What does it cost to insure a smart car?

Smart cars are a project started by Swatch Watchmakers in collaboration with Daimler Benz. They are normally referred as micro cars and at the moment the smallest smart car being sold in the US is Smart Fortwo.

Although smart cars offer the best safest results and are also economically fuel efficient but ensuring them and especially the electric type models is rather tricky.

Concerns about Smart cars:-

One of the biggest concerns about Smart Cars is their safety as the car is tiny. Daimler Benz addressed this concern with a Tridon steel Safety shell, a steel cage that closes the interior of the car. The energy-absorbing crumple zone absorbs the impact and lessens their effects in aftermath of a crash. These cars have engines in rear which is a plus point if collision is head on. Although they cannot be compared to large-sized car in terms of safety but as far as their size is concerned they are quite safe.

Cost for insuring the Smart car:-

Smart cars are small, safe and fuel efficient so directly people think that there insurances are also little. However the reality is different if you want to insure a smart car and especially an electric smart car.

Insurance rates for these smart cars are up to 21 per cent higher as compared with normal gas-fuelled cars. As the insurance rates are higher than normal cars, your insurer is also going to be shelling out more money for these cars if they get into an accident.

Repair costs are expensive due to the following reasons.

• Battery systems are far more expensive
• Trained mechanics needed to repair smart cars

Although the insurance bill for these smart cars is more you can still save while maintaining your dream car. An annual 7500 dollars of the tax credit will be given against these cars and also the operating costs for these cars are also low as well.

A Smart Car Owner is expected to pay an expected amount of 3800 dollars in premium annually for the period of 5 years.

Factors affecting your insurance premium:-

Personal factors like any other insurance policy can also affect your insurance premiums. Few personal factors that might affect your insurance premiums area as follow.

• Insurance companies take into consideration your credit score for calculating premium amounts. A low credit score means more coverage. Monitor your credit scores and try to fix them up and as soon as they get better ask the insurer to calculate coverage rates.
• If you reside in densely populated areas with a smart car, then your insurance will be expensive. More people equal more cars and more cars equal more accidents like theft and injuries. All of these will drive up premium rates.
• Driving history is also an important personal factor. If you have more driving tickets or have been in a lot of accidents then your insurance premium is going to sky rocket.