Miner & Lemon Blog

Smaller Cars May Increase Your Insurance Costs

Unintended Insurance Consequences of Switching to a Smaller Car 

            Cost conscious Americans in waves are downsizing to smaller vehicles.  The good news is that they are saving money on fuel costs and are reducing emissions.  The bad news is that they  may be switching to a vehicle that is less safe to drive, and as a result their auto insurance premiums are going up (“Downsizing: Switching to a Small Car Can Increase Your Insurance Bill.” 

www.insure.com/articles/carinsurance/small-car.html.  16July2008.) 

            Small cars are simply not as safe as larger cars and trucks.  They tend to get in more accidents than larger vehicles, which creates higher repair costs and more litigation costs resulting from personal injuries.  The size of the vehicle is not the only factor that causes more and larger insurance claims.  Because smaller cars tend to be less expensive they are driven by younger, higher-risk drivers.