The Dodge Ram 1500 and Chevy Silverado are among the the top-selling full-size pickups that are sold in the United States. If you are on a mission to find the best truck that will haul all of your favorite recreational toys, you need to consider a number of questions. While sales price is important, it is also important to consider the cost to insure the vehicle before buying it. Checking how rates compare from one pickup to the next is not just wise, it is highly recommended. If you are interested in learning if it is cheaper to insure a Ram 1500 or a Silverado, read on and find out how each vehicle stacks up.
How Values and Repair Costs Impact Rates
While the actual purchase price is not used in determining rates, the company may use average repair costs and the total True Cost of Ownership to determine how much they could be on the line for if you file a damage claim. It is important to realize that the company will only use the average cost of repair and replacement costs when you carry physical damage on your own car and not when you have a liability-only policy.
Since the 5-year True Cost of Ownership is $44,708 for the Dodge Ram and $44,384 for the Chevy Silverado, it is fair to say that the big picture shows that the pickups cost about the same to own. The premiums, however, are not as similar. The Ram 1500 costs and estimated $1,984 to insure the first year and a total of $10,639 during a 5-year period. Compared to the Silverado's year 1 premium of $2,143 and 5-year total of $11,492, it is fair to say it is cheaper to insure the Dodge Ram 1500 over time.
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Why Safety Ratings Are So Important
It is only natural to wonder why cars that cost near the same to own can cost more to insure. One of the main reasons is because car insurance companies use a lot of data and statistics determine just how much of a risk that a policyholder presents. When a vehicle has a poor safety ratings, the customer may be more likely to have a collision and the company is likely to pay out more in injury claims. This is why all underwriters and actuaries take a close look at vehicle safety ratings. Knowing how safety ratings impact rates for each truck can help you understand why premiums for liability may be so different.
How Does the Ram 1500 Safety Rating Compare to the Silverado?
The Insurance Institute for Highway Safety does extensive testing on private passenger vehicles to evaluate crashworthiness and to assign ratings on each vehicle that can be used to assign premiums. According to the IIHS, the Dodge Ram 1500 received a Good rating on the front end and the restraint system, but only a Marginal rating for roof strength. The Silverado also received a Good front end rating, but a Basic in Front Crash Prevention. Since there is no grade for safety restraints and front crash prevention, the Silverado automatically wins the safety test.
How Does Claims Data Affect Rates for Each Pickup?
In addition to reviewing safety ratings, the adjusters will also review claims data to see how much damage the truck causes when involved in a real-life crash. Claims departments average out the data to determine if the truck's body causes significant damage and also if it leads to third-party injury. It is not out of the ordinary for the more popular truck to have a more expensive rating because there are more accidents involved in the truck within the local population. Since the Ram ranks third in the list of most popular trucks, it has more claims to evaluate in highly-populated areas which can help drive rates down.