What does car insurance cost for a Lincoln MKZ?
What does car insurance cost for a Lincoln MKZ
The Lincoln MKZ is a mid-size four-door sedan built by Ford beginning in the 2006 model year. Originally named the Zephyr, Ford intended the vehicle to be the entry-level model for the company’s Lincoln nameplate.
Unfortunately, the vehicle has not met with very good reviews; most complaints were related to a relatively high MSRP for a car that’s not much better than the lower class Ford Fusion. The overall quality of the vehicle is reflected in insurance rates that are closer to a standard sedan than a luxury vehicle.
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Critics argue that as an entry-level luxury vehicle, the Lincoln MKZ is too cost prohibitive. They cite the vehicle’s mechanical similarities to the lower-priced Fusion and Mercury Milan models. Indeed, when you take the car apart piece by piece it is remarkably similar to those other vehicles, giving credence to criticisms that the MKZ has too high a price. All of this plays into insurance costs to the extent that car insurance companies look at the facts surrounding the vehicle rather than the marketing hype.
Data shows that the Lincoln MKZ is fairly comparable to the Ford Fusion and the Mazda 6. The total cost of ownership statistics from Intel choice for the Lincoln MKZ indicate as much, with an estimated annual cost of just over $1,300. Keep in mind that this number is only applicable to the gasoline-powered MKZ. Lincoln makes a hybrid version of this vehicle that has higher average rates.
At $1,300 annually, the cost of car insurance represents approximately 12% of the total cost of ownership. This is good news on two fronts. First of all, it’s generally accepted in the industry that insurance should not exceed 18% to 20% of the total cost of ownership, so the 12% for this car is actually very good. Secondly, our 12% calculation only applies to the first year of ownership when the total cost is in the neighborhood of $11,000. Yet even as the car depreciates over the next five years, the car loses only about $2800 in value.
Technically, the Blue Book value of your Lincoln MKZ does play a role in your insurance premiums regardless of how much coverage you carry. But practically speaking, the value is negligible if you’re only carrying minimum liability insurance. The real difference comes into play when you include comprehensive and collision coverage, as these two types of insurance pay to repair any damage done or replace your vehicle if necessary. The higher your vehicle’s value, the more collision and comprehensive are going to cost you.
You should also consider the fact that a brand-new Lincoln MKZ will most likely be purchased with an auto loan from a bank or other financing institution. Whoever loans the money is probably going to insist that the owner provide his own comprehensive and collision coverage or sign on to a bank policy. Either way, that coverage will add significantly to your premiums as long as the loan is outstanding. Once the loan is settled, that extra coverage can be removed if you don’t feel it’s worth paying for.
Safety ratings certainly play a role in determining how much you will pay for car insurance. This is especially true when it comes to minmium liability coverage and bodily injury. Since car insurance companies must provide coverage for injuries sustained by passengers, the safer a vehicle is the better it is for your rates. Conversely, a vehicle that is deemed less safe presents the insurance company with the potential of having to pay out more in bodily injury insurance claims.
According to Emudus, the Insurance Institute for Highway Safety (IIHS) rated the 2012 Lincoln MKZ and reported good results. The IIHS gave the vehicle a good (G) rating for the following four categories: front impact, side impact, rear impact/head restraint, and roof strength. In achieving such high ratings, Lincoln has demonstrated that its MKZ is a very safe vehicle for both drivers and passengers.
Another typical source of crash test safety ratings is the National Highway Traffic Safety Administration (NHTSA). Unfortunately, there is no data to glean from them because they have not tested the Lincoln MKZ for the 2011 or 2012 model years.
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