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Most sedans enjoy low rates, but watch out for a few exceptions.
Sedans are safe and reasonably affordable vehicles to buy. They’re also one of the cheapest types of vehicles to insure. Most sedans will fall nicely into a standard insurance policy, though electric or luxury sedans could face extra costs.
Get the right car insurance for your sedan
What kind of sedan coverage do I need?
Almost all states require liability insurance, but each state requires slightly different amounts. In addition, there are a few other coverages you might consider for your sedan.
- Liability. Liability pays for other people’s injury expenses and property damage when you’re at fault for an accident. Bodily injury and property damage are usually separate coverages you can select.
- Uninsured/Underinsured motorist liability. If the at-fault person doesn’t have any insurance or doesn’t have enough to cover your injuries, this coverage kicks in to help pay for your injury expenses.
- Collision. Damages to your own vehicle are covered if it’s damaged by another vehicle or a solid object, such as hitting a telephone pole. It’s usually only required if you finance your sedan.
- Comprehensive. This covers your vehicle for almost anything that’s not a collision, including fire, theft, glass damage, wind or hail damage and falling objects.
What sedan add-on coverage should I consider?
Add-on coverage types are typically inexpensive, optional extras to your policy if you need them.
- Full glass coverage. This takes away your deductible if you have a glass claim, such as a cracked windshield. It’s commonly used when you choose a high comprehensive deductible.
- Roadside assistance. Provides emergency help such as towing, refueling, battery jumps or help with a flat tire. Each insurance company has slightly different terms.
- Rental car reimbursement. This gives you money to rent a car if your sedan is undrivable due to a covered accident and could be a valuable option if you only have access to one car.
- Gap coverage. You can get the difference between the actual cash value — or market value — that’s paid for your vehicle in a claim and the amount that you still owe on a loan with this coverage. It can be useful since sedans usually depreciate faster than loans are paid off.
- Pet injuries. Pets are part of the family, but aren’t automatically covered under medical payments or any other coverage. You’ll want to consider this endorsement to cover any medical expenses for injuries your pet might sustain in an accident.
Do different kinds of sedans need different insurance?
The type of sedan you’re driving could have an impact on its insurance rates.
- Hatchback. You could find your hatchback sedan to be either more or less expensive to insure than a standard sedan. It all depends on the exact model, its safety features and theft rates.
- Luxury. Expensive luxury sedans are pricier to insure due to the higher repair and replacement costs. Luxury sedans could be anywhere from 10% to 20% more expensive to insure than standard sedans.
- High-performance. While not as popular as they used to be, high-performance or sport sedans are still out there. It’s more expensive to insure one than a standard sedan because of the higher risk. But they typically aren’t as expensive to insure as traditional sports cars and supercars.
- Hybrid. Hybrids combine gas and electric power, and they also sit in the middle between insurance rates of gas powered vehicles and electric ones. A hybrid discount can help lower insurance rates.
- Electric. All electric sedans are more expensive to insure than standard ones, due to the higher sticker price and the more-expensive repairs. An electric discount can help offset insurance costs.
How can I get cheap sedan insurance?
Insurance rates for your sedan will heavily depend on its year, make and model. Your own personal information and driving factors — such as your age, location and driving history — will also play a part.
Newer sedans can cost over $200 a month to insure, while older sedans can be insured for $100 or less. Below are some tips to lower your premium if it’s higher than you’d like.
- Raise deductibles. If you carry comprehensive and collision coverage on your sedan, consider raising both deductibles to at least $1,000. But be sure to only do so if you can still afford it after an accident.
- Drop coverage you don’t need. If you have an older sedan that isn’t worth much, consider dropping collision or comprehensive coverage entirely.
- Try telematics. Many insurance companies offer a telematics discount that’s open to anyone. Specific driving behaviors are tracked over a period of time, and you receive a discount based on your results.
- Aim for a safe driver discount. Not everyone is eligible for this discount, but it’s worth striving for. If you can go either three or five years without an accident or violation, you’ll be eligible for it. You can expect typical savings of between 20% and 40%.
- Take a defensive driver course. Most insurance companies offer a discount for completing a defensive driver course, especially if you have a spotty driving record. This could save you at least 10% while teaching you safe driving habits.
What should I watch out for?
Carrying insurance on your sedan means you’ll want to be careful of a couple potential pitfalls.
- Low liability limits. You can try to lower your insurance premium in a few ways, but reducing your liability limits shouldn’t be one. If you’re responsible for an accident and don’t have high enough limits, you’ll be on the hook for potentially tens or hundreds of thousands of dollars out of pocket.
- Gap coverage. If it isn’t required, you might be tempted to skip this coverage. But if you don’t have it and your car is totaled, you still might owe the financing company thousands of dollars on your loan — even after you receive your claims check. Also make sure you drop this coverage after you pay off your loan.
- Actual cash value. Insurance companies will pay the market value for your vehicle and typically err on the low end. Keep copies of your paperwork and be prepared to fight back if your claims check is too low.
- Wear and tear. Normal wear and tear is never covered by an auto insurance policy. This includes things such as accidents caused by worn down tires or poor maintenance.
Insuring your sedan properly and cost-effectively means knowing what coverage you need and what discounts are available. Sedans are among the cheapest types of vehicles to insure, but the premium could become expensive if you have a luxury, electric or high-performance sedan.
Before buying a policy, be sure to review and compare different insurance companies to find the best one for your sedan.
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