If you own an SUV or are planning to buy one, getting insurance coverage is one of the most important things you need to consider. SUVs are popular vehicles for families and individuals who want a reliable and spacious ride, but they also come with higher risks on the road. In this guide, we’ll explore everything you need to know about SUV insurance, including coverage options, costs, and factors that affect your premiums.
What is SUV Insurance?
SUV insurance is a type of auto insurance that provides coverage for sport utility vehicles (SUVs). It is similar to regular auto insurance, but with additional coverage options that are specific to SUVs. SUV insurance policies usually cover liability insurance, collision insurance, comprehensive insurance, and other optional coverages like personal injury protection (PIP) and uninsured motorist coverage.
One of the key differences between SUV insurance and regular auto insurance is the cost. SUV insurance policies are generally more expensive than auto insurance policies due to the higher risk associated with SUVs. According to the Insurance Information Institute, the average cost of auto insurance in the U.S. in 2021 is $1,738 per year, while the average cost of SUV insurance is $2,180 per year.
Liability Insurance
Liability insurance is the minimum coverage required by law for all drivers in most states. It covers damages and injuries that you cause to other people and their property in an accident. Liability insurance includes two types of coverage: bodily injury liability and property damage liability.
Bodily injury liability covers medical expenses, lost wages, and other damages that result from injuries to other people in an accident that you caused. Property damage liability covers damage to other people’s property, including their vehicle, house, fence, or other structures.
When you buy SUV insurance, you must choose the amount of liability coverage you want. The higher the coverage amount, the more protection you have in case of an accident, but also the more expensive your premiums will be.
Collision Insurance
Collision insurance covers damages to your SUV in a collision with another vehicle or object, regardless of who is at fault. This coverage pays for repairs or replacement of your SUV, up to the limit of your policy. Collision insurance is usually required if you have a loan or lease on your SUV, but it is optional if you own your SUV outright.
The cost of collision insurance is based on the value of your SUV, the deductible you choose, and other factors like your driving record and location. The higher your deductible, the lower your premiums will be, but also the more you will have to pay out of pocket if you have an accident.
Comprehensive Insurance
Comprehensive insurance covers damages to your SUV that are not caused by a collision, such as theft, vandalism, fire, or weather events. This coverage also pays for damage to your SUV caused by hitting an animal or falling objects like tree branches.
Comprehensive insurance is usually optional, but it is recommended if you live in an area with high risk of theft, vandalism, or natural disasters. The cost of comprehensive insurance is based on the value of your SUV, the deductible you choose, and other factors like your location and driving history.
Factors That Affect SUV Insurance Costs
When you buy SUV insurance, the cost of your premiums is determined by various factors that affect your risk of making a claim. Some of the factors that can affect your SUV insurance costs include:
Driving Record
Your driving record is one of the most important factors that affect your SUV insurance costs. If you have a clean driving record with no accidents or traffic violations, you are considered a low-risk driver and will have lower premiums. But if you have a history of accidents, tickets, or DUIs, your premiums will be higher to account for the increased risk.
Location
The location where you live can also affect your SUV insurance costs. If you live in an area with high traffic, crime, or severe weather, your premiums will be higher because your SUV is at a higher risk of accidents, theft, or damage.
Age and Gender
Younger drivers and male drivers are generally considered higher risk and pay higher premiums than older drivers and female drivers. This is because younger drivers and male drivers have a higher rate of accidents and traffic violations.
Type and Value of SUV
The type and value of your SUV also affect your insurance costs. SUVs that are more expensive to repair or replace, or have a higher risk of theft, will have higher premiums. Newer SUVs with advanced safety features may have lower premiums because they are less likely to be involved in accidents.
SUV Insurance Coverage Options
When you buy SUV insurance, you have several coverage options to choose from. Some of the most common coverage options include:
Liability Insurance
Liability insurance is the most basic coverage required by law, but it is also the most important. It covers damages and injuries that you cause to other people and their property in an accident that you are responsible for.
Collision Insurance
Collision insurance covers damages to your SUV in a collision, regardless of who is at fault. This coverage is usually required if you have a loan or lease on your SUV.
Comprehensive Insurance
Comprehensive insurance covers damages to your SUV that are not caused by a collision, such as theft, vandalism, or weather events.
Personal Injury Protection (PIP)
Personal Injury Protection (PIP) coverage provides medical and lost income benefits for you and your passengers in case of an accident. This coverage is often required in no-fault states.
Uninsured/Underinsured Motorist Coverage
Uninsured/Underinsured Motorist Coverage provides protection if you are in an accident with a driver who has no insurance or insufficient insurance to cover your damages.
Roadside Assistance
Roadside Assistance provides emergency services like towing, jump-starting a dead battery, changing a flat tire, or unlocking your SUV if you’re locked out. This coverage is usually optional and may have additional costs.
FAQ
What is the best SUV insurance?
The best SUV insurance is the one that meets your specific needs and budget. To find the best SUV insurance, you should compare quotes from multiple insurance companies and review their coverage options, discounts, and customer service ratings.
How much does SUV insurance cost per month?
The cost of SUV insurance varies depending on several factors, including the type and value of your SUV, your location, driving history, and coverage options. The average cost of SUV insurance in the U.S. is $182 per month or $2,180 per year.
Do I need full coverage on my SUV?
Whether you need full coverage on your SUV depends on your individual circumstances. If you have a loan or lease on your SUV, your lender or leasing company may require you to have full coverage. But if you own your SUV outright and it’s not worth a lot, you may not need comprehensive and collision coverage.
What is the minimum SUV insurance required by law?
The minimum SUV insurance required by law varies by state. In most states, the minimum requirement is liability insurance that covers bodily injury and property damage. Some states also require personal injury protection (PIP) or uninsured motorist coverage.
Can I get SUV insurance with bad credit?
Yes, you can get SUV insurance with bad credit, but you may have to pay higher premiums. Insurance companies use credit scores as one of the factors to determine your risk level and set your premiums. If you have a low credit score, you may be considered a higher risk and pay more for insurance.
To lower your SUV insurance premiums, you can try the following:
- Shop around and compare quotes from multiple insurance companies
- Choose a higher deductible
- Ask about discounts for safe driving, anti-theft devices, or bundling multiple policies
- Maintain a good driving record
- Drive a safe SUV with advanced safety features
Conclusion
Getting SUV insurance is an important part of owning an SUV. It provides protection against financial losses and unexpected events on the road. When shopping for SUV insurance, it’s important to consider your specific needs and budget, and compare quotes from multiple insurance companies. By taking the time to understand your SUV insurance options and choosing the right coverage, you can enjoy the peace of mind that comes with knowing that you and your SUV are protected.