Is it cheaper to insure a Ford Fusion or Honda Accord?

While the Honda Accord is priced higher than the Ford Fusion within the full-size sedan vehicle class, that does not necessarily mean that the cash price dictates how much more you will pay for car insurance. The cash sales price of the Accord Sedan comes in at $22,796 which is a substantial amount higher than the $21,662 of the Ford Fusion Sedan. Initial cost may be important if you are financing or paying cash, but you should always look at long-term costs when you are making such a large purchase.

True Cost to Own: Accord vs. Fusion

With the sales price of the Fusion being $1,134 lower than the cost of Accord, you might automatically assume that the cost to own the Accord would be higher in the end. In actuality, owning an Accord will cost you less in the end according to a breakdown of the ownership costs tallied by Edmund's. This breakdown includes expenses for taxes, titling, financing, fuel, maintenance, repairs, depreciation and insurance throughout the 5-year time frame.

Based on the True Cost to Own breakdown, which estimates all ownership expenses over a period of 5 years, it costs $36,917 to own the Honda Accord for 5 years and $38,360 to own the Ford Fusion over the same period of time. As you can see by the figures, even though the sales price of the Accord is over $1,000 higher, it will cost you $1,443 more out of pocket over 5 years to own the Fusion.

Why is the Cost to Own Higher for the Fusion?

The reason for this higher ownership cost is because certain lines on the itemized list of expenses is higher for the Fusion. Fuel, maintenance and repairs all cost substantially more over a span of 5 years when you own a Fusion. Since these costs are higher, it balances out the difference in purchase price and makes the Fusion more expensive to maintain.

How Do Insurance Costs Compare?

While ownership costs are higher for the Fusion, in the end it is the Fusion that costs less to insure. Based on the data collected, it costs an estimated $1659 to insure the Fusion during the first year of ownership and a total of $8896 over the entire 5-year period. For the same amount of insurance, you can expect to pay $1671 for the first year premiums and $8961 for all 5 years on the Accord. While the difference is only a matter of $65 that adds up over the 5 years, it is still cheaper to insure the Fusion.

Why Are the Insurance Costs Similar?

You may be wondering just why it costs around the same amount of money to insure cars with two very different cost profiles. The answer is because of how premiums are calculated. Insurance companies use several factors to rate a policy, and sales price is not one of them. Instead, the company will consider the vehicle's safety records and repair costs to determine how much they may have to spend on a claim.

The Ford Fusion has been given a 5-star overall rating by the NHTSA for crash test performance. The Honda Accord has earned the same 5-star overall rating.

Since both models earned the highest possible rating in overall safety, premiums for Bodily Injury, Medical Payments and Uninsured Motorist coverage will be very similar. The premiums for physical damage cover, if you so choose to carry it, will also be similar due to the fact that repair costs between the Fusion and the Accord are in the same price range.