Reasons Why SUV Insurance Costs More

2008-09-09 10:55:30

( Automobiles )



When you stop and look at the open road, you will notice more sport utility vehicles or SUVs on the streets. SUVs started to become popular last decade and until now people still buy them. Although SUV prices are much expensive and SUV insurance costs more, owners do not seem to mind at all.

SUV owners list several reasons why they chose this type of big vehicle over the compact car. First is that SUVs offer more seating and cargo capacity. You can definitely seat five passengers and store more items in a Dodge SUV compared with a Dodge car. Some SUVs even offer additional seating in the third row.

Also, most SUV owners say that feel safer in a bigger and heavier car. Driving a bigger car gives the impression of stability. And since it has taller seating, SUV owners say they drive better. Lastly, SUV offers off-road capabilities. Most owners say that their SUV gets better mobility around snow than a car and not just because of its SUV tires.

All these great reasons to buy an SUV do not alter the fact that SUV insurance still costs more. The basis for the SUV insurance increase is that research show that SUVs show more risks on the road. These hazards are not limited to the SUV and the driver alone, but they include potential damage to other vehicles.

Insurance companies look at the SUV and see higher medical and liability coverage losses. A pedestrian who is hit by a Dodge SUV has a higher risk of injury compared to a pedestrian hit by a Dodge car. In the same manner, when an SUV hits a car there is higher risk of damage to the car compared to a car hitting it.

Another issue is cost of repair. When an SUV is involved in a crash, however minor, repair costs are high. It is certainly more inexpensive to repair a car, even in a major crash.

From an insurance standpoint, the risks are an important component in calculating SUV insurance. With all the potential damage SUV accidents bring, SUV insurance will cost more than its more compact counterpart. The facts are that higher risks yield higher costs.


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