Shopping for a car is no easy task. There are many factors that you need to consider before making this large purchase. It is important to look at cars that are going to provide you with the most value for the money that you pay for it.
In order to determine the true cost of owning different types of vehicles you will need to look at the big picture. The true cost of owning a particular vehicle will include the maintenance costs, repair costs, financing fees, fuel costs, depreciation, and the cost to insure a particular vehicle over a span of at least 5 years.
This means that even though the cost of a Honda Civic may be $700 more to purchase over a Toyota Corolla at the start, when the expenses are added up, it actually will cost much more.
Comparing the Costs of Owning a Honda Civic Over a Toyota Corolla
According to Edmunds, the cost of owning a Toyota Corolla for five years is around $32,749. The true cost of owning a Honda Civic for five years comes in at around $34,007, or about $1258 more. Let’s take a closer look at where the differences in costs for these two vehicles are.
When comparing the costs of the Toyota Corolla andthe Honda Civic one will quickly see that the costs for taxes, fees, depreciation, and financing are very close. In addition, the cost for fuel for both vehicles is very similar. So where does the difference come in? Surprisingly, the cost difference between these two vehicles is in insuring each of these vehicles.
Insurance Costs of the Honda Civic and Toyota Corolla
When searching through the data for the Honda Civic and Toyota Corolla it is found that the average cost for insuring a Toyota Corolla for the first year is around $1730. The average cost for insuring a Honda Civic for the first year is around $1900.
Not only is insuring a Honda Civic more during the first year, it is also more during the years after as well. Even when the rates of insurance drop as the vehicle ages, it still costs more to insure a Honda Civic than it does to insure a Toyota Corolla. These rates are for the exact same amount of insurance coverage.
Over the course of 5 years it will cost around $9280 to insure the Toyota Corolla and about $10,250 to insure a Honda Civic. With these estimates it is around $980 cheaper to insure a Toyota Corolla over the course of 5 years than a Honda Civic.
Why is a Honda Civic More Expensive to Insure?
After learning that a Honda Civic is more expensive to insure than a Toyota Corolla, you may be wondering why. It is especially confusing because these two vehicles are very similar.
Insurance companies look at many different factors when they are considering the premiums for a vehicle. The riskier that it is for an owner of a vehicle to file a claim for damages or injuries, the higher the premiums will cost.
The safety rating of a vehicle is one of the things that an insurance company looks at when determining a premium for that vehicle. This is why insurance companies look at reports provided by the NHTSA as well as the Institute of Highway Safety in order to see how likely it is for a person to file third party personal injury claims against the insurance policy holder.
According to the performance of each of the vehicles, the Toyota Corolla received a 5 star rating overall and the Honda Civic has a 4 star rating overall. Since the passengers in the back seat of a Honda Civic have a higher risk of being injured should the vehicle be involved in an accident, the rates for medical payments and bodily injury are higher than the rates for the same coverage of a Toyota Corolla.
Insurance companies do not only use safety ratings to determine premiums. Insurance companies also consider the costs of repairs and claims data. The repair and maintenance costs are similar for the Honda Civic and the Toyota Corolla, but it is still more expensive to repair Honda Civics than Corollas. This also makes the premiums for collision and comprehensive insurance coverage higher.
Overall, when it comes to the cost of owning either a Honda Civic or Toyota Corolla, both cars are affordable and reliable. However, the difference in costs lies within the cost of insuring each of the vehicles and it is a bit more expensive to insure the Honda Civic than it is to insure the Toyota Corolla.