Is Your Car Costing You Extra on Insurance? Here's What You Need to Know

When I first got my driver's license, I worked at Dairy Queen over the summer just to be able to pay for my expensive car insurance. Three months of late nights and missed social activities to make sundaes and fill drive-thru orders barely covered the cost for a 16-year-old me to get around town.

It wasn't all bad, though; I did get half off on chili dogs and ice cream.

That experience taught me early on that car insurance can be expensive. I learned later that the type of vehicle you drive, and not just your credit score and driving record, also play a part. Here's how different types of vehicles can impact your insurance premiums.

EVs and hybrids may cost you the most

Electric vehicles and hybrids can be great for saving money on gas, but they'll likely cost you more when it comes to insurance premiums. The National Association of Insurance Commissioners says EV insurance costs up to $528 more annually than traditional gas-powered vehicles.

Progressive says EV and hybrid insurance is pricier because the vehicle selling prices are usually higher. They're also more complicated to fix if they're involved in an accident. For example, if the battery in an EV is damaged in a collision, it could cost between $4,000 to $20,000 to replace. Yikes!

There are also fewer mechanics who are trained to fix hybrids and EVs, which can drive up the cost of repairs. All of these reasons make it even more important to shop around for car insurance quotes if you own a hybrid or EV. Whether you own a hybrid, EV, or traditional gas-powered vehicle, you can shop for cheap car insurance here.

Luxury vehicles and cars with low safety ratings will cost you, too

The average luxury vehicle costs just over $62,000 as of earlier this year. As you can imagine, the higher cost to replace or fix a luxury vehicle also means they're more expensive to insure.

Even if you get a less expensive vehicle, adding all the bells and whistles to it could also increase your premiums. Any features that could make repairing your vehicle after a collision more expensive could increase your rate.

Similarly, it usually pays to pick a vehicle with a high safety rating. Progressive says that Subaru Ascents and Foresters, as well as the Honda Passport, are some of the least expensive vehicles to insure based on their impressive Insurance Institute for Highway Safety (IIHS) safety rating. Meanwhile, the Chevrolet Malibu and Nissan Altima may be more expensive to insure because of their higher-than-average losses in a collision.

Tip: The only way to know you're not overpaying for insurance is to compare prices. Click here to compare rates from the best car insurance companies.

This type of vehicle is generally the cheapest to insure

It may surprise you, but compact SUVs are usually the cheapest to insure. According to AAA, a compact SUV (like the Honda CR-V) costs about $1,681 annually to insure.

That's about $113 cheaper per month than the average cost to insure a small sedan!

The next time you're out browsing the dealer's lot for your next vehicle, consider the potential cost of your car insurance premiums. Factoring the monthly insurance payment into your budget could make the difference between which vehicle you choose.