Recent studies have been released that seem to point to poor people having to pay more for auto insurance because they are the percentage of the market that own small, inexpensive cars. Of course, on the other end of the spectrum the highest priced insurance rates are set for the pricey sports cars and luxury sedans, especially the ones that are built for speed and power. These higher insurance rate cars include Porsche, Mercedes, BMW and Audi.
The faster the car, sportier the model, and the higher price to own one, the higher the insurance rates. The reason for this is they are considered to have the highest risk for accidents. Because of their ability to go fast with their powerful engines, the more likely people are to take advantage of the speed. They are also much more expensive to pay for. Therefore, the insurance rates are higher, but probably reasonable under those circumstances.
While it seems unusual, the cheapest vehicles to insure are the larger ones. SUVs, trucks and minivans have the most reasonable rates. Even though these vehicles have a larger price tag than small coupes or sedans the rates are lower because the risks of accidents are lower. Because the large vehicles tend to be driven by safer and older drivers, it is considered the risks are lower.
This leaves the smaller, less expensive vehicles the highest to insure of cars that are not in the high speed, luxury class. For example, a four door Honda Civic has an average insurance rate of $2,353 per year compared to the Toyota Sienna which averages out to $1,111 per year. Although the Honda Civic has first class safety ratings, and certainly would not fall into the high-speed class, it seems insurance rates are inflated for this cost effective compact.
While it would seem that the insurance rate adjustors are discriminating against those that prefer less-expensive, smaller and more fuel efficient cars, they have a reason for those rates. These cars are considered higher risk because they tend to be driven mostly in highly populated urban areas. All the extra traffic creates more risk for accidents. When small cars get in accidents, there is a higher risk for passenger injuries.