Why is my compact more expensive to insure than my sedan?

While you may be saving more money on the purchase price of your compact car, you might end up losing many of those savings in insurance costs. As a rule, compact cars actually cost more to insure than your average sedan. This is because those involved in an accident while driving in a compact car are more likely to suffer injuries and the car itself will sustain more damage. This is because compact cars don’t have as many crumple zones. Additionally, compact cars are harder to see on the road, thus leading to more accidents.