Buying a new car is the perfect opportunity to shop around for insurance. You're going to need to show proof of insurance before you drive your new baby off the lot, so why not try to save a few bucks at the same time?
To help you determine whether you're getting a good deal, The Zebra has created a formula called APPP: Annual Premium as Percentage of Price. Based on our 2019 State of Insurance report, we looked at prices for 252 cars, trucks, and SUVs across 28 brands. We started with the manufacturer's suggested retail price (MSRP) for 2018 models and layered in the average annual premium for each one. The lower the score the better, and if you can find an affordable car with a low APPP rating, you'll have found the sweet spot.
The APPP model lets you compare insurance prices on a more level playing field. Of course, you're doing to pay more to insure an Audi R8 than a Subaru Outback ($2,710 a year more, as it turns out), but when you look at your insurance payments as a percentage of what you paid for the car, some interesting numbers emerge.
Where We Got This Data
The Zebra's 2019 State of Insurance report analyzes more than 61 million car insurance rates to examine how risk factors affect pricing. Insurance is regulated differently in each state, so car insurance prices also vary substantially by location. And with more than 650 insurance companies using a mix of some 43,500 rating factors, any given person could conceivably choose from millions upon millions of car insurance quotes. The Zebra’s annual report explores rates across all 34,000 U.S. zip codes and over the past 8 years to identify trends and critical factors impacting rate changes, and what that means for the 250 million U.S. drivers in 2019.