Reader’s Question:

Is SUV insurance more expensive than the insurance of other types of cars?

Carl

Los Angeles, CA

Car insurance companies consider the type of vehicle when computing for an insurance policy rate. This is because they need to know which type of vehicle would cost more when repaired or replaced (when it gets totaled or stolen), and which vehicle would cost less. Often, companies use the ISO (Insurance Services Office) Vehicle Identification Number Monitoring System (VIN System) to determine the cost and classification of a car. Sometimes, they also use statistics to know which car type registers the highest number of accidents or the most number of citations for traffic violations.

In general, SUVs are not in the list of top 10 most stolen cars. However, what they often look for is the size and the market value of the SUV. Typically, SUV insurance would cost 15 percent more than insurance for a normal car. This is because an SUV costs more to repair; therefore it needs a higher amount of coverage. In the car insurance industry, it is a known rule that a car that costs more to repair or inflicts more expensive damage after an accident (like a large SUV), will have a higher risk level than other average cars. This high risk level equates to higher car insurance rates.

To answer your question, the cost of insuring an SUV would really depend on its size and market value. The bigger the size or the higher the value of the SUV, the higher the SUV insurance cost would be.