As you may already know, the cost of car insurance can vary greatly between different car makes and models.  If you buy a car that has high insurance premiums, the total of your car payments and insurance payments may be much higher than you expected — maybe even more than you can afford.

Let’s say you got a great price on a brand new Subaru Impreza WRX and also got a nice low-interest loan to create low monthly payments. You then go to your auto insurance company and are startled to find out that insurance coverage on that particular vehicle is higher than just about any other vehicle you could have bought — particularly if you are a teen or young adult.

It’s true that the Subaru WRX is one of the most expensive vehicles to insure, along with other vehicles such as the Scion tC, Hyundai Tiburon, Honda Civic Si, Dodge Charger, and Nissan 350Z/370Z.

Do you see the similarity in the vehicles in this list of expensive-to-insure vehicles?

They are all small, high-performance coupes that are popular with young male drivers — who wreck them frequently. In fact, young male drivers who buy these vehicles can expect to pay outrageous insurance rates — because the risk of having an accident and filing an insurance claim is very high.

But what does that have to do with the cost of auto insurance for drivers who are older, and maybe not even the same gender, who buy these vehicles? Do we also have to pay higher rates?

Yes.

Why?

Because insurance companies must spread the cost around. If they charged young male drivers of these vehicles the entire cost of the increased risk they create, the cost of insurance for them would be prohibitive. They couldn’t afford to pay. They couldn’t afford to drive.

So, to reduce the cost to those at higher risk, insurance companies pass along some of the cost to those of us who are lower risk. Even if you are 60 years old with a perfect driving record, you will pay a much higher car insurance premium for a Honda Civic Si coupe than for a less exciting Toyota Camry 4-door sedan.

Said another way, young male drivers actually get a break and don’t have to pay their fair share because older drivers pay part of the cost for them.

Generally, the cost of insurance increases for vehicles that are most expensive to repair, vehicles that are stolen most often, and vehicles that are wrecked most often (according to insurance industry statistics). Vehicles that primarily appeal to young drivers are more expensive to insure than vehicles that appeal primarily to older drivers.

So, regardless of your age and driving record, you should research the cost of auto insurance on the vehicle you plan to buy before you buy. Your great car deal can easily turn sour if your insurance costs skyrocket.

What is the best way to research insurance costs before you buy?

Simple. Just call your own auto insurance company. But don’t assume your own company has the best rates. It’s always a good idea to get multiple quotes. The quotes are free, so why not? It’s easy to get quotes from online car insurance companies, such as NetQuote.com, who gives you quotes from up to five different insurance providers so that you can compare and choose the best deal for you. This is the only way to make sure you are getting the cheapest auto insurance coverage that meets your particular needs.

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Keep in mind that car insurance costs can vary widely between insurance companies for the same car and same individual. And rates change frequently. The cheapest insurance company this year might not be the cheapest next year. The company that has the best rates for a young driver may not have the best rates for an older driver. The company that has the lowest rates in one city and state may not have the lowest rates in another city and state.

So how do find the cheapest auto insurance rates?

Simple. You ask for rates from a number of different companies, compare them, and go with the most affordable. Insurance quotes are free and there’s no obligation to accept any of them.  Then, in about a year, you do it again because rates can change in that timeframe.

Understand that auto insurance companies have a complicated risk-based system that determines rates. Rates are based on the age of the insured, his driving record, where he lives, where he drives, how much he drives, for what purpose he drives, the make/model/age of his vehicle, if he has other insurance with the same company, and his credit score. Yes, many insurance companies have determined that people with poor credit scores are more likely to submit car insurance claims, and therefore should pay higher insurance rates.

How much insurance should you buy?

Many people try to cut costs and only buy the state-required minimum liability coverage. Unfortunately, these minimums were set years ago before cars became so expensive and before big liability law suits became so common. In some state, for example, the minimum coverage is $15,000.

Let’s say you cause an accident and destroy someone’s $30,000 car. After your insurance pays $15,000, you will be held responsible for paying the remaining $15,000. Therefore, you should have a minimum of $50,000 liability coverage — or risk financial disaster.

You should also have collision and comprehensive coverage.

Collision insurance pays for the cost of repairs to your own vehicle. Unless you have a big bank account, having collision coverage is important to avoiding the high cost of damage repairs.

Comprehensive insurance protects you if your car is destroyed by fire, totaled in an accident, or stolen. This is especially important if you have a loan on your vehicle. However, if you are “upside down” on your loan, your insurance will only pay the value of your vehicle, not what you still owe on your loan. For more protection in that situation, you should have “gap” insurance (see What is Gap Insurance for more details).

To summarize, the only way to get the best auto insurance rates is simply to request free rate quotes from a number of different companies.

The insurance business is so competitive that these companies are fighting for your business.

One  of the easiest and quickest ways to get multiple quotes from different companies is to go to a broker web site, such as NetQuote.com, that work with all the major insurers. Fill out your information once, and get quotes back from the companies that would work best for you.