Jeep Cherokee Insurance Premiums Are Not as Bad as You Might Think

The Jeep Cherokee made it on a list of the cheapest vehicles to insure. Is that surprising? Perhaps, understanding what makes insuring a vehicle affordable will also answer why the Jeep Cherokee is one of the cheapest vehicles to insure.

Let’s examine how the Jeep Cherokee ended up on NerdWallet’s list of the cheapest vehicles to insure, the features and trim levels to look at when shopping for a car to pay lower insurance rates, and which Jeep vehicle outranked the Jeep Cherokee.

Jeep Cherokee is rated No. 8 on NerdWallet’s list

A white 2021 Jeep Grand Cherokee driving inside of a metal hanger building with a concrete floor.
2021 Jeep Grand Cherokee | Getty Images

NerdWallet came out with the top 10 list of the cheapest vehicles to insure, and the Jeep Cherokee made a list, ranking eighth. These rates are compared in every zip code in the United States.

The Jeep Cherokee made the top 10 list with two Subarus, two Fords, two Toyotas, one Honda, and one other Jeep. But what factors do insurance companies look at when determining rates for vehicles?

The general factors are how many insurance claims are generated for a particular model and how much the claims cost. The insurance rates go up for a specific vehicle if there were many claims and the cost of the claims was high. This determines the risk of a particular model. When fewer claims are generated and the cost of the claims is low, this gets a vehicle on NerdWallet’s top 10 list.

Insurers pore over claim histories, calculating the number of accidents, repair costs, and car theft rates for all vehicle models. They set the rates once they gather this data. 

Safety is probably the top factor when determining insurance rates. According to Insurance Institute for Highway Safety (IIHS), vehicles that are top safety picks will have the lowest insurance rates.

Theft rates are a top consideration too. If a car is a top-safety pick but is one of the most stolen vehicles, that doesn’t earn a top spot in the cheapest vehicle to ensure ranking. 

Adding features to the vehicle will drive rates up because the added features will drive repair costs higher.

Overview of price and trim levels 

As mentioned before, another contributing factor to determining insurance rates is how many features a vehicle has that may drive up the cost of car repairs. The trim level is a version of a vehicle model with its own distinct configuration package or set of features.  

According to Quote Inspector, here is an overview of the 2021 Jeep Cherokee’s insurance rate prices according to trim levels.  These pricing levels are based on the 2020 model year, a 40-year-old male driver with no accidents or violations, and $500 comprehension and collision deductibles.

  • Laredo 2WD: $109 monthly, $1,310 annually
  • Laredo 4WD: $109 monthly, $1,310 annually
  • Limited 2WD: $120 monthly, $1,438 annually
  • Limited 4WD: $120 monthly, $1,438 annually
  • SRT-8 4WD: $123 monthly, $1,480 annually

The Jeep Cherokee shares the list along with second-ranked Wrangler

Why is the Jeep Cherokee ranked eighth and the Wrangler ranked second? One possible contributing factor that makes the Jeep Cherokee less cheap to insure than the Wrangler is theft.

In 2020, according to Insurify, the Jeep Cherokee/Grand Cherokee was the number-10 model stolen. The 2000 model year was the most stolen, understandably since thieves tend to target older model cars due to newer models having updated anti-theft devices. 

This ranking probably contributes to the Cherokee as the eighth-cheapest vehicle to insure while the Wrangler appeared nowhere on Insurify’s theft top-10 list, contributing to NerdWallet’s ranking of number two.

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