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
Before exploring which cars are cheapest to insure, it’s important to understand how insurers evaluate vehicles. Insurance companies use sophisticated actuarial data to assess risk, and several vehicle-specific factors directly influence your premium.
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
Despite 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.
Factors Beyond the Vehicle That Affect Your Rate
While choosing a vehicle that’s generally inexpensive to insure is a smart strategy, it’s only one piece of the puzzle. Other significant factors that influence your auto insurance premium include:
- Driving record: Accidents and traffic violations significantly increase premiums
- Credit-based insurance score: In most states, insurers use credit information in rate calculations
- Location: Urban areas typically have higher rates due to increased accident and theft risk
- Annual mileage: Drivers who cover fewer miles generally pay less
- Age and experience: Young and inexperienced drivers face higher premiums
- Coverage levels: Higher deductibles and lower coverage limits reduce premiums
Strategies for Minimizing Insurance Costs on Any Vehicle
Even if you’ve already purchased a vehicle or have your heart set on a specific model, several strategies can help reduce your insurance costs:
- Shop around annually: Insurance rates vary significantly between companies, and the cheapest option changes over time
- Bundle policies: Combining auto and home insurance with one carrier often yields discounts
- Increase deductibles: A higher deductible means lower premiums, though you’ll pay more out-of-pocket after an accident
- Ask about discounts: Many insurers offer discounts for safety features, low mileage, good driving records, and professional affiliations
- Consider usage-based insurance: Programs that monitor driving behavior can benefit safe drivers
- Maintain continuous coverage: Gaps in insurance history can result in higher rates
Vehicles to Approach Cautiously
Just as certain vehicles are known for low insurance costs, others consistently rank among the most expensive to insure. High-performance sports cars, luxury vehicles, and cars with high theft rates typically carry significantly higher premiums.
Vehicles that are frequently modified by their owners may also face higher rates, as modifications can increase both the vehicle’s value and its likelihood of being involved in certain types of claims. Additionally, newer vehicles with complex technology may be expensive to repair, contributing to higher collision coverage costs.
Conclusion
Selecting a vehicle that’s inexpensive to insure can result in meaningful savings over years of ownership. Midsize sedans, compact SUVs, and minivans from established manufacturers like Honda, Toyota, Subaru, and Mazda consistently rank among the most affordable vehicles to insure due to their safety ratings, reasonable repair costs, and low theft rates.
However, the cheapest vehicle to insure isn’t always the right choice for every driver. Consider your overall needs, including reliability, fuel efficiency, and functionality, alongside potential insurance savings. And regardless of what vehicle you choose, shopping around for insurance quotes, maintaining a clean driving record, and taking advantage of available discounts remain the most effective strategies for minimizing your auto insurance costs.
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Frequently Asked Questions
Minivans cost less to insure primarily because of the demographics that drive them and their safety characteristics. Minivan drivers tend to be families with children who drive more cautiously, resulting in fewer accidents and claims. Additionally, minivans generally have excellent safety ratings, moderate repair costs, and are rarely targeted by thieves. Sports cars, by contrast, are often driven more aggressively, have higher-powered engines that increase accident severity, cost more to repair, and appeal to higher-risk driver demographics.
No, this is a common myth. Insurance companies do not ask about or consider vehicle color when calculating premiums. Insurers focus on factors that have demonstrated statistical relationships with claims, such as the vehicle’s make, model, year, engine size, safety ratings, theft rates, and repair costs. The color of a vehicle has no proven correlation with accident frequency or claim severity.
Not necessarily. While newer cars generally have higher replacement values that can increase comprehensive and collision coverage costs, they also often come equipped with advanced safety features that can reduce the likelihood and severity of accidents. The relationship between vehicle age and insurance cost depends on the specific model, its safety technology, repair costs, and the coverage levels you select. In some cases, a new vehicle with excellent safety features may cost less to insure than an older model without such technology.
The savings can be substantial over time. Insurance rate differences between the cheapest and most expensive vehicles to insure can exceed $1,000 or more per year for the same driver and coverage levels. Over a typical five-year ownership period, this could amount to $5,000 or more in savings. However, the exact amount varies based on your personal factors, location, coverage choices, and the specific vehicles being compared. It’s always worth obtaining insurance quotes before purchasing a vehicle to understand the true cost of ownership.
Safety features can lower certain aspects of your premium, but the relationship is complex. Features like automatic emergency braking and lane departure warning can reduce your liability for accidents, potentially lowering that portion of your premium. However, these sophisticated systems can be expensive to repair or recalibrate after accidents, which may increase your collision coverage costs. The net effect depends on the specific features, your insurer’s pricing model, and how they weigh accident prevention against repair costs. Ask your insurer specifically which safety features qualify for discounts.
Insurance cost should be one factor among many when choosing a vehicle, but not necessarily the primary one. Consider the total cost of ownership, including purchase price, fuel efficiency, maintenance costs, depreciation, and insurance. Also consider how well the vehicle meets your practical needs, its reliability record, and your personal preferences. A vehicle that’s slightly more expensive to insure but significantly better suited to your needs and more reliable may be the better financial choice overall. Use insurance costs as one data point in a comprehensive evaluation.