Cars that cost less to insure share three traits: they're cheap to repair, they're not stolen often, and they don't cause injuries in crashes

Insurance companies set premiums based on what they'll pay out when something goes wrong. A Honda Civic costs less to insure than a BMW M440i because Civic parts are cheaper, Civics are stolen less often, and Civics perform better in safety tests. The car itself determines roughly 15 to 30 percent of your premium — your age, driving record, and location matter more — but choosing the right model can still save you hundreds a year.

The cheapest cars to insure are usually three to five years old, have four doors, weigh under 3,500 pounds, and come with standard safety features. A 2020 Honda Accord or Toyota Camry will cost less to insure than a 2024 sports car or luxury sedan, even if both are financed for the same amount.

Key Takeaways

  • Insurance costs more for cars with expensive parts, high theft rates, or poor crash test ratings — so sedans and hatchbacks typically cost less than sports cars and luxury vehicles.
  • A three- to five-year-old Honda, Toyota, or Mazda with a clean safety record will usually have the lowest insurance rates among used cars.
  • Two-door coupes and convertibles cost more to insure than four-door sedans of the same make and model, even though they're otherwise identical.
  • Avoid high-performance engines, all-wheel drive, and newer model years if keeping insurance costs down is your priority.
  • Your insurer's rates for the same car can vary by 40 percent or more, so getting quotes from at least three companies matters more than the car choice itself.

Sedans and hatchbacks cost less than sports cars and SUVs

A four-door sedan or hatchback is the cheapest body style to insure. These cars have lower theft rates, lower repair costs, and better safety ratings than sports cars, coupes, and large SUVs. A Honda Civic sedan will cost less to insure than a Civic coupe, even though they share the same engine and frame.

Sports cars and performance coupes cost more because insurers expect more claims — younger drivers buy them, they're driven faster, and they're stolen more often. Pickup trucks and large SUVs cost more because they cause more damage in collisions and have higher repair bills. Convertibles cost more because they're less safe in rollovers and more likely to be stolen.

If you're buying used, a five-year-old Toyota Camry or Honda Accord will have lower insurance costs than a two-year-old Dodge Charger or Jeep Wrangler, even if the Dodge and Jeep are cheaper to buy upfront.

Toyota, Honda, and Mazda models have the lowest insurance rates

These three brands dominate the low-insurance market because their parts are cheap and widely available, they're reliable enough that owners keep them longer, and they have strong safety ratings. A Toyota Corolla, Honda Civic, or Mazda3 will cost less to insure than a Kia Forte or Hyundai Elantra, even though the Kia and Hyundai are newer or cheaper to buy.

Luxury brands — BMW, Mercedes, Audi, Lexus — cost significantly more to insure because parts are expensive and specialized. A five-year-old BMW 3 Series will cost more to insure than a new Honda Accord. American brands like Chevrolet and Ford fall in the middle; a Chevy Malibu costs more than a Civic but less than a BMW.

Subaru is an exception: their all-wheel-drive system and repair costs push insurance higher than Honda or Toyota, even though Subarus are reliable and safe.

Avoid high-performance engines and all-wheel drive

A turbocharged or high-horsepower engine raises your insurance rate because insurers expect faster driving and more accidents. A Honda Civic with a standard 2.0-liter engine costs less to insure than a Civic Si or Civic Type R, even though all three are the same car otherwise. If you're choosing between two used models, pick the one with the smaller, less powerful engine.

All-wheel drive also raises insurance costs because it increases repair bills — the drivetrain is more complex and more expensive to fix after a collision. A front-wheel-drive Honda CR-V costs less to insure than an all-wheel-drive CR-V. This matters most in used cars, where you can often find the same model in both configurations.

Hybrid and electric vehicles have mixed insurance costs. Some insurers charge more because repairs are specialized; others charge less because these cars are driven more cautiously. Get a quote before assuming an electric car will save you money on insurance.

Newer cars cost more to insure, but very old cars cost even more

Insurance rates climb with model year because newer cars have more expensive parts and more complex electronics to repair. A 2023 Honda Civic costs more to insure than a 2020 Civic. But a 2010 Civic costs more than the 2020 because it has fewer safety features and higher accident risk.

The sweet spot is usually three to five years old. A 2021 or 2022 model has modern safety features and reasonable repair costs, but the newest-model premium has worn off. Anything older than eight years starts climbing in cost again, even if the car is reliable.

If you're financing a car, the lender will require full coverage (collision and comprehensive), which costs more on newer vehicles. If you're buying with cash, you can choose liability-only on an older car, which cuts insurance costs sharply — but you lose protection if you cause an accident or your car is damaged.

Get quotes from multiple insurers before deciding

The same car can cost 40 to 50 percent more at one insurer than another, depending on how that company rates the model. Some insurers love Honda; others charge more for it. Some charge less for Subaru; others charge more. Your age, location, and driving record matter more than the car itself, but the car choice still moves the needle.

Before you buy, get quotes from at least three insurers on the specific car you're considering. Most insurers let you quote online in five minutes using the vehicle identification number (VIN). Compare the total cost of ownership — purchase price plus insurance, maintenance, and fuel — not just the sticker price.

If insurance quotes come back higher than expected, ask the insurer which features are driving the cost up. Sometimes a different trim level or model year of the same car will quote significantly lower.

What to check before you buy

Before making an offer on a used car, run the VIN through your insurer's quote tool. This takes five minutes and tells you exactly what you'll pay. Don't assume a cheaper car will have cheaper insurance — a 2015 Dodge Charger might be $2,000 cheaper to buy but $200 more per year to insure.

Check the National Highway Traffic Safety Administration (NHTSA) crash test ratings and the Insurance Institute for Highway Safety (IIHS) ratings for the model. Cars with poor ratings cost more to insure. Look for models that earned "Good" ratings in most categories.

Avoid cars with high theft rates in your area. The National Insurance Crime Bureau publishes theft statistics by model and region. If a car is stolen frequently in your state, insurance will cost more even if it's cheap elsewhere.

Frequently Asked Questions

Does the color of the car affect insurance?

No. Insurance companies don't charge different rates based on color, despite the myth that red cars cost more. The only thing that matters is the make, model, year, engine type, and safety features.

Is a used car cheaper to insure than a new one?

Usually yes, but not always. A five-year-old car with poor safety ratings can cost more to insure than a new car with excellent ratings. Get quotes on both before deciding. Newer cars also may have access to for more discounts — some insurers offer lower rates for cars with automatic emergency braking or collision warning systems.

Will buying a cheap car save money on insurance?

Not necessarily. A $5,000 used Dodge Charger might cost more to insure annually than a $12,000 Honda Civic. The purchase price and insurance cost are separate — a cheap car to buy can be expensive to insure. Always quote insurance before you buy.

Do electric cars cost more to insure?

It depends on the insurer. Some charge more because repairs are specialized; others charge less because electric car owners drive more cautiously. Get quotes from at least three companies on the specific model you're considering.

What if I can't afford insurance on the car I want?

Look at a different model year, trim level, or body style of the same brand. A 2021 Honda Civic sedan costs less to insure than a 2023 Civic coupe. A Honda Accord costs less than a Honda Pilot. Getting quotes from different insurers also matters — rates vary widely for the same car.