Are you looking for the cheapest vehicles to insure? What most people don’t realize is that their vehicle is one of the biggest factors in car insurance. In fact, it is the biggest part of their car insurance cost over which they have complete control. Unlike credit or driving history, picking a car is a short process.
This article will help you find the cheapest vehicle to insure. This can help keep the cost of insuring teenagers, people with DUIs or less than perfect driving records for a much more reasable cost.
Cheapest Vehicles To Insure
The cheapest vehicles to insure are generally older cars. A $500 junker is usually the cheapest for you to insure. If your car is old enough for an antique policy, those usually get the cheapest car insurance rates.
These cars are usually over 20 years old. Although some may have problems, the insurance company doesn’t generally have trouble insuring them.
In just the first year, may people find a cheap car paying for itself in insurance savings along.
If your insurance is high, get a quote with a cheaper car before you buy.
Why Your Vehicle Matters
The price of car insurance comes from the perceived risk of insuring the driver. Riskier drivers always pay more money. The insurance company has several ways to calculate that risk.
Some of those calculations are based on you. They use your credit history and driving history to see how responsible you are. However, both of those reports generally take a long time to alter for the better.
Other calculations come from the area where you live and will be mostly driving. These are things like average number of car accidents, intersections and other things that vary from zip code to zip code.
Again, these factors are hard to change. Most people can’t move somewhere else just to save a few dollars a month on car insurance.
Lastly, the vehicle you drive can tell a lot about how risky you are to insure. This is much more controllable than the other factors.
When To Change Your Vehicle
Naturally, there are many reasons why people purchase a new car. Some of these reasons are because their family is growing, their current car is always in the repair shop or they are buying a car for the first time in their lives.
However, there are circumstances where getting another vehicle for car insurance can be advantageous.
For example, if you recently were in a car accident, received a DUI or haven’t had car insurance in years, the cost of insuring a new vehicle with some more serious blemishes on your driving record may be too high for your budget.
Personally, I have seen people get insurance quotes exceeding $700 a month for liability coverage of a new vehicle with similar driving histories.
When insurance become too expensive, it is time for a new vehicle.
What Vehicle Should You Choose?
Naturally, you want a reliable car, even if it’s temporary. No one wants a car that’s going to break down on them. In my experience, Ford makes some of the most reliable cars. The Ford Focus I owned needed less than $400 worth of maintenance over three years. That included oil changes, breaks and tires.
However, some people prefer Chevy, Jeep, Honda or Toyota. All o2f these brands usually have multiple used cars available nearly nationwide. Generally, if you’ve had a good experience with one of these car brands, it doesn’t hurt to stay with what you know.
If you love your current car, you may just want to find an older version of it. If you have a 2021 Honda Civic, maybe look for a 2001 used Honda Civic.
This way, you may already be familiar with the car. Sometimes, parts and accessories are even interchangeable.
How Much Should You Spend On A Car?
If your situation is that you are looking for something cheap to insure during your SR-22, waiting for DUIs, tickets or accidents to drop off of your driving report or your teenager to build up their driving history, then I would not plan on spending a lot of money on a temporary car.
Generally, I would say to spend about $500-$1,000. This way, if the car seriously breaks down, you won’t be out of a lot of money. Usually, you can even sell that same car for about the same price 1-4 years later when you are down with it. Assuming it is still very drivable.
Hypothetically, if you spent $500 on that used Honda Civic, you probably could try listing it for about $700 when you are through with it. That way, you would have a little wiggle room for negotiation.
If that car saves you about $50 a month (sometimes it will be much more than that), it pays for itself in 10 months.
And if you sell it after 2 years, saving an average of $50 a month, you would save $700 in car insurance premiums! Add another $500 when you sell it and you would be $1,200 ahead. That’s more than double your initial investment!
Other Considerations For The Cheapest Vehicles To Insure
Naturally, things can always go wrong. The car you buy may always be in the car repair shop. You may not be able to sell the car. Depending on your insurance, you may save little or nothing with a different car.
Before you do anything, make sure you get a quote on the car you’re looking at or one just like it. Also, rebuilt and salvage titles may be harder to insure.
Also, if you bought a brand new car and financed it, you may have already agreed to keep full coverage on it for the length of the loan. This is a very common provision. Always double check before making a change suggested in this article.
Hopefully, you can now see why a cheap car may make more sense than people think. In fact, these are usually the cheapest vehicles to insure. Most people think older cars always break down. This is not often the case. Generally, it is only cars that were not well maintained that break down.
This article should give you some clues about saving money on car insurance. This is an option that seems to work for several people I have met. This is especially popular for parents of new teenage drivers. Since those drivers have some of the worst rates, this strategy may make sense for them.
Of course, never rush into a financial decision. Take your time to research the best option for you.
However, if this seems like a viable solution or you have done this before, let us know in the comment section below!
Adam is a license Property and Casualty Insurance Agent for over two years in 25 States. He has worked with 10 different insurances companies. His interests include marketing, insurance, sales, and personal finance.