If you’re asking what is the least expensive car to insure, you’re already thinking the right way. A car that’s least expensive to insure usually has excellent safety ratings and modest repair costs. Finding that vehicle can lead to significant savings year after year. This guide will show you the types of cars that cost less to cover and explain exactly why.
We’ll also provide specific model examples and give you practical steps to get the best rate for yourself. Insurance costs are a major part of owning a car, so making a smart choice here is crucial.
What Is The Least Expensive Car To Insure
There isn’t a single universal “cheapest” car for every driver in every state. Instead, the least expensive car to insure is typically a safe, moderately priced, newer model sedan or small SUV from a mainstream brand. Insurance companies calculate your premium based on risk. Cars that are statistically less likely to be in accidents, cause injuries, or be expensive to repair get lower rates.
These vehicles share common traits that signal low risk to insurers. Understanding these traits helps you narrow your search effectively, whether you’re buying new or used.
Key Factors That Make A Car Cheap To Insure
Insurers look at a mountain of data to set rates for each vehicle model. Here are the primary factors that work in your favor.
High Safety Ratings And Features
Cars with top marks from the Insurance Institute for Highway Safety (IIHS) and National Highway Traffic Safety Administration (NHTSA) are consistently cheaper to insure. Good ratings mean fewer and less severe injuries in crashes, which lowers liability and medical payment risks for the insurer.
- IIHS Top Safety Pick+ designation is the gold standard.
- Standard automatic emergency braking (AEB) is a major plus.
- Good crash test scores for both driver and passenger sides.
Low Repair And Parts Costs
If a car is cheap and easy to fix, the insurer’s collision and comprehensive payouts are smaller. Mainstream brands like Honda, Toyota, and Subaru often have lower parts costs and wider availability than luxury brands.
- Widely available aftermarket parts can reduce costs.
- Simple design elements (like aluminum hoods vs. complex carbon fiber) keep repair bills down.
- Advanced sensors and cameras, while safe, can be costly to recalibrate after a fender bender.
Moderate Market Value And Low Theft Rates
Insurers cover the actual cash value of your car. A moderately priced vehicle presents a smaller financial risk than an expensive luxury car or sports car. Additionally, models with low theft rates are less risky for comprehensive coverage.
The National Insurance Crime Bureau publishes frequent theft reports, which insurers use. Common family cars are stolen less often than popular pickup trucks or certain older Honda models, for instance.
Vehicle Types That Typically Have Lower Insurance Costs
Based on those factors, certain categories of vehicles consistently appear on “cheapest to insure” lists.
Midsize Sedans
This is often the sweet spot. Midsize sedans are generally safe, have reasonable repair costs, and are driven by a broad demographic that insurers consider lower risk. Examples include the Honda Accord, Toyota Camry, and Subaru Legacy.
Small SUVs And Crossovers
Modern small SUVs are built on car platforms and share many of the same safety and cost benefits as sedans. Their popularity means parts are plentiful. The Subaru Forester, Honda CR-V, and Mazda CX-5 are perennial favorites for low insurance rates.
Minivans
Minivans are practically designed for safety and family transportation. Their use case and driver profile signal very low risk to insurance companies. The Honda Odyssey and Toyota Sienna are top choices in this category.
Vehicle Types That Often Have Higher Insurance Costs
It’s just as important to know what to avoid if your primary goal is low insurance premiums.
- Sports Cars and High-Performance Vehicles: Designed for speed, leading to higher accident risk and expensive parts.
- Luxury Vehicles: High repair costs for specialized parts and technology, along with higher vehicle value.
- Large Pickup Trucks: While sometimes safe, they can cause more damage to other vehicles in a collision, increasing liability risk.
- Electric Vehicles (Some): While often very safe, some EVs have higher repair costs due to specialized battery systems and parts availability can still be developing.
Specific Examples Of Cars With Low Insurance Premiums
Let’s look at some concrete models that frequently rank well for insurance affordability. Remember, rates vary by driver, location, and insurer, but these cars provide a strong starting point for your research.
Top Models For New Car Buyers
If you’re purchasing a new vehicle, these 2024 models are excellent candidates for low insurance costs based on current data.
- Subaru Outback: This wagon/SUV crossover consistently earns IIHS top honors. Its standard all-wheel-drive and EyeSight safety suite (AEB, adaptive cruise) make it a low-risk choice in insurers’ eyes.
- Honda CR-V: A best-selling small SUV with fantastic safety ratings, low repair frequency, and high reliability. It’s a textbook example of an insurer-friendly vehicle.
- Mazda CX-5: Praised for its safety and upscale feel, the CX-5 has modest repair costs compared to some rivals. Its theft rate is also relativly low.
- Toyota Camry: The iconic midsize sedan remains a safe, reliable, and sensible choice. Its widespread use as a fleet and family car contributes to favorable insurance data.
- Ford Escape: Another popular small SUV with good safety marks and affordable, readily available Ford parts network helps keep insurance costs in check.
Top Models For Used Car Buyers
Buying used can maximize savings. Opt for models that were safety standouts in their generation.
- Honda Accord (2018-2022): A previous-generation Accord with Honda Sensing safety features offers tremendous value and low insurance risk.
- Subaru Forester (2019-2023): The previous body style maintained excellent visibility and safety, making it a smart used buy for insurance savings.
- Toyota RAV4 (2019-2022): This generation of the popular SUV comes with Toyota Safety Sense standard, a key factor for insurers.
- Mazda3 Sedan (2017-2021): A compact car that achieved high safety scores and has lower associated repair costs than many competitors.
- Chevrolet Equinox (2018-2022): A common and practical small SUV with generally favorable insurance costs due to its commonality.
How To Get The Best Insurance Rate On Your Car
Choosing the right car is only half the battle. How you approach insurance shopping makes a massive difference in your final premium.
Get Quotes Before You Buy
Never assume a car is cheap to insure. Always get insurance quotes for the exact make, model, and trim you’re considering before you sign the purchase paperwork. A quick call or online quote can reveal surprises.
Shop Around And Compare
Rates vary dramatically between companies. Get at least three to five quotes from different insurers. Use both independent agents (who work with multiple companies) and direct quotes from major providers like State Farm, Geico, and Progressive.
Ask About Every Available Discount
Insurers offer dozens of discounts. It’s your job to ask about them and see which you qualify for.
- Multi-policy (Bundling home and auto)
- Safe driver discount
- Good student discount
- Pay-in-full discount
- Low annual mileage discount
- Safety feature discount (for anti-theft devices, etc.)
- Defensive driving course discount
Choose The Right Deductible
Opting for a higher deductible on your collision and comprehensive coverage will lower your premium. Just ensure you have that deductible amount saved in case you need to file a claim. This is a direct way to trade potential future cost for guaranteed present savings.
Maintain A Clean Driving Record
This is the most significant factor within your control, even more than the car itself. Accidents, speeding tickets, and DUIs will increase your rates for years, regardless of what you drive. Safe driving is the best long-term strategy for cheap insurance.
Common Mistakes That Raise Your Insurance Costs
Avoid these pitfalls when choosing a car and buying insurance.
Focusing Only On The Car’s Purchase Price
A cheap used car with poor safety ratings or a history of expensive repairs could cost you far more in insurance than a slightly more expensive, safer model. Always consider total cost of ownership.
Not Updating Your Policy After Life Changes
Tell your insurer if you get married, move to a safer area, or start working from home. These changes can lower your risk profile and qualify you for lower rates. Many people forget to do this.
Assuming Red Cars Cost More To Insure
This is a complete myth. Insurers do not factor car color into their premium calculations. They care about the make, model, engine size, safety features, and your driving record, not whether your car is red, blue, or silver.
Letting Your Coverage Lapse
A gap in insurance coverage is a major red flag to insurers, as it suggests higher risk. It can lead to significantly higher premiums when you restart a policy. Maintain continuous coverage even if you’re between cars using a non-owner policy.
FAQ: What Is The Least Expensive Car To Insure
Are Older Cars Cheaper To Insure?
Not always. While an older car has a lower value (lowering comprehensive/collision cost), it may lack modern safety features. This can increase liability and medical payment risks, potentially raising that part of your premium. The cheapest insurance often comes from newer, safer models.
Is A Sedan Cheaper To Insure Than An SUV?
Generally, yes, for comparable models from the same brand. Sedans often have slightly lower premiums than SUVs because they can cause less damage to other vehicles in a collision and may have lower theft rates. However, the gap has narrowed as small SUVs have become so common and safe.
How Much Can The Car Model Affect My Premium?
It can cause a difference of hundreds of dollars per year. All other factors being equal (driver, location, coverage), switching from a high-risk sports car to a safe midsize sedan could easily save you $500 or more annually. The model is one of the biggest variables.
Do Electric Cars Cost More To Insure?
Currently, many electric cars do cost more to insure than similar gas-powered cars. This is due to higher purchase prices, specialized repair needs, and potentially higher parts costs. However, their excellent safety ratings can offset this somewhat, and the landscape is changing as EVs become more common.
What Is The Single Best Way To Lower My Car Insurance Bill?
The most effective method is to combine a safe vehicle choice with a clean driving record and regular comparison shopping. Get quotes every 12-18 months to ensure you’re still getting the best rate for your profile and your car.
Finding the least expensive car to insure requires a focus on safety, reliability, and sensible design. By choosing a vehicle that insurers view as low-risk—like a top-rated midsize sedan or small SUV—and following smart shopping practices, you can secure affordable coverage without sacrificing quality or protection. Start your search with the models listed, get multiple quotes, and drive confidently knowing you’ve made a financially sound decision.