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Key Takeaways

  • The cost of the car is one of the major factors in deciding how much auto insurance will cost.
  • The insurance cost of a gas SUV is probably cheaper than a diesel car.
  • You can raise the IDV when getting a new car insurance policy or renewing an existing one.
  • The location greatly impacts how much a car insurance policy will cost.

Car insurance price comparison: SUVs vs. Sedans

SUVs have become well-liked sedan substitutes as they have grown more comfortable, safe, and eco-friendly. When comparing the prices and benefits of an SUV vs. a sedan, it's important to look at the figures to determine which car will be more expensive to buy and insure.

Is it cheaper to buy an SUV or Sedan?

SUVs have become a well-liked sedan substitute as they have become more comfortable, safe, and eco-friendly. However, when comparing the prices and benefits of an SUV vs. a sedan, it's important to look at the figures to determine which car will be more expensive to buy and insure.

The Chevy Equinox or the Subaru Forester are good options if you're looking for an SUV on a low budget. The average list price of these vehicles is $24,059, which is $2,307 more than the typical sedan price but about $2,800 less than the typical SUV price.

Sedan list values SUV list values
Chevrolet Cruze- $18007 Honda CR-V- $ 24462
Honda Accord- $23732 Chevrolet Equinox- $23812
Ford Fusion- $23182 Subaru Forester- $24307
Honda Civic- $19562 Toyota RAV4- $25662
Honda Civic-$19562 Nissan Rogue- $23032
Toyota Camry- $24107 Ford Explorer- $32777
Nissan Altima-$24112 Jeep Grand Cherokee-$32047

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Is it cheaper to insure an SUV or a sedan?

Even though an SUV typically costs much more than a sedan, the cost of auto insurance can vary greatly. SUVs normally cost $314 less to cover annually than sedans, though rates will vary depending on your vehicle insurance provider and model.

Average annual insurance cost: sedans Average annual insurance cost: SUVs
Chevrolet Cruze-$1616 Honda CR-V-$1521
Honda Accord - $1,636 Toyota Equinox- $1508
Honda Odyssey- $1645 Subaru Forester- $1601
Nissan Altima- $1757 Toyota RAV$- $1568
Nissan Civic- $1813 Nissan Rogue- $1558
Toyota Camry - $1,704 Ford Explorer- $1581
Toyota Corolla- $1736 Jeep Cherokee- $1591

Factors that influence the car insurance premium for your SUV (or) Sedan

1.Car class

SUVs and Sedans use different four-wheeler designs for various purposes. For example, you can choose smaller hatchbacks, larger-cabin sedans, SUVs that can handle off-road driving situations, and Utility Vehicles (UVs) that accommodate more passengers.

In the past, SUVs had larger engines, intricate 4x4 systems, and off-roading-specific equipment that allowed them to handle difficult terrain. However, until it is an expensive and luxurious SUV, they do not offer a comfortable ride similar to a sedan.

Recent years have seen a change in that. The modern models of SUVs are compact and smaller, but they are priced similarly to sedans and offer a roomy interior, high-end equipment, better ground clearance, and a pleasant ride.

One of the key elements in determining how much a car insurance coverage will cost is the price of the car. As the price differential between SUVs and cars decreases, so makes the insurance premium difference between sedans and SUVs.

2.Year of production

The manufacturing year of your car indicates how old it is. Therefore, the vehicle's age is important when determining the insurance rate. The depreciation factor is the cause of this.

Motor parts consistently deteriorate as the vehicle ages. Because market value is important in calculating the insurance rate, newer cars have higher premiums.

3.Fuel type

Typically, petrol cars are less expensive than diesel cars. As a result, gasoline-powered automobiles have cheaper insurance costs. Therefore, the price of the car is a big influence in deciding the cost of your insurance policy, regardless of whether you acquire petrol, diesel, CNG, or LPG vehicle.

A petrol SUV's insurance rate is probably less expensive than a diesel sedan's. Additionally, the premium will go up if you add a CNG or LPG kit to your car (SUV or sedan).

4.Engine power

One element affecting the insurance price is the engine's cubic capacity (cc). A bigger engine will surely result in a higher insurance premium because the car's market worth is higher.

Additionally, the Third-party Liability (TP) plan's insurance price is determined by the vehicle's engine capacity rather than by the type of vehicle (SUV or sedan).

5.Insured Declared Value (IDV)

The IDV is the insured vehicle's approximate current market value. When you purchase or renew the plan, ACKO and you mutually understand it. Additionally, it's the sum you'll get if your car is stolen or destroyed.

When purchasing or renewing an automobile insurance policy, you have the choice to improve the IDV. But raising the IDV will also raise the premium. Similarly, lowering the IDV will result in a lower premium but a lesser claim payout. Therefore, it isn't always true that all SUVs cost more to insure than sedans, as the insurance premium is set by the approximate market value of the car rather than by the kind of car.

6.Location

Location is important in determining how much a car insurance coverage will cost. Insurance rates are typically higher in areas prone to theft, accidents, or natural disasters. Due to the potential increased risk of accidents and thefts in urban areas, buying a car there entails higher insurance premiums.

Instead of considering whether the automobile is an SUV or a sedan, location is crucial in determining how much your auto insurance coverage will cost.

7.Costly repairs

Luxury SUVs frequently feature high-end finishes and technology, which can swiftly raise insurance rates because your insurer will be in charge of the expense of repairing your car following a claim.

Are Sedans Expensive to Insure?

Elegance, less elbowing, more leg room, and massive boot space make sedans pricey to insurance. This space is what comes to mind when considering a car. They are exquisite and might cost a lot if you have a love for luxury. But how about getting those beauties insured? Does that also cost a fortune?

If you're comparing it to a low cubic capacity (CC) hatchback, the answer is yes, but if you're comparing it to a high-end SUV, the answer is no. The answers to the following questions will determine how much your sedan's insurance will cost.

The cost of your sedan's insurance policy depends on the following questions.

  • Which Is Your Sedan?

Your vehicle will be less expensive if it has a smaller engine than one with a larger cubic capacity. But, of course, the sedan's brand and model are also factors that matter. If you're one of those who view their car as a canvas, the additional aesthetic modifications may affect your insurance rate.

  • What's in Your Zone?

Compared with sedan registrations in tier 2 and tier 3 cities, metro sedans attract a larger premium.

  • Private or Commercial?

Using your sedan is important because the cost of insurance for individual and business vehicles differs. Be willing to pay more for insurance if you use your car to make money by utilizing it as a commercial vehicle.

  • Are you a good driver?

Most of the time, the answer will be "yes"! However, your auto insurance company won't accept your word for it. Your claims history is going to be to your advantage. When you renew the auto insurance policy for your sedan and haven't filed any claims throughout the policy period, your insurer will award you a No Claim Bonus (discount). Higher rates could result from poor driving practices.

  • Is Your Sedan Safe?

Your insurer Installing anti-theft gadgets and parking your automobile in the approved spots are two simple ways to keep it secure. In addition, if your vehicle comes with suitable anti-theft equipment, insurance companies may offer a discount on insurance premiums.

  • Do You Have Add-ons?

You will pay a higher rate if you choose to increase the coverage on your sedan with Add-ons like Zero Depreciation Car Insurance, Invoice Protection, Passenger Cover, etc.

  • Insuring Your Sedan

Ensure your sedan, whether expensive or not, complies with the law and protects your financial interests in the event of an unpleasant circumstance like an accident. It takes only a few minutes to obtain a Comprehensive Car Insurance policy. However, before buying the policy, read and comprehend its features and limitations.

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Why can SUV insurance be costly?

Many aspects of SUVs may increase insurance costs.

Some SUVs can be pricey to insure for the following reasons:

Rolling risk: SUVs are more prone to turn over in a collision because of their height and width. Always expect to pay a little extra for insurance on cars with a more serious accident and claim rate.

Theft rates: Although pickup trucks consistently top the list of most-sold cars in the US, SUVs have recently exceeded sedans as the most popular car. The top 10 most popular vehicles sold in 2019 were all SUVs, with sedans appearing only once, at the eighth position.

SUVs are more expensive to insure because car thieves take advantage of them because they are popular with drivers.

Liability: Large SUVs have the likelihood of causing significant damage in collisions, which could result in more expensive insurance claims. Even if you have never made a claim, your insurance premiums will increase if your vehicle has a high claim rate, according to insurers.

Final thoughts: sedans or SUVs

When deciding between SUVs and sedans, the list price ought to come before anything else, even if getting affordable auto insurance will be crucial once you've chosen a type.

Auto Insurance Data Methodology

The auto insurance rates published in this guide are based on the results of research completed by Way.com’s data team. Using a mix of public and internal data, we analyzed millions of rate averages across U.S. ZIP codes.

Quotes are typically based on a full coverage policy average unless otherwise noted within the content.

These rates were publicly sourced from insurer filings and should be used for comparative purposes only — your own quotes will differ. Given this, it’s important to go through our insurance steps form to find how much you can save with way.com

Frequently asked questions

How do insurance companies determine rates for different cars?

Besides the car's price, other factors affect the insurance rates for different cars. However, the previously mentioned elements that assist insurance companies in determining auto insurance policy premiums can be summarized.

Why do luxury SUVs cost more to insure?

Due to their larger engine capacity, intricate mechanicals, high-end equipment, and other factors, luxury SUVs are more expensive. As a result, luxury SUVs have greater insurance costs due to their higher pricing. Therefore, the market value of the luxury SUV is the key variable affecting insurance costs.

Is the insurance cost for compact SUVs the same as mid-sized sedans?

The cost of insurance for compact SUVs is comparable to that of mid-sized sedans as the price difference between the two vehicle types closes.

How does car classification affect insurance policy?

You can purchase add-ons that provide thorough coverage for a lesser incremental premium to amplify the base policy coverage (Comprehensive Car Insurance policy). Zero Depreciation cover, Engine Protection cover, Roadside Assistance cover, etc., are all choices.

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