Which cars have the lowest insurance costs

Insurance companies charge less for cars that are cheap to repair, unlikely to be stolen, and statistically involved in fewer accidents. Sedans and wagons from mainstream manufacturers — Honda Civic, Toyota Corolla, Subaru Outback — typically cost the least to insure because parts are abundant, repair shops know them well, and they have solid safety records. Sports cars, luxury vehicles, and anything with a high theft rate will cost significantly more, even if the car itself is inexpensive to buy.

The relationship between purchase price and insurance cost is loose. A used Honda Accord may cost $8,000 to buy but less to insure than a $6,000 Dodge Charger, because the Charger is stolen more often and repair costs are higher. Insurance companies look at repair costs, not resale value.

Your own driving record, age, location, and how much coverage you choose matter more than the car itself. A 19-year-old in a Civic will pay more than a 45-year-old in a sports car. But within your own situation, the car you pick does shift your rate up or down.

Key Takeaways

  • Common sedans and compact cars from Honda, Toyota, and Subaru typically have the lowest insurance rates because parts are cheap and widely available.
  • Insurance cost depends on repair expenses and theft rates, not on how much the car costs to buy.
  • Sports cars, luxury brands, and vehicles with high theft rates cost more to insure even if they are inexpensive to purchase.
  • Your age, driving history, and location affect your rate more than the car model, but the car still matters within your own situation.
  • Checking insurance quotes for specific models before you buy is the only way to know what you will actually pay.

Why repair costs drive insurance rates

When an insurer quotes you a rate, they are pricing the cost of fixing the car after an accident. A Honda Civic has cheap parts because millions are on the road and salvage yards stock them. A Subaru WRX has expensive parts because fewer exist and they are specialized. Even if both cars cost the same to buy, the WRX costs more to insure.

Labor rates also matter. A body shop in your area might charge $65 an hour, or $95 an hour, depending on the neighborhood and the shop's reputation. But insurers use regional averages. A car that is common in your area will have lower average repair costs in the insurer's data, which lowers your quote.

Collision and comprehensive coverage — the parts of your policy that pay for damage to your own car — are where the car model affects your rate most. Liability coverage, which pays for damage you cause to someone else, is less affected by the car itself.

Theft rates and insurance premiums

Cars that are stolen frequently cost more to insure because insurers have to pay out theft claims. The National Insurance Crime Bureau publishes theft rates by model year and trim level. Dodge Chargers, Chevrolet Silverados, and Ford F-150s are stolen at high rates. Honda Civics and Accords are also popular with thieves, but insurers factor in the high volume of these cars on the road, which spreads the risk.

Luxury cars and sports cars are stolen less often by volume, but when they are stolen, the payout is larger. A Range Rover is stolen less frequently than a Civic, but the replacement cost is so much higher that insurance premiums reflect that risk.

If you live in an area with high theft rates — certain urban neighborhoods, for example — the car's theft risk matters more to your quote. If you park in a garage or a secure lot, some insurers will discount the rate.

Safety ratings and accident history

Cars with good crash test ratings and low accident rates cost less to insure because they protect occupants better and are involved in fewer claims. The Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) publish safety ratings. Insurers use these ratings, along with their own claims data, to set rates.

A car that performs well in crash tests but has a high accident rate — because it attracts aggressive drivers, for example — may still cost more to insure. Conversely, a car with average crash test scores but a low accident rate may cost less. Insurers care about what actually happens on the road, not just what happens in a test.

Newer model years usually have better safety technology and lower accident rates, which can offset the higher repair costs of newer cars. A 2023 Honda Civic may cost more to insure than a 2015 model because of repair costs, but the difference is often smaller than you would expect.

Specific car models with low insurance costs

Honda Civic, Honda Accord, Toyota Corolla, and Toyota Camry consistently rank among the cheapest to insure. These cars are everywhere, parts are inexpensive, and repair shops can fix them quickly. Insurance rates for these models are stable year to year because the data is reliable.

Subaru Outback and Subaru Legacy also tend to have lower rates. Mazda3 and Mazda6 are similarly priced. Hyundai Elantra and Hyundai Sonata have become cheaper to insure as these cars have become more common and repair networks have expanded.

Pickup trucks like the Ford F-150 and Chevrolet Silverado are stolen frequently, which raises their rates despite being common. Jeep Wrangler has high theft rates and expensive parts, making it costly to insure. Sports cars — Dodge Challenger, Chevrolet Camaro, Ford Mustang — cost significantly more because of repair costs and accident rates.

Luxury brands — BMW, Mercedes-Benz, Audi — cost more to insure because parts are expensive and specialized. Even used luxury cars often have higher insurance rates than new mainstream cars.

How to compare insurance costs before buying

The only way to know what a specific car will cost to insure is to get a quote. Most insurers let you quote online without entering personal information. You can enter the vehicle identification number (VIN) or the year, make, and model, and get a rate estimate in minutes.

Quote the same coverage limits across multiple cars so you can compare fairly. If you are comparing a Honda Civic to a Dodge Charger, use the same deductible, the same liability limits, and the same collision and comprehensive coverage for both. The difference in the quote is the difference in what the car costs to insure.

Get quotes from at least three insurers. Rates vary by company, and one insurer may rate a particular model much lower than another. Some insurers specialize in certain vehicle types or have better data for certain regions.

If you are buying used, check the specific model year and trim level. A 2019 Civic EX will quote differently than a 2019 Civic Si, even though they are the same model year. The Si is sportier and may have a higher rate.

Trade-offs between purchase price and insurance cost

A cheap car to buy is not always cheap to insure. A $5,000 Dodge Charger may cost $200 a month to insure, while a $12,000 Honda Accord costs $120 a month. Over five years, the insurance difference is $4,800 — nearly half the purchase price of the Charger.

When you are shopping for a used car, factor in insurance as part of the total cost of ownership. A car that costs $3,000 more to buy but $50 a month less to insure will pay for itself in five years. If you plan to keep the car longer, the savings are larger.

Financing also affects the equation. If you are financing the car, your lender will require collision and comprehensive coverage, which is where the car model matters most. If you are paying cash and plan to carry only liability coverage, the car model matters less to your insurance cost.

Frequently Asked Questions

Do electric cars cost more or less to insure?

Electric cars typically cost more to insure because repair costs are higher — battery and electric motor repairs are expensive and require specialized technicians. However, some insurers offer discounts for electric vehicles because they are involved in fewer accidents. The net effect varies by model and insurer, so you need to quote the specific car.

Does the color of the car affect insurance rates?

No. Insurance companies do not use color to set rates. The myth that red cars cost more to insure has no basis in how insurers price policies. The car's model, age, repair costs, and theft rate are what matter.

Will buying a used car instead of new lower my insurance cost?

Usually yes, because repair costs are lower for older cars. A five-year-old Honda Civic will cost less to insure than a brand-new Civic. However, if the used car has been in accidents or has high mileage, some insurers may charge more. Get quotes for the specific car you are considering.

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

Yes, but that is a choice about your coverage, not about the car. Raising your deductible from $500 to $1,000 lowers your premium, but it means you pay more out of pocket if you have an accident. The car model still affects the base rate — a Civic will have a lower base rate than a Charger, regardless of deductible.

What if I want a sports car but need cheap insurance?

You will pay more to insure a sports car, and there is no way around that. Some insurers offer discounts for safety features, good driving records, or bundling policies, but these discounts are smaller than the base rate difference. If cost is a priority, a mainstream sedan is the better choice.