Several factors come into play when choosing the right car for yourself, especially between a sedan and an SUV. However, one of the important aspects that often influences the decision is the cost of car insurance. Understanding the premium associated with the insurance for SUVs vs. sedans can help you make an informed choice. Let’s compare sedans and SUVs and determine which one is cheaper to insure.
Car Insurance For SUV Vs Sedan
The car industry in India has evolved over the years to provide different types of four-wheelers at affordable rates. Starting from small cars to luxury SUVs and sedans, they come with different accessories, engine capacities, designs, etc.
The cost of owning a car also includes the premium. Every insurance premium, be it car insurance for commercial vehicles or private vehicles, differs depending upon the type of four-wheeler, features, and engine capacity. Therefore, while choosing between a sedan and an SUV, keep the following points in mind.
Difference Between Sedan And SUV Cars: Factors That Influence The Insurance Premium
Cost of the Vehicle
When it comes to pricing a four-wheeler insurance policy, one of the main factors is the cost of the vehicle. Whether you buy a sedan or an SUV, the car’s market value is one of the primary factors determining the premium.
The car type does not impact the insurance cost, but the car’s market value or cost influences the insurance rate. In short, the higher the car’s market value, the higher the premium.
Year of Manufacturer
The age of the car is considered while estimating the insurance premium. This is due to the depreciation factor. As the car ages, parts wear and tear regularly. Since market value is essential in determining the premium, newer cars attract a higher premium.
Engine Capacity
The engine capacity of a sedan or SUV is one factor influencing the insurance rate. A larger engine will attract a higher car insurance premium since the car’s market value is higher.
Fuel Type
Usually, petrol cars are cheaper than diesel cars. Therefore, the insurance rate for petrol cars is lower. The premium for a petrol SUV is likely lower than that for a diesel sedan. Additionally, if you install an LPG, CNG or kit in your car, the premium is bound to spike.
SUV Insurance vs Sedan Insurance: Price Comparison
Traditionally, SUVs were expensive because of the performance parts employed to handle the most challenging terrains. However, recently, SUVs have been toned down to provide the comfort and features of sedans.
With the introduction of mid-segment and small SUVs, the costs of these SUVs are on par with sedans. As the costs are similar, the car insurance cost is on the same lines. So, whether you are purchasing an SUV or a sedan, the essential aspect is the price of the car. Full-sized SUVs attract a higher premium, thus increasing the rate of insurance.
Conclusion
Sedan vs SUV–whichever you own, every driver requires good insurance that protects them on the road at a cost they can afford. So, look for credible car insurers that offer policies at an affordable rate while still providing adequate coverage.
It is essential to compare different insurance plans, considering factors such as premium rates, coverage options, and customer service, to ensure that you get the best protection for your vehicle.
Also read: Important Factors to Consider While Choosing A Car Insurance Company