Purchase price may be extremely important when you are comparing two different vehicles, but consumers can never overlook just how important it is to research continuous costs of ownership to see which model will cost more in the long run. If you have narrowed down your list of potentials and are trying to decide between the Honda CRV and the Mazda CX5, it is important that you research not just maintenance costs, but also average insurance costs. Here are the major factors used in determining insurance rates and how the CRV stacks up against the CX5.
True Cost of Ownership and How It Impacts Rates
Many assume that premiums are based on the sales price of a vehicle. While the replacement cost of a car can have an impact on rates, it is not out of the ordinary for a luxury vehicle that costs dramatically more than an economy vehicle to have a cheaper premium. This is because insurers are more concerned with the average cost to repair vehicles instead of its purchase price. They may factor in average replacement costs, but are more focused on assigning higher premiums to vehicles that cost a great deal of money to repair.
Over a 5-year span of time, it costs a total of $43,095 to own CX5. Comparatively, it costs a total of $39,583 to own a CR-V over this same period of time. While this data does show that the purchase price and fuel costs are higher for the Honda CR-V, the higher cost to insure the CX-5 is what actually drives up the True Cost of Ownership dramatically. According to the statistics, it costs $2,349 to insure the CX-5 during the first year of ownership and only $1,846 to insure the CR-V. Considering that it costs over $2,600 more to insure the CX-5 over the total 5 years, it is fair to say it is cheaper to insurer the CR-V.
Safety Ratings and How They Translate Into Insurance Ratings
You might wonder just why the CX-5 costs so much more to insure when it costs less to buy. What you might not know is that rates are based on the performance on safety tests and risk. When a car performs poorly on a safety test, the passengers in that car are more likely to be injured. This is why reviewing safety ratings through the NHTSA and the IIHS can really paint a picture for you as you compare vehicles.
CR-V vs. CX5: How the Safety Ratings Compare
The NHTSA has given the Honda CR-V an overall 4-star safety rating in the SUV car class. According to the IIHS, the CRV performed well in every area of crashiworthiness receiving a Good in front, side, roof strength and restraints. It also received a superior rating for Front Crash Prevention features and has rollover sensors and stability controls, which drives premiums down.
The Mazda CX5 also received a 4-star overall safety rating through the respected NHTSA. Upon review of the IIHS crashworthiness tests for this small SUV, the CX5 and CR-V have two very similar scores. It not only received a Good on all areas of crashworthiness, it also was ranked superior in crash prevention and includes roll sensors and stability controls for added safety. Based on this data, the safety rankings have a similar impact on premiums. Because of this, it is fair to say that maintenance costs and claims data is what has led to the inflated rates for the CX-5.