Most popular vehicle is most expensive to insure

by Center for Personal Finance editors

NEW YORK (4/13/06)--The Ford F-series pick-up recently picked up two honors: It's America's most popular vehicle, but it's also the most expensive to insure among the top 20, according to a report released last month by the insurance website Insure.com (CNNMoney.com March 23).

The least expensive vehicle to insure among the top 20 is the Chrysler Town & Country minivan, followed by the Chevrolet Cobalt small car and then the Dodge Caravan.

The report revealed that premiums now average almost $900 a year, a 27% increase since 2000. According to the Insurance Information Institute, the average expenditure for auto insurance rose 5.7% in 2003, following a 7.5% increase in 2002 (iii.org).

Insurance premiums vary greatly, depending on the driver's age, driving record and residence, but the vehicle itself is a major factor used by insurance companies to determine premiums. Other factors affecting the cost of insurance include popularity with car thieves, how much it costs to repair a damaged vehicle, and the amount of damage it does to another vehicle.

According to insure.com, insurance is the third largest cost of owning a new car, after depreciation and fuel.

For more information, read "Understanding 'Dream Vehicle' Cost Helps Keep You in the Driver's Seat" in the Home & Family Finance Resource Center autos section.