The Consumer Just CAN'T Win! Economy Car Owners Save On Gas But Lose Gas Savings On Insurance!

This year's higher gasoline prices are prompting drivers to switch to smaller, more fuel-efficient cars. The trouble is, some of the money they save may be going to higher insurance premiums.

Small cars generally cost more to insure than larger ones because they're involved in more accidents and incur bigger claims, especially for injuries. That's true regardless of the driver profile, though younger and less-experienced drivers tend to buy smaller, cheaper cars.

A 40-year-old male driver would pay an average of $1,704 to insure a 2009 Mini Cooper that gets 37 miles per gallon on the highway, according to a study by Insure.com, an online insurance broker. That same driver would pay only $1,266 -- a difference of $438 -- to insure a Toyota Sienna Minivan, which gets 23 mpg.

Similarly, a Honda Civic compact that gets 36 mpg on the highway costs $412 more a year to insure than a Honda CR-V, a small sport-utility vehicle that gets 27 mpg.

Rupert - 10/23/2008 1:51:53 PM

+2 Boost

Small cars cost MORE to insure than big ones??? That's like the complete reverse of the situation here in Britain - insurance costs rise with the size of the car and the performance of it.
But of course, you don't have universal healthcare...so you have to pay for higher injury risk in your insurance.

Rupert - 10/23/2008 1:54:06 PM

+3 Boost

In Britain, car insurance is work out on around 4 things - cost of repairs, cost of the car, where you live, age/experience of driver (how likely you are to crash it), performance of the car. Size of the car has little to do with it, except of course smaller cars are generally cheaper to repair and cost less to replace.

ghosthunter - 10/23/2008 5:04:12 PM

+1 Boost

The above comment is pretty dumb. A mini van almost always offers more protection to its passengers due to its size and mass. A car’s safety has nothing to do with its insurance. Case in point, if my mom insures my car, her premium would be much lower than mine because of her marriage status and age, even if it is the same car.
It is the driver and amount you insure that matter the most when it comes to your premium, not safety or the value of the car.

Threepoint1415926 - 10/23/2008 7:14:21 PM

0 Boost

Here in the states, a lot of consideration is placed on vehicle model crash history. You could drive an insanely fast car but if it has a low history of crashes, it's less likely to be expensive to insure. Case in point, my E320 CDI is quite a bit less expensive to insure than a similar E320-gas. Performance is better in my CDI to boot.

veyron1001 - 10/23/2008 1:57:49 PM

+2 Boost

I will summarize it with their intentions. Since the market demand for more fuel efficient vehicles in the US has risen. This is a good chance for us to make a great amount of profit.

CTS24 - 10/23/2008 2:25:30 PM

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I agree with the premise of this article. My wife's 2007 Honda Fit Sport costs be $28/more per month than my 2008 Cadillac CTS. It was a shock when we bought the car--but i would do it again for all the other benefits the Honda offers in low operating costs.

CTS24 - 10/23/2008 2:25:56 PM

+1 Boost

I agree with the premise of this article. My wife's 2007 Honda Fit Sport costs me $28/more per month than my 2008 Cadillac CTS. It was a shock when we bought the car--but i would do it again for all the other benefits the Honda offers in low operating costs.

Whelan - 10/23/2008 2:46:12 PM

+1 Boost

My 02 Civic EX Coupe was a lot more to insure than my current 2005 Toyota Matrix XR AWD. Sure its a Corolla underneath with the engine and frame, but it is larger, is worth more, and for my state having the AWD actually counts towards lowering my premium.