Which cars have the lowest insurance costs

The cheapest cars to insure are usually older sedans and small hatchbacks with modest engines, high safety ratings, and low theft rates. A Honda Civic, Toyota Corolla, or Hyundai Elantra typically costs less to insure than a sports car, luxury vehicle, or large SUV. Insurance companies base premiums partly on repair costs, accident frequency for that model, and theft risk — so a five-year-old Honda Accord often costs less to insure than a brand-new sports sedan, even though the new car is worth more.

The actual cost depends on your age, driving record, location, and coverage limits you choose. A 25-year-old driver in a city will pay more than a 45-year-old in a rural area, even in the same car. But within any driver's situation, certain vehicles consistently cost less to insure because insurers see them as lower risk.

Key Takeaways

  • Sedans and hatchbacks with four-cylinder engines cost less to insure than sports cars, luxury brands, or high-performance vehicles.
  • Repair costs matter: a car that costs $500 to fix a fender will have lower premiums than one that costs $2,000 for the same damage.
  • Theft rates affect premiums; Honda Civics and Accords are stolen frequently in some regions, which can raise their insurance costs despite being otherwise affordable to insure.
  • A used car from five to ten years old often costs less to insure than a new model because the actual cash value is lower.
  • Safety features like automatic emergency braking and stability control can lower premiums, so check what discounts your insurer offers for specific equipment.

Why repair costs drive insurance premiums

When an insurer quotes you a premium, they are pricing in the cost to fix that specific car after an accident. A Honda Civic's bumper, hood, and door panels are cheap to replace because they are common parts made by many suppliers. A BMW or Audi's parts cost more, take longer to source, and often require specialized labor — so the insurer charges higher premiums to cover that risk.

This is why a ten-year-old Toyota is often cheaper to insure than a three-year-old luxury sedan. The Toyota's parts are plentiful and inexpensive. The luxury car's parts are not. Even if both cars are in an accident at the same rate, the insurer's payout for the luxury car is larger, so they charge more upfront.

How theft rates affect what you pay

Some models are stolen more often than others, and insurers track this by model and region. In certain cities, Honda Civics and Accords are stolen at high rates, which pushes their insurance costs up in those areas. In other regions, they may be cheap to insure. A Chevy Malibu or Nissan Altima, which are less desirable to thieves, may cost less in the same city.

If you are shopping for a car partly on insurance cost, check the National Insurance Crime Bureau's theft data for your state and the specific model year you are considering. A model that is cheap to insure nationally might be expensive in your area because of local theft patterns.

Age and value of the vehicle matter

Newer cars cost more to insure because they are worth more. A brand-new Honda Civic will have higher premiums than a five-year-old Civic, all else equal. As a car ages and loses value, the insurance company's maximum payout shrinks, so premiums drop.

This is one reason buying a used car can lower your insurance costs. A three-year-old model from a reliable brand often costs significantly less to insure than the current model year, while still being dependable. Once a car reaches ten to fifteen years old, premiums may level off or even rise slightly if the model becomes less common and parts become harder to find.

Safety ratings and technology affect premiums

Cars with high crash test ratings from the National Highway Traffic Safety Administration (NHTSA) or Insurance Institute for Highway Safety (IIHS) often may have access to for lower premiums. Some insurers also offer discounts for vehicles with specific safety technology — automatic emergency braking, lane-keeping assist, or blind-spot monitoring — because these features reduce accident rates.

When comparing cars, check both the safety ratings and what discounts your insurer offers for that model's equipment. A car with a lower MSRP but no safety technology might end up costing more to insure than a slightly more expensive model with better ratings and features. Ask your insurer directly what discounts apply to the specific vehicle you are considering.

Specific models that tend to cost less

Honda Civic, Toyota Corolla, and Hyundai Elantra are consistently among the cheapest to insure because they have affordable parts, good safety ratings, and moderate repair costs. Nissan Altima, Chevy Malibu, and Toyota Camry are also typically low-cost options. These are all common sedans with stable insurance claim histories.

Small hatchbacks like the Honda Fit, Toyota Prius, and Hyundai Elantra GT also tend to be inexpensive to insure because they are affordable to repair and have lower accident rates than performance or luxury vehicles. Pickup trucks like the Ford F-150 or Chevy Silverado can be cheap to insure in some regions because parts are widely available, though this varies by location and model year.

Avoid sports cars (Dodge Charger, Chevrolet Camaro, Ford Mustang), luxury brands (BMW, Mercedes, Audi), and large SUVs if insurance cost is your main concern. These categories consistently have higher premiums because repair costs are steep, theft rates are higher, or accident rates are elevated.

What you can control beyond the car itself

Your driving record, age, and location set the baseline for what you pay. A 20-year-old driver will pay more than a 50-year-old in the same car. A driver in a city will pay more than one in a rural area. But within those constraints, choosing the right car model can still save you hundreds of dollars per year.

You can also lower premiums by raising your deductible (paying more out of pocket when you file a claim), bundling auto and home insurance, maintaining a clean driving record, and taking a defensive driving course if your insurer offers a discount. Some insurers also offer usage-based programs that monitor your driving and lower your rate if you drive safely and infrequently.

Frequently Asked Questions

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

Usually, yes. A five-year-old Honda Civic costs less to insure than a new Civic because the used car is worth less and repair costs are based on actual value. However, if the used car has poor safety ratings or high theft rates in your area, it could cost more than a newer model with better ratings.

Do electric cars cost more to insure?

Generally, yes. Electric vehicles like the Tesla Model 3 or Chevy Bolt have higher repair costs because battery and electrical system repairs are expensive and require specialized technicians. As the market grows and repair infrastructure improves, these costs may come down, but for now, EVs typically have higher premiums than comparable gas-powered sedans.

Will buying a car with high safety ratings actually lower my insurance?

It may. Some insurers offer discounts for specific safety features or high NHTSA ratings, but not all do, and the discount varies. Contact your insurer before buying and ask what discounts apply to the exact model and year you are considering. The discount might be 5 to 15 percent, which could save you $100 to $300 per year.

Does the color of the car affect insurance cost?

No. Insurance companies do not charge different rates based on paint color. This is a common myth. Your rate depends on the model, year, engine size, safety features, your driving record, and your location — not whether the car is red, blue, or silver.

What if I want a truck but need cheap insurance?

Full-size pickup trucks like the Ford F-150 can be relatively affordable to insure because parts are common and widely available. However, larger trucks and specialty vehicles (lifted trucks, diesel models) cost more. A standard F-150 in your area may cost less to insure than a sports car, but more than a sedan. Get quotes on the specific model and year before deciding.