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What Luxury Car is the Cheapest for Insurance to Repair?
The below information is sourced from our friends over at Kingsey Report, who have been doing vehicle cost comparisons for decades. We segments this data into 9 categories to determine which one of these cars in the cheapest ton insure, based on the cost of replacement "crash parts". This is different from the full Kingsey report where the total cost of replacements parts are covered which also includes items that would most likely not be damaged in a motor accident. Service and wear and tear items are therefore excluded in this report as we deal only with parts that would most likely be damaged in a car crash and need replacement by your insurance. For ease of use we will keep the sections, makes and models in the same order as the original Kingsey Report so that you can reference easily.
Luxury (German) Sedans Insurance. BMW v.s. Audi v.s. Mercedes v.s. Volvo v.s. Jaguar
So in a world where we are spoiled for choice, where we have good cars and then better cars and then the best cars - it can sometimes be a little overwhelming to make the right choice. We know we like the prestige and comfort of a luxury car - but can we afford one? And by afford, I'm not referring to the actual cost of the car alone, but the cost of ownership and keeping it running. Running costs can be broken into 2 basic groups: Physical Costs: Service (Wear & Tear Parts) and Fuel
Administrative Costs: Insurance and Warranty (both of which are optional) The physical costs are dependent on your usage of the vehicle, how far you drive and your driving style of course. If you corner hard, accelerate like Lewis Hamilton then your wear and tear and fuel costs will be higher than average. These physical factors are naturally within your control though, but what about the administrative costs?
As you are aware, several factors go into assessing your personal risk profile that ultimately determine how much you end up paying for car insurance. For example, as you get older, car insurance gets cheaper until about 65 and then it gets more expensive again. Also where you keep your car at night - in a garage or does it stay on street. Is your neighborhood a safe one? These location and age based criteria are pretty difficult to change, so it's not reasonable to suggest these as potential for cost savings. But in terms of actual car costs - there's also not much you can do except for choosing a luxury sedan that costs less to ensure.
So which luxury car is the cheapest to insure then?
To answer this question, we head over to our friend http://www.kinseyreport.co.za/2017_kinsey_report.htm#Executive%20Saloons
In order to gear this report for the purpose of accident damage and total vehicle replacement, we have done a slight modification to the table by using only the Retail Selling Price and then comparing this to Sub Total C. This Sub Total is a collection of the most common physical exterior parts that could be damaged by an accident. It's highly unlikely that all of these parts would be damaged in a collision, but it's a very good reference point. It's also important to note that this excludes the actual physical manual labour cost of replacing the parts and the paint work, assuming that this would be similar in all makes of vehicle.
In our table we have the following luxury sedans - (mostly German) Audi, BMW and Mercedes with and Indian owned Jaguar (once British, now Tata) and the other Chinese owned Volvo (once Swedish, now Geely). So which of these 5 luxury cars is going to cost the most to fix and will therefore cost the most to insure? And which luxury car is going to be the cheapest to fix and insure. Let's dive in...
Right, so the Jaguar XE 2.0 D Prestige tops out as the most expensive car in the above table and so the insurance cost will be the highest to replace. It's a good R100k more expensive than it's closest rivals, the BMW 320i Auto
and the Mercedes Benz C200 Auto
, so it's far from the cheapest car here. But it scores the lowest in the crash parts basket, in relative terms. However, because of it's high cost to replace in a total loss writ-off, it's unlikely to be the cheapest to insure.
The BMW 320i Auto has the cheapest crash basket in terms of actual cost, and is second cheapest in relative terms too. But it's not the cheapest car here and sits right in the middle of the 5 cars for replacement cost.
The Audi A4 2.0 TFSI Auto
is the second cheapest car - but the parts basket is the second most expensive, so that's not it either.
The Mercedes C200 Auto is just a hair cheaper than the BMW for total cost, but it's parts basket is sadly the most expesive in relative 32.65% and actual cost.
And then finally, the Volvo S60 T4, which is the cheapest off all the luxury automatic sedans, but very similarly priced to the Audi A4. In terms of Crash Parts – it's right in the middle of all the cars, but with only R2000 difference between the cheapest, there really isn't much to compare. Because the Volvo is the cheapest car here, and because it's Crash Parts are really quite reasonable – I'm going to have to go with the Volvo being the cheapest insurance option
BUT, it's important to understand that car insurance is heavily dependent on your personal risk profile and less to do with the car you drive. The whole point of this exercise was to determine which luxury car would be the most affordable to insure, and the deciding factor is a balance of vehicle value and the cost to repair (the Crash Basket parts).Something to consider:
Are you more likely to drive the BMW with a heavier foot than say the Merc? It's possible given that you might feel more inclined to relax in the incredible Merc comfort as opposed to being more racy in the harder BMW. Same goes for the Jag – it's plush!! The Audi is also really quite perky and racy too. The only true way to discover which is the most affordable is to get a quote based on your personal risk profile and you can do that very easily by getting Compare Car Insurance
to call you back with multiple quotes. Go for it!
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