Manuals VS Automatics for Car Insurance Companies

All things being equal, auto insurance premiums for a manual transmission car against an automatic transmission are the same.  Unfortunately, all things are not equal when making the comparison.  Manual transmission car models will generally carry lower insurance premiums than automatic models.  

When purchasing a vehicle, many find themselves weighing the decision to drive a car with a manual or an automatic transmission.  Knowing how to drive a manual transmission car is definitely a skill that can come in handy regardless of the decision you ultimately make.  As you consider your options, should insurance premiums weigh in your decision?

• Manual transmission model cars tend to have lower purchase prices and repair costs.  This is generally the case because they have fewer moving and computerized parts than their automatic counterparts.  Insurance rates are based on repair and replacement payouts, so if the purchase prices are lower from the beginning, the insurance rates should follow suit, and be lower as well.


• Instances of accidents for drivers of manual transmission models tend to be lower than that of drivers of automatic transmission models.  Statistically, you are more likely to have an auto accident if you are multi-tasking.  Driving a manual transmission by design typically requires two hands, and thus, eliminates opportunities for the driver to multi-task. 


• Driving a manual transmission car requires more skill and mastery than driving an automatic.  Driving an automatic transmission car is simple, as there are two pedals – the brake, and the gas.  A manual transmission on the other hand, requires the driver to be attune to the car’s RPMs, up shifting and downshifting.  As a result, the driver tends to understand more about the general operation of the vehicle and thus, pays more attention to driving in general.