Small Cars See Higher Auto Insurance Rates

Over the summer of 2008, gas prices rose to almost $5 a gallon, and suddenly gas guzzling large cars like SUV's were no longer selling. As consumers turned to small cars that use very little gas, they saved money on gasoline, but not necessarily on auto insurance in some cases.

Very small cars are more likely to sustain a great deal of damage in accidents. A senior vice president of the Highway Loss Data Institute stated, "Small cars are just more likely to get into crashes, because of how they are driven -- they are more likely to be used in longer commutes than a minivan or SUV, for example. That translates into higher premiums. And since smaller cars don't protect the occupants as well as larger vehicles, the cost of injuries to those occupants is higher as well. And that also contributes to more expensive premiums.'

This is a general rule, that smaller cars are less safe. You can get a car loaded with safety features such as dynamic stability control. Finding a small car that performs well in crash tests will also help your auto insurance premium. In the end, good driving behavior is the best antidote to high auto insurance rates. You can also try raising your deductible to the next kevel which can shave anywhere from 10% to 30% off of your auto insurance premiums.