Cars with lower insurance costs share predictable traits

Insurance companies charge more for cars that are expensive to repair, attractive to thieves, or involved in costly accidents. A car with cheap insurance is usually the opposite: affordable to fix, less desirable to steal, and built to protect occupants well. The Honda Civic, Toyota Corolla, and Subaru Outback typically fall into this category, but the actual cost depends on your age, driving record, location, and which insurer you use. A 16-year-old driver and a 45-year-old driver will pay different amounts for the same car.

The make and model matters less than you might think. A five-year-old Honda Accord costs less to insure than a brand-new Dodge Charger, even though the Charger might be cheaper to buy used. Insurance companies care about repair costs, safety ratings, and theft rates — not prestige or engine size.

Key Takeaways

  • Sedans and wagons typically cost less to insure than sports cars, luxury vehicles, or trucks, because they are cheaper to repair and less likely to be stolen.
  • Older model years cost less to insure than new ones, because the actual cash value is lower and repair parts are cheaper.
  • Cars with high safety ratings and low theft rates get better insurance rates from most companies.
  • Your personal factors — age, driving history, location, and coverage type — affect your rate more than the car itself, so comparing quotes across insurers is essential.

Sedan and wagon models that typically have lower rates

The Toyota Corolla, Honda Civic, and Hyundai Elantra are among the most common cars on the road, which means repair shops stock parts and know how to fix them quickly. When a car is cheap to repair, insurance costs less. These three models also have good safety ratings and low theft rates, which further reduces premiums.

The Toyota Camry and Honda Accord sit in the midsize sedan category and also carry lower-than-average insurance costs. They are reliable, parts are inexpensive, and they are not targets for theft rings. The Subaru Outback is a wagon that costs less to insure than many SUVs in its size class, partly because it is cheaper to repair and partly because owners tend to be older and have fewer accidents.

Pickup trucks like the Ford F-150 and Chevrolet Silverado are common and parts are cheap, but insurance for them is often higher than for sedans because they are involved in more accidents and are more expensive to repair when damage occurs. Full-size SUVs follow the same pattern.

Why sports cars and luxury vehicles cost more

A sports car like a Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost significantly more to insure than a Corolla, even if both are the same age. Insurance companies charge more because young drivers are statistically more likely to drive sports cars recklessly, and because repair costs are higher when damage occurs. A fender-bender on a Mustang costs more to fix than one on a Civic.

Luxury vehicles — BMW, Mercedes-Benz, Audi, Lexus — carry higher premiums because parts are expensive and specialized repair shops charge more labor. A collision that costs $2,000 to fix on a Toyota might cost $5,000 on a BMW. Theft is also a factor: luxury cars are targeted more often, and comprehensive coverage (which covers theft) becomes more expensive.

High-performance versions of ordinary cars also cost more. A Honda Civic Si or Subaru WRX will have a higher rate than a standard Civic or Outback, because the engine and suspension modifications increase both repair costs and accident risk.

How age and model year affect insurance rates

A 2015 Honda Civic costs less to insure than a 2024 Honda Civic, all else equal. Older cars have lower actual cash value, so if the car is totaled, the insurance company pays out less. Repair parts for older model years are also cheaper because they are widely available in the used parts market.

The trade-off is that older cars may have higher repair costs for certain damage, because newer safety systems are expensive to replace. A 2024 Civic with automatic emergency braking and lane-keeping assist will cost more to repair if those systems are damaged, but the overall insurance rate is still usually higher than for an older model because the car itself is worth more.

Very old cars — 15 years or older — sometimes may have access to for lower rates because they are worth so little that comprehensive and collision coverage becomes optional. Some owners drop these coverages entirely, which lowers the premium but leaves them unprotected if they cause an accident or their car is damaged.

Safety ratings and theft rates matter to insurers

The National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) both publish crash test ratings. Cars that score well in these tests often get lower insurance rates because they protect occupants better and are involved in fewer serious claims. The Honda Civic and Toyota Corolla both have strong safety ratings, which is one reason their insurance is affordable.

Theft rates are published by the National Insurance Crime Bureau (NICB) and vary by model and region. The Honda Civic and Ford F-150 are among the most stolen vehicles in the United States, which pushes their comprehensive coverage rates higher. If you live in an area where a particular model is frequently stolen, your rate will reflect that risk.

Some insurers offer discounts for cars equipped with anti-theft devices or modern safety features like automatic emergency braking. These discounts can offset some of the higher cost of a newer vehicle.

Your personal factors matter more than the car

A 16-year-old driver will pay more to insure a Honda Civic than a 45-year-old driver in the same car. Age, driving record, and location are the largest factors in your insurance rate. A driver with a clean record and no accidents will pay less than a driver with a speeding ticket or a prior claim, regardless of which car they drive.

Where you live also changes the rate. Urban areas with more theft and accidents have higher premiums than rural areas. A Honda Civic in Los Angeles costs more to insure than the same car in rural Montana. Your coverage choices matter too: a driver who chooses a $500 deductible will pay more than one who chooses a $1,000 deductible, even in the same car.

Because these personal factors are so large, the best way to find a cheap insurance rate is to compare quotes from multiple insurers. The same car will have different rates at different companies, sometimes by hundreds of dollars per year.

Frequently Asked Questions

Do hybrid and electric cars have cheaper insurance?

Not necessarily. Hybrid and electric vehicles often cost more to insure because repair costs are higher — specialized technicians and parts are expensive. However, some insurers offer discounts for electric vehicles, and repair costs are dropping as these cars become more common. Compare quotes before assuming a hybrid will save money on insurance.

Does color affect insurance rates?

No. Insurance companies do not charge different rates based on paint color. This is a common myth. The only factors that matter are the make, model, year, and your personal driving history and location.

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

Yes, usually. A used car is worth less, so the payout if it is totaled is lower, and your rate reflects that. However, the specific model matters more than age alone. A used luxury car might cost more to insure than a new economy sedan.

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

Yes. Cars with top safety ratings from NHTSA or IIHS often may have access to for lower rates because they are involved in fewer serious accidents. When shopping for a car, checking the safety rating can help you predict insurance costs.

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

You will likely pay more no matter what. If a sports car is important to you, compare quotes from multiple insurers, ask about discounts for safety features or bundling policies, and consider a higher deductible to lower the premium. Some insurers specialize in sports car coverage and may offer better rates than others.