Are your Auto insurance customers getting the best deal whenthey buy a new vehicle?
|A new study finds that some vehicles offer much better valuethan others when it comes to insurance.
|The Quadrant Information Services study,commissioned by Denver-based comparison-shopping site insuranceQuotes.com, examined 20of the most popular 2015 models, dividing the average annual costto insure each vehicle by its manufacturer’s suggested retailprice, to determine which vehicles are an insurance bargain andwhich ones carry a high insurance burden.
|"There are so many factors that go into pricing an insurancepolicy for a vehicle, but the average driver rarely takes theseinto account," says Christopher Paradiso, owner of StaffordSprings, Conn.-based Paradiso Financial & Insurance Services."A lot of drivers think that a cheaper car means cheaper insurance,but that's not necessarily the case."
|Related: 10 factors that affect your car insurancerates
|For example, the analysis reveals that although the FordExplorer has an MSRP of $34,345, it only costs an average of $1,300a year to insure. Meanwhile, the Ford Focus, which has an MSRP of$18,045 costs nearly $1,400 a year to insure, making it arelatively poor deal when it comes to the cost of insurance.
|Laura Adams, insuranceQuotes.com’s senior analyst, said it isvery important to shop around for car insurance before purchasing avehicle.
|"The recent insuranceQuotes study showed that buying arelatively inexpensive vehicle doesn’t mean that your insurancewill also be inexpensive. In addition to important factors — suchas your gender, years of driving experience, driving history, andannual mileage — the make and model of the vehicle you drive playsan important role in your auto insurance rate. If you don’t do yourhomework and shop rates before you buy a vehicle, you could besurprised by an insurance rate increase," she toldPropertyCasualty360.com.
|Talking with current Auto insurance customers about costs beforethey consider purchasing a new vehicle can help them — and you — inthe long term.
|"This is a really important factor to consider when it comes tobuying a car, because you may buy a less expensive vehicle thatwill wind up costing you more in the long run because it'srelatively expensive to insure," says Karl Brauer, senior analystfor Kelley Blue Book. "But it's also something people often forgetto consider. You may be able to afford the car, but can you affordto maintain and insure that car after it leaves the lot?"
|Here are the 20 most popular 2015 vehicles, ranked from worst tobest by insurance cost ratio:
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(Photo: PRNewsFoto via AP Photo)
|20. Ford Focus
|Type: Sedan.
|Average annual insurance cost: $1,391.
|MSRP: $18,045.
|Insurance cost ratio: 7.71%.
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(Photo: Paul Sancya/AP Photo)
|19. Toyota Corolla
|Type: Sedan.
|Average annual insurance cost: $1,400.
|MSRP: $18,665.
|Insurance cost ratio: 7.5%.
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(Photo: PRNewsFoto via AP Photo)
|18. Hyundai Elantra
|Type: Sedan.
|Average annual insurance cost: $1,384.
|MSRP: $19,085.
|Insurance cost ratio: 7.25%.
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(Photo: Paul Sancya/AP Photo)
|17. Honda Civic
|Type: Sedan.
|Average annual insurance cost: $1,368.
|MSRP: $19,910.
|Insurance cost ratio: 6.87%.
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(Photo: Paul Sakuma/AP Photo)
|16. Chevrolet Cruze
|Type: Sedan.
|Average annual insurance cost: $1,318.
|MSRP: $19,695.
|Insurance cost ratio: 6.69%.
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(Photo: PRNewsFoto via AP Photo)
|15. Hyundai Sonata
|Type: Sedan.
|Average annual insurance cost: $1,367.
|MSRP: $21,975.
|Insurance cost ratio: 6.22%.
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(Photo: Handout)
|14. Nissan Altima
|Type: Sedan.
|Average annual insurance cost: $1,414.
|MSRP: $23,125.
|Insurance cost ratio: 6.61%.
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(Photo: PRNewsFoto via AP Photo)
|13. Ford Fusion
|Type: Sedan.
|Average annual insurance cost: $1,359.
|MSRP: $22,985.
|Insurance cost ratio: 5.91%.
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(Photo: Paul Sancya/AP Photo)
|12. Toyota Camry
|Type: Sedan.
|Average annual insurance cost: $1,371.
|MSRP: $23,905.
|Insurance cost ratio: 5.74%.
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(Photo: John Locher/AP Photo)
|11. Toyota Prius
|Type: Sedan.
|Average annual insurance cost: $1,409.
|MSRP: $25,035.
|Insurance cost ratio: 5.63%.
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(Photo: Katsumi Kashara/AP Photo)
|10. Honda Accord
|Type: Sedan.
|Average annual insurance cost: $1,289.
|MSRP: $23,725.
|Insurance cost ratio: 5.43%.
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(Photo: Mark Lennihan/AP Photo)
|9. Toyota RAV4
|Type: SUV.
|Average annual insurance cost: $1,288.
|MSRP: $24,580.
|Insurance cost ratio: 5.24%.
||
(Photo: Reed Saxon/AP Photo)
|8. Ford Escape
|Type: SUV.
|Average annual insurance cost: $1,210.
|MSRP: $23,995.
|Insurance cost ratio: 5.04%.
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(Photo: PRNewsFoto via AP Photo)
|7. Ford F Series
|Type: Truck.
|Average annual insurance cost: $1,341.
|MSRP: $27,225.
|Insurance cost ratio: 4.93%.
||
(Photo: Remy de la Mauviniere/AP Photo)
|6. Honda CR-V
|Type: SUV.
|Average annual insurance cost: $1,183.
|MSRP: $24,325.
|Insurance cost ratio: 4.86%.
||
(Photo: Seth Perlman/AP Photo)
|5. Dodge Ram 1500
|Type: Truck.
|Average annual insurance cost: $1,302.
|MSRP: $26,855.
|Insurance cost ratio: 4.85%.
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(Photo: Andrew A. Nelles/AP Photo)
|4. Chevrolet Equinox
|Type: SUV.
|Average annual insurance cost: $1,265.
|MSRP: $26,105.
|Insurance cost ratio: 4.85%.
||
(Photo: Andrew A. Nelles/AP Photo)
|3. Chevrolet Silverado
|Type: Truck.
|Average annual insurance cost: $1,269.
|MSRP: $27,815.
|Insurance cost ratio: 4.56%.
||
(Photo: Paul Sancya/AP Photo)
|2. GMC Sierra
|Type: Truck.
|Average annual insurance cost: $1,272.
|MSRP: $28,315.
|Insurance cost ratio: 4.49%.
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(Photo: M. Spencer Green/AP Photo)
|1. Ford Explorer
|Type: SUV.
|Average annual insurance cost: $1,301.
|MSRP: $43,345.
|Insurance cost ratio: 3.79%.
|Related: 20 auto insurance companies ranked from worst tobest by consumers
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Trudy Knockless
Trudy Knockless is a reporter on ALM Media's Business of Law desk. She has a background serving legal and insurance publications. Contact her at [email protected] or on LinkedIn at Trudy Knockless.
