Which cars have the lowest insurance costs
Insurance companies charge less for cars that are cheap to repair, unlikely to be stolen, and safe in a crash. A Honda Civic costs less to insure than a Dodge Charger because repair parts are common and affordable, theft rates are lower, and the safety record is strong. A Toyota Corolla, Honda Accord, Subaru Legacy, and Hyundai Elantra typically fall into the lowest-cost tier. Luxury cars, sports cars, and high-theft vehicles cost significantly more — sometimes double or triple — because parts are expensive, repairs take longer, or the car attracts thieves.
The actual dollar amount you pay depends on your age, driving record, location, and coverage limits. A 25-year-old with a clean record in a rural area will pay less than a 19-year-old with an accident in a city. But the ranking of which cars cost less stays roughly the same across those situations.
Insurance companies use data from repair shops, police reports, and crash tests to build these rankings. They update them yearly as new models arrive and repair costs change. You can see how a specific car ranks by getting quotes from insurers — most will show you the estimated premium before you commit.
Key Takeaways
- Sedans and compact cars from Honda, Toyota, Subaru, and Hyundai typically have the lowest insurance rates because parts are affordable and theft is uncommon.
- Sports cars, luxury vehicles, and trucks with high theft rates cost significantly more to insure, sometimes two to three times as much as economy sedans.
- The actual premium you pay also depends on your age, driving history, location, and the coverage limits you choose — not just the car model.
- Getting quotes on the specific car you are considering is the only way to know your real cost, because rates vary by insurer and update frequently.
Why some cars cost less to insure than others
Insurance premiums reflect the cost of paying claims. A car that is cheap to repair, rarely stolen, and unlikely to be in a serious accident generates fewer and smaller claims. Insurers pass those savings to you.
Repair costs are the biggest factor. A Honda Civic fender-bender costs $800 to fix because parts are mass-produced and widely available. A BMW fender-bender costs $2,500 because parts are imported, specialized, and harder to source. When a car is in an accident, the insurer pays the repair bill. They charge higher premiums for cars that are expensive to fix.
Theft rates matter too. A 2023 Honda Civic is stolen less often than a 2023 Dodge Charger. When a car is stolen, the insurer pays its full value. High-theft vehicles mean more total-loss claims, so insurers charge more upfront.
Safety ratings affect claims frequency. A car with strong crash-test scores and good braking performance gets into fewer accidents or walks away from them with less damage. Insurers reward this with lower rates.
Car types and models with the lowest insurance rates
Sedans are the cheapest to insure overall. The Honda Civic, Toyota Corolla, Hyundai Elantra, and Kia Forte are consistently in the lowest tier. These cars have high production volumes, cheap parts, low theft rates, and good safety ratings. A Civic is a common choice for first-time car buyers partly because insurance costs stay low.
Wagons and hatchbacks from the same manufacturers cost similarly. A Toyota Corolla hatchback insures for roughly the same amount as the sedan version. A Subaru Outback costs more than a Subaru Legacy because it is larger and heavier, but still less than most SUVs.
Compact SUVs cost more than sedans but less than full-size SUVs. A Honda CR-V or Toyota RAV4 will be more expensive than a Civic, but not dramatically. Parts are still common, theft is moderate, and safety is solid.
Trucks vary widely. A Ford F-150 costs more than a sedan because repair parts are expensive and theft is common. A smaller truck like a Toyota Tacoma may cost less than a large SUV but more than a sedan.
Cars that cost the most to insure
Sports cars are expensive to insure because they are built for speed, attract younger drivers, and generate high-severity claims. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost two to three times more than a Civic. Repair parts are specialized, and the accident rate is higher.
Luxury vehicles from BMW, Mercedes-Benz, Audi, and Lexus have high repair costs. A single repair can run thousands of dollars. Even a minor accident becomes an expensive claim. Insurance premiums reflect this.
High-theft vehicles include older Dodge Chargers, Jeep Wranglers, and certain pickup trucks. Police data shows these cars are stolen more often. Insurers charge more because they expect more total-loss claims.
Exotic and performance cars — Porsche, Ferrari, Lamborghini — cost the most to insure. Parts are rare, repairs are specialized, and the cars attract high-risk drivers. Insurance can exceed the cost of ownership.
How to find the cheapest car to insure before you buy
Before you decide on a specific car, get insurance quotes on the models you are considering. Most insurers let you quote online without committing. Enter the year, make, model, and trim level, then your age, driving history, and location. The quote will show you the estimated annual premium.
Compare at least three insurers. Rates vary significantly — one company may charge $1,200 a year for a car while another charges $1,500 for the same vehicle. Shopping around is how you find the real cost.
If you are buying used, get quotes on the specific year and model you found. A 2019 Honda Civic may cost less to insure than a 2023 model because it is worth less and repair costs are lower. The year matters.
Ask the insurer about discounts. Many offer reductions for safety features like automatic emergency braking, bundling home and auto insurance, completing a defensive driving course, or paying in full upfront. These can lower your actual cost by 10 to 25 percent.
How age and driving history affect what you pay
Even if you choose a cheap car to insure, your personal factors will shape your actual premium. A 19-year-old with a clean record will pay more than a 45-year-old with a clean record for the same car, because younger drivers have more accidents statistically.
An accident or ticket on your record raises your rate across all cars. The increase is usually larger for expensive cars — a sports car premium jumps higher after an accident than a sedan premium does. This is another reason to choose a cheaper base model if you are a newer or riskier driver.
Where you live affects rates too. Urban areas have higher theft and accident rates, so insurance costs more. A car that costs $1,000 a year to insure in a rural area might cost $1,400 in a city. You cannot change your location easily, but you can factor it into your car choice.
Frequently Asked Questions
Do hybrid and electric cars cost more or less to insure?
Hybrid and electric cars typically cost slightly more to insure because repair shops charge more for specialized parts and battery work. However, the difference is usually small — maybe 5 to 10 percent higher than a comparable gas sedan. A Toyota Prius still costs less than a sports car. Get a quote on the specific model to know for sure.
Does the color of the car affect insurance cost?
No. Insurance companies do not charge different rates based on color. This is a common myth. The only factors that matter are the make, model, year, and trim level of the car, plus your personal information and driving history.
Will buying a used car instead of new save me money on insurance?
Yes, usually. A used car is worth less, so the insurer's potential payout is smaller. A 2019 Honda Civic will cost less to insure than a 2024 Honda Civic. However, the make and model still matter most — a used sports car costs more than a new economy sedan.
Can I lower my insurance cost by raising my deductible?
Yes. A higher deductible — the amount you pay out of pocket before insurance kicks in — lowers your monthly premium. Raising your deductible from $500 to $1,000 might save you 10 to 15 percent. The trade-off is that you pay more if you have an accident. This works for any car, cheap or expensive.
Are minivans and sedans cheaper to insure than SUVs?
Generally yes. Minivans and sedans cost less because parts are affordable and theft is low. Most SUVs cost more, though compact SUVs are closer to sedan prices than full-size SUVs are. A Honda Odyssey minivan typically costs less than a Honda Pilot SUV, even though they are made by the same company.