When it comes to shopping for new trucks, one of the more overlooked items is the insurance costs — especially when compared with a used truck. As a truck shopper myself and a naturally curious person, I decided to check into these differences. The results will surprise you.
If you have been following along on our YouTube channel or this website, you know I’m in the market for a new truck. I’ve done a shopping trip video, looked at resale values, questioned buying a first-year new truck, checked out most reliable trucks and made business cases for buying a new truck.
So, the next natural step: Insurance.
My plan is to buy the newest truck on the market with the most unique powertrain. This narrows it down to the new 2021 Ford F-150 PowerBoost (aka hybrid truck) for this year. I’ll be buying a new truck next year as well, so don’t get discouraged if I’m not buying your ideal truck.
For insurance, I headed over to our insurance provider Geico. And, no, I’m not getting paid by Geico to mention them; it just so happens that is who we use for auto and home insurance.
What I’ve found is: Insurance varies widely based on numerous factors like where you live, driving record, credit report (yep, some insurance companies factor in your credit) and the vehicle you plan on buying. For example, a lot of the newer vehicles have more standard safety equipment pushing down insurance prices.
Before I began shopping for insurance, I first narrowed down a variety of trucks to use as samples. I was able to find a 2021 Ford F-150, a 2020 Ford F-150 with very low miles and another 2021 Ford F-150 for comparison.
The 2021 Ford F-150s were all above $50k, and the 2020 Ford F-150 was under $40k. This would lead one to assume there would be a large difference in insurance costs. However, I found the exact opposite.
For the first 2021 Ford F-150, the 6-month premium was $1,005.30. Compared to our 2019 Mazda CX-5, this was pretty much in line with what we pay for that.
Next, I put in the 2020 Ford F-150, and I was shocked to get a 6-month premium of $1118.80. Yep, more expensive than the newer 2021. Remember what I said about standard equipment.
Thinking this might be a mistake, I put in the third 2021 F-150 and got a quote of $1141.40 or $22.60 more than the 2020 model.
Why the difference between the 2021 models? I’m thinking this is primarily due to the fact the first F-150 doesn’t look like it has been built yet, and the Vehicle Identification Number (VIN) didn’t make work in Geico’s automated system. The second 2021 F-150 VIN was accepted in the system.
For reference, we have a $500 deductible and $50,000 is the number in most of our coverages, as shown below.
Looking at this information, I find it pretty surprising new truck insurance would cost just $22.60 more than the used model. This goes against what most people assume when shopping for a new or used truck. It reflects that even though new trucks are more expensive, the standard safety equipment does help to keep costs down.