Which Cars Cost Less to Insure and Why

Insurance costs depend more on the car's safety record and repair expenses than on its price tag

The cheapest car to insure is usually a sedan or wagon from a mainstream manufacturer — Honda Civic, Toyota Corolla, Hyundai Elantra — rather than a sports car, luxury vehicle, or truck. Insurance companies set rates based on three things about the vehicle itself: how often that model gets into accidents, how much damage typically results, and how much replacement parts cost. A five-year-old Honda Accord costs less to insure than a new Dodge Charger, even though the Charger might cost less to buy used.

The car you already own matters more than shopping for a cheaper one. Switching vehicles just to lower insurance usually costs more than the savings you'd get. If you're buying a car soon anyway, knowing which models have lower insurance costs can be one factor among many — but it should not be the deciding factor.

Key Takeaways

• Insurance rates for a specific car depend on accident history, repair costs, and theft rates for that model, not on the car's purchase price.
• Sedans and wagons from Honda, Toyota, and Hyundai typically have lower insurance costs than sports cars, luxury brands, or full-size trucks.
• Your driving record, age, location, and coverage choices affect your rate far more than which car you drive.
• Before buying a car to save on insurance, get a quote from your insurer — the difference may be smaller than you expect.

Why some cars cost more to insure than others

Insurance companies use data from millions of claims to calculate the risk of insuring each vehicle model. They look at how many drivers of that model filed claims, how severe those claims were, and how much it cost to repair or replace the vehicle. A model with a high theft rate or expensive parts will have higher rates, even if it's mechanically straightforward.

Sports cars and performance vehicles carry higher rates because they're involved in more accidents. Luxury vehicles cost more to insure because parts are expensive and repairs require specialized technicians. Full-size pickup trucks have higher rates partly because they're involved in more accidents and partly because collision damage is costly. Conversely, vehicles with strong safety ratings, affordable parts, and lower accident rates get better rates.

The age of the car also matters. A 2019 Honda Civic will have lower rates than a 2019 Dodge Challenger, but a 2015 Civic will have lower rates than a 2019 Civic because newer cars cost more to replace. However, very old cars sometimes get lower rates because they're worth less — though comprehensive and collision coverage becomes optional at some point.

Car models that typically have lower insurance rates

Sedans and compact cars from established manufacturers dominate the lower-cost insurance category. The Honda Civic, Toyota Corolla, and Hyundai Elantra appear consistently in insurance company data as vehicles with below-average rates. These models have large parts networks, straightforward repair procedures, and accident rates close to the industry average.

Wagons and hatchbacks in the same category — Honda Accord wagon, Toyota Prius, Subaru Outback — also tend toward lower rates. Minivans like the Honda Odyssey and Toyota Sienna have lower rates than SUVs of similar size, partly because they're involved in fewer accidents. Full-size sedans like the Toyota Camry and Honda Accord fall in the middle: not the cheapest, but cheaper than most trucks and SUVs.

Electric vehicles like the Tesla Model 3 and Nissan Leaf have become more common in insurance data in recent years. Some insurers offer lower rates for EVs because they're involved in fewer accidents, though repair costs can be high when damage does occur. Rates vary by insurer, so you should always get a quote before assuming an EV will cost less.

Vehicles that typically cost more to insure

Sports cars and high-performance sedans — Dodge Charger, Chevrolet Camaro, Ford Mustang, Nissan 370Z — carry significantly higher rates because drivers of these vehicles file more claims and those claims tend to be severe. Luxury brands like BMW, Mercedes-Benz, and Audi have higher rates because parts are expensive and repairs require specialized service. Even a used luxury sedan will cost more to insure than a new mainstream sedan.

Full-size and heavy-duty pickup trucks have higher rates than sedans of similar age, partly because they're involved in more accidents and partly because collision damage is expensive. Large SUVs fall between trucks and sedans — cheaper than a truck but more expensive than a compact car. Vehicles with poor safety ratings or high theft rates in your area will also carry higher rates regardless of the model's national average.

How your driving record and location matter more than the car

Your personal driving record, age, and location have a much larger effect on your rate than which car you drive. A 25-year-old driver with two accidents in the past three years will pay more to insure a Honda Civic than a 45-year-old with a clean record will pay to insure a Dodge Charger. Insurance companies weight recent accidents and violations heavily because they predict future claims better than the vehicle itself does.

Where you live affects rates more than most people realize. Urban areas with higher accident rates, theft rates, and uninsured driver rates have higher premiums across all vehicles. A Honda Civic in Los Angeles will cost more to insure than the same car in rural Montana. Your zip code can shift your rate by 20 to 40 percent before the car model is even factored in.

Your coverage choices — deductible amount, liability limits, whether you carry comprehensive and collision — affect your final bill more than the car model does. Raising your deductible from $500 to $1,000 might save you 15 to 25 percent. Choosing minimum liability coverage instead of higher limits can cut your rate significantly, though it leaves you exposed to lawsuits if you cause a serious accident.

Getting a quote before you buy

If you're considering buying a specific car, contact your current insurance company or get quotes from a few insurers and ask for rates on that exact model and year. Most insurers will quote you without requiring you to provide personal information beyond your zip code and driving history. You can compare the quoted rate to what you currently pay and decide whether the difference is worth the cost of buying a new car.

When you get a quote, ask the insurer to hold it for 30 to 60 days — most will do this at no charge. This gives you time to shop for the car without the quote expiring. If you find a different model you're interested in, get a new quote for that one too. The difference between models is often smaller than you'd expect, especially if you're comparing two mainstream sedans.

Remember that the cheapest car to insure is not always the cheapest car to own. Fuel economy, maintenance costs, reliability, and resale value all matter. A car that costs $50 less per month to insure but $100 more per month in gas and repairs is not a financial win. Look at the total cost of ownership, not just insurance.

Frequently Asked Questions

Does buying a used car instead of new lower insurance costs?

Usually yes, because the car is worth less and replacement cost is lower. A five-year-old Honda Civic will cost less to insure than a brand-new one. However, the model and year matter more than used versus new — a used sports car may cost more to insure than a new mainstream sedan.

Will adding safety features to my car lower my insurance rate?

Some insurers offer small discounts — typically 5 to 10 percent — for vehicles with anti-theft devices, automatic emergency braking, or other safety technology. Ask your insurer which features they discount. The discount is usually smaller than the cost of adding the feature, so it's not a reason to buy a car you wouldn't otherwise want.

Is a hybrid or electric car cheaper to insure?

It depends on the model and your insurer. Some insurers offer lower rates for hybrids and EVs; others don't. Get a quote for the specific vehicle you're interested in. Repair costs for EVs can be high, which sometimes offsets the accident-rate advantage.

Do I have to tell my insurance company what car I drive?

Yes. Your insurer needs the vehicle identification number (VIN), year, make, model, and trim level to calculate your rate. Providing false information about the car can void your coverage if you file a claim. If you buy a different car, contact your insurer before you drive it off the lot.

Can I lower my rate by switching to a cheaper car?

Possibly, but usually not enough to justify the cost of buying a new car. The difference between a Honda Civic and a Toyota Corolla might be $10 to $20 per month. The cost of selling your current car and buying a new one will take years to recoup through insurance savings.