With everybody screaming about how big SUVs cost a fortune in gas, nobody ever mentions the possibility of higher insurance premiums when driving a smaller car.
According to a recent report released by Insure.com, switching to a smaller vehicle may save gas, but it may actually increase your auto insurance premiums. Researchers at the company studied the rates of four of the nation’s most popular auto insurance providers in various areas across the United States. They found that some of the popular small cars from two Japanese automakers have the highest insurance premiums in the entire group.
Why are smaller cars more expensive to insure than larger cars? The main reason is because they are not as safe as larger SUVs that you can get at your GMC dealer. In addition to that, drivers of smaller cars tend to get into more accidents. Since there is less protection, the accidents are often costlier because drivers and passengers in those cars get hurt whereas a driver of a larger SUV may only have damage to the vehicle.
“Small cars tend to increase insurance costs because they get into more crashes,” says Russ Rader, a spokesperson for the Insurance Institute for Highway Safety (IIHS). “There’s a myth that a smaller car is more nimble and helps you avoid crashes, but smaller cars tend to have more collision losses.”
Does this convince you to invest in a larger car knowing that insurance companies consider them to be safer than smaller cars? Let us know your thoughts below.
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