Lowest Insurance Rates Make Best Car Deals

auto insurance car dealsMany people buy new cars and only look at the price or monthly payment. However, overall cost of ownership also depends on other factors such as fuel economy, reliability (how frequently repairs are needed), cost of repairs, cost of scheduled maintenance, annual taxes — and auto insurance cost.

After monthly payments, auto insurance is the most costly ongoing expense of driving a car.

We all know that we are required to have auto insurance on our cars to comply with state financial responsibility laws and, if we have a loan or lease, to meet finance company requirements.

Insurance laws are in place to make sure we are financially able to pay for damages and injuries that we might cause in accidents for which we are at fault. Banks and finance companies want to make sure they get paid if you damage or destroy a car for which you have a loan or lease. Insurance protects us from financial disaster, even if we think we’ll never need it.

Since insurance is such a large part of the expense of driving a car, insurance rates can make the difference between a good car deal and not-so-good deal. Insurance rates on different automobile makes and models can vary by thousands of dollars. Ideally, we want to choose a car with not only a good price and monthly payment, but also a good low insurance rate.

So, what are the cars with the lowest auto insurance rates?

According to industry sources, the least expensive 2011 vehicles to insure are the following:

    1. Chrysler Town and Country LX
    2. Toyota Sienna LE
    3. Honda Odyssey LX
    4. Nissan Murano SL
    5. Jeep Wrangler Unlimited Sport
    6. Honda Odyssey EX
    7. Ford Escape XLS
    8. Toyota Highlander
    9. Honda CR-V LX
    10. Hyundai Santa Fe GLS
    11. Jeep Patriot Sport
    12. Jeep Wrangler Unlimited Sahara

You might notice that the above list includes a mix of mostly minivans and small SUVs, who are driven by people who are less likely to have accidents than teenage boys who prefer sportier, faster, more powerful models — and who wreck cars much more often, which creates higher insurance rates, even for middle-age and older drivers of those cars.

Ignoring pricey luxury cars, which are always more expensive to insure, any car that is not likely to impress teenage males is going to have lower auto insurance rates than those that get the boys excited. In general, SUVs, minivans, sedans, and mini-cars have the lowest rates. Sports cars, or small sporty 2-door coupes with powerful engines will command the highest rates.

When shopping for auto insurance, you should know that rates vary widely from state to state and company to company. There is no such thing as “standard” car insurance rates. Insurance providers are very competitive and are continually adjusting their rates.

Don’t assume that your current insurance company has the best rates. You should check for best rates at least once a year by getting rate quotes from online companies such as Esurance.com, that can give you an instant free rate quote on any vehicle.

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