When you’re looking to cut monthly expenses, your car insurance premium is a prime target. If you’ve ever asked yourself, “what is the cheapest car to insure,” you’re on the right track. Insurance companies calculate risk, so the cheapest car to insure is often a safe, modest sedan with a strong safety record.
This article will guide you through the specific models that typically cost less to cover. We’ll also explain the key factors that make a car inexpensive to insure. You will learn how to get the best rate for your situation.
What Is The Cheapest Car To Insure
There isn’t a single universal answer, as your personal details affect your quote. However, certain vehicle types consistently rank as the most affordable to insure. These cars share common traits that insurers love.
They are generally midsize sedans or small SUVs with high safety ratings, low repair costs, and low theft rates. They are not high-performance or luxury vehicles. Insurers see them as predictable and less risky, which translates to lower premiums for you.
Key Factors That Make A Car Cheap To Insure
Understanding why some cars cost less to insure helps you make a smarter choice. Here are the main elements insurers evaluate.
Vehicle Safety Ratings
Cars with top marks from the Insurance Institute for Highway Safety (IIHS) and National Highway Traffic Safety Administration (NHTSA) are cheaper to insure. Good ratings mean a lower chance of occupant injury, which reduces potential claim costs for the insurer. Features like automatic emergency braking are now a major factor.
Vehicle Price And Repair Costs
Less expensive cars usually have lower insurance costs. If a car is cheap to buy, its parts are often cheaper and more readily available. This makes repairs less costly for the insurance company after an accident. High-end cars with custom parts or complex systems cost much more to fix.
Theft Rates And Claims History
Insurers examine historical data to see how often a particular model is stolen or involved in accidents. A car that is rarely stolen and has a clean claims history presents less risk. You can often find this data through the IIHS or NHTSA websites.
Vehicle Performance And Engine Size
Sports cars with powerful engines are statistically involved in more accidents and speeding violations. This leads to higher premiums. A four-cylinder engine in a family sedan signals responsible driving to an insurer, resulting in a better rate.
Top 10 Cheapest Cars To Insure Right Now
Based on industry data and insurer reports, here are models that frequently appear on “cheapest to insure” lists. Remember, your final quote depends on your location, age, and driving record.
- Subaru Outback: This wagon has superb safety scores and standard all-wheel-drive, which insurers favor for its stability.
- Honda CR-V: A best-selling small SUV with excellent reliability, low repair costs, and advanced safety features.
- Ford Escape: Another popular SUV with a good safety profile and widely available, affordable parts.
- Jeep Wrangler: While it might seem rugged, its low theft rate and strong owner loyalty contribute to competitive rates.
- Subaru Forester: Earns top safety picks consistently, and its practical design appeals to insurers.
- Honda Odyssey: Minivans are driven cautiously, and the Odyssey’s safety tech makes it a low-risk vehicle.
- Toyota RAV4: Toyota’s reputation for reliability and the RAV4’s safety awards keep insurance costs down.
- Mazda CX-5: Offers luxury feel without the high price tag, and it scores well in crash tests.
- Chevrolet Equinox: A common fleet vehicle, its high volume means cheap parts and predictable risk.
- Kia Soul: Its unique boxy shape aside, it has good safety ratings and an affordable purchase price.
Car Types That Typically Have High Insurance Costs
Just as some cars are cheap to insure, others are notoriously expensive. Knowing what to avoid can save you significant money.
- Sports Cars and High-Performance Vehicles: Cars like the Chevrolet Corvette or Dodge Charger SRT are built for speed, which insurers equate with higher accident risk.
- Luxury Vehicles: Brands like BMW, Mercedes-Benz, and Tesla have expensive parts, specialized repair needs, and higher theft appeal.
- Electric Vehicles (Some): While some EVs are cheap to insure, many have high battery replacement costs and require specialized repair shops, increasing premiums.
- New Model Year Cars: The latest model often has the highest value and unknown repair costs, leading to higher comprehensive and collision coverage rates.
- Vehicles With High Theft Rates: Some pickup trucks and full-size SUVs are frequent targets for theft, which insurers factor into your comprehensive coverage.
How To Get The Cheapest Insurance Rate For Any Car
Choosing a low-risk car is the first step. These strategies will help you secure the lowest possible premium on that vehicle.
Shop Around And Compare Quotes
You must get quotes from multiple companies. Rates can vary dramatically for the same driver and car. Use online comparison tools and also contact local independent agents. Don’t just renew your policy without checking competitors.
Ask About Every Available Discount
Insurers offer dozens of discounts that you might qualify for. Always ask. Common ones include:
- Multi-policy (bundling home and auto)
- Good driver discount
- Good student discount
- Pay-in-full discount
- Low annual mileage discount
- Safety feature discount (for anti-theft devices, etc.)
Choose The Right Coverage And Deductible
If your car is older, consider dropping comprehensive and collision coverage. The cost of these coverages may exceed your car’s value. Also, opting for a higher deductible lowers your premium, but ensure you can afford to pay that amount if you file a claim.
Maintain A Clean Driving Record
This is the most significant factor within your control. Accidents, speeding tickets, and DUIs will increase your premiums for years. Safe driving is the best long-term strategy for cheap insurance.
Improve Your Credit Score
In most states, insurers use credit-based insurance scores to predict risk. A higher credit score can lead to lower premiums. Pay bills on time and keep credit card balances low to improve your score.
Common Mistakes That Raise Your Insurance Bill
Even with a cheap-to-insure car, people often make errors that cost them money. Avoid these pitfalls.
- Not Updating Your Policy: If you start working from home and drive less, tell your insurer. You could qualify for a low-mileage discount.
- Over-Insuring An Old Car: Paying for full coverage on a car worth $2,000 is often not cost-effective. The insurance payout after an accident will be minimal.
- Buying Coverage Blindly: Don’t just accept the default coverage limits. Understand what liability, comprehensive, and collision mean for your financial protection.
- Filing Small Claims: For minor damage, paying out-of-pocket might be cheaper than filing a claim that could raise your rates for three to five years.
FAQ: What Is The Cheapest Car To Insure
Are Older Cars Cheaper To Insure?
Not always. While an older car has a lower value, which can lower some coverages, it may lack modern safety features. This can increase liability and medical payment premiums. The cheapest cars to insure are often 3-5 years old—they’ve depreciated but still have good safety tech.
Is Red Car Insurance More Expensive?
This is a common myth. Insurers do not factor car color into their pricing algorithms. Your premium is based on the car’s make, model, engine size, safety record, and your driving history, not its paint color.
How Can A Teenager Get Cheap Car Insurance?
Teens face the highest rates. To save money, they should be added to a parent’s policy, choose a safe, low-risk car from the list above, and maintain good grades for a student discount. Completing a driver’s education course can also help lower costs.
Do Electric Cars Cost More To Insure?
Currently, many electric cars do cost more to insure than comparable gas-powered cars. This is due to higher purchase prices, costly battery packs, and fewer repair shops with EV expertise. However, this is changing as EVs become more common.
What Is The Single Best Way To Lower My Premium?
The most effective method is to comparison shop every 12-18 months. Loyalty to one insurer rarely pays off. Getting multiple quotes ensures you are always getting the best rate for your profile and vehicle.
Finding the cheapest car to insure involves a mix of choosing the right vehicle and managing your personal risk profile. Focus on safe, reliable, moderately priced models with strong safety ratings. Then, combine that choice with smart shopping habits, like seeking discounts and comparing quotes regularly. By understanding how insurers think, you can make decisions that keep more money in your pocket every month.