Cars that insurers charge less to cover

Insurance companies set rates based on repair costs, safety records, theft frequency, and how often drivers of that model file claims. Sedans and wagons with strong safety ratings, straightforward repair procedures, and low theft rates cost less to insure than sports cars, luxury vehicles, or models with expensive parts. A Honda Civic or Toyota Corolla typically costs 20 to 40 percent less per year to insure than a Dodge Charger or BMW 3 Series, though the exact difference depends on your age, driving record, location, and which insurer you use.

The cheapest cars to insure are usually three to ten years old rather than brand new. New cars cost more because repair parts are expensive and specialized. Very old cars sometimes cost more because safety features were limited and repair shops charge higher labor rates for unfamiliar models. Mid-range used vehicles hit the sweet spot: they have modern safety technology, affordable parts availability, and established repair networks.

Key Takeaways

  • Sedans and hatchbacks with high safety ratings and low theft rates cost significantly less to insure than sports cars, SUVs, or luxury brands.
  • A three- to ten-year-old Honda Civic, Toyota Corolla, or Hyundai Elantra typically ranks among the cheapest vehicles to insure across most U.S. insurers.
  • Insurance rates depend on repair costs and parts availability, so a less expensive car at purchase may cost more to insure if parts are rare or labor-intensive to replace.
  • Your age, location, driving record, and which insurer you choose affect your rate more than the car itself, so comparing quotes across multiple companies matters more than the vehicle model.

Sedan and hatchback models with the lowest insurance costs

The Honda Civic and Toyota Corolla consistently rank as the cheapest cars to insure across most major insurers. Both have high safety ratings, abundant used parts availability, straightforward repair procedures, and low theft rates. Insurance companies have decades of claims data on these models, which means rates are stable and predictable. A 2018 or 2019 Civic or Corolla typically costs $800 to $1,200 per year to insure for a 40-year-old driver with a clean record, though this varies by state and insurer.

The Hyundai Elantra, Kia Forte, and Nissan Sentra also rank low because they share the same advantages: affordable parts, straightforward repairs, and low claims history. The Hyundai Elantra is often cheaper than the Civic or Corolla because Hyundai vehicles have lower resale value, which means lower repair costs. The Toyota Prius ranks low as well because it has few moving parts, low accident rates among Prius owners, and a strong safety record. Avoid the Prius if you live in an area with high hybrid theft rates, as some insurers charge more for hybrids in those regions.

Why sports cars and luxury vehicles cost more to insure

Sports cars like the Dodge Charger, Chevrolet Camaro, and Ford Mustang cost 50 to 100 percent more to insure than a Civic because insurers know that drivers of these models file more collision and speeding-related claims. The repair costs are also higher: a Charger's parts are more expensive and specialized, and labor rates for performance vehicles are higher. Luxury brands like BMW, Mercedes-Benz, and Audi have the same problem multiplied—parts can cost two to three times as much as parts for a Honda, and repair shops charge premium labor rates.

Pickup trucks and large SUVs also cost more because they are involved in more accidents and have higher repair costs. A Ford F-150 or Chevrolet Silverado costs 30 to 50 percent more to insure than a Civic, even though they are not sports cars. Insurers also charge more for vehicles with high theft rates, which includes some pickup trucks in certain regions. If you are considering a truck or SUV, ask your insurer for a quote before you buy—the insurance cost can be a significant part of your total ownership expense.

How age and mileage affect insurance rates

A three- to ten-year-old car usually costs less to insure than a brand new one because new cars have expensive parts and specialized repair procedures. When a 2024 Honda Civic is in an accident, the repair shop may need to order parts from Honda directly, which takes time and costs more. A 2018 Civic has established aftermarket parts suppliers, so repairs are faster and cheaper. Insurance companies pass those savings to you.

Very old cars—typically 15 years or older—sometimes cost more to insure because safety features were limited and repair shops charge higher labor rates for unfamiliar models. A 2009 Civic may have fewer airbags and no electronic stability control compared to a 2018 model, which means higher injury risk in an accident. Some insurers also charge more for cars with very high mileage because they are more likely to break down and cause accidents. The sweet spot for insurance cost is usually a car that is five to eight years old, has fewer than 100,000 miles, and comes from a manufacturer with a strong safety record.

How your location and driving record affect what you pay

Your age, driving record, and where you live matter more than the car itself. A 25-year-old with a speeding ticket will pay two to three times more than a 45-year-old with a clean record, even if they drive the same car. A driver in a rural area pays less than a driver in a city because accident and theft rates are lower. A driver in Florida or California pays more than a driver in Vermont because of higher accident frequency and more expensive medical claims.

This means that buying the cheapest car to insure will not save you money if your driving record or location puts you in a high-risk category. A 20-year-old driver in Los Angeles will pay $2,000 to $3,000 per year to insure a Honda Civic, while a 50-year-old driver in rural Maine might pay $600 to $800 for the same car. Before you buy any car, get insurance quotes from at least three different companies using your actual age, location, and driving record. The difference between insurers can be $500 to $1,000 per year for the same vehicle.

Comparing insurance quotes before you buy

Most insurers offer free quotes online without requiring you to provide your full personal information. You can enter the vehicle's year, make, model, and trim level, along with your age and zip code, and get a rough estimate in minutes. Use this to compare the insurance cost of different cars you are considering before you make an offer. A car that costs $2,000 less at purchase but $800 more per year to insure will cost you $4,000 more over five years.

When you get quotes, use the same coverage limits across all insurers so the numbers are comparable. Most states require liability coverage (which pays for damage you cause to other people), but collision and comprehensive coverage (which covers damage to your own car) are optional. Liability-only insurance is cheaper, but if you have a loan on the car, the lender will require you to carry collision and comprehensive. Ask each insurer about discounts for bundling home and auto insurance, paying in full, or taking a defensive driving course—these can reduce your rate by 10 to 25 percent.

Frequently Asked Questions

Do electric cars cost more to insure?

Electric cars like the Tesla Model 3 and Chevy Bolt cost about the same or slightly more to insure than comparable gas cars because battery replacement is expensive if the car is damaged. However, some insurers offer discounts for electric vehicles because they have fewer moving parts and lower accident rates. Get a quote before you buy to see what your specific insurer charges.

Will buying a used car instead of new save me money on insurance?

Yes, usually. A five-year-old Honda Civic costs 20 to 30 percent less to insure than a brand new one because parts are cheaper and repair procedures are established. However, a very old car (15+ years) may cost more because safety features are limited. The best value is typically a used car that is five to ten years old.

Can I lower my insurance costs by choosing a higher deductible?

Yes. Raising your deductible from $500 to $1,000 typically reduces your premium by 10 to 15 percent. However, you will pay more out of pocket if you have an accident, so only choose a deductible you can actually afford to pay. This strategy works best if you have a clean driving record and do not expect to file a claim soon.

Does the color of the car affect insurance rates?

No. Insurance companies do not charge different rates based on paint color, despite the common myth that red cars cost more. Rates are based on the vehicle's make, model, year, safety features, repair costs, and theft rates—not appearance.

What if I cannot afford to insure the cheapest car?

If insurance costs are high because of your age or driving record, focus on improving your record over time. Taking a defensive driving course, maintaining a clean record for three to five years, and shopping around every six months can lower your rate. Some insurers also offer usage-based programs that monitor your driving and offer discounts if you drive safely.