SUVs - More Car Insurance and Safety Facts

Following the "irrational exuberance" of the 1990's stock market boom and bust, the nation faced recession. To help stimulate the economy, the Federal Reserve began cutting interest rates in early 2001. When the 9/11 tragedy occurred, many feared that the recession would turn into a depression, so the Fed got even more aggressive and cut interest rates 13 straight times to a historic low of 1 percent! This made credit easy to come by and fueled the early 21st century housing boom, but low interest rates also led to a boom in auto sales, and SUVs were the kings of the road.

Starting in 2005, high gas prices began taking a bite out of SUV sales. But by 2006, the public's overall distaste for large vehicles resulted in them becoming more affordable, since used car lots had to drop prices on SUVs in order to lure buyers. Now, many car buyers are looking at SUVs as an affordable alternative to comparable sedans - even in light of high gas prices. But along with your higher gasoline costs, you also need to consider what buying an SUV will do to your car insurance rates. You might be surprised.

Are SUVs Safer Than Normal Cars?

Many people love their SUVs because they feel that they're safer vehicles. Auto experts disagree on the subject, with some saying they are indeed safer and others arguing that they are not. According to Russ Rader of the Insurance Institute for Highway Safety (IIHS), "Vehicle crash statistics that we compile each year show that pound for pound, SUVs tend to be less safe than cars."

Of course, the "pound for pound" qualifier negates much of what Rader is saying. If other cars weighed as much as SUVs, then they would be safer - but other cars don't weigh as much as SUVs, so that's a moot point. The real problem is that many people feel that they're so much safer in an SUV that they don't need to be as cautious as when driving a sedan. "Road muscles," as they are called, can lead to accidents.

Another factor that makes SUVs not-so-safe is their higher center of gravity. Most SUVs sit atop station wagon chassis, which means they are built like cars but don't drive like cars. This makes them more prone to upsetting or flipping.

Finally, even if an SUV is safer for its driver and passengers, even minor damages can be expensive to repair. Since SUVs are not required to meet the federal government's standards for bumpers on cars, few manufacturers voluntarily conform to them. This causes SUVs to sustain greater body damage in light crashes and even parking lot incidents.

Don't Forget About the Other Car

While it may be true that SUVs are safer for their drivers and passengers, the main factor that makes insuring them more expensive is the damage they do to other cars - and people. Pedestrians hit by SUVs are three times as likely to be seriously injured than pedestrians struck by a regular car. This fact causes car insurance companies to charge SUV owners more for medical payments and liability coverages.

If you just can't pass on the reduced price of your Cadillac Escalade, make sure you shop around for car insurance. Since SUV owners typically pay between 10-20 percent higher car insurance rates, comparison shopping is a must. Use the resources at carinsurancerates.com to find the right policy for you.