Buying auto insurance is an essential component of financial planning. If you are thinking of buying a used car, you are probably also wondering about its insurance costs. The Mitsubishi Lancer is a compact car launched by Japanese manufacturer Mitsubishi in 1973. If we compare the auto insurance costs of the Lancer with other compacts, such as the Honda Civic, we find that the Lancer costs slightly more than the others to insure. The cost of the used Lancer is also higher than that of the used Civic.
Insuring a used Lancer is the cheapest in Maine, where the annual average insurance is $986. If we compare this to Maine’s insurance average ($827), it is significantly higher. Maine is a state where auto insurance usually costs less than $900. On the other hand, Michigan suffers from high auto insurance rates. The average annual insurance rate of the Lancer in Michigan is $2525. The Lancer is, however, available for a median price of only $6,000 here. This is the lowest median price charged in any state for the used Lancer. If we consider percentages, the insurance cost in Michigan accounts for 42% of the median price.
In Missouri, the Lancer costs around $9,790 and insuring it will cost you an average of $1517, i.e., 15% of the cost. The median price is low in this state, and the insurance average is also relatively low.
Consider the median price and insurance average of the Lancer in the five states listed in the table below. The insurance percentage is the percentage of the median price spent on insurance every year.
|State||Insurance Average ($)||Median Price ($)||Insurance Percentage (%)|
In Michigan, your upfront costs will be lower than your long term costs. But in Nebraska, you have to spend only $1220 on insuring your car every year. The best option for drivers from Nebraska would be to buy the car from Michigan and have it shipped back home. Even if you add auto transport insurance costs and shipping costs, you might still end up saving a significant percentage of your upfront costs.