Older sedans and small hatchbacks typically cost less to insure than sports cars, luxury vehicles, or large SUVs

Insurance companies price based on repair costs, accident frequency, and theft rates for each model. A 2015 Honda Civic costs far less to insure than a 2024 BMW 3 Series, even if both are in good condition. The cheapest cars to insure are usually five to ten years old, have four doors, weigh under 3,500 pounds, and have modest engines. They're also the cars insurance companies have the most claims data for, which means lower uncertainty and lower premiums.

The actual dollar difference matters. A sports car or luxury sedan might cost $200 to $400 more per year to insure than a basic sedan. Over a five-year ownership period, that's $1,000 to $2,000 in extra insurance alone—before you factor in higher repair costs and fuel consumption. If you're buying a car partly to manage insurance costs, this gap is real enough to influence your choice.

Key Takeaways

  • Honda Civic, Toyota Corolla, and Hyundai Elantra models from the past decade rank among the cheapest to insure because they're common, reliable, and inexpensive to repair.
  • Sports cars, luxury brands, and high-performance vehicles cost significantly more to insure due to higher repair costs and accident claims.
  • Newer cars sometimes cost less to insure than slightly older ones because of safety features and lower repair costs, even though collision coverage is more expensive.
  • Theft rates vary by model and region; a car cheap to repair might be expensive to insure if it's frequently stolen in your area.
  • Your age, driving record, and location affect your rate far more than the car itself, so the cheapest car to insure for one person may not be the cheapest for another.

Models that consistently rank lowest in insurance costs

The Honda Civic, Toyota Corolla, and Hyundai Elantra appear on most insurers' low-cost lists year after year. These are mid-size sedans with four doors, standard engines, and parts that are cheap and widely available. When a Civic needs a bumper or headlight, the repair is straightforward and the parts cost $200 to $400. When a sports car needs the same repair, the cost can triple.

Pickup trucks like the Ford F-150 and Chevrolet Silverado also tend to insure cheaply, partly because they're so common that repair shops have the parts in stock and know how to fix them quickly. Full-size sedans from Toyota (Camry) and Honda (Accord) are similarly affordable to insure, though slightly more expensive than their smaller counterparts.

Minivans and practical hatchbacks round out the low-cost category. The Toyota Sienna and Honda Odyssey insure affordably because they're family vehicles with lower accident rates and lower theft rates than sports cars. The Hyundai Elantra hatchback costs less than the sedan version, partly because hatchbacks are less likely to be stolen.

Why sports cars and luxury vehicles cost more

A Dodge Charger R/T or Chevrolet Camaro will cost $300 to $600 more per year to insure than a Civic, depending on your age and location. Insurance companies charge more because these cars are involved in more accidents—young drivers buy them, they're driven faster, and they attract more aggressive driving behavior in the data. A fender-bender on a sports car also costs more to repair because the parts are specialized and labor rates are higher at dealerships.

Luxury brands like BMW, Mercedes-Benz, and Audi carry even higher premiums. A three-year-old BMW 3 Series might cost $1,200 to $1,800 per year to insure, compared to $800 to $1,200 for a comparable Civic. The repair costs are the main driver: a single diagnostic scan at a BMW dealership can cost $150 to $300, and parts are not interchangeable with other brands.

Theft also plays a role. Some luxury models and sports cars are stolen more frequently in certain regions. If you live in an area where Dodge Chargers are commonly stolen, your insurance for that model will reflect that risk, even if you personally have a clean driving record.

How age and safety features affect insurance rates

A 2020 Honda Civic may cost less to insure than a 2015 Honda Civic, even though the newer car is worth more. Newer cars have better safety features—automatic emergency braking, lane-keeping assist, and stability control—that reduce accident severity and frequency. Insurance companies reward these features with lower rates. A 2024 Civic might be $100 to $200 cheaper per year to insure than a 2015 model of the same car.

However, collision and comprehensive coverage (which protect the car itself rather than liability) cost more on newer cars because they're worth more. If you're comparing a brand-new car to a ten-year-old car, the newer one might have lower liability rates but higher collision rates, and the total could go either way. The sweet spot for cheap insurance is usually five to eight years old: old enough that the car is worth less, but new enough to have modern safety features.

Vehicles older than ten years may insure very cheaply because they're worth so little that collision coverage becomes optional. If your car is worth $3,000, paying $600 per year for collision coverage doesn't make financial sense. Many owners of older cars drop collision and comprehensive, keeping only liability, which is the cheapest coverage tier.

Regional differences in insurance costs for the same model

A Honda Civic insures for different amounts in different places. In rural areas with low accident rates and low theft rates, a Civic might cost $900 per year. In a dense urban area with high accident frequency and high theft rates, the same car might cost $1,400 per year. Your zip code matters more than your car model in many cases.

Theft rates vary sharply by region. In some cities, certain models are stolen so frequently that insurance companies charge a premium for them. A Dodge Charger might be cheap to insure in one state and expensive in another, depending on local theft patterns. Before you buy a car, check with an insurance company for a quote in your specific area—the national average is less useful than your local rate.

What to check before buying a car for insurance savings

Get an insurance quote before you buy. Most insurers will quote you on any car you're considering, and it takes five minutes online. Enter the year, make, model, and trim level, and you'll see the estimated annual premium. This is more reliable than general lists because it accounts for your age, driving record, location, and coverage choices.

Ask your insurance company which specific models they rate lowest in your area. Some companies have different rate structures; one insurer might rate the Civic cheaply while another rates the Corolla cheaper. Shopping quotes across three to five insurers before you buy will show you which company offers the best rate on the car you want.

Remember that your driving record and age affect your rate far more than the car itself. A 19-year-old with a sports car will pay more than a 45-year-old with the same sports car. A driver with an accident on their record will pay more for any car than a driver with a clean record. The car is one factor among several, and it's not always the largest one.

Frequently Asked Questions

Do electric cars cost more or less to insure?

Electric cars typically cost more to insure than comparable gas cars, mainly because repair costs are higher and fewer shops can fix them. A Tesla Model 3 costs more to insure than a Honda Civic, even though both are popular and reliable. However, some insurers offer discounts for electric vehicles, so it's worth getting a quote before assuming the cost is prohibitive.

Will buying a used car instead of new save money on insurance?

Usually yes, but not always. A five-year-old car costs less to insure than a brand-new car of the same model, because collision and comprehensive coverage are cheaper on lower-value vehicles. However, a very old car (15+ years) might insure cheaply only if you drop collision coverage, which means you're not protected if you cause an accident. The trade-off depends on the car's value and your risk tolerance.

Does color affect insurance rates?

No. Insurance companies do not charge different rates based on paint color. This is a common myth. Your rate depends on the car's make, model, year, safety features, repair costs, and theft rates—not on whether it's red, blue, or silver.

Can I lower my insurance by choosing a car with a higher deductible?

Yes, but that's a coverage choice, not a car choice. Raising your deductible from $500 to $1,000 lowers your premium regardless of which car you own. However, you'll pay more out of pocket if you have an accident. The car model itself doesn't change based on deductible—only your coverage terms do.

What if I want a truck but need cheap insurance?

Full-size pickup trucks like the Ford F-150 and Chevrolet Silverado insure relatively cheaply because they're common and inexpensive to repair. Smaller trucks and specialty trucks (like the Ford Raptor) cost more. If you need a truck, a standard F-150 or Silverado will be cheaper to insure than a sports car or luxury sedan, though more expensive than a Civic.