Is Buying a Smaller Car a Smart Way to Save on Auto Insurance?

Small Car Ins

Okay, so you’re looking to buy a new car and your friends tell you that size matters when it comes to saving money on your auto insurance. This is true…up to a point. In other words – smaller, light-weight, economical cars can save you money; however, going by size alone could have the opposite effect on your insurance rates.

The reason for this is simple. Millions of drivers are under the impression that the car they drive is the easiest way for them to get the lowest possible rate on their auto insurance, but that may not necessarily be correct. After all, if you drive a smaller car with a high performance engine, equipped with a turbo and a suspension that’s track ready, you’re likely to be paying a higher premium than you would with the basic model.

That is, if you tell your auto insurance company the truth. Fib a little and pay a lot down the road if your car is totaled. Your insurer would be very displeased with you…not to mention be unwilling to give you what your little souped-up ride was worth…or worse, not honor your claim at all, should they inspect the damage and see they were insuring the “wrong” car.

So, when it comes to auto insurance, the type of car you drive does impact what you’ll pay. Cars with high horse power tend to encourage speeding and more risky driving habits, regardless of size. A Mustang is considered a smaller car, but should you have the 420 hp or higher street version, your insurance company will be on pins and needles, especially if you’re a younger driver…and, your auto insurance rates will reflect that risk.

While many smaller cars may be cheaper to insure, it depends entirely on where they’re rated in the risk category. This is where, if you have your heart set on a particular small car, you first check with an insurance agent to be sure you’re not getting a street rocket and have to pay accordingly with higher premiums – which defeats the idea that you’ll be saving money by purchasing a smaller car.

Commonly, many sports cars are on the smaller side but, because of their risk factor, they’re considered more prone to speeding tickets and serious accidents. The Corvette, for example, is a smaller car; however, it’s also classified as a high performance sports car. And, that fact alone can put your potential premiums on the higher end of the risk spectrum, costing you a substantial amount more to insure.

Sure, you want something flashy, sporty, and fast…but, at what price? If you’re looking to save money, many smaller, gas-saving economy-models can provide you with the lower auto insurance rates you initially considered getting a small car for. And, while you may not turn as many heads or go quite as fast, your wallet will be more appreciative.

By doing your homework and researching smaller cars that can actually be more cost-effective in regards to auto insurance, then consulting your insurer to be sure you’re both on the same page, you can definitely find that size, when it comes to your new car, will matter.

Doing your homework also pays off when making sure you’re getting the best rate on your auto insurance. Why not get a free auto insurance quote today?

Have you ever bought a smaller car believing it would save you money only to find out you were paying as much or more than a larger car? Feel free to share your thoughts in the comments section below.

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Is Buying a Smaller Car a Smart Way to Save on Auto Insurance?
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Okay, so you’re looking to buy a new car and your friends tell you that size matters when it comes to saving money on your auto insurance.
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