Are Hatchbacks Cheaper To Insure? Checked!

Hatchbacks are popular among people as they can accommodate more cargo if you compare them with a sedan. But are hatchbacks cheaper to insure? 

In this article, I’ll give a clear answer to your question. I’ll also suggest how to lower the insurance rate and a solid comparison of insurance rates between different types of cars of the similar price range.

Are Hatchbacks Cheaper To Insure?

Hatchbacks are generally more expensive to insure compared to their sedan variants. But there are exceptions also, and it’s not like every hatchback available in the automotive market is expensive to insure. As the rate of insurance depends on many crucial factors, it’s always wise to consider them before concluding.

Insurance rates for hatchbacks can differ surprisingly across the board. Mercedes-Benz E-class, BMW 5-Series, BMW 3-Series are some of the most expensive hatchbacks to insure with an insurance cost of $2,840, $2,183, $1,560 per year on average respectively. 

Though there are costly options when the concern related to insurance cost comes, it’s very much possible to find cheaper options available in the market also. 

More space, flexibility, better headroom for rear passengers, superior visibility, and comparatively bigger interior to exterior ratio are some of the reasons for which hatchbacks are popular. But the insurance cost behind it is an important issue that needs to be considered very carefully before buying.

Also read: 5 Reasons Why Car Insurance for Teenagers is Expensive

If Not Body Style, What Affects Insurance Rates?

Hatchbacks have a special type of body configuration for providing access to a cargo area through an upward swinging rear door. Now you may think about what are the actual factors that determine the insurance cost of a hatchback. Well, there is no wonder that body style isn’t the main reason that affects the insurance rates, rather there are some crucial things that stand behind the insurance cost of hatchbacks very logically.

Let’s have an elaborate look at some of the important factors of hatchbacks to determine the overall insurance cost.

  1. The Model & Year 

Hatchbacks from luxurious brands cost a lot for insurance, while it’s possible to save a considerable amount with a budget-friendly hatchback. The annual insurance cost of Toyota Matrix is $1,222. The amount is more than $1,600 less compared to the hatchbacks of the Mercedes-Benz E-class. A newer version of hatchbacks is more expensive to fix compared to the older versions, that’s why they require more to insure.

  1. The Place You Live in

The place you live in can significantly affect the insurance cost of your hatchback. Insurance companies will consider the population of your area as well as the daily occurrence of accidents to determine the insurance cost. The number of thefts in the locality can sometimes increase the insurance rate.

  1. Record of the Driver

A reckless driving habit will cost you more when you need to ensure your hatchback. The marks on driving records remain for three years that works as a red flag and leads to a higher cost of insurance. 

  1. 2-Door or 4-Door

2-door hatchbacks are built mainly for luxury and speed. However, some newer 4-door models mimic a coupe style. It’s expected to have more insurance cost with a 2-door hatchback.

  1. Car Insurance Policy 

There are basically two popular types of car insurance plans available for your hatchback: third-party insurance and comprehensive insurance. The main difference between these two types is coverage. It’s better to do research before choosing a suitable insurance plan for your hatchback considering all the important things.

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Hatchback vs Sedan vs SUV- Insurance Rate Examples

It’s always a wise decision to compare vehicles of a similar price range to get a decision about the insurance rate. To get a clear idea about the insurance rate of hatchbacks, let’s compare some hatchbacks with sedans and SUVs of a similar price range. 

All the hatchbacks, SUVs, and sedans mentioned below are less than $30,000 considering the starting MSRP.

VehicleTypeAverage Annual Premium
Mazda CX-30SUV$1,216
Honda CR-VSUV$1,226
Toyota C-HRSUV$1,228
Subaru Legacy 2.5 LimitedSedan$1,097
Chevrolet Impala 2LTZSedan$1,094
Volkswagen PassatSedan$1,032
Toyota PriusHatchback$1,729
Kia SoulHatchback$1,338
Mazda Mazda3Hatchback$1,261

So, hatchbacks aren’t always the cheapest to insure. 

Also read: 12 Most Comfortable Small Cars (with Photos)

How To Buy a Hatchback To Pay Low Insurance?

Actually, there are lots of things to determine how much you need to pay for the insurance purpose for your recently brought hatchback. Insurance companies sharply focus on age, driving record, type of the vehicle, size of the engine, location, credit score, etc to calculate how much your car insurance premium will be. It’s possible to buy a hatchback to pay low insurance by following some tips.

Some useful tips to reduce the amount of insurance cost for your recently brought hatchback are given below:

  1. Drive a Lower-Powered Car

The engine size of your vehicle can significantly affect the cost of your premium. Hatchbacks with comparatively lower engine capacities are inexpensive to insure compared to higher-powered ones. Having a lower-powered hatchback, you can save a considerable amount of money at the time of paying your insurance premium. 

  1. Maintain a Good Driving Record

A driving record is another important factor to decide the amount of insurance premium. It’s always suggested to complete the insurance procedure with a good driving record otherwise you need to be ready to pay an extra amount of money.

  1. Bundle Insurance Policies 

Bundling your auto and home insurance can reap savings of 5 to 25 percent. Do some research on the insurance companies near you to get the best-combined offer.

  1. Review Your Deductibles 

You can choose a deductible at the time of selecting car insurance that generally ranges from $250 to $1,000. There is an inverse relationship between the amount of deductible and annual premium. You can increase the deductible amount to lower the annual premium. 

  1. Take a Defensive Driving Course

Insurance companies generally offer a discount on the basis of completing an approved driving course which is defensive. You can complete one of the available ones according to your suitability to reduce the cost of your insurance.

What Hatchbacks are Cheap to Insurance?

Hatchbacks have their own advantages compared to the body style of others. Sometimes hatchbacks tend to be more costly compared to other variants in terms of insurance cost, but it’s possible to find hatchbacks that are cheaper to insure.

Some hatchbacks that will cost you comparatively less amount of money for insurance purposes are given below:

  1. 2017 Honda Fit

This one has no sedan variant and becomes relatively inexpensive with an MSRP of $15,999. The 2017 Honda Fit is one of the least costly hatchbacks to insure with an average price of $1,307 per year

Also read: Where is Honda Made? (The Full List)

  1. 2017 Ford Fiesta

The 2017 Ford Fiesta is one of the cheapest hatchbacks to own with an MSRP of $14,390. The Fiesta S offers most of the features needed for modern days. The average annual insurance cost of Ford Fiesta is about $1,317, more than $10 

compared to  Fit. 

  1. 2017 Toyota Yaris

Toyota Yaris has unique traits to offer lower insurance rates. It is sold as a 5-door hatchback and also can be configured as a 3-door model. The average annual insurance cost of the 2017 Toyota Yaris ranges from $1,320 to $1,358.

  1. 2016 Chevrolet Sonic

It’s one of the cheapest hatchbacks of Chevrolet to insure. It requires an average cost of $1,354 per year for insurance purposes. 

  1. 2016 MINI Cooper Countryman 

The insurance cost of MINI Cooper Countryman is quite affordable as you need to spend $1,314 per year on average. It is one of the most expensive hatchbacks in price that is cheaper to insure.