To find out which car is going to give you the most for your money, you will need to look at the big picture to determine the True Cost to Own each car. The True Cost to Own includes repair costs, maintenance costs, fuel costs, financing fees, depreciation and even insurance expenses that the owner must take on over a span of 5 years. So even though it only costs $703 more to buy the Civic over the Corolla initially, it costs much more than that when all of the expenses add up.
Comparing the True Costs to Own: Corolla vs. Civic
According to Edmunds, the True Cost to Own the Toyota Corolla for a span of 5 years is $32,749. The data reported on the Honda Civic shows that ownership costs are about $1,258 higher and the total cost comes in at $34,007. It is only natural to wonder where the differences lie. While the costs for depreciation, taxes, fees, financing and even fuel are similar, the costs add up under the insurance category.
Total Insurance Costs: Corolla vs. Civic
The data reveals that the average first-year cost for insurance is $1,731 for the Toyota Corolla and $1,913 for the Honda Civic. Not only will you pay more to insure the Civic during the first year of ownership, you will pay more each year thereafter. Even when insurance costs drop throughout the life of the car, it will cost a significant amount more to insure the Civic than it will to insure the Corolla with the same amount of coverage.
If you are wondering how much more, the Corolla costs about $9,282 to insure for 5 years and the Civic costs about $10,258. Considering the estimates, it is about $976 cheaper to insurance the Corolla at the end of 5 years.
Why Does it Cost More to Insurance the Civic?
It is only natural to wonder why it costs more to insure a car in the same class that costs close to the same amount of money out the door. In the insurance world, companies use a long list of factors to assign premiums. The riskier it is for the owner to file a claim for injuries or damage, the more the premiums will cost.
One of the first things a company will look at when they are rating a vehicle is its safety rating. This is why the companies use reports from the NHTSA and also the Insurance Institute of Highway Safety to see how likely it is for someone to file a third-party injury claim against the policyholder. Based on the crash tests and how each vehicle performed, the Corolla was given a 5-star overall rating and the Civic earned a 4-star overall rating.
Since passengers in the rear seat are more at-risk of injury in the Civic, the rates for Bodily Injury and Medical Payments are higher when the covered vehicle is a Civic. But safety ratings are not the only factor that is used. When it comes to calculating the premiums for physical damage coverage, the company will consider repair costs and claims data. While the maintenance and repairs costs are similar, it is still more expensive to repair a Civic than it is to repair a Corolla which makes premiums for comprehensive and collision higher as well.