Information from the Insurance Information Institute (III) shows that SUVs (sport utility vehicles) still cost more to insure than many other cars, though recent safety advances may change that.
For many years, SUV drivers thought their vehicles were among the safest things on wheels because they were bigger and heavier than compacts or small sedans, and therefore more likely to offer protection in an accident. While this is a valid assumption the flip side – so to speak – is that since full-sized SUVs are built on truck platforms they also have a higher center of gravity, making them more likely to roll over.
Recently, however, the technology of SUVs has changed. For example, many are now built on car chassis, and all newer vehicles are fitted with electronic stability control systems designed to help drivers avoid crashes.
Russ Rader, a spokesperson for the Insurance Institute for Highway Safety, said, “Today’s SUVs are more closely related to cars rather than light trucks and pickups.”
According to Rader, this means that the rollover risk for modern SUVs is the same as cars, though he also admits he wouldn’t purchase a used SUV that doesn’t have electronic stability control.
But what does this have to do with auto insurance rates?
Safety is one factor in how rates are determined, but there are other factors as well. For example, according to Loretta Worters, vice president of the Insurance Information Institute, “Another issue for SUVs is when they hit a car, it can result in more serious injuries to occupants in the vehicle, as SUVs are higher than a regular vehicle. So there are still some risks that affect pricing.”
As well, luxury SUVs are also more likely to be the target of thefts, and can be expensive to repair or replace. For example, the Cadillac Escalade has had a theft-loss rate that is among the worst for 1- to 3-year old passenger vehicles (as of August 2010), and almost 25% of the claims for the Escalade are more than $40,000. Overall, the theft-loss rates for luxury SUVs are seven times that of average cars.