Why Insurance Companies Prefer Adventurous Jeep SUVs

 

If you follow the traditional logic of what vehicles are cheap to insure, you might be scratching your head at this year's Top 10 Least Expensive Vehicles to Insure list. Why? It's dominated by Jeep SUVs.

Auto insurance companies look for vehicles with strong safety and accident-avoidance features, which includes the driver. Minivans typically cost the least to insure because they are usually driven by parents, who are expected to be responsible, and drive carefully.

The Jeep Renegade and Jeep Wrangler, which took second and third place on the least-expensive list, are designed for recreational fun—for going off road, winding up mountains, and getting down in the dirt.

Consumer analyst for Insure.com Penny Gusner has a theory: "Adventuresome owners are less likely to claim for every scratch or ding compared to other drivers." Fewer claims, lower car insurance rates. The specific models in the Top 10 are entry-level, as well, meaning they don't have as many frills as a luxury model, so they're easier to repair.

Categories: Finance

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