Car insurance rates are skyrocketing. Here's which models will cost the least to cover

The average annual premium for a full coverage policy increased by 14% compared to last year.

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With the pandemic firmly in the country’s rearview mirror, American drivers are again logging miles on the nation’s highways, and they’re also facing higher car insurance premiums. The average annual premium for a full coverage policy is set to rise from $1,771 last year to $2,014 in 2023, representing a budget-busting 14% increase, according to analytics company Quadrant Information Services.

We can largely blame inflation and the auto industry’s recent supply and demand problems for higher auto insurance costs. With expensive parts costs and labor rates especially in hiking claims, new vehicles have become more expensive to purchase and repair. The high health care costs associated with injuries caused by accidents are also at issue here.

Analysts don’t see any prospects for relief in the future, so savvy consumers would be well-advised to tighten their purse strings and become proactive in looking for more affordable auto coverage.

Auto insurance rates are based largely on the policyholder’s personal information. Young, single, male drivers living in crowded urban areas with poor credit ratings and poor driving records will typically pay the most for coverage. Rates will also vary from state to state depending on a variety of factors – sometimes dramatically.

While factors like demographics and past accidents and traffic citations are hard to come by for the most part, people who are looking for a new vehicle can save a bit on their premiums by choosing a make and model that is less expensive to cover than others. It is relatively cheap.

Generally speaking, the most economical models to insure are those that run quietly, have top safety ratings and are cheap to repair if an accident occurs. It is safe and robust in favor of mainstream SUVs and minivans. Personal finance website Bankrate.com ranks the Subaru Forester crossover SUV as the value leader at an average of $1,603 for full coverage for 2023, which will, of course, vary according to the policyholder’s personal factors above.

The models bearing the highest premiums are luxury models that cost the most to repair and have a higher cost limit before being scrapped. Likewise with high-performance cars, which need to be driven as fast and furious as practical. For example, those who own a red-hot Dodge Charger sports coupe will face an average of $2,824 for annual coverage, and much higher for those with ongoing violations and/or at-fault claims on their record.

Electric cars, which have higher-than-average sticker prices and are based on expensive battery packs that can power some models if they are damaged in an accident, also cost more than average to insure. According to Bankrate.com, the compact Tesla Model Y SUV leads the pack in this regard for 2023, and the average owner will have to pay $2,804 in annual premiums.

We’re listing the models with the lowest and most expensive annual auto insurance premiums out of the 27 vehicles considered on the website below.

In addition to shopping for a new ride, people who want to keep their car insurance premiums affordable should check prices among multiple carriers each year to see if a better deal is available, based on one’s personal information. . This is especially important for people who have recently made life-changing changes such as moving to a new city, getting married or divorced, or having traffic tickets and/or accidents. Some carriers are more willing to accept certain levels of risk on a more or less expensive basis than others.

Cash-sensitive owners can reduce the policy’s liability coverage to state minimums, increase deductibles for comprehensive and collision-damage and remove add-ons such as towing and rental car provisions.

Finally, be sure to get every discount a given carrier is offering. These include rate reductions for teens and seniors who have taken an approved safe-driving course, people who bundle coverage for multiple vehicles and/or homeowner’s insurance with the same company, reducing one-year premiums annually. pay and so on. Although this may seem intrusive, many companies now offer lower rates based on the motorist’s driving habits, including data collected from the vehicle’s onboard diagnostics port.

The cheapest cars to insure for 2023