by Stacy Francis, CFP®, CDFA
When I bought my son a Scion Tc, a client told me over mid-morning mochas the other day, I didn’t anticipate that my insurance bill would skyrocket. I suppose I sort of assumed it wouldn’t make that much of a difference.
The key to staying clear of a situation like hers is to do your research before you buy. Overall, small, sporty, speedy cars mean higher insurance premiums – simply because they are involved in more accidents than bigger, chunkier, slower cars. Add a young driver to the equation (they are considered extra accident-prone) and your price tag will be hefty, regardless of what insurance provider you choose. Just for fun, below is a list of the five most expensive cars to insure – and the five cheapest.
- Cadillac Escalade EXT 4WD
- Subaru Impreza WRX 4WD
- Hyundai Tiburon
- Mitsubishi Lancer
- Scion Tc (my client near died when I showed her this)
- Ford Five Hundred 4WD (now called the Ford Taurus)
- Buick Rendezvous 4WD
- Buick Lucerne/Buick Rainier4 WD/ Honda Odyssey
- Ford Freestyle 4 WD/Subaru Outback 4 WD
- Buick Rendezvous/Honda Odyssey
So if cheap insurance is important to you, instead of the sports car, buy your teen a Buick! I know that my brother got a Trans Am when he was 16 and only 6 month later got a ticket for speeding at 40 mph over the limit! Yes that is right. The car went as did all future speeding tickets and by giving him a 10 year old clunker so did the high auto insurance bills.