Does Transmission Type Affect Your Car Insurance Rates?

WRITTEN BY: Julia Matseikovich


The debate of what car transmission is better – automatic or manual? This article examines different transmission types and whether they affect your car insurance rates.

Manual or Automatic Transmission: Which Is Better?

Cars with manual transmissions generally are faster than those with automatic transmissions. They are also less complex in equipment and less expensive to maintain. But, the debate on which is better truly lies in preference.

Some people never grasp how to manage a manual transmission and are content with sticking to an automatic for ease. On the other hand, drivers who learned about manual transmissions may prefer the thrill of being faster and feeling more in control on the road.

What’s a manual transmission, and how does it work?

Your car’s transmission is primarily responsible for transferring power from the engine to the wheels. With a manual transmission, a person has to move gears that correlate to the car’s power, requiring an extra pedal called the clutch. The driver presses the clutch pedal to temporarily cut engine power and shift the car’s gear before releasing it.

Advantages of a manual transmission

The machinery in manual cars is more straightforward, and one of the more significant advantages of a manual transmission is that they are more fuel-efficient. They also provide the driver with more control over the vehicle’s speed. Therefore, working on and replacing parts with a manual transmission costs much less. 

Disadvantages of a manual transmission

While there are many advantages to owning a manual transmission car, there are some disadvantages. First, shifting gears can become tiresome if you live in heavy traffic. Second, it can be challenging to learn about manual transmission. Third, driving on hills requires precise control with a manual transmission. 

What’s an automatic transmission, and how does it work?

An automatic transmission does everything that a manual transmission does without requiring the driver to exert effort. Automatic transmissions have a gear set that creates ratios to control the car’s speed. It utilizes transmission fluid to develop pressure to create gear shifts and lubricate parts.

Advantages of an automatic transmission

The most notable advantage of driving with an automatic transmission is the ease of driving, particularly in stop-and-go traffic. They are also much easier to locate across the United States. In addition, changing gears is seamless and less noticeable than in a manual transmission car.

Disadvantages of an automatic transmission

Automatic transmission cars, however, do have some cons. While they have a higher resale value when trading in, they also are more expensive when purchasing or leasing.

It also costs more to replace and repair parts since they have more complex equipment and need repairs more often since many more parts are involved. In addition, drivers have less control overall, and automatic transmissions don’t have as good fuel efficiency as manuals.

Does your car’s transmission type affect your car insurance rates?

Your car’s transmission type can lend itself to less expensive insurance rates. For example, manual cars are often cheaper to insure since the automatic transmission has more equipment and is more costly to repair and replace.

However, the savings aren’t drastic, so don’t feel you need to get a manual car to save money on your insurance premium.

What major factors affect your car insurance rates?

Numerous major factors, instead of transmission, affect your car insurance rates. The more common of those factors include:

  • Your Age
  • Your Credit Score
  • Your Driving History
  • Your Location
  • Your Gender
  • Your Annual Expected Mileage
  • Your Insurance History

Does car type affect your car insurance rates?

When you buy it, the cost of your car plays a significant role in how much it costs to insure it. And the make, model, or type of your vehicle (truck or sedan) can also impact your car insurance rate. Factors for your rate include the likelihood of theft, cost of repairs, engine size, and safety record of the type of car.

How do car modifications affect your car insurance rates?

Modifications to your car may increase your insurance rate. This is due to the knowledge that repairing or replacing modified parts is more expensive. If you fail to report the modifications on your car to your insurance and end up in an accident, the modifications you paid for are not covered. 

How to Find the Best Car Insurance Rates

It would be best to compare insurance premiums before you buy a car, so you are aware of the differences in car insurance rates. In addition, you may cut down on costs by considering a used car instead of a brand new one. Below are some more tips for finding the best car insurance rates.

Determine the type of car insurance you need

You should be aware of the type of car insurance you need. Are you looking for liability insurance only? If you want full coverage for your car, you might also add comprehensive and collision to your liability. Other coverages may include uninsured motorist coverage and personal injury protection.

Get several car insurance quotes.

Do research ahead of time and compare online car insurance quotes. Shopping around for the best rate before purchasing a car helps you stick to your budget. You may also discover car makes and models differences to help you narrow your vehicle search.

Ask for discounts on your car insurance rates.

You should speak to an insurance agent to help you navigate coverages and costs, and you can inquire about which companies can offer specific discounts. For example, standard discounts may include bundling your car insurance with your home insurance for a cheaper rate, safe driver discounts, and savings for low mileage usage.


Do car insurance rates depend on the type of car?

Yes, some vehicles are cheaper to insure than others, be it the make and model or the type of car (truck, sedan, SUV). However, insurance companies prefer to insure vehicles with many safety features and high standards.

What 4 demographics affect your car insurance rates?

Demographic factors that affect your car insurance rates are your location, gender, age, and marital status or occupation. For example, drivers under 25 are considered more high-risk, and statistics show men are more likely to cause accidents than females. 

What type of cars costs more to insure?

Cars that cost more to repair and replace tend to cost more to insure. Manual cars are less expensive than automatic transmission vehicles to insure, and SUVs cost less than sedans. Specific makes of cars make them more expensive too, such as Tesla or Lexus.

Do older cars cost less to insure?

Most older cars are cheaper to insure since vehicles lose value as they age.

What type of car insurance am I required to carry?

Most states require you to have liability insurance for bodily injury or property damage to others. Other coverages may be included but are not necessarily required by law.

Finding The Right Car Transmission For Your Needs

Shopping for a new or used car is exciting, but there are many decisions you need to make regarding the type of car. Overall, the transmission type doesn’t play the most significant role in the amount of your insurance premium; several major factors exist.

Determine the coverage you need and what type of vehicle best suits your needs on the road. Then, get help from an agent to compare insurance companies, coverages, and various vehicle types to make a more intelligent decision when buying your next vehicle.