Which Cars Cost the Least to Insure

Insurance cost depends on the car itself, not just the driver

The cheapest car to insure is usually a safe, common sedan or hatchback with a good safety rating, low horsepower, and a high parts-replacement cost. Insurance companies price based on what they pay out when a car is damaged or stolen — not on what you paid for it. A five-year-old Honda Civic costs less to insure than a brand-new sports car, even if the sports car costs more to buy.

The four things insurers look at most closely are: how often that model gets into accidents, how much damage typically costs to repair, whether thieves target it, and whether it has safety features that reduce injury. A car that rarely crashes, uses cheap parts, sits in driveways unmolested, and has airbags and stability control will have lower premiums across all coverage types.

Key Takeaways

• Sedans and hatchbacks from Honda, Toyota, and Subaru typically have the lowest insurance rates because they crash less often and cost less to repair.
• Sports cars, luxury vehicles, and high-performance models cost significantly more to insure because repair bills are higher and they are involved in more accidents.
• A car's age, safety rating, theft rate, and repair costs matter more to your premium than the purchase price.
• Insurance rates for the same model can vary by year, trim level, and engine size — a four-cylinder sedan costs less than a six-cylinder version of the same car.
• You can see estimated insurance costs for a specific car before you buy by checking your insurer's website or calling for a quote on that vehicle's make, model, and year.

Sedans and hatchbacks with the lowest average premiums

Honda Civic, Honda Accord, Toyota Corolla, Toyota Camry, and Subaru Outback consistently rank among the cheapest to insure. These cars are common, which means repair shops stock parts and know how to fix them quickly. They also have strong safety records — they don't crash as often as sports cars or trucks — and they are not theft targets the way some luxury brands are.

Within each model, the base trim and smaller engine size cost less to insure than higher trims or turbocharged versions. A Honda Civic with a 2.0-liter engine will have a lower premium than a Civic Si with a 1.5-liter turbo, even though the turbo is smaller, because the Si is marketed as a performance car and insurers price it accordingly.

Hyundai Elantra, Kia Forte, Mazda3, and Nissan Altima also fall into the low-cost category. The difference between these and the Honda or Toyota equivalents is usually small — sometimes $20 to $50 per month — but it exists because claim history differs slightly by brand.

Why sports cars and luxury vehicles cost much more

A Dodge Charger, Ford Mustang, Chevrolet Camaro, or BMW 3 Series will cost two to three times as much to insure as a Civic, even if they are the same age. Insurers charge more because these cars are involved in more accidents per vehicle on the road, and when they do crash, the repair bill is higher. A Mustang's fender costs more to replace than a Civic's, and the labor to install it takes longer.

Luxury brands like BMW, Mercedes-Benz, Audi, and Lexus also attract theft in some regions, which raises comprehensive coverage costs. Parts for these cars are expensive and often must come from the dealer rather than an aftermarket supplier, which slows repairs and increases the total claim cost.

High-performance versions of otherwise affordable cars — like a Subaru WRX or Volkswagen GTI — cost significantly more than their base-model siblings because they are driven more aggressively and crash more often. The insurance company's own claims data shows this pattern, so they price accordingly.

How age and safety features affect your rate

Newer cars with modern safety technology — automatic emergency braking, lane-keeping information, blind-spot monitoring — often may have access to for discounts that can lower your premium by 5 to 15 percent. These features reduce accident frequency and severity, so insurers reward owners who have them.

Older cars without these features cost more to insure per year, but the base rate for an older model is usually lower than a newer one. A 2015 Honda Civic might have a $900 annual premium, while a 2024 Civic might be $1,100, even though the newer car is safer. The newer car's higher value and repair costs offset the safety discount.

Cars with poor crash-test ratings from the National Highway Traffic Safety Administration (NHTSA) or Insurance Institute for Highway Safety (IIHS) will have higher premiums because they result in more severe injuries and larger claims. You can check a car's safety rating on both organizations' websites before you buy.

Theft rates and regional variation in insurance costs

Some cars are stolen more often in certain regions. Honda Civic and Honda Accord models from the 1990s and 2000s are theft targets nationwide because parts are valuable and compatible with many other Honda models. If you live in an area with high theft rates for a particular car, your comprehensive coverage will cost more.

Pickup trucks like the Ford F-150 and Chevrolet Silverado have high theft rates in some states but not others, depending on local demand for parts and resale value. Toyota 4Runner and Tacoma models are targeted in the West and Southwest. Your insurer can tell you whether a specific car has a high theft rate in your ZIP code.

Regional variation also depends on accident frequency. Urban areas with more congestion have higher collision rates, so the same car costs more to insure in a city than in a rural area. This is true regardless of which car you choose, but it means a cheap-to-insure car in one region might not be as cheap in another.

Comparing insurance costs before you buy a car

Most insurance companies allow you to get a quote for a specific vehicle without buying a policy. You will need the car's year, make, model, trim level, and engine size. Some insurers let you do this on their website; others require a phone call.

Call or visit the websites of at least two insurers — your current provider and one other — and ask for quotes on the exact car you are considering. The difference between a cheap-to-insure car and an expensive one can be $1,000 to $2,000 per year, so this step takes 15 minutes and saves real money.

If you are deciding between two specific cars, get quotes for both before you make the purchase. A car that costs $3,000 less to buy might cost $1,500 more per year to insure, which changes the math over five years of ownership.

Trim level, engine size, and other details that change your rate

The same car model can have different insurance rates depending on which trim you choose. A Toyota Camry LE (base model) costs less to insure than a Camry XLE or Camry TRD, because higher trims often have more powerful engines or performance-oriented features. The difference is usually $10 to $30 per month.

Engine size matters. A four-cylinder engine costs less to insure than a six-cylinder or eight-cylinder version of the same car. A turbocharged engine, even if it is smaller in displacement, may cost more because it produces more horsepower and is associated with more aggressive driving.

All-wheel drive (AWD) sometimes costs slightly more to insure than front-wheel drive (FWD) on the same model, because repair costs are higher when an AWD vehicle is damaged. The difference is usually small — $5 to $15 per month — but it exists.

Frequently Asked Questions

Do electric cars cost more or less to insure than gas cars?

Electric vehicles typically cost more to insure than comparable gas-powered cars because battery replacement is expensive and repair shops are less familiar with EV-specific damage. A Tesla Model 3 costs more to insure than a Honda Civic, even though both are sedans. However, some insurers offer discounts for EVs because they are involved in fewer accidents, so the gap is narrowing.

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 premium depends on the car's make, model, year, safety features, and claims history for that vehicle — not on whether it is red, blue, or silver.

Will a used car always cost less to insure than a new one?

Not always. A used car from a model year with a poor safety record or high theft rate can cost more to insure than a newer model with better ratings. A 2010 Honda Civic might cost more per year than a 2020 Civic because the newer car has better safety technology. The car's age matters less than its specific model year and features.

Can I lower my insurance by choosing a car with a manual transmission?

Some insurers offer small discounts for manual transmissions because they are less common and associated with more engaged drivers, but the discount is usually minimal — $5 to $10 per month if it exists at all. Most insurers do not differentiate by transmission type anymore.

What if I want a truck or SUV — will it always cost more than a sedan?

Not necessarily. Some trucks and SUVs cost less to insure than sports cars or luxury sedans. A Toyota RAV4 or Honda CR-V costs roughly the same as a Honda Civic. A Ford F-150 costs more than a Civic but less than a Dodge Charger. The specific model and year matter more than the vehicle category.