With ongoing discussions about import policies, tariffs, and potential price increases, many have wondered: is it a good idea to buy a foreign car before prices rise? Or should we rely on American-made vehicles, especially if they end up being the dominant option on our roads in the future?
What is an “American car”?
Technically, there’s no such thing as a 100% American-made car anymore. Some technology or materials used to build American vehicles come from overseas. But generally, American car companies headquartered in the U.S. use domestically made engines and transmissions and manufacture their cars in American factories.
Some of the top American car companies include Ford, Chrysler, and General Motors.
American Public Preferences on Cars
In the U.S., there’s a clear preference for larger vehicles like SUVs and pickup trucks, driven by a culture that values road trips, open spaces, and utility. Pickup trucks, such as the Ford F-Series, are the best-selling vehicles in the country.
In contrast, Europe favors smaller, more fuel-efficient cars due to tighter city spaces and a focus on practicality with luxury elements. European drivers prioritize maneuverability and sustainability, with brands like Volkswagen and Renault leading the market.
Technology Differences: American Cars vs. Foreign Brands
The J.D. Power 2022 U.S. Tech Experience Index(TXI) evaluated 35 advanced automotive technologies in areas such as convenience, emerging automation, energy and sustainability, and infotainment and connectivity. The study surveyed 84,165 vehicle owners to gather insights into their experiences. Among the brands reviewed, Cadillac stands out as the only American automaker to achieve an above-average score, with 584 points. While this is an impressive showing, American brands like Ford (444 points), Chevrolet (471 points), and Chrysler (429 points) were notably lower, reflecting a gap in technological experience compared to their foreign competitors.
Foreign brands such as Genesis (643 points), Hyundai (534 points), and Mercedes-Benz (539 points) dominate the rankings, offering cutting-edge technology and superior user experiences. These brands are leading in areas like connected car technology and automated driving features, which are increasingly important to consumers. The stark contrast in rankings underscores that American automakers may need to catch up in certain technology categories to maintain their competitive edge.
Vehicle Safety Tests Vary Globally
The United States was the pioneer in making vehicle crash test results accessible to the public, allowing consumers to make more informed decisions about the safety of their cars. However, while the U.S. once led the way in vehicle safety, its system has not kept up with global advancements. Today, Europe and Japan have far surpassed U.S. safety standards with much more comprehensive testing.
In the U.S., the National Highway Traffic Safety Administration (NHTSA) includes only five crash tests in its ratings, focusing on key aspects like frontal and side crashes. Meanwhile, in Europe, Euro NCAP, widely regarded as having the most advanced vehicle safety program in the world, conducts up to 21 different tests—covering a wider range of potential scenarios, including pedestrian safety and new technologies like automated driving features.
Five Stars, Zero Protection: When Safety Ratings Ignore the People Outside the Car
💥 Instead of running real crash tests, the U.S. road safety agency (NHTSA) wants automakers to self-assess whether their cars are safe for pedestrians—no physical testing required. Even worse? These evaluations wouldn’t affect the official 5-star safety rating. That means a car could earn top marks, even if it does little to protect someone walking or biking.
🚲 And cyclists? Completely left out.
NHTSA has passed up multiple chances to include bikes in its safety standards—like crash testing or requiring side guards on trucks that could save lives. Instead of leading, the agency seems to be waiting for Europe to move first… and maybe catch up later.
Are European Cars as Safe as American Ones? A Real-World Crash Test Says Yes — Mostly.
A recent study took a close look at how well European cars protect passengers in U.S. driving conditions, and how American cars perform under European standards. The big question? Whether safety rules from both regions offer similar real-life protection during crashes.
Here’s what the researchers found:
- In simple terms, European vehicles may provide superior protection in real-world crash scenarios. This is primarily due to stricter EU safety regulations
- European cars held up well in U.S. crashes. When it came to head-on and side impacts, vehicles built under EU standards performed similarly to U.S.-regulated cars.
- There were small differences. Injury risk varied slightly, but not in a way that clearly favored one over the other.
- In rollover crashes, U.S. vehicles had a slight edge. This may be because American regulations put more focus on rollover protection.
- The flip side also held true. U.S. vehicles in Europe performed just as well as local ones in most situations.
Bottom line: Whether built for Europe or the U.S., modern passenger vehicles offer solid crash protection. There are differences in safety standards, but both systems seem to get the job done when it matters most.
For 2023, about 92% of the top safety picks from the Insurance Institute for Highway Safety (IIHS) were from foreign automakers. German cars, like Mercedes-Benz models, topped the list, along with Japanese manufacturers like Honda and Toyota.
The Paradox of International Safety Standards: A Real-World Experiment
In an interesting crash test experiment, a Hyundai Grand i10 destined for the Mexican market was compared to a Hyundai Accent made for the U.S. domestic market (USDM). Both vehicles, representing the least expensive sedans for each market, were put to the test to examine how different safety standards impact real-world crash outcomes.
The situation with the Hyundai Grand i10 and the Hyundai Accent highlights the somewhat contradictory nature of international vehicle safety standards. While the U.S. market demands certain safety features, like six airbags and electronic stability control, the slame model of car produced for the Mexican market, despite being fundamentally the same vehicle, is designed to meet lower safety standards—offering only two airbags and lacking key features like stability control.
This difference arises because local safety regulations vary significantly. The irony lies in the fact that a vehicle built for the U.S. market, the Accent, while adhering to higher standards, is made in Mexico, whereas the Grand i10 for Mexico, designed with fewer safety features, is produced in India. This discrepancy underscores the paradox of international standards—cars produced for different markets can be identical in appearance yet dramatically different in terms of safety features, illustrating that global standards, even if they seem universal, are often anything but.
A Closer Look at Insurance Costs: What They Tell Us About Vehicle Safety
One effective way to gauge the safety of vehicles in the market is by looking at their insurance costs, as lower premiums often indicate better safety features, including anti-theft mechanisms, collision prevention, and intelligent safety systems. In the U.S., certain models consistently stand out as some of the cheapest to insure, which often correlates with their robust safety features.
As of 2023, some of the most affordable cars to insure include:
- 🇯🇵 Subaru Forester – $147
- 🇯🇵 Subaru Outback – $151
- 🇯🇵 Honda Odyssey – $155
- 🇺🇸 Dodge Grand Caravan – $158
- 🇯🇵 Toyota Sienna – $160
- 🇯🇵 Honda CR-V – $160
This indicates that Japanese cars like Subaru and Honda dominate the list, suggesting that their emphasis on safety technologies (such as advanced crash-avoidance systems and anti-theft features) is likely contributing to these lower premiums.
When we break it down by brand, the cheapest to insure are:
- 🇯🇵 Subaru – $174
- 🇺🇸 Buick – $179
- 🇸🇪 Volvo – $182
- 🇺🇸 GMC – $182
- 🇩🇪 MINI – $184
Subaru, consistently ranking lowest in premiums, shows a strong correlation between its reputation for safety and lower insurance costs. Brands like Buick and Volvo, which are known for their focus on safety, also fare well in terms of insurance affordability.
Similarly, when we look at SUVs and trucks, Japanese vehicles such as the Honda CR-V and Toyota 4Runner also make the list for cheapest to insure, reflecting their high safety standards:
- Honda CR-V – $160
- Chevrolet Trailblazer – $164
- Toyota 4Runner – $170
In the pickup truck category, American brands like the RAM 1500 and Ford F-Series Pickup are found to be affordable to insure, indicating that their safety features and durability might be contributing to the lower premiums, even though these trucks are often associated with higher-risk driving due to their size and power.
By considering insurance costs, we gain valuable insight into the safety of vehicles, with the most affordable to insure often being those with enhanced safety features—a great indicator of their overall protection in the real world.
How Car Insurance Rates Are Calculated
Insurance companies use a variety of factors to determine the cost of your premium. One of the main factors is the car’s safety features, such as collision-warning systems, lane-departure warnings, adaptive cruise control, and rearview cameras. These features reduce the risk of accidents and injuries, making you less likely to file a claim, which leads to lower rates.
Insurance companies also look at historical data to assess the accident rates and claims history of specific models. High-performance vehicles and sports cars are considered higher risk, leading to higher premiums. Additionally, new cars tend to have higher insurance rates due to the increased cost of repairs or replacement.
The cost of luxury cars and vehicles with specialized parts also impacts premiums because these cars are more expensive to repair.
In Conclusion
The differences in safety standards between American and foreign cars can reflect real-world implications, but they don’t necessarily create a significant gap that should overly concern consumers. Whether you decide to buy an American-made car or one from a foreign brand, it’s crucial to prioritize your individual context. Do you have children or elderly passengers? Do you need adjustable seats to accommodate your body for safer driving, especially if you’re carrying extra weight? The most important factor is finding a vehicle that aligns with your specific needs. Ultimately, the safest car is the one that fits your lifestyle and provides the protection you need, regardless of its country of origin.