Is it cheaper to insure a Honda CRV or Subaru Forester?
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Asked October 1, 2015
The Subaru Forester and the Honda CR-V are both moderately priced SUV's that are in the same price range. While the sales price of the Forester is very close to the sales price of the top-selling Honda CR-V, it is important to consider not only the immediate costs but also the ongoing costs of ownership. One expense that you simply cannot avoid paying is auto insurance premiums. Since auto insurance is a mandatory requirement in virtually all states, using price estimates to help influence your buying decision is key. Here is some valuable information that can be used to determine whether the CR-V or the Forester is cheaper to insure.
Comparing the True Cost of Ownership: CR-V vs. Forester
Over a 5-year period, Edmunds data has revealed that the true ownership cost for the Honda CR-V is $40,029. This cost of ownership includes line items like depreciation, taxes, registration, financing, fuel, maintenance, repairs, and insurance expenses. During the same 5-year time frame, data shows that owning a Forester will cost you $41,454.
Since the purchase prices of the CR-V and Forester are only about $400 apart, it is only reasonable to wonder why the cost of ownership differs by more than $1,400. In most categories, the CR-V is found to be the more costly option. One of the categories where there is a noticeable difference in cost is insurance. Based on industry data, it costs approximately $1,846 to insure the CR-V the first year and about $1,942 to insure the Forester. This is a difference of $96 for the year and about $514 over a span of 5 years. The data reveals that it is cheaper to insure the Honda CR-V.
What Leads to the Increased Cost of Insurance on the Forester?
It is only natural to wonder why a vehicle in the same vehicle class and the same price class would cost more to insure than a comparable model. As the educated consumer that you are, it can be helpful to learn how vehicles are rated as car insurance premiums are calculated. Your driving history, usage, habits and experience can all have an affect on rates, but so will the model that you buy.
One of the most important factors used in calculating the rates for a specific vehicle model is the car's safety rating through the NHTSA and the IIHS. If safety tests and crash tests have found a model is safe, there is much less risk to the insurer of paying out an injury claim. High safety ratings equal lower liability premiums. According to the data gathered by IIHS, the Forester received a superior Front Crash Prevention rating and a "Good" in all areas of crashworthiness. The CR-V received the same rating by the IIHS in all categories.
Since there is really no difference in premiums based on the safety rating, the main reason that the Forester costs more to insure is because it costs more to repair. When a vehicle has higher repair costs for both parts and labor, the premiums for physical damage coverage will be higher as long as physical damage coverage is carried. If you were to compare your premium quotes for personalized rates on each vehicle, you would notice in the breakdown costs that coverage for comprehensive and collision would be higher for the Forester.
Answered October 1, 2015 by AutoGuy