Understanding The High Cost Of Pickup Truck Insurance

There are a variety of factors that influence the cost of pick-up insurance. Pick-ups are classed as vans rather than cars when it comes to insurance, and the category of cover you need depends on how you use your pick-up. The cost of insurance is also influenced by the type of pick-up you have, with some pick-up models being more expensive to insure than others. For example, the Ford F-450 is one of the most expensive trucks to insure due to its newer parts, V8 engine, towing strengths, and safety technology, which result in potentially pricier repairs and replacements. Other factors that can affect the cost of pick-up insurance include your age, location, driving record, credit score, and gender. Inflation and supply chain issues have also contributed to the rise in insurance costs.

Pick-up trucks are classed as vans for insurance purposes

Pick-up trucks are generally classed as vans for insurance purposes. This is because their primary function is to carry goods, which is the defining characteristic of a van. Pick-up trucks are also considered to be light commercial vehicles, which means they are subject to different tax and insurance regulations than regular cars.

The UK government, for example, classes pick-up trucks as car-derived vans (CDVs). This means that they are treated as a Benefit-in-Kind, and the registered owner is responsible for paying the BIK. This can be a disadvantage for business owners who fall into a higher tax bracket. Additionally, pick-up trucks that are used purely for business purposes may be entitled to reclaim VAT, but the amount of tax that can be written off is less than for a cargo van.

The classification of a pick-up truck as a van or a car can impact the cost of insurance. In the UK, for instance, the national average for truck insurance premiums in 2023 was £2,160, while car insurance averaged £2,790, resulting in a 23% saving for truck owners. This cost difference is due to several factors, including the fact that trucks typically have standard parts that are less expensive to repair than cars, and their larger size and frame make them safer in crashes.

It is important to note that the classification of a vehicle can depend on its specific features and how it is used. For example, a pick-up truck with a small payload may be considered a passenger-carrying vehicle and thus taxed and insured as a car. Additionally, modifying a vehicle after it leaves the factory can change its classification, which can have insurance and tax implications. Therefore, it is essential to consult with relevant authorities and insurance providers to ensure that a pick-up truck is correctly classified and insured.

The make and model of your pick-up truck

The make and model of your pickup truck can significantly impact the cost of insurance. Trucks are generally more affordable to insure than cars, with a national average for truck insurance premiums of $2,160 annually in 2023, compared to $2,790 for cars. This is because trucks often have standard parts that are cheaper to repair or replace than those of a car. Additionally, due to their size and frame, trucks have a higher safety crash impact, which can lead to lower insurance costs.

However, some trucks can be very expensive to insure, especially those with newer parts, powerful engines, high-tech options, and advanced safety technology. For example, the Ford F-450, which offers high-tech features, solid steering control, comfortable suspension, and impressive towing capabilities, was the most expensive truck to insure in 2024, with an annual rate of $3,010. The Nissan Titan XD is another expensive truck to insure, with an average annual premium of $2,464.

On the other hand, the Ford Maverick is one of the cheapest trucks to insure, with an annual rate of $1,746. This is due to its safety ratings, off-road performance, reasonable purchase price, and hybrid drivetrain option, which can result in gas mileage savings. The Ford Ranger is another affordable option, receiving top safety ratings and offering a comfortable ride.

When insuring a pickup truck, it is important to consider the class of use. The category of cover you need depends on how you use your pickup, with options including social, social and commuting, business, and haulage use. The type of insurance you require may also vary depending on whether your pickup has an open cargo area. If it does not, it may be classified as a 4x4, requiring a different type of insurance.

Your age and driving history

Your age is a significant factor in determining your insurance rates. Younger drivers, especially teens, are considered high-risk by insurance companies. This is because they have less experience behind the wheel and are more prone to taking risks, which can lead to accidents. As a result, they are charged higher insurance premiums. Insurance rates tend to decrease as drivers enter their 20s and gain more driving experience, provided they maintain a clean driving record. On the other hand, older drivers may also see an increase in insurance costs as they age, due to potential changes in vision, reaction time, and overall health, which can impact their driving abilities.

Your driving history plays a crucial role in determining your insurance rates. Insurance companies will review your driving record when calculating your premium. Any violations, accidents, or claims on your record can result in higher insurance costs. Speeding tickets, moving violations, and at-fault accidents are all red flags to insurers, indicating that you are a higher-risk driver. These incidents typically stay on your record for several years, affecting your insurance rates during that period. Additionally, if you've had gaps in your insurance coverage or have made frequent claims, these can also contribute to higher insurance premiums.

The type and severity of driving infractions impact insurance rates differently. Minor speeding tickets, for example, may only have a small effect on your premium, especially if they are your first offense. However, more serious violations, such as driving under the influence (DUI) or reckless driving, can significantly increase your insurance costs and may even result in your policy being canceled or non-renewed. Multiple infractions will also lead to higher rates, as they indicate a pattern of risky driving behavior. It's important to note that different insurance companies may weigh driving infractions differently, so shopping around for rates can be beneficial.

Maintaining a clean driving record is the best way to keep your insurance costs down. This means obeying traffic laws, driving defensively, and avoiding accidents and violations. If you have a less-than-perfect driving history, taking steps to improve your record can help lower your insurance rates over time. This includes driving carefully to avoid further infractions, completing defensive driving courses, and improving your credit score, as insurance companies often use credit-based insurance scores to assess risk. Additionally, comparing rates from multiple insurance providers can help you find the most competitive rates, especially if your driving history is a factor.

Where you live and how you use your pick-up

Where you live plays a significant role in determining your pick-up insurance costs. Insurance companies consider the number of claims in a particular area, the crime rate, and the population density. If these factors are high, your insurance rate will also be high. For example, if you live in a big city or an area with a high crime rate, your insurer may charge you a higher rate as they believe you are more likely to file a claim for theft or vandalism.

Additionally, insurance rates can vary from state to state and even within the same state. For instance, if you live in an area with a high number of accidents, your premiums will be higher compared to suburban or rural areas. This is because insurance companies look at historical averages of accidents within different demographics and factor them into your premium.

How you use your pick-up is another crucial factor in determining your insurance costs. The category of cover you need depends on the usage of your pick-up, known as its "class of use". There are four main options to choose from when getting a quote:

• Social cover: This insures you for daily driving, such as going to the shops or visiting family.
• Social and commuting insurance: This covers your commute to a single place of work. Even if you drive your pick-up to a bus or train station as part of your commute, this is still considered commuting.
• Business use: This type of insurance is required if you use your pick-up for business purposes and need to transport equipment or tools. If you drive to multiple workplaces, you will likely need this type of insurance.
• Haulage use: This covers you if you are paid to carry goods owned by someone else.

Furthermore, the more time you spend on the road, the higher your insurance costs will be, as this increases the chances of being involved in an accident. If you are using your pick-up for long-distance travel or for work, your insurance costs are likely to reflect this.

Modifications to your pick-up

It's important to note that insurers may not cover these modifications on a like-for-like basis if they are damaged or stolen. Therefore, it is crucial to disclose any modifications you've made to your insurer to ensure you have the appropriate level of coverage.

Some other modifications that can impact your insurance costs include adding extra seats or storage to your pick-up. These changes may be necessary for your specific needs, but they can also increase the value of your vehicle and the likelihood of theft, resulting in higher insurance premiums.

The type of engine in your pick-up is another factor that can affect your insurance costs. More powerful engines will likely lead to higher insurance rates, as they are associated with a higher risk of accidents and faster driving. Additionally, the market value of your pick-up also plays a role. A more expensive vehicle generally means higher insurance costs because it will be more costly to repair or replace in the event of an accident or theft.

When considering modifications to your pick-up, it's essential to weigh the benefits against the potential increase in insurance costs. While some modifications may enhance the performance or appearance of your vehicle, they could also result in higher insurance premiums. It's advisable to consult with your insurer before making any significant modifications to understand how they will impact your coverage and costs.

Frequently asked questions