Insuring cars can be tricky and expensive, but you should always ensure that your car is insured. And while insuring some cars is costly, Smart car insurance is fairly cheap, which means you are more likely to get comprehensive coverage without breaking the bank. Below, we look at these microcars and Smart car insurance costs.
What Are Smart Cars?
A Smart car is a vehicle that uses advanced technology to connect with its environment to make driving safer, easier, and more fuel-efficient. Smart cars are also known as microcars, city cars, and superminis. Unlike traditional cars, Smart cars are more compact and lightweight, making them easier to maneuver on congested city streets. They are cheaper to insure as they have low MSRPs.
Insuring Smart Cars
You may already be a Smart car owner or considering buying one, and you may want to know where, how, and the best way to insure your car. You can choose different types of coverages when insuring a Smart car. Some of the coverages you can consider include:
Liability Coverage
This type of coverage is important if you are at fault in an accident. It will help pay for the other driver’s damage and injuries. Smart car owners who should consider this type of coverage live in states with at-fault laws, which hold drivers who cause accidents liable for the damages. Some of these states include California, Colorado, and Texas.
Underinsured Motorist Coverage
In some states, Smart car owners will also want to consider underinsured motorist coverage. This type of coverage can help pay for your damage and injuries if you are in an accident with a driver who does not have enough insurance to cover your losses.
Uninsured Motorist Coverage
If you are in an accident with a driver who does not have liability insurance, uninsured motorist coverage can help pay for your damage and injuries. This type of coverage is also important if a hit-and-run driver hits you.
Collision Coverage
This type of coverage will help pay to repair or replace your car damaged in an accident. Smart car owners who should consider this type of coverage include young and middle-aged drivers and those who live in urban areas where accidents are common. Some of the factors that affect the cost of your premiums include your age, gender, location, driving history, and credit score.
Comprehensive Coverage
This type of coverage will help pay for repairs or replace your Smart car if an event of an accident. Smart car owners who should consider this type of insurance include those who live in areas prone to natural disasters, like tornadoes and hurricanes.
Smart Car Insurance Cost
Smart car insurance costs will vary depending on various factors, but you should expect to pay between $1,200-$1,800 annually for a full coverage policy. This makes Smart car insurance much cheaper than the cost of insuring classic cars. On average, the cost of insuring your Smart car per month is $132, which is lower than the costs of insuring most conventional cars.
The Smart Fortwo is the most popular Smart car model in the market and its MSRP is about $14,650, making it one of the cheapest brand-new cars. Since it’s easier to replace such cars, insurance fees are on the low end as compared to insuring luxury cars from Tesla costing over $100,000. Auto insurers like Progressive and Geico provide the lowest Smart car insurance cost.
Smart cars are a great way of lowering carbon footprint and saving money and space. With most Smart car auto insurers levying less than $1,000 per year, Smart car insurance costs is well below the national average ($1,655 per year).
How to Keep Your Smart Car Insurance Rates Low
Your Smart car insurance cost may be higher or lower than this amount, depending on various factors. Below, we look at ways to ensure that your Smart car insurance rates remain low.
1. Ensure You Have a Low Mileage
One way to keep the insurance cost for your Smart car low is to reduce the number of miles you drive every year. If you can, carpool or use public transportation for your commute. You can also ride a bike or walk to run errands close to home.
High mileage affects your premiums in two ways. First, your insurer will assume that the more you drive, the higher the risk of accidents and claims. Second, some insurers factor in the cost of wear and tear to your vehicle into the insurance premium, and since you will have driven more miles, maintenance and repairs will be higher.
2. Keep a Clean Driving Record
Another way to keep your Smart car insurance rates low is to maintain a clean driving record. This means that you should not be charged with traffic violations or DUIs, and you should also try to avoid at-fault accidents as much as possible. Your insurer may increase your premiums if you have a poor driving history since they assume you are a higher risk.
3. Maintain a Good Credit Score
Your credit score is another factor that can affect your car insurance rates. Many insurers use credit-based insurance scores to help determine premiums, and studies have shown that those with higher scores are less likely to file claims. If you have a poor credit score, you may want to work on improving it before shopping for a new policy. Also, avoid letting your insurance lapse, as this will lead to higher rates when you restart your coverage.
4. Choose the Right Smart Car Insurance Company
Make sure you choose the right insurance company for your Smart car. Check out customer reviews and ratings to find an insurer that provides reliable service and good value on premiums. To get the best rates, compare quotes from several different insurers.
5. Get Discounts on Your Premiums
Some insurers offer discounts for Smart car owners, so ask if there are any discounts you qualify for. Some of the most common savings available include those for good drivers, such as those who have clean driving records or have taken a safe driver course. You may also get discounts based on your age and whether you are considered a low risk due to your gender and location.
If you own a Smart car, it is important to understand the factors that affect your insurance rates to keep them as low as possible. By following the tips above, you can be sure that you are getting the best potential value on your premium.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
