Are SUVs cheaper to insure?

Yes, you heard us correct, in many cases insuring a SUV is cheaper than a sedan. We ran the numbers on SUV insurance rates and found that in many cases, a compact SUV cost less to insure than a comparable sedan. We found the average SUV premium to be $1,729 while the average premium for a sedan was $2,112 or $383 more than an SUV.

Keep reading to learn the least expensive SUV to insure, vehicle factors that impact SUV insurance as well as how to find a great SUV insurance policy at a price you can afford.

What is SUV insurance?

Car insurance for an SUV is the same as car insurance for a sedan or any other car. It offers the same coverages and protections.

A typical auto (or SUV) insurance policy offers the following standard coverages:

• Liability: Bodily injury liability and property damage liability will pay for medical and legal bills if you injure another person or their property with your vehicle. Liability coverage is required to be legal out on the road in just about every state in the country.
• Collision: This coverage will pay to repair or replace your vehicle if it is damaged or destroyed after a collision with another vehicle. If you are not carrying collision and your car is damaged in an accident, the cost to repair or replace it will fall to you. This is not a required coverage but if your vehicle is financed or leased your finance company will require that you carry this coverage. Collision has a deductible that can range from $250 to $2,000 or more.
• Comprehensive: This coverage will repair or replace your vehicle if the damage is caused by something other than a collision. It covers damage from weather, fire, flooding, vandalism, theft and even animal strikes. Comprehensive is not required to be legal out on the road and it comes with a deductible.
• Uninsured motorist/underinsured motorist: If your vehicle is hit by an uninsured motorist or underinsured driver, this coverage will pay to repair your car. This is not a legally required coverage.

Is car insurance cheaper for an SUV or sedan?

Perhaps surprisingly in many cases, an SUV is less expensive to insure than a sedan, but it often depends on what size SUV you are looking at as well as the sedan you compare it to. In some cases, the sedan will be cheaper to insure.

When we ran the numbers, we found that the average annual SUV premium came in at $1,729 while the average annual premium for a sedan was $ 2,112 or $383 more than an SUV.  In fact, compact SUVs made up much of our 10 cheapest cars to insure list with 9 out of the top 10 vehicles being SUVs.

The Honda CR-V LX was cheapest SUV to insure (a minivan grabbed the top spot) with an annual premium of $1,285 which is well below the national average for all vehicle types of $1,839. The cheapest sedan to insure was the Honda Fit which costs $1,355 to insure or $70 more expensive than the cheapest SUV.

However, it really depends on the size and luxury factor of the SUV. If you are looking at expensive SUVS, say a large, luxurious SUV, expect your insurance costs to skyrocket. As an example, the 2021 BMW X6 M Competition Xdrive runs over $3,400 a year to insure.

You don’t have to be driving a European SUV to see your premiums go up, insuring a Ford Expedition, Toyota Sequoia or Infiniti QX80 will almost always cost more than insuring a sedan.

Why SUV insurance can be costly?

SUV’s have a few characteristics that can push up the cost of insurance.

Here are a few reasons why some SUVs can be expensive to insure:

• Rolling risk: SUVs are more likely to be involved in a rollover accident due to their height and width. Vehicles that have higher rates of accidents and claims will always cost a bit more to insure.
• Theft rates: While pickup trucks always command the top of the list of most sold vehicles in the United States SUV’s have surpassed sedans as the top-selling vehicle in recent years. In 2019, SUVs dominated the top 10 most sold vehicles list with a sedan not showing up until the 8^th place slot.
• Because SUVs are popular with drivers, they are also popular with car thieves which makes them more expensive to insure.
• Liability: Large SUVs can inflict a lot of damage when they are involved in an accident which can lead to more expensive claims for your insurance company. Insurers look at claim rates for vehicles and if your vehicle has a high claim rate, you will pay more for insurance, even if you have never made a claim.
• Costly repairs: Luxury SUVs are often loaded with expensive finishes and technology which can quickly push up insurance costs as your insurer will have to cover the cost to repair your vehicle after a claim.

What are the cheapest SUVs to insure?

The cheapest SUVs to insure are often compact SUVs. These vehicles are loaded with safety features, typically driven by families, have smaller engines, and are pretty cheap to repair. Insure.com puts together a list of the cheapest and most expensive cars to insure each year and compact SUVs usually dominate the cheap to insure side of the list.

In 2021, small SUVs grabbed 9 out of the 10 spots when it comes to affordable car insurance premiums. While a minivan was the cheapest vehicle to insure, the balance of the top 10 was all compact SUVs. The following were the cheapest SUVs to insure, with their average annual premium:

How much does it cost to insure an SUV?

According to our numbers, the average insurance cost for a SUV comes in at $1,729. This is slightly less than the national average for all vehicles which was $1,839.

The cost of auto insurance for an SUV will vary depending on what type of SUV you are purchasing. While an entry to mid-level compact SUV will typically be very reasonable to insure, once you move into a standard size SUV or luxury SUVs, insurance costs can go up quickly. As an example, while a Mazda CX-3 Sport (a compact SUV) costs $1,294 a year to insure, a Range Rover SV has a shocking average annual auto insurance premium of $3,255.

Of course the model car you drive is just one factor an insurance company considers when setting insurance rates. Your driving history, your ZIP code, the coverage limits and coverage options you choose, your credit score and your age are also taken into account when pricing what you pay for coverage per year. Still, the insurance rates below provide a fairly accurate estimate of what you'll pay for these model cars, unless you have several accidents or tickets on your record or poor credit.

If you're curious about other popular 2021 utility vehicles that are not expensive to insure, we have a list for you. The cost to insure each of these vehicles is under the national average for sports utility vehicles.

Here's more models, four-door and four-wheel-drive, unless noted, and their average car insurance premiums:

SUV insurance rate comparison

For 2021 models, the average SUV premium came in at $1,729 while the average premium for a sedan was $ 2,112 or $383 more than an SUV. This has also historically been the case, as SUVs were among the cheapest cars to insure for the past 10 years. Basic model, compact SUVs, along with Jeeps and minivans, have dominated the top 10 list of cheapest vehicles to insure since 2005, based on an analysis of car insurance rates for dozens of models. So, it's safe to say whether you're looking for a new vehicle that's an SUV or a used one, the average cost for insurance will be lower than for a used or new car.

Car insurance price comparison: SUVs vs sedans

Best insurance companies for SUV drivers

Insurance premiums can be impacted by a wide variety of factors, both personal and those related to the vehicle, so it’s hard to determine what insurance company is best for your specific situation.

The best advice is to shop your coverage with a variety of insurers, always compare the same coverage levels and deductibles. It’s also a good idea to check the financial soundness of any insurance company that is not a well-known national brand. Below you'll see the cheapest car insurance companies for SUVs based on a rate analysis of average annual premiums:

How to save on insurance cost for SUV?

While insurance can be cheaper for SUVs in some situations, paying less for car insurance is everyone’s goal. Here are a few tips on how to lower your premiums:

• Shop your coverage: This is probably the best way to lower your insurance costs. Insurers rate risk differently which can result in dramatic differences in insurance quotes. Make sure you are comparing apples to apples regarding coverage levels and deductibles. Compare insurance quotes from at least three insurance companies.
• Discounts: Insurers offer a wide range of discounts, make sure you are getting all the discounts that you are qualified to receive.
• Choose a small SUV: If your goal is to keep your insurance affordable, consider a compact SUV if it works for your needs. These smaller SUVs tend to be cheaper to insure than a large SUV with a V-8 under the hood. A large luxurious SUV will push up your insurance costs.
• Safety features: Insurers love safety features so search for an SUV that is loaded with advanced safety features to keep your premium affordable. 

Frequently asked questions about SUV car insurance