The Most Affordable Sedans to Insure

By the Mercury Team

Sedans have long been the cornerstone of the automotive industry due to their sleek design, practical features, and reliable performance. If you’re in the market for a sedan, one key factor to consider is insurance because costs can vary greatly based on the model you choose, its safety features, and even the area where you live. In this blog, we’ll guide you through the essentials of sedan insurance, highlighting how to find the most affordable options and what factors insurers take into account when setting premiums.

What Is a Sedan Car?

Sedans have four doors that can comfortably seat four to five occupants. They come in various sizes, from compact sedans like the Honda Civic to large sedans like the Toyota Avalon. The design features a fixed roof that extends from the front windshield to the rear window, creating a sleek, continuous line that enhances aerodynamics and fuel efficiency.

One key feature distinguishing sedans from other vehicle types, like hatchbacks or SUVs, is the separate trunk space. This trunk is typically more secure and provides ample room for luggage, groceries, or other cargo. The trunk is fully enclosed, which means it’s not accessible from the passenger compartment unless there are folding rear seats.

In terms of driving dynamics, sedans are generally known for their balanced handling and stable ride quality. They often have a lower center of gravity than SUVs, which can contribute to better fuel economy. Additionally, sedans are typically lighter than SUVs and trucks, which can result in reduced wear and tear on tires and brakes.

What Are the Cheapest Sedans to Insure?

Specific sedan models are known for costing the least to insure. Mercury’s research and development team examined 2024 model-year sedans available at car dealerships today to compile this list¹. Here are some of the least expensive sedans to insure right now:

1. Chevrolet Spark
2. VW Golf
3. Hyundai Accent
4. Toyota Prius Prime
5. Mitsubishi Mirage
6. Volvo S90
7. Mazda 3
8. Nissan Versa
9. Hyundai Venue
10. Kia K5

¹Mercury Insurance developed the list based on a full coverage premium (BI, PD, COMP, COLL, MP, UMBI, and UMPD) for a hypothetical driver with average factors for each rating element.

Do Insurance Companies Take into Account the Size of a Sedan When Setting Policy Prices?

When determining policy prices for sedan cars, insurance companies consider various factors - and size is certainly one of them. A sedan’s size can influence the cost of insurance in several ways, primarily through its impact on collision and damage susceptibility, repair costs, and overall safety features.

Larger sedans are often perceived as safer due to their sturdy build and advanced safety features, which can lead to lower premiums. However, these vehicles can also be more expensive to repair or replace, potentially offsetting some of the cost benefits related to safety. On the other hand, smaller sedans, while generally more affordable and fuel-efficient, may incur higher insurance rates due to a perceived higher risk of damage in an accident.

What Are the Car Insurance Requirements for Sedans?

When it comes to insuring your sedan, you should understand the specific car insurance requirements. These requirements can vary significantly depending on your state, but they generally include several key types of coverage:

• Liability coverage: What does liability insurance cover? It pays for damage and injuries you cause to others if you’re at fault in an accident. Most states require a minimum amount of liability insurance, which typically includes both bodily injury liability and property damage liability.
• Collision coverage: Auto collision coverage helps pay for repairs to your vehicle if you collide with another vehicle or object.
• Comprehensive coverage: This covers non-collision damage to your car, such as theft or damage from natural disasters. Mercury offers affordable comprehensive car insurance to keep you protected on the road.
• Uninsured/underinsured motorist coverage: This coverage is required in some states and optional in others. It protects you if you’re involved in an accident with a driver who either does not have insurance or whose insurance is insufficient to cover the damages.

How Has the Cost of Sedan Insurance Changed Over Time?

The cost of sedan insurance has fluctuated over time, influenced by various economic, regulatory, and market factors. Historically, the insurance rates for sedans have seen incremental increases, primarily due to rising repair costs, vehicle technology advancements, and driving behavior changes.

• Advancements in technology: Modern sedans have advanced safety features and electronics, which can be expensive to repair or replace. This has contributed to a gradual increase in premium costs as insurers adjust to cover these higher repair expenses.
• Economic factors: Factors such as inflation, changes in the labor market, and the cost of auto parts have also impacted insurance prices. During periods of economic downturn, for instance, the cost of claims might rise, leading insurers to adjust premiums accordingly.
• Regulatory changes: Insurance rates are also affected by changes in state and federal regulations. New laws regarding driver safety, minimum coverage requirements, and consumer protection can lead insurers to reevaluate their pricing structures.
• Risk factors: Changes in traffic volume, accident rates, and driving patterns, such as increased distracted driving incidents, have also influenced insurance costs. Higher risk levels necessitate higher premiums to compensate for the increased likelihood of claims.

What Leads to High Car Insurance Costs for Sedans?

Many factors can influence the cost of car insurance for sedans. Understanding these factors can help you make informed decisions about your insurance and possibly find ways to reduce your costs.

• Vehicle value and type: Generally, more expensive sedans or those with luxury branding come with higher insurance costs. This is because they’re more costly to repair or replace. High-performance sedans, which are capable of faster speeds, also typically incur higher insurance rates due to an increased risk of accidents.
• Repair costs: Sedans equipped with advanced technology and specialized parts can be more expensive to repair. Features like hybrid engines, advanced driver assistance systems (ADAS), and custom bodywork contribute to higher repair costs, which can lead to increased insurance premiums.
• Safety ratings: Insurance companies may view vehicles with lower safety ratings or a lack of modern safety features as higher risks. Higher risk translates to higher premiums. Conversely, sedans with superior crash-test scores and safety features may qualify for auto insurance discounts.
• Driver demographics and history: Your age, driving record, and even credit history can significantly impact insurance costs. Younger drivers typically face higher rates due to their perceived inexperience, while a history of accidents or traffic violations can also lead to increased premiums.
• Geographic location: Where you live and park your sedan affects your insurance costs. High-traffic urban areas with greater risks of accidents and thefts see higher rates. Similarly, regions prone to severe weather, such as hail or flooding, can also experience higher insurance costs.
• Insurance coverage options: Opting for comprehensive coverage, lower deductibles, and additional protection like roadside assistance or rental car reimbursement can increase insurance costs. While these options offer more extensive coverage, they do come at a higher upfront cost.

Conclusion

Whether you’re a new sedan owner seeking your auto insurance quotes or a seasoned driver looking to optimize your existing policy, understanding these dynamics can lead to more informed decisions and big potential savings.

Mercury is here to help. We offer affordable auto insurance rates and detailed guidance to ensure you receive comprehensive coverage at the best possible price. Our dedication to excellent customer service and reliable coverage ensures that every sedan owner can drive with confidence and peace of mind.