Kia Rio Insurance: Cheap Car, Expensive Premiums

The Kia Rio hit the roadways in August of 2000. A five-door hatchback, the Rio is known for being a highly affordable sub-compact. With a starting price of only $12,995, the Rio is a great choice for people on a tight budget. However, potential owners of the Rio should look at the cost of insurance closely before signing on the dotted line.

Kia Rio has a High Insurance Cost

The cost of insurance for a car will not always be consistent with the price of the car. While the average cost of insurance in the country is $100 a month, the Rio rolls in with a monthly insurance expense of nearly $150.

On the plus side, the 2012 Rio is loaded with safety features, and that keeps insurance premiums in check. The tire-pressure monitoring system provides an additional level of protection, while side curtain airbags keep all occupants safe. The trunk is equipped with an emergency trunk release and a seat-belt warning light reminds you to buckle up. Four-wheel anti-lock brakes and front-active headrests are also attractive features.

Here are some of the factors that affect the cost of insurance on the Rio.

Low Resale Value

The Rio is not known for having a high resale value. In fact, the car depreciates extremely quickly. Insurance companies don’t like cars with poor resale values because they are more likely to be a total loss after an accident. If you decide to make a Kia Rio purchase, you should strongly consider adding Gap insurance to the package. Another way to lower the cost of insurance is to choose a used Kia Rio. You won’t have to eat all of the depreciation, and your may get slightly lower insurance rates.

Kia Rio has Expensive Claims for Injuries

Despite the extensive safety features in the newest Rio, the model is known for having expensive claims for injuries. The real problem may be that the Rio’s price makes it appealing to young, inexperienced drivers. The problem could also be that older Rios do not feature all the safety equipment of newer models. However, insurance companies don't attempt to determine why a particular model has such expensive injury claims associated with it -- they simply charge higher rates for that particular vehicle.

High Repair Costs

One of the biggest problems with the Rio is the high cost of repairs. The cars are not produced domestically, so the replacement parts have to come from overseas. You can lower your personal repair expenses by choosing models built after 2003, when the company redesigned the car and switched to higher quality materials for the interior.

The Kia Rio is an affordable car that will fit in with most budgets. Once you take the higher cost of insurance into account, you may discover that it is not actually the most economical choice. You may find a nicer sedan with a lower insurance cost is a better choice. If you do purchase a Kia Rio, be sure to talk to your insurance provider about taking a safe driver course. Doing so can earn you a nice discount, helping you lower your cost of insurance.