That brand new Subaru Outback your neighbor pulled up in might seem like it comes with high insurance premiums, but it’s one of the most affordable new cars to insure.
Along with the Outback are a variety of vehicle makes, models and types that are the beneficiaries of competitive car insurance for reasons that include safety features and repair and replacement costs.
Cheapest cars to insure
The top-10 cheapest cars to insure are dominated by SUVs, which make up all 10 of the cheapest vehicles to insure, according to our research of 134 new vehicle makes, models and insurance rates. The SUVs are split into two categories: SUV (Outback, CR-V, Tiguan, Trailblazer, Escape) and crossover SUV (CX-5, Countryman, HR-V, Sportage and RDX).
Cheapest cars to insure among popular models
Among the most popular cars sold in the United States, average monthly car insurance rates ran the gamut, ranging from $195 to $333.
Cheapest cars to insure by vehicle type
SUVs and trucks dominate US auto sales and, in many cases, they were among the cheapest cars to insure.
Cars with expensive car insurance
Certain electric vehicles and sports cars were among the automobiles with the highest average annual auto insurance rates. The vehicles’ high overall value coupled with higher-than-average repair and replacement costs result in higher premiums.
What affects car insurance costs?
Insurance companies use information about you and your vehicle to determine the cost of your auto insurance premium. They employ certain factors to analyze the likelihood of you filing a claim and the amount of loss they might incur due to a claim. Rating factors can differ by insurer but often include your:
- Age: Typically, your premiums will decline as you get older.
- Annual mileage: The more miles you drive per year, the higher your rates will be.
- Claims history: If you’ve made multiple claims in the past, you’ll likely have to pay higher premiums.
- Coverages: Full-coverage policies, and policies with added optional coverages, cost more than those that only include state-required coverages.
- Coverage history: It’s important to maintain continuous auto insurance coverage, even in times when you’re between cars. If you’re about to sell your old car but are waiting to get a new one, there are temporary car insurance options for you to consider in the interim.
- Credit history: In some states, insurers may factor your credit history into your premium because they may believe there’s a link between your credit and the probability you’ll file a claim.
- Driving record: If you’ve been ticketed often or convicted of a DUI, you’ll have higher rates.
- Gender: In some states, men may pay more for car insurance because they’re more likely to get in accidents and drive under the influence.
- Location: Factors such as accident rates, auto theft rates, driving conditions and population density in a policyholder’s area can increase or decrease the likelihood of insurance claims.
- Marital status: Generally speaking, combining policies when you’re married might make you eligible for a discount and insurers tend to see married drivers as a lower risk than single drivers
- Vehicle type: Expensive, luxury vehicles typically cost more to insure. High-performance automobiles and sports cars also cost more to insure due to the prevalence of auto theft and high repair costs.
How car models affect insurance rates
“The cheapest cars to insure are safe but not expensive, such as a Toyota Corolla,” said Nick Schrader, an insurance agent at Second Western Insurance Services. “The vehicle model determines the actual cash value, safety features and probability of loss. For example, a car with a lot of sensors may prevent accidents from happening and may be less expensive to insure. However, a technologically advanced vehicle, like a Tesla, may be more expensive to insure because the repairs are expensive after a loss.”
A car’s safety record can also play a role in the cost of insurance. For instance, if a certain vehicle has a history of causing severe bodily injuries when involved in accidents, its owner may have to pay high liability coverage rates to insure it. Before buying a new automobile, check its safety rating with the Insurance Institute for Highway Safety.
Unfortunately, car thieves target certain makes and models of automobiles. To compensate for losses, insurers often impose higher comprehensive insurance premiums for these cars. Vehicles popular with car thieves include:
- Chevrolet pickups
- Ford pickups
- Full-size GMC pickups
- Honda Accord
- Honda Civic
- Honda CR-V
- Hyundai Elantra
- Hyundai Sonata
- Kia Optima
- Toyota Camry
How to get a lower car insurance rate
One of the best ways to get a competitive car insurance rate is to compare car insurance quotes from multiple insurers.
“Review discounts such as bundling policies, decreasing mileage and adding educational and professional credits,” Schrader said.
Follow these additional suggestions, too:
- Lower your deductible
- Drop collision and comprehensive coverages after your vehicle’s market value drops below $1,000. Also consider discontinuing collision and comprehensive coverages when you pay off your car loan
- Pay your premium in full instead of by month
- Take an approved driver education or defensive driving course
- Improve your credit score
- Purchase a home or renters policy with the same insurer
- Eliminate duplicate protections, such as carrying a AAA membership (members get free roadside assistance) and carrying roadside assistance on your auto policy.