Cars That Tend to Cost Less to Insure
Auto insurance premiums can vary significantly depending on the vehicle you drive. While factors like your driving record and location play major roles, the car itself accounts for a substantial portion of your insurance costs. Understanding which vehicles typically carry lower insurance rates can help you make a smarter financial decision when purchasing your next car.
The average American pays approximately $2,014 per year for full coverage auto insurance, according to data from the Insurance Information Institute. However, selecting a vehicle that’s statistically safer, less expensive to repair, and less frequently targeted by thieves can result in meaningful savings over the life of vehicle ownership.
This guide examines the types of cars that generally cost less to insure, the factors insurance companies consider when setting rates for specific vehicles, and specific models that consistently rank among the most affordable to insure.
How Insurance Companies Determine Vehicle Rates
Safety Ratings and Crash Test Performance
Vehicles that perform well in crash tests conducted by the Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) typically cost less to insure. Better safety ratings correlate with reduced injury claims, which translates to lower payouts for insurers.
Repair and Replacement Costs
The cost to repair or replace a vehicle after an accident significantly impacts insurance rates. Cars with widely available parts, simpler construction, and lower labor costs for repairs generally carry lower premiums. Luxury vehicles and cars with specialized components tend to be more expensive to insure.
Theft Rates
The National Insurance Crime Bureau publishes annual data on the most stolen vehicles in the United States. Cars that appear frequently on theft lists typically carry higher comprehensive insurance premiums, while vehicles that are rarely targeted by thieves benefit from lower rates.
Claim History by Vehicle Model
Insurers track claims data for every vehicle model. If a particular car has a history of frequent or costly claims—whether due to accidents, theft, or other factors—future owners of that model will pay higher premiums regardless of their personal driving record.
Vehicle Categories That Generally Cost Less to Insure
Certain types of vehicles consistently rank among the most affordable to insure due to their characteristics and the demographics that typically drive them.
Midsize Sedans
Midsize sedans remain among the cheapest vehicles to insure. These cars offer a balance of safety features, moderate repair costs, and are typically driven by lower-risk demographics. Models in this category often include advanced driver assistance systems that help prevent accidents.
Small SUVs and Crossovers
Compact crossovers have become popular family vehicles, and insurers recognize their generally safety-conscious owners. These vehicles often come equipped with modern safety technology and have favorable crash test ratings, contributing to lower insurance costs.
Minivans
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te being perceived as unglamorous, minivans consistently rank among the cheapest vehicles to insure. They’re typically driven by families with children, a demographic that tends to drive cautiously. Minivans also have excellent safety ratings and relatively low theft rates.Older Model Year Vehicles
As vehicles age and depreciate, their insurance costs typically decrease. An older car has a lower replacement value, which reduces the maximum payout an insurer might face. However, this must be balanced against potentially missing modern safety features that could increase liability costs.
Specific Models Known for Low Insurance Costs
Based on insurance industry data and rate comparisons, several specific models consistently appear among the least expensive vehicles to insure.
| Vehicle | Category | Key Factors for Low Insurance Cost |
|---|---|---|
| Honda CR-V | Compact SUV | High safety ratings, reliable, low theft rate |
| Subaru Outback | Wagon/Crossover | Standard AWD, excellent safety scores, low claim frequency |
| Jeep Wrangler | SUV | Simple construction, affordable repairs, durable design |
| Honda Odyssey | Minivan | Top safety ratings, family-oriented demographic |
| Mazda CX-5 | Compact SUV | Strong safety performance, moderate repair costs |
| Toyota Camry | Midsize Sedan | Reliable, widely available parts, low theft rate |
| Ford Escape | Compact SUV | Common parts, reasonable repair costs, good safety features |
| Subaru Forester | Compact SUV | IIHS Top Safety Pick, standard EyeSight system |
Important Note: Insurance rates vary significantly by insurer, location, and individual driver factors. A vehicle that’s inexpensive to insure with one company may not offer the same advantage with another. Always obtain quotes from multiple insurers before purchasing a vehicle.
The Role of Safety Technology in Insurance Pricing
Modern vehicles increasingly come equipped with advanced driver assistance systems (ADAS) that can influence insurance rates. Features like automatic emergency braking, lane departure warning, blind-spot monitoring, and adaptive cruise control can reduce the likelihood and severity of accidents.
The IIHS has documented the effectiveness of these technologies. Vehicles equipped with forward collision warning and automatic emergency braking have been shown to reduce rear-end crashes by approximately 50%, according to IIHS research. As insurers gather more data on these systems, vehicles equipped with them may see insurance benefits.
However, there’s a trade-off: these sophisticated systems can be expensive to repair or recalibrate after even minor accidents, potentially increasing collision coverage costs. A cracked windshield on a vehicle with a forward-facing camera, for instance, may cost significantly more to replace than on a vehicle without such technology.
Electric and Hybrid Vehicles: A Mixed Picture
Electric vehicles (EVs) and hybrids present a complex insurance picture. While they may qualify for certain discounts and their owners tend to be lower-risk drivers, EVs can also be more expensive to insure due to higher repair costs and specialized parts.
Battery damage, for example, can result in extremely costly repairs. The specialized training required for technicians to work on high-voltage systems also contributes to higher labor costs. As the EV market matures and repair infrastructure develops, these costs may decrease, but currently, many electric vehicles carry above-average insurance premiums.
That said, some hybrid models from manufacturers like Toyota and Honda maintain competitive insurance rates due to their established repair networks and proven reliability records.
