Consumers should consider insurance costs before buying a vehicle

While the Tesla Cybertruck is very costly to insure rates are much lower on the Subaru Outback - Image (c) ConsumerAffairs

Insurance costs can vary widely, depending on the make and model

The December Consumer Price Index showed the cost of new and used vehicles has fallen over the last 12 months, but the cost of insuring cars and trucks continues to rise. However, insurance rates are higher on some vehicles than on others.

The Tesla Cybertruck not only carries a high price tag, but according to insurance comparison site Insurify it’s very costly to insure. The average annual full coverage premium on the Cybertruck is $3,392 per year — 45% more than the national average of $2,336, according to Insurify data.

There are two factors that influence the Cybertruck’s insurance premiums. The first is that it’s an electric vehicle. EVs typically cost more to insure.

The second is the price tag. Insurance rates are higher for very expensive vehicles because repair and replacement costs are so high.

Cheapest to insure

On the other end of the scale, the cheapest vehicles to insure are typically small SUVs or trucks. Car and Driver ranks them like this:

  • Subaru Outback

  • Honda CR-V

  • Honda Pilot

  • Ford Escape

  • Honda Odyssey

  • Ford F-150

  • Jeep Wrangler

  • GMC Sierra 1500

  • Toyota RAV4

  • Nissan Rogue

Location, location, location

Another factor influencing insurance rates is where you live. A recent ConsumerAffairs study identified these states as the most expensive for auto insurance:

Rank

State

Average cost of full coverage in 2020 (NAIC)

Estimated cost of full coverage in 2023

1

Louisiana

$1,685

$2,865

2

Rhode Island

$1,556

$2,645

3

New York

$1,554

$2,642

4

Washington, D.C

$1,547

$2,630

5

Michigan

$1,533

$2,606

6

Florida

$1,459

$2,480

7

New Jersey

$1,442

$2,451

8

Georgia

$1,424

$2,421

9

Nevada

$1,366

$2,322

10

Delaware

$1,349

$2,293

But the study also found that age and gender are the biggest factors that influence car insurance rates. Eighteen-year-old men pay the most, but 35-year-old women actually pay up to 21% more than men of the same age with identical driving profiles.