Which cars have the lowest auto insurance premiums?

Picking a vehicle that fits your style is important, but there’s much more to consider when purchasing a car. From maintenance costs to loan payments, managing the expenses that come with a car can be difficult.

One of those expenses is car insurance. While the minimum car insurance requirements in your state may be easily affordable, when you start looking at full coverage, you’ll find that car insurance can get expensive quickly.

Many factors play a role in the amount you’ll pay for insurance. One of the most important variables is the type of car you drive. Your car’s MSRP, safety ratings, and repair expenses influence how much your insurance will cost.

Read on to learn how your choice of car will affect your insurance rates. Then, compare quotes with as many companies as possible to find the best price for whatever car you drive.

The Cheapest Cars To Insure

When you’re in the market for a new car, you should keep in mind how much you’ll have to pay for insurance. While some vehicles come with hefty insurance rates, others are known for their affordability. Consider the top 10 overall cheapest cars to insure below.

• Subaru Forester
• Subaru Outback
• Jeep wrangler
• Honda CR-V
• Mazda CX-5
• Hyundai Tucson
• Honda Pilot
• Ford Escape
• Ford F-150
• Chevrolet Equinox

You might notice that the number one and two cheapest cars are both Subarus, while Honda also appears twice. Subaru and Honda have a reputation for safety, which is a huge part of their lower insurance rates.

The Cheapest Car Brands To Insure

With so many brands to choose from, knowing where to start looking for a new car can be a challenge. Some people choose brands like BMW or Porsche for prestige, while others gravitate more toward Toyota for reliability.

If finding cars with cheap insurance is your goal, some makes offer lower prices than others. Others — like Tesla or Ram — have some of the most expensive rates.

What makes the difference between brands like Mazda and Volkswagen compared to more expensive cars to insure? There are a variety of reasons, but safety, reliability, affordable maintenance, and overall claims ratings are the main factors.

The Cheapest Popular Cars To Insure

Choosing one of the cars with the cheapest insurance is an excellent way to find affordable coverage, but those aren’t always the most popular cars.

Some of the most popular vehicles sold in 2021 that have cheap car insurance rates are:

• Honda CR-V LX
• Subaru Crosstrek
• Jeep Wrangler JL Sport
• Subaru Forester
• Jeep Compass Latitude
• Hyundai Tucson SE
• Chevrolet Equinox
• Volkswagen Tiguan SE
• Ford Escape S
• Chevrolet Trax LS

Many cars with the lowest insurance rates overlap with America’s top-selling vehicles. It’s easy to see why — the factors that make insurance affordable for certain vehicles also appeal to drivers.

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The Cars That Have an Average Cost To Insure

While finding one of the least expensive cars to insure can save you money, insurance isn’t the only consideration for a new car. However, there’s no reason you can’t find a vehicle you like while skipping hefty insurance prices.

Many of America’s most popular cars match the national insurance average. Some vehicles, like the Jeep Grand Cherokee, have a variety of trims that significantly affect the price you’ll pay for your insurance.

Others, like the Toyota Camry, have excellent safety and reliability ratings, but a larger price tag bumps insurance rates up a bit. 

Discover why Toyota auto insurance stands out from the rest, offering comprehensive coverage, excellent customer service, and exclusive benefits tailored to protect both you and your Toyota vehicle.

Cars that Are the Most Expensive To Insure

Some cars have higher insurance rates because companies consider them riskier prospects to insure. As you might expect, the majority of the most expensive cars to insure are luxury or sports vehicles.

For most of these cars, a hefty price tag plays a key role in the higher insurance rates. Another factor is repair costs — Teslas are notorious for expensive repairs and maintenance, which is why the Model S is one of the most expensive cars to insure.

The Cheapest Cars To Insure by Vehicle Type

Most drivers have a type of car in mind when they’re shopping for a new vehicle. Whether you’re looking for the practicality of a pickup truck or minivan or a flashy, fun ride with a sports car, the amount you pay for insurance is affected by the type of vehicle you choose.

While smaller, safer cars generally have lower insurance rates, some types of cars always cost more to insure.

For example, sports cars come with higher insurance rates, but not necessarily because they’re speedy. Instead, sports cars tend to attract younger drivers. Statistically speaking, young drivers are more likely to be involved in an accident or drive recklessly, which makes finding cheap insurance rates for teens difficult. 

Another type of car that has high insurance costs is the luxury vehicle. Generally speaking, the more you pay for a car, the more you’ll pay for your insurance. The same goes for electric cars, which often come with larger price tags and repair costs.

Finally, you’ll probably see higher prices for cars that are frequent targets of theft. The most commonly stolen vehicles in America are Chevrolet and Ford pickups, with Toyota Camry and Honda Civics close behind.

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Auto Insurance Rates by Vehicle MSRP

While the exact amount you’ll pay for insurance depends on various factors unique to you, you can get a quick idea of how much you’ll pay based on your car’s MSRP.

Although the general rule of thumb is that you’ll pay more for insurance for cars with higher price tags, that’s not exactly true. Vehicles valued between $25,000 and $30,000 have the lowest overall insurance rates, coming in slightly cheaper than cars valued at $20,000 or less.

Once the MSRP crosses $40,000, insurance costs tend to rise rapidly.

The Car You Drive Affects Your Insurance Rates

Car insurance companies keep careful track of claims. They have detailed numbers for every demographic, which is why men and young drivers pay more for insurance than women and older adults. Insurance companies also have statistics for the type of car your drive.

The car you drive affects your insurance in several ways. One of the most important is how much your car costs. Expensive cars need expensive repairs, which your insurance company will have to pay for if you make a claim.

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The safety rating of your car also plays a role in your insurance costs. Vehicles with high safety ratings typically get into fewer accidents, have smaller repair costs, and are less likely to have serious injuries.

Trim Level Affects Your Auto Insurance Rates

When you buy a new car, you’ll likely have a wealth of upgrade options to choose from. Adding features increases the price of your vehicle, and your insurance rates will likely follow.

For example, if you choose a car with extra safety features, you might think it will help you save on your insurance. While extra safety features might earn you a discount, they also cost more to repair, which your insurance company will take into account.

If you opt for a more powerful engine, insurance companies might think you’re more likely to speed or drive recklessly, which can also increase your rates.

Getting an upgraded trim level — which usually bundles a variety of extra features — will likely increase your car insurance simply because it makes the car cost more.

Other Factors That Affect Auto Insurance Rates

The type of car you drive plays an essential role in your insurance rates, but it’s not the only thing that affects them. Other factors that affect car insurance rates include:

• Age
• Gender
• Location
• Driving history
• Credit score
• Mileage
• Lapses in coverage
• Level of coverage

Although insurance companies look at these factors, they use unique formulas to determine rates. This is why comparing quotes is crucial — one company might charge you much more for your insurance while others might charge much less.

Why Older Cars Are Cheaper To Insure

As you saw above, the price of your car significantly affects the cost of your insurance. An easy way to save money on your insurance is to buy a cheaper car.

Used cars are an excellent option for many reasons. They are often the cheapest cars to insure for young drivers and usually come at a more affordable price.

Older cars also tend to come with lower insurance rates. Consider how the cars with the best insurance rates change over time below.

As long as you keep your driving record clean, your rates should gradually decrease as your car ages.

Once your car reaches 10 years old, you might be able to drop most of your insurance in favor of a liability-only policy. Buying your state’s minimum insurance requirements is your cheapest option for insurance. 

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Tips To Choose the Cheapest Car To Insure

When you’re about to buy a new car, you can avoid models with high insurance premiums while still finding a vehicle you like. Use the following tips to find low-cost insurance cars.

• Skip the newest model. The latest models always cost more than vehicles, even a few years older. You can save hundreds on your insurance by picking an older car.
• Avoid high-end vehicles. Mid-sized and large luxury vehicles come with some of the highest insurance rates. Unless your heart is set on a luxury car, you can save money by avoiding BMW, Mercedes-Benz, Bentley, and other high–end names.
• Be cautious with hybrids. Hybrids often have higher insurance rates due to larger price tags and steeper repair costs. However, fuel savings might make up for higher insurance rates.
• Pass on sports cars. Sports cars offer speed and high performance. While those characteristics make for a fun ride, insurance companies are more cautious. You’ll see higher insurance costs for sports cars, especially if they’re high-end vehicles.
• Avoid cars popular with thieves. If your car is a frequent target of thieves, you’ll pay more for insurance.

While choosing the right car is important, it’s not the only factor influencing your insurance rates. However, keeping the above tips in mind when you shop for a new car can help you keep your insurance costs down.

Find Affordable Car Insurance No Matter What You Drive

Although a variety of factors influence how much you’ll pay for car insurance, the car you choose plays an important role. Avoiding luxury and sports cars and selecting a vehicle with a lower MSRP can help you save hundreds on your insurance.

Once you choose the perfect car for your needs, your next step should be to shop for insurance. Your vehicle will help determine your prices, but comparing quotes from as many companies as possible will find you the best rates.

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