Which Cars Cost Less to Insure

Cars with lower insurance costs share specific features

Insurance companies charge less for cars that are cheaper to repair, less likely to be stolen, and safer in crashes. A Honda Civic typically costs less to insure than a Dodge Charger because repair parts are abundant and cheap, theft rates are lower, and safety ratings are strong. A Toyota Corolla falls into the same category. The cheapest-to-insure cars are usually sedans and compact cars from mainstream manufacturers, not sports cars, luxury vehicles, or large trucks.

Your actual rate depends on your age, driving record, location, and coverage choices — not just the car. A 16-year-old in a Honda Civic will pay far more than a 45-year-old in the same car. But within any driver profile, certain vehicles consistently cost less to insure because the insurance company's own claims data shows they generate fewer or smaller claims.

Key Takeaways

• Insurance costs less for sedans and compact cars from Honda, Toyota, and Hyundai because repair parts are inexpensive and widely available.
• Sports cars, luxury vehicles, and trucks cost more to insure because repairs are expensive and theft rates are higher.
• A car's safety rating, theft rate, and repair cost history matter more to your rate than how new or flashy the vehicle is.
• Your age, driving history, and location affect your rate more than the car itself, but the car choice still makes a measurable difference.

Sedans that typically have lower insurance rates

The Honda Civic, Toyota Corolla, and Hyundai Elantra are among the most commonly insured cars in North America, which means insurers have years of claims data on them. When a car is common, repair shops stock parts, used parts are plentiful, and labor costs stay down. All three are also built to perform well in crash tests and have low theft rates.

The Honda Accord and Toyota Camry are larger sedans that also tend to cost less to insure, though slightly more than their compact cousins. Both have strong safety records and abundant aftermarket parts. The Hyundai Sonata follows the same pattern. These mid-size sedans are popular fleet vehicles, which keeps repair infrastructure robust and insurance rates moderate.

The Nissan Altima and Kia Optima also fall into this range. None of these cars are the absolute cheapest to insure — that depends on the specific model year and trim — but they consistently rank lower than sports cars, SUVs, or luxury brands.

Why sports cars and luxury vehicles cost more

A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost significantly more to insure than a Civic, even if both are the same age. Sports cars have higher theft rates, higher accident rates (insurers' data shows drivers of sports cars file more claims), and much higher repair costs. A fender on a Mustang costs more to replace than a fender on a Corolla, and specialized parts take longer to source.

Luxury vehicles like BMW, Mercedes-Benz, and Audi models have expensive parts, specialized repair shops, and higher labor rates. A single repair on a luxury sedan can cost two or three times what the same repair costs on a Honda. Insurers price that risk into your premium.

Pickup trucks — Ford F-150, Chevrolet Silverado, Ram 1500 — also tend to cost more to insure than sedans, partly because they are theft targets and partly because collision repairs are expensive due to their size and weight.

How vehicle age affects insurance cost

A five-year-old Honda Civic will usually cost less to insure than a brand-new one, even though the new car is safer. Insurers charge more for new cars because the replacement cost is higher — if the car is totaled, the insurance company pays out more. Once a car is paid off and worth less, comprehensive and collision coverage becomes optional, and many drivers drop it to lower their premium.

Very old cars (15+ years) can be cheap to insure if you carry only liability coverage, which is the minimum required by law in most states. But if you still owe money on the car, your lender will require you to carry full coverage, which raises the cost. Used cars from reliable brands like Toyota and Honda hold their value longer, so insurance stays higher longer — but the absolute cost per month is still lower than for a new luxury car.

Electric and hybrid vehicles

Electric vehicles like the Tesla Model 3 and Nissan Leaf can be expensive to insure because repair costs are high and specialized technicians are still relatively scarce. A battery replacement or high-voltage system repair costs thousands of dollars, and not every shop can do it. Some insurers charge a premium for EVs; others offer discounts because accident rates are lower (EVs tend to be driven more cautiously).

Hybrid vehicles like the Toyota Prius and Honda Insight often cost less to insure than comparable gas-only cars because they have lower accident rates and lower repair costs in minor collisions. The hybrid system itself is rarely damaged in typical accidents, so the cost advantage of the base vehicle carries through.

What to check before buying a car for insurance cost

If insurance cost matters to your decision, ask your insurance company for a quote on the specific make, model, and year before you buy. Insurance rates vary by model year — a 2020 Honda Civic may cost more or less to insure than a 2022, depending on safety ratings and claims data. Some insurers offer discounts for specific safety features like automatic emergency braking or lane-keeping information, so a newer car with those features might cost less than an older one without them.

Check the National Highway Traffic Safety Administration (NHTSA) crash test ratings and the Insurance Institute for Highway Safety (IIHS) ratings. Cars that perform well in these tests often have lower insurance rates because they reduce injury claims. You can also search online insurance rate databases — some insurers publish sample rates by vehicle — to compare before you commit to a purchase.

Frequently Asked Questions

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. The only factors that matter are the make, model, year, safety features, and your personal driving history and location.

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

Usually, but not always. A used luxury car can cost more to insure than a new mainstream sedan because repair costs are higher. A 10-year-old BMW may have a higher premium than a brand-new Honda Civic. The specific vehicle matters more than age alone.

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

Yes, but the savings depend on the cars you are comparing. Switching from a sports car to a sedan can save 20 to 40 percent on your premium. Switching from one sedan to another similar sedan may save only 5 to 10 percent. Get quotes on both vehicles from your insurer before you decide.

Do insurance companies charge more for red cars?

No. Insurance rates do not depend on color. This myth persists because red cars may be more visible and involved in more accidents, but insurers do not track color in their pricing models — only the vehicle's make, model, year, and safety record.

What if I want a truck but need cheap insurance?

Smaller trucks and work trucks (like a Ford Ranger or Chevrolet Colorado) cost less to insure than full-size trucks. Trucks used primarily for personal transportation cost more than trucks used for work. Bundling your auto insurance with home or renters insurance, maintaining a clean driving record, and raising your deductible are the most effective ways to lower your rate regardless of vehicle type.