Cars that cost less to insure share a few traits: they are cheaper to repair, less likely to be stolen, and less powerful
Insurance companies set your rate partly on the car itself. A vehicle's insurance cost depends on what it would cost to fix after an accident, how often that model gets stolen, how safe it is in a crash, and how much damage the engine can do. You cannot change the car you already own, but if you are shopping for one, knowing which features keep insurance costs down can save you hundreds a year.
The cheapest cars to insure are usually older, common models with small engines, good safety records, and low theft rates. A five-year-old Honda Civic costs far less to insure than a new sports car or a luxury sedan, even if both are the same age. The difference comes down to repair costs and risk — a Civic's parts are cheap and widely available, and it is not a theft target.
Key Takeaways
- Older, common models with small engines and good safety ratings cost less to insure than newer, powerful, or luxury vehicles.
- Repair costs matter more than purchase price — a car that is cheap to buy but expensive to fix will have high insurance rates.
- Theft rates vary by model and region, so a car that is cheap to insure in one area may cost more in another.
- You can get a quote from an insurance company before you buy, so compare insurance costs alongside the car's purchase price.
What makes a car cheap to insure
Insurance companies use repair costs as the biggest driver of your rate. If a model is in many accidents and parts are expensive, the insurer expects to pay more claims. A Honda Civic has cheap, common parts. A luxury sedan or sports car has expensive, specialized parts. Even if both cars are hit the same way, the luxury car costs more to fix, so it costs more to insure.
Theft rates matter just as much. Some models are stolen far more often than others — usually because they are straightforward to steal, have valuable parts, or are popular in certain regions. If your model is a common theft target in your area, your rate goes up. You can check the National Insurance Crime Bureau (NICB) website to see which models are stolen most often in your state.
Engine size and power affect your rate because they correlate with accident severity. A sports car with a large engine is more likely to be driven fast and to cause serious damage in a crash. A sedan with a four-cylinder engine is less likely to be driven that way. Insurance companies use horsepower and engine displacement as rough proxies for driver behavior, even though they are not perfect predictors.
Safety ratings also lower your rate. Cars that perform well in crash tests and have modern safety features like automatic emergency braking reduce injury and death, so insurers charge less for them. The National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) both publish safety ratings you can look up by model.
Car types and models that tend to have lower insurance costs
Sedans and hatchbacks are usually cheaper to insure than SUVs, trucks, or sports cars. They are lighter, have smaller engines, and are less likely to be stolen. A Honda Civic, Toyota Corolla, or Hyundai Elantra will cost less to insure than a Dodge Charger or Ford Mustang, even if all are the same age.
Older model years cost less to insure than new ones, partly because the car itself is worth less (so the insurer's maximum payout is lower) and partly because newer cars have more expensive parts and electronics. A 2018 Honda Civic will cost less to insure than a 2024 Honda Civic. However, very old cars may cost more to insure if they lack modern safety features.
Common models cost less than rare ones. If a model is sold in high volume, parts are cheap and widely available, and repair shops know how to fix them quickly. If a model is rare or imported, parts take longer to source and cost more, so your insurance rate goes up.
Avoid high-theft models in your region. The NICB publishes annual lists of the most-stolen vehicles by state. If you live in a state where a particular model is frequently stolen, insurance will cost more for that car than for a model that is rarely stolen in your area.
How to compare insurance costs before you buy
Do not assume a cheap car to buy will be cheap to insure. Get a quote from an insurance company before you make an offer. Most insurers let you quote online by entering the vehicle identification number (VIN) or the year, make, and model. This takes five to ten minutes and costs nothing.
Compare quotes from at least three insurers. Rates vary widely — one company might charge $150 a month for a car while another charges $200 for the same vehicle. Call or use the websites of companies like State Farm, Geico, Progressive, and Allstate, or use a comparison tool that pulls quotes from multiple insurers at once.
Ask about discounts that explore to the specific car. Some insurers offer lower rates for vehicles with certain safety features, or for cars that are less likely to be stolen. A car with automatic emergency braking or a good anti-theft system might may have access to for a discount that another car does not.
Remember that insurance cost is only one part of the total cost of owning a car. Factor in the purchase price, fuel economy, maintenance costs, and registration fees. A car that costs $2,000 less to buy but $1,200 more per year to insure is not a bargain.
Insurance costs for used versus new cars
Used cars are almost always cheaper to insure than new ones, because the car's actual cash value is lower. If the car is totaled, the insurer pays you the car's market value, not what you paid for it. A used car is worth less, so the maximum payout is lower, and your rate is lower.
However, a used car with poor safety ratings or high theft rates may cost more to insure than a newer, safer model. A 2015 model with a low safety rating might cost more to insure than a 2022 model with a high safety rating, even though the older car is worth less. Always compare insurance costs for the specific car you are considering, not just the age.
New cars sometimes may have access to for discounts that used cars do not — for example, some insurers offer lower rates for new cars with the latest safety technology. Check with your insurer to see whether a new car with advanced safety features might actually cost less to insure than an older, less safe model.
What to avoid if you want low insurance costs
Sports cars and high-performance vehicles cost significantly more to insure. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will have much higher rates than a sedan with the same engine size, because these cars are associated with aggressive driving. Insurance companies charge more for the risk.
Luxury and imported vehicles cost more because parts are expensive and specialized. A BMW or Mercedes-Benz will cost more to insure than a Honda or Toyota, even if both are the same age and have similar safety ratings. Repair shops charge more for labor on luxury cars, and parts take longer to source.
High-theft models in your area should be avoided if insurance cost is a concern. Check the NICB list for your state before you buy. If a model is in the top ten stolen vehicles in your region, expect to pay more for comprehensive coverage (which covers theft).
Very old cars without modern safety features may cost more to insure than you expect. A car from the 1990s or early 2000s might lack airbags, electronic stability control, or other safety systems that newer cars have. Some insurers charge more for these cars, or may not insure them at all.
How your driving record and location affect insurance costs
The car itself is only part of your insurance rate. Your age, driving record, location, and the type of coverage you choose also matter. A young driver with a speeding ticket will pay more to insure any car than an older driver with a clean record. A person in an urban area with high theft rates will pay more than someone in a rural area, even for the same car.
You cannot change your age or driving record, but you can choose where you live and what coverage you buy. If you are shopping for a car, keep in mind that your location will affect the insurance cost. A car that is cheap to insure in one state may cost more in another, depending on theft rates, accident rates, and the cost of living in that area.
Frequently Asked Questions
What is the cheapest car to insure?
Common, older sedans with small engines and good safety ratings are usually cheapest. Models like the Honda Civic, Toyota Corolla, and Hyundai Elantra often have low insurance costs. However, the actual cheapest car for you depends on your age, driving record, location, and the specific model year. Get quotes for the cars you are considering before you buy.
Does the color of the car affect insurance cost?
No. Insurance companies do not use color to set rates. The myth that red cars cost more to insure is false. The car's make, model, year, engine size, safety rating, and theft rate affect your rate, but color does not.
Will buying a used car instead of a new one save me money on insurance?
Usually, yes. Used cars cost less to insure because they are worth less, so the insurer's maximum payout is lower. However, a used car with poor safety ratings or high theft rates may cost more to insure than a newer, safer model. Compare insurance quotes for the specific cars you are considering.
Can I lower my insurance cost by choosing a different car?
Yes. Choosing a common, older sedan with a small engine, good safety rating, and low theft rate in your area will lower your insurance cost compared to a sports car, luxury vehicle, or high-theft model. Get quotes from insurers before you buy to see how much the car choice affects your rate.
Should I avoid a car I like because insurance will be expensive?
That depends on your budget. Factor insurance cost into the total cost of owning the car — purchase price, fuel, maintenance, registration, and insurance. If the car you like costs $200 more per month to insure but you can afford it, that is your choice. Just make sure you know the full cost before you buy.