10 Most Expensive 2005 Cars to Insure
You've
done it! Your youngest child has just graduated from college.
No more tuition bills. Yea! Now you and your spouse can relax
a little. Maybe take that vacation the two of you have been talking
about. You're thinking it would be nice to have a new car also,
perhaps a sleek convertible. All the better to take in the scenery
on your vacation. You begin to plan for all your expenses. Living
with four years of college tuition has helped you hone that skill
to fine edge. You know exactly the car you want. You know what
options you want with it and how much they'll cost. You figure
your insurance will run about the same as for your current auto,
maybe a little more because it will be a newer and nicer car.
Hold
on there partner. Your insurance might be about the same
but
it could be more, much more. Insurance companies based their premiums
on two things, what they think about the probability that you
will have an accident and how much they think it will cost them.
Where you drive, how much you drive, and who's doing the driving
are among the factors that affect the probability of an accident.
What you drive is a major factor in estimating their cost.
The
reality is that some autos cost more to repair than others, which
comes as no surprise. Obviously, we would expect to pay more to
repair a Jaguar than a Datsun. We might even be a little proud
of it. Less obvious is the fact that some vehicles are also likely
to cause more damage than others. Picture a Hummer (6,400 lbs.)
and a Chevy Malibu (3,200 lbs.) in an intersection accident. Which
one do you think is going to come off worse?
The
Insurance Services Office (ISO), an organization that compiles
loss data for the insurance industry, assigns vehicles to one
of 27 classifications. Each classification reflects a variety
of loss elements such as damageability, cost to repair, and the
extent to which the vehicle may be a target for theft. The higher
the classification, the higher the insurance premium for damage
to the vehicle (your collision and comprehensive coverage). Not
every insurance company uses the ISO classifications but the great
majority do.
Top
10 Most Expensive 05's to Insure |
1.
Honda Civic
2. Chevrolet Cavalier
3. Nissan Altima
4. Ford
Focus
5. GMC Sierra
6. Ford F-Series Pickup
7. Chevrolet
Silverado
8. Dodge
Ram
9. Toyota
Camry
10. Honda
Accord |
The
focus of this article is the most expensive autos to insure of
the most popular vehicles sold in the U.S. We started with the
20 top selling vehicles according to Reuters Wire Service (11/3/04)
and compared insurance rates in cities on both coasts and in the
mid-west in arriving at our final list.
Our
comparison of insurance rates was based on a 45 year-old single
male with no driving violations or convictions and driving to
work less than 3 miles one way. We used liability limits of $100,000
per person, $300,000 per accident, and $50,000 property damage.
Comprehensive and collision premiums were determined using a $250
deductible. Obviously, you can expect to pay more for insurance
in some localities than in others. For example, it may cost $3,100
to insure one of these vehicles in Philadelphia but only $700
to insure the same auto in Indianapolis. In addition, the particular
model you purchase will influence your insurance premium (ISO
has 10 different classifications for the Honda Civic, for example).
There
are many autos that are more expensive to insure than those in
our list, the Lamborghini Muriélago Roadster ($319,000),
the Ferrari 612 ($260,000, the Rolls Royce Phantom ($328,000),
or the Aston Martin DB9 ($155,000), for example. But, if you are
seriously considering buying one of those, you probably aren't
too concerned about the cost of your auto insurance.
This
year, ISO also developed a new system for determining Liability,
Personal Injury Protection (No-Fault states), and Medical Payments
premiums. The new system applies credits or surcharges ranging
from -20 percent to +25 percent based on the fact that one auto can cause more
damage than another (our Hummer - Malibu example) and the fact
that passengers are more likely to sustain injury in some autos
than in others. Again, although the new program is available in
all states, not all insurance companies have adopted it.
A
number of factors may cause your individual premium to differ
from the quotes we received. Certainly, if operators in your household
have had accidents or traffic violations, your premium will be
higher. If you are under 25 or over 50, your premium may be higher
or lower. If your commute to work is further than the 3 miles
we used, you can expect to pay around $60-70 more for your
insurance but if you are comfortable with a $500 deductible on
your collision and comprehensive coverages instead of $250, you
might save $150. That means if you are loss-free for two years,
your premium savings will have paid for the first time your have
to use your deductible. Hopefully, that will be never, leaving
you free to spend that money on other things. And, of course,
insurance companies do compete for good insureds. It pays to look
around before you buy.
That
said, the range of premiums we found and the fact that many insurers
have not yet adopted the new Liability, Medical Payments, and
Personal Injury Protection rating plan described above gives insurance
buyers a very clear message: NOW IS A GOOD TIME TO COMPARISON
SHOP!
Happy
hunting.
(source:
Insure.com)
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