How to Choose a Car That Costs Less to Insure

Insurance cost depends on the car itself, not just how you drive

The car you buy affects your insurance premium as much as your age or driving record does. Insurers charge more for cars that are expensive to repair, likely to be stolen, or involved in costly accidents. A Honda Civic costs less to insure than a BMW 3 Series, even if both drivers are identical. Before you buy any car, you can call an insurance company or check their website to see what the same model costs to insure across different years and trim levels — this takes 10 minutes and can save you hundreds a year.

The cheapest cars to insure are usually older, common sedans with good safety ratings and low repair costs. A 2015 Toyota Camry or 2016 Honda Accord will cost far less to insure than a 2020 sports car or luxury sedan. The year matters: newer cars have better safety features that lower claims, but they also cost more to repair, which can offset that advantage. A five- to eight-year-old reliable sedan is often the sweet spot for low insurance cost.

Key Takeaways

• Insurance companies charge more for cars with high repair costs, high theft rates, or poor safety records, so checking the insurance cost before you buy is essential.
• Common sedans like the Toyota Camry, Honda Accord, and Nissan Altima cost significantly less to insure than sports cars, luxury brands, or SUVs.
• A car that is five to eight years old usually has lower insurance premiums than a brand-new car, because repair costs are lower even though safety features may be older.
• Checking your insurance rate for a specific car model and year takes minutes on most insurer websites and should happen before you make an offer.

What makes a car cheap or expensive to insure

Insurance companies use data on repair costs, accident frequency, and theft rates to set premiums for each car model. A car that is cheap to repair — because parts are widely available and labor is straightforward — will have a lower premium. A car that is stolen often or involved in expensive accidents will cost more to insure, even if you have never had a claim yourself.

Safety ratings also matter. Cars with high marks from the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS) often may have access to for lower premiums because they protect occupants better and reduce the severity of injuries. However, a very new car with excellent safety features may still have a high premium if replacement parts are expensive or hard to find.

Engine size and performance also affect cost. A four-cylinder sedan costs less to insure than a V8 sports car, because the sports car is more likely to be driven aggressively and is more expensive to repair. Convertibles and two-door cars often cost more than four-door sedans, even if the engine is the same size.

Car models that typically have the lowest insurance costs

The Toyota Camry, Honda Accord, and Nissan Altima are among the cheapest sedans to insure because they are common, reliable, and inexpensive to repair. Parts are widely available, repair shops know how to fix them quickly, and they have good safety records. A 2016 or 2017 model of any of these will usually cost less to insure than a 2023 model, because repair costs are lower.

The Toyota Corolla and Honda Civic are smaller sedans with even lower insurance costs, though they offer less interior space. The Hyundai Elantra and Kia Forte are also affordable to insure and have become more reliable in recent years. Pickup trucks like the Ford F-150 and Chevrolet Silverado vary widely depending on the year and trim level, but used models from five to ten years ago are often reasonably priced to insure.

Avoid sports cars, luxury brands, and high-performance vehicles if insurance cost is your main concern. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost significantly more to insure than a Camry, even if the purchase price is similar. Luxury brands like BMW, Mercedes-Benz, and Audi have high repair costs and higher premiums across the board.

How to check insurance cost before you buy

Most major insurance companies — State Farm, Geico, Progressive, Allstate, and others — allow you to get a quote online without providing personal information beyond your zip code and driving history. You can enter the specific year, make, and model of the car you are considering, and the website will show you an estimated premium. This estimate is not binding, but it gives you a real number to compare across different cars.

Call your current insurance company and ask them to quote the car you want to buy. They can often give you a quote over the phone in a few minutes. If you do not have insurance yet, pick two or three companies and get quotes from each one for the same car. The difference between insurers can be as large as the difference between car models, so comparing both matters.

Write down the quotes for each car model you are considering, along with the year and trim level. Compare the total cost of ownership — purchase price plus estimated annual insurance — before you make an offer. A car that costs $2,000 less to buy but $500 more per year to insure will cost you more over five years.

Why age and mileage affect your insurance rate

Newer cars cost more to insure because replacement parts and repairs are more expensive. A 2023 Honda Accord will have a higher premium than a 2018 Honda Accord, even though the newer car is safer. The difference narrows as the car gets older, because repair costs eventually drop and the car becomes less valuable to replace.

Very old cars — more than 15 years old — sometimes have lower premiums because they are worth less, but they may have higher repair costs if parts become hard to find. A 2008 model is usually cheaper to insure than a 2023 model, but a 2000 model may not be. The best value is usually a car that is five to ten years old, with moderate mileage and a good maintenance history.

Mileage affects resale value and repair likelihood, but it does not directly affect your insurance premium. An insurance company cares whether the car is worth $10,000 or $5,000, not whether it has 60,000 miles or 100,000 miles. However, a car with very high mileage may be worth less and therefore cost less to insure, even though it may be more likely to need repairs.

Safety features that lower your insurance cost

Cars with anti-theft devices, automatic emergency braking, and stability control often may have access to for discounts. Ask your insurance company what safety features they reward with lower premiums. Some companies offer discounts for cars with lane-keeping information, blind-spot monitoring, or collision warning systems.

The IIHS and NHTSA safety ratings are published online for every car model. Before you buy, check the ratings for the specific year and model you want. A car with a "Good" rating from IIHS or a five-star rating from NHTSA may may have access to for a lower premium than a car with lower ratings. This information is free and takes a few minutes to look up.

Frequently Asked Questions

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

Usually, but not always. A used car is cheaper to insure because it is worth less and costs less to repair. However, a very old used car with poor safety features may have a higher premium than a newer car with advanced safety technology. A five- to eight-year-old car is typically the cheapest option overall.

Do hybrid or electric cars cost more to insure?

Hybrid cars often cost about the same as their gas-powered counterparts because repair costs are similar. Electric vehicles can cost more to insure because battery replacement is expensive, but some insurers offer discounts for electric cars. Check the specific model and year with your insurance company before you buy.

Will buying a car with a lower price tag always mean lower insurance?

No. A cheap used sports car may cost less to buy but more to insure than a more expensive sedan. Always check the insurance cost for the specific car you want before you make an offer. The purchase price and insurance cost are separate calculations.

Can I lower my insurance cost by adding safety features to a used car?

Some aftermarket safety features may may have access to for discounts, but the discount is usually small. Buying a car that already has built-in safety features is more cost-effective than adding them later. Ask your insurance company which features they reward before you spend money on upgrades.

Does the color of the car affect insurance cost?

No. Insurance companies do not charge different rates based on car color. The model, year, engine size, safety rating, and repair cost are what matter. Any insurance company that quotes based on color is not following standard industry practice.