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The expense of a new or slightly used car has risen so much that people find themselves priced out of the market. Maybe this is why the average American car has been on the road for over 12 years now. Car payments only represent a portion of ownership costs. Gasoline prices are historically high, and insurance costs can be oppressive. Inexpensive cars tend to be the least expensive to insure. This year, the car with the lowest annual insurance cost is the extremely cheap Fiat at $1,511, compared to an industry average of $1,633. The Fiat is also one of the worst cars Americans can buy.
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Insurify issues an annual report on car insurance. The primary reasons insurance prices vary are the car model insured, where the car is driven, the track record of the driver, any discounts an insurance company offers and what kinds of accidents are covered. Another recent factor is that more Americans drive aggressively: “44% of drivers reported witnessing more aggressive driving on the roads in 2021 than before the pandemic.”
Along with the Fiat, the cheapest cars to insure are Buicks ($1,533) and Subarus ($1,597). Each of these brands has relatively low prices for their new cars.
The most expensive are the Alfa Romeo ($3,058), Maserati ($2,922) and Tesla ($2,908). Each has models priced well into the hundreds of thousands of dollars.
Fiat is among the most popular cars in Europe. Sales in the United States are poor at only a few thousand per month, a figure that has fallen most years recently. One reason Fiat sales are poor at this point is that it only sells one model, the 500x, which has a base price of $27,965.
24/7 Wall St.Fiat quality’s quality ratings are at the bottom of the J.D. Power and Consumer Reports rankings. Since these are important tools for consumers, it is no wonder Fiat sales are low. Fiat vehicles are cheap to insure, but few people want them.
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