Which Cars Cost the Least to Insure

The cars that cost the least to insure are usually older, safer models with lower repair costs and less powerful engines

Insurance companies set rates based on what they pay out in claims. A car that is cheap to repair, rarely stolen, and unlikely to cause injury in a crash will cost less to insure than one that is expensive to fix or involved in frequent accidents. The Honda Civic, Toyota Corolla, and Subaru Outback consistently rank among the cheapest to insure because they hold their value well, have affordable parts, and show up in fewer accident claims. A 2015 Honda Civic might cost $80 to $120 per month to insure with basic coverage in many states, while a sports car or luxury sedan of the same year could run $150 to $250 or more.

The actual cost depends on your age, driving record, location, and the coverage you choose — not just the car model. A 16-year-old driver in a Honda Civic will pay far more than a 45-year-old in the same car. A car that is cheap to insure in rural Montana may cost more in an urban area where theft and accidents are more common. This section focuses on which vehicle types and models insurers charge less for, assuming you are shopping among cars that are otherwise similar in age and condition.

Key Takeaways

• Sedans and wagons with four-cylinder engines cost less to insure than SUVs, trucks, and sports cars because they are cheaper to repair and involved in fewer high-cost claims.
• Older model years (usually 5 to 10 years old) cost less to insure than brand-new cars because the insurer's maximum payout is lower.
• Cars with high safety ratings and low theft rates — like the Honda Civic, Toyota Corolla, and Subaru Outback — have lower insurance costs across most insurers.
• A car that is cheap to insure may still be expensive overall if repair costs are high or the model has known reliability problems; check both insurance rates and repair estimates before buying.

Why sedan and wagon models cost less than SUVs and trucks

Insurance rates reflect the cost of repairs after a collision. A sedan has smaller, lighter parts and a simpler frame than an SUV or truck. When a Honda Civic is hit, the repair bill is usually $3,000 to $6,000. When a Toyota 4Runner is hit, the same collision can cost $8,000 to $15,000 because the parts are larger, heavier, and more complex. Insurers spread these costs across all drivers of that model, so owners of cheaper-to-repair cars pay lower premiums.

Trucks and SUVs also tend to be involved in more expensive claims because they weigh more and cause more damage to other vehicles in a multi-car accident. A pickup truck hitting another car can total that car; a sedan hitting the same car might cause moderate damage. Insurers account for this difference in their rates. Wagons — which are essentially sedans with extended cargo space — cost about the same to insure as sedans because they use the same frame and engine.

How engine size and power affect insurance costs

A four-cylinder engine is cheaper to insure than a six-cylinder or eight-cylinder engine because it costs less to replace or repair. A four-cylinder block might cost $2,000 to $3,500 to replace; a V8 can cost $4,000 to $8,000 or more. Insurers also associate larger, more powerful engines with higher-speed driving and more severe accidents, so they charge more to cover that risk.

Sports cars and performance models — even if they are sedans — cost significantly more to insure because they have powerful engines and are statistically involved in more accidents. A Dodge Charger R/T or Chevrolet Camaro will cost 50% to 100% more to insure than a standard four-cylinder sedan, even if both are the same age. If you are looking for the cheapest insurance, choose a car with a standard four-cylinder engine and no performance trim.

Why older model years usually have lower premiums

Insurance companies calculate your car's actual cash value — what it would sell for today — and use that to set your collision and comprehensive coverage limits. A brand-new car worth $30,000 means the insurer could pay up to $30,000 in a total loss claim. A five-year-old version of the same car worth $15,000 means the maximum payout is $15,000. Lower maximum payout means lower premiums.

A 2019 Honda Civic might cost $120 per month to insure with collision and comprehensive coverage. A 2015 Honda Civic — the same model, same engine — might cost $85 per month because the car is worth less. This is one reason why buying a car that is 5 to 10 years old instead of brand-new can save you money on insurance, even though older cars may have higher repair costs for specific problems.

Models with the lowest insurance rates across most insurers

The Honda Civic and Toyota Corolla appear on low-cost lists from most insurers because they are common, affordable to repair, and rarely stolen. Parts are widely available and inexpensive. Repair shops compete on price because so many of these cars are on the road. The Subaru Outback costs slightly more than a Civic or Corolla but less than most SUVs because it has a lower theft rate and good safety ratings. The Toyota Camry and Honda Accord — mid-size sedans — also rank low because they share the same advantages as their smaller cousins.

The Hyundai Elantra and Kia Forte often cost less to insure than comparable Honda or Toyota models because they are newer to the market and insurers price them competitively to attract customers. The Mazda3 is another affordable option. Pickup trucks like the Ford F-150 and Chevrolet Silverado cost more to insure than sedans, but they cost less than luxury trucks or high-end SUVs. Avoid sports cars like the Dodge Charger, Chevrolet Camaro, and Ford Mustang if your goal is low insurance costs; these models consistently rank among the most expensive to insure.

What to check before buying a cheap-to-insure car

A car with low insurance rates may still be expensive overall if repair costs are high for common problems. Before you buy, get a repair estimate for the most likely issues — transmission problems, engine trouble, or suspension wear — for that specific model and year. A Honda Civic might have cheap insurance but expensive transmission repairs on certain model years. A Toyota Corolla might have low insurance but high brake repair costs on some versions. Check online forums and repair databases like RepairPal to see what owners actually spend on maintenance.

Also verify the safety rating through the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS). A car with a low safety rating may have cheap insurance initially, but if it is involved in an accident, the damage and injury claims can be severe, and your rates will increase significantly. The cheapest car to insure is one that is both affordable to repair and unlikely to be in an accident in the first place.

How your personal factors override the car's base rate

Even if you buy a Honda Civic — one of the cheapest cars to insure — your actual premium depends on your age, driving record, location, and coverage choices. A 19-year-old with a speeding ticket will pay more for that Civic than a 50-year-old with a clean record. A driver in a dense urban area will pay more than a driver in a rural area, even in the same car. If you choose only liability coverage instead of collision and comprehensive, your premium will be much lower, but you will have no protection if your car is damaged or stolen.

To find the actual cost for a specific car, get quotes from multiple insurers — at least three — with your real information. The difference between insurers can be 30% to 50% for the same car and driver, so comparing quotes is more important than choosing the "cheapest" model. Some insurers offer discounts for bundling home and auto insurance, paying in full upfront, or completing a defensive driving course; these discounts can save you more than switching to a cheaper car.

Frequently Asked Questions

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

Usually, but not always. A used car is worth less, so collision and comprehensive coverage costs less. However, if the used car has a high theft rate or is expensive to repair, insurance can still be high. A 10-year-old luxury sedan might cost more to insure than a brand-new Honda Civic because luxury parts are expensive. Compare quotes for the specific car you are considering, not just the age.

Do hybrid or electric cars cost more or less to insure?

Hybrid and electric cars typically cost more to insure because the battery and electric motor are expensive to repair or replace. A Toyota Prius hybrid might cost 10% to 20% more to insure than a standard Corolla. As these cars become more common and repair costs drop, insurance rates may decrease, but currently they are not the cheapest option.

Does the color of the car affect insurance rates?

No. Insurance companies do not use paint color to set rates. This is a common myth. The only factors that matter are the car's make, model, year, engine size, safety features, theft rate, and repair costs — plus your driving record, age, and location.

Will buying a cheap-to-insure car save me money if I have a bad driving record?

It will help, but not as much as improving your driving record. A driver with multiple accidents or tickets will pay high rates in any car. Buying a Honda Civic instead of a sports car might save you $20 to $40 per month, but your base rate is still high. Focus on safe driving first; the car choice is secondary.

Should I buy a car based only on insurance cost?

No. Consider insurance cost alongside repair costs, fuel economy, reliability, and whether the car meets your needs. A car that is cheap to insure but costs $3,000 per year in repairs is not a bargain. A car that is cheap to insure and reliable is worth buying; a car that is cheap to insure but breaks down frequently is not.