AWD vs 4WD Vehicles: Which Drive System Offers Better Insurance Savings?
Choosing the right drivetrain for your vehicle takes time, especially with complex marketing and inconsistencies among automakers. All-wheel drive (AWD) and Four-wheel drive (4WD) are popular options often confused for one another because of their similar names and functions. The differences between these drivetrains are significant, can impact your insurance rates, and may come with hidden costs and savings.
What is the Difference Between AWD and 4WD?
You may have heard the terms used interchangeably, but they're completely different drive systems. All-wheel and four-wheel drive deliver engine power to all four wheels, but their similarities generally end there.
All-Wheel Drive
AWD is full-time, meaning you do not turn it on and off. In cars equipped with always-on AWD, the engine delivers constant power to all four wheels but can divert it from a slipping wheel to others to get more traction. This type of AWD improves traction in sloppy conditions but uses much more gas than 2WD. Various sports cars use this type of system to improve acceleration and handling on the road.
Non-performance AWD vehicles, where fuel economy is a larger concern, use on-demand or automatic AWD. These drivetrains are usually built on front-wheel drive platforms and distribute power to the rear wheels when the computer senses a loss of traction, saving gas. On-demand AWD is more common in modern sedans, crossovers, and smaller SUVs.
Cars with AWD are ideal for drivers who generally stay on paved roads but want added traction in all weather conditions. They are especially useful for people encountering small amounts of snow or ice on their regular commute. AWD offers versatility without sacrificing everyday driveability.
Advantages:
- Constant traction without driver input
- Superior handling on slippery roads
- Enhanced performance in all weather conditions
Disadvantages:
- Poor fuel economy
- Extra wear on tires
- Not appropriate for severe off-road conditions
- Higher repair and maintenance costs than 2WD
Four-Wheel Drive
Most 4WDs only drive the rear wheels until the driver manually engages power to the front wheels through a lever or switch. When 4WD activates, a fixed amount of torque transfers to the front wheels to improve traction. 4WD generally locks the axle to improve grip and must be disengaged on the pavement to avoid overloading or damaging the system.
Some vehicles utilize full-time 4WD, but they have additional components that allow the wheels to spin at different speeds to avoid damage. This type of drivetrain is similar to AWD but generally includes a low gear for extreme off-roading, like crawling over boulders or traveling up steep slopes.
4WD is common in trucks and larger SUVs and is intended for drivers who frequently navigate deep snow, thick mud, or uneven terrain. When 4WD is not engaged, they consume less gas than AWD vehicles but still use more than their 2WD counterparts due to their added weight.
Advantages:
- Highest level of traction and driveability for extreme conditions
- Improved fuel economy in 2WD mode
Disadvantages:
- Complex and requires additional maintenance and repairs
- Unnecessary for city driving
- Added weight consumes more fuel than 2WD vehicles
How Do AWD and 4WD Impact Your Insurance Rates?
Insurance companies assess several factors when coming up with your rate. Your car's drivetrain is one of them.
AWD Vehicle Insurance Rates
AWDs are more intricate than 2WDs, requiring additional components to function properly. Consequently, repair costs are higher, resulting in increased insurance rates. Some electric vehicles use AWD systems that include individual motors at each axle or wheel to adjust torque. These drivetrains are much more expensive to repair, which is why EVs have their own insurance needs.
Additionally, while AWDs provide superior traction, insurers don't typically offer discounts just for driving one. However, newer AWD vehicles have more safety features that can reduce rates. If your AWD has advanced safety features, you may be able to offset higher premiums.
AWD may help you avoid accidents due to the improved traction and handling. Because insurance companies place a higher value on your driving record than your car's drivetrain, this can significantly reduce rates over time.
4WD Vehicle Insurance Rates
4WD is often found in larger, more expensive vehicles. Higher-value vehicles cost more to insure because of the higher replacement cost.
4WD vehicles also tend to weigh more than others and can cause more damage in accidents. This can result in higher liability costs.
Because 4WDs are typically used off-road, insurers may raise rates due to the increased risk of an accident. Some policies may exclude or limit coverage for off-road damage, so it's important to check with your agent about what's covered.
AWD vs. 4WD Insurance Costs
When comparing the two drivetrains, the factors that most significantly impact insurance rates are the vehicle's cost and the system's complexity. Either can be more expensive to insure depending on its age, technology, and components.
What Additional Savings and Costs Are Associated with AWD and 4WD?
Aside from insurance rates, there are a variety of other savings and costs to consider before purchasing a car with AWD or 4WD.
Potential Savings
Resale value: There is a higher demand for AWD and 4WD vehicles in states that see frequent snow and ice. Listing your car in one of these areas can help recoup some of the higher expenses when it's time to sell.
Winter needs: AWD or 4WD can reduce the need for chains or winter tires. However, while they might help you get unstuck, they don't provide better stopping power on slippery terrain like snow tires do.
Towing: AWD and 4WD provide excellent traction, so they can reduce the need for a tow truck if you get stuck.
Increased Costs
Purchase price: Some manufacturers only offer AWD or 4WD for higher trim levels, forcing you to pay more for the car upfront.
Maintenance: Both drivetrains are equipped with additional components to divert torque to all four wheels. Differentials, transfer cases, and additional clutches require additional servicing like other parts of your car.
Tire replacement: When replacing tires on vehicles with AWD and 4WD, you generally have to replace all four at the same time. Mismatched tires or tread differences can cause damage to the system or confuse AWD computers that detect a loss of traction.
Do You Really Need AWD or 4WD?
AWD and 4WD offer several benefits over traditional 2WD systems, but their necessity depends on your needs. AWD can be helpful for those living in snowy climates with generally maintained roads, providing improved traction for daily commutes and better handling in the rain. For more extreme off-roading, 4WD is the better choice.
While vehicles equipped with AWD and 4WD cost more upfront, they typically maintain their value for longer and can help offset these expenses over time. However, if you primarily use your car on well-maintained roads and don't travel off the pavement, the additional costs of AWD and 4WD might not be worth it.
Insurance prices constantly change, so the best way to find the right policy is to get a custom quote.