Cars that Can Reduce Your Insurance Premium

Several factors play into the cost of automobile insurance premiums. One of these factors is the type of vehicle that you drive. A fancy sports car or expensive SUV can drastically increase your insurance premiums, while something more tame and less exciting can lower your premiums. If you are looking for the best cars to buy to lower the amount you pay for insurance, here are the top three picks.

Compact Car

A small, compact car can help lower your insurance rates. In many cases, these are inexpensive to fix, and some would say that they don't go fast enough to get you in trouble (though the author would beg to differ on some models). Check out the Toyota Prius, Chevy Aveo and Ford Focus for new cars. If you are looking for a used vehicle, the Dodge Neon, Chevy Cavalier and Ford Escort are all great choices to help lower your insurance rate.

Minivan

As families become larger and people have more commitments, these "Soccer Mom-Mobiles" are becoming increasingly popular. They get great gas mileage in most cases, hold everything but the kitchen sink and have all the bells and whistles to make them great for road trips. With add-ons like DVD players and heated seats, you can almost forget that you are driving something "uncool." And when you get your insurance bill, you will definitely forget the "uncoolness" of your minivan - minivans come with low insurance premiums. The Chrysler Town & Country, Dodge Caravan, Hyundai Entourage, Toyota Sienna and the Mazda MPV are all wonderful choices if you are looking for a minivan.

Compact Pickup Truck

A compact pickup truck is another great choice if you are looking for a great vehicle that gets great gas mileage and can help you stretch your auto insurance dollars. Check out the Ford Ranger, Chevy S-10 and Mazda B-Series trucks in both new and used models. The Dodge Dakota is considered a "mid-size" truck, as opposed to a compact pickup, but the Dakota also comes with a small insurance price tag.

Before you buy any car, speak with your automobile insurance agent to get a quote on insurance. This can help you avoid making a mistake at the dealership and buying a car that will break your bank when it comes time to insure it. And, as always, if you have questions about this article or any other financial topic, seek the conusel of a licensed, responsible financial advisor.