Older sedans and compact cars from mainstream brands cost the least to insure, because insurers charge based on repair costs, safety ratings, and theft risk — not on how much you paid for the car.

A five-year-old Honda Civic or Toyota Corolla will almost always cost less to insure than a new sports car, luxury sedan, or truck, even if both vehicles are worth the same amount. Insurance companies don't care what you paid; they care what it costs to fix the car after a collision, how often drivers of that model file claims, and whether thieves target it. A Honda Civic is cheap to repair, has good safety ratings, and isn't stolen often. A Dodge Charger is expensive to fix, attracts younger drivers with more accidents, and is stolen frequently — so it costs more to insure.

The actual dollar amount you'll pay depends on your age, driving record, location, and the coverage limits you choose. But the type of car you own is one of the few things you can control before you buy, and it makes a real difference.

Key Takeaways

  • Insurance rates are based on repair costs and claims history for each specific model, not on the car's purchase price or how new it is.
  • Sedans and hatchbacks from Honda, Toyota, and Mazda typically have the lowest insurance costs because they're affordable to repair and have fewer claims.
  • Sports cars, luxury vehicles, and full-size trucks cost significantly more to insure due to higher repair bills and more frequent claims.
  • A used car from a safe, common model will cost less to insure than a newer vehicle from a model with a poor safety record or high theft rate.
  • You can ask an insurer for a quote on a specific car before you buy it, which takes 10 minutes and shows you the real cost difference.

Why repair costs matter more than purchase price

Insurance companies set rates based on what it costs to fix a car after an accident, not what you paid for it. A Honda Civic's bumper, fender, and headlight are inexpensive parts made by many suppliers. A BMW's bumper is a proprietary assembly that costs three times as much and takes longer to source. When an insurer calculates the average claim for each model, the BMW's claims are larger, so premiums go up.

This is why a ten-year-old Civic can cost less to insure than a three-year-old BMW, even though the BMW is newer and more valuable. The Civic's parts are cheap and available everywhere. The BMW's parts are expensive and sometimes require ordering from Germany. Insurers pass that cost difference directly to you in the form of higher premiums.

Luxury brands — BMW, Mercedes, Audi, Lexus — and European sports cars almost always cost more to insure than Japanese or American mainstream brands, because their parts are more expensive and repair shops charge more labor time to work on them.

Models with the lowest insurance costs

Honda Civic, Honda Accord, Toyota Corolla, Toyota Camry, Mazda3, and Mazda6 consistently rank among the cheapest cars to insure. These are sedans and compact cars that are common, have good safety ratings, are affordable to repair, and don't attract high-risk drivers. Insurance companies have decades of claims data on these models, and the data shows they're reliable and safe.

Hyundai Elantra and Kia Forte are also inexpensive to insure because they're affordable to repair and have become more common in recent years. Subaru models like the Impreza and Outback tend to be cheaper than luxury brands but more expensive than Honda or Toyota, because Subaru parts are slightly harder to source and repair shops charge more for all-wheel-drive work.

Pickup trucks like the Ford F-150 and Chevrolet Silverado fall in the middle — not as cheap as a Civic, but not as expensive as a sports car. Full-size trucks cost more because they're involved in more accidents and have higher repair bills, but they're still cheaper than luxury vehicles.

Cars that cost the most to insure

Sports cars and performance vehicles cost the most because they attract younger drivers with more accidents and are stolen more often. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost significantly more to insure than a Civic, even if you're a safe driver. Insurers base rates on the average driver of that model, not on you personally.

Luxury sedans like the BMW 3 Series, Mercedes C-Class, and Audi A4 cost more because parts are expensive and repair shops charge premium labor rates. A fender-bender on a BMW can cost $2,000 to $3,000 to repair; the same accident on a Civic might cost $800. That difference shows up in your insurance premium.

High-end SUVs and trucks also cost more — a Range Rover or Cadillac Escalade will have higher premiums than a Toyota 4Runner or Chevy Tahoe, because parts are more expensive and repairs take longer. Exotic cars and limited-production vehicles are the most expensive to insure because repair shops have to order parts from the manufacturer and labor costs are very high.

How to compare insurance costs before you buy

You don't have to buy a car to find out what it will cost to insure. Call or visit an insurance company's website and ask for a quote on a specific year, make, and model. You'll need the vehicle identification number (VIN) if you're looking at a used car, or just the year and model if you're shopping new. Most insurers can give you a quote in 10 to 15 minutes.

Get quotes from at least two or three insurers, because rates vary. State Farm, GEICO, Progressive, and Allstate all use different formulas to calculate rates, and one company might charge $200 more per year than another for the same car. The difference between insurers is often larger than the difference between car models.

If you're torn between two cars, get quotes on both before you decide. A car that costs $2,000 less to buy might cost $500 more per year to insure. Over five years, that's $2,500 in extra insurance costs — money that offsets the savings on the purchase price.

Age and safety ratings affect insurance costs too

Newer cars cost more to insure because they're worth more and the parts are more expensive. A 2024 Honda Civic will cost more to insure than a 2019 Honda Civic, even though they're the same model. As a car gets older, the insurance premium usually goes down because the car is worth less and repair costs are lower.

Cars with high safety ratings — especially those with good crash test scores from the National Highway Traffic Safety Administration (NHTSA) or Insurance Institute for Highway Safety (IIHS) — sometimes may have access to for discounts. A car that protects occupants well in a crash means fewer serious injuries and lower claims for the insurer, so they may offer a small discount on collision or comprehensive coverage.

However, safety ratings are usually a smaller factor than repair costs. A very safe luxury car will still cost more to insure than a less-safe mainstream sedan, because the luxury car's parts are expensive.

Theft rates and where you live

Cars that are stolen frequently cost more to insure because insurers have to pay out more theft claims. The Honda Civic and Honda Accord are among the most stolen cars in the United States, which pushes their insurance costs up slightly compared to less-popular models. The Dodge Charger and Chevrolet Silverado are also stolen often, adding to their already-high insurance costs.

Your location also affects the cost. If you live in an urban area with high theft rates, insurance will cost more for any car. If you live in a rural area, theft is less common and insurance costs less. This is true regardless of which car you own, but it's another reason to get a quote for your specific zip code before you buy.

Frequently Asked Questions

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

Usually yes, because used cars are worth less and parts are cheaper. A five-year-old Honda Civic will cost less to insure than a brand-new Civic. However, the specific model matters more than age — a used luxury car can cost more to insure than a new mainstream sedan because luxury parts are expensive.

Do insurance companies give discounts for safe cars?

Some insurers offer small discounts for vehicles with high safety ratings or advanced safety features like automatic emergency braking. The discount is usually 5 to 10 percent and applies only to collision or comprehensive coverage, not to the whole premium. Ask your insurer whether your car qualifies.

Will my insurance cost more if I buy a red car?

No. Insurance companies don't charge more for red cars, despite the myth that red cars are pulled over more often. The color of the car has no effect on your insurance rate. The model, age, and your driving record are what matter.

Can I lower my insurance costs by choosing a different car model?

Yes. Switching from a sports car or luxury vehicle to a mainstream sedan or compact car can lower your insurance costs by $500 to $1,500 per year, depending on which models you're comparing. Get quotes on both cars before you decide to make sure the savings are real.

Do trucks cost more to insure than cars?

Full-size trucks usually cost more than compact cars but less than sports cars or luxury vehicles. Mid-size trucks fall somewhere in the middle. The specific model and year matter — a used Toyota Tacoma might cost less to insure than a new Dodge Charger, even though the truck is larger.