, everything in an Escalade bolts into a Suburban.

The criminals have made things so tough that owners face a comprehensive premium of six times the national average.

Suburbanites are thankful that the vehicles that are likely to have the lowest insurance costs are family cars.  Criminals are siding away from large sedans, or midsize SUVs or minivans, and the cost to insure them are reflective of that.  Statistically these vehicles on the bottom rung tend to be driven by people who are not as likely to speed or drive recklessly.

Most importantly, they also aren’t as likely to be used to commute to and from work. That means the cars aren’t on the road during rush hour, which also lowers their risk.

So then most people want to know what is the cheapest car to insure.  According to the institute the all-around least expensive to insure is the Ford Five Hundred (known as the Ford Taurus).  The Five Hundred is listed as a medium-sized, affordable sedan.   The Five Hundred is probably driven by a favorable demographic in a favorable way.  It’s been listed as an suburban family second car.

As far as reasons, there are many; but the most popular is the idea that these ‘second cars’ are probably living in a garage.  If it’s in the garage they tend to be less desirable to thieves.

Want to keep your premiums low? Talk to your agent before you buy your next vehicle.

And each car has more than one score to consider. The same car that shows lower-than-average losses in terms of inflicting damage might be worse in terms of theft. But insurance companies, and the premiums, take the whole package into account.

So what categories make the most difference, when it comes to your premium?

The biggest portion of auto insurance is for liability.  Next is collision and comprehensive, fairly equally. And after that comes medical payments.

Smart money: Look at your car’s scores in all categories, but in the end, shop safety. Pick up great safety information, like crash tests results, rollover ratings, recalls, service bulletins and consumer complaints with the following sites.

It’s always important to remember that the vehicle you choose to get is only part of the equation. You are another part of the overall rate.  Your driving record, your lifestyle, your type of employment, the distance between your home and your place of emplyment.  Your premium all are shaped by these things.