Cheapest Cars to Insure

Paying premiums for auto insurance are a burden for many young drivers. Even older aged drivers are not immune from paying high amounts of premium for car insurance right after they have got their driver's license, as it takes a fair amount of time to get to build up a no claims bonus. To purchase one of the many cars which are cheap to insure can therefore considerably ease the financial burden on somebody who has just received their driver's license. Buying a car which is cheap to insure should not be viewed as a low prestige choice. Instead you must look at the long term picture and be sensible about the whole situation.

It is a known fact that the make and model of car that you drive, helps in determining the amount of insurance premium that will have to be dished out by you. Based on this parameter and a number of other factors, your insurance premium is placed in a certain group ranging from 1 to 20. The higher the group that you are placed in, the lesser will be the amount of insurance premium to be paid by you.

Factors Determining How Much Premium You Will Pay
The quote that the auto insurance companies make for your car premium will depend on many factors. The cheapest cars to insure will be the ones that will receive a lesser quote, and as a result will benefit you immensely. Here are the parameters that the insurance companies use in order to ascertain the cars that are cheap to insure.

• Where is your car going to be parked - in a garage, on a driveway or on the street?
• Which insurance group does your car fall under?
• How many miles will you travel annually?
• What is your marital status?
• What is your occupation?
• Do you have an alarm system in your car?

All these factors play a part in determining how safe your car is going to be, and how likely is it that you will cause major damage to it. This helps these companies decide what are the cheapest vehicle insurance costs. The safest cars will obviously attract the lowest premiums. Therefore, the cheapest insured cars are the cars that the insurance companies consider to be the safest.

How do Insurance Companies Decide Which are the Cheapest Cars to Insure?
Apart from the factors mentioned above, there are other parameters as well that the insurance company needs to consider. And since you are the one who shall be paying the insurance installments, you must also be aware of these parameters for determining which are the cheap cars to insure for first time drivers.

Insurance companies use statistical data to determine the premium rates. They analyze the frequency of the payment of claims over the past 3 years for each and every car and model. The cars that have had the most claims, are obviously more prone to accidents and losses. As a result, the premium charged on those particular models will be higher than other cars and models. The "collision coverage" also plays a part in determining cheap cars to insure for young drivers. What this implies is that the higher the cost of repairing any damage sustained by a vehicle due to a collision, the higher will be the insurance premium.

Most cars also have a relatively predictable pattern of drivers. Young males are the most likeliest to have accidents, and the cars that young males drive will require a higher premium. So as you can see, there are a variety of factors and studies that ultimately decide which cars are the cheapest to insure. The Subaru Impreza WRX is a good example of this particular case. Also the chances of a particular car getting stolen determine the premium that must be paid. The Cadillac Escalade is a good example of this.

Cars which are Cheap to Insure
Now that you are well versed with the parameters that these companies use to determine the premium rates for cars, here is a list of 15 of the cheapest cars to insure.

Car Model	Type of Vehicle	Annual Installment
Hyundai Santa Fe	SUV	$832
Kia Sportage	SUV	$840
Buick Rendezvous	SUV	$875
Saturn Vue	SUV	$911
Mazda Tribute	SUV	$913
Hyundai Entourage	Minivan	$848
Kia Sedona	Minivan	$857
Honda Odyssey	Minivan	$871
Buick Terraza	Minivan	$884
Chrysler Town and Country	Minivan	$915
Pontiac Sunfire 2dr Coupe	Passenger	$845
Renault Clio	Hatchback	$848
Kia Rio5	Passenger	$857
Saturn ION 1 4dr Sedan	Passenger	$875
Smart ForTwo	Passenger	$881

General analysis of data by auto insurance companies shows that usually larger cars, and medium-sized or small-sized SUV's are cheaper to insure. It is generally observed that these type of cars are driven by people who are less accident prone, unlike some other models. It pays to remember though that the vehicle insurance data differs from state to state. Some cars have different statistics for different states. As a result, cars that are cheaper to insure in some states may charge a higher premium in some other states.