Insurance costs depend more on the car's repair expenses and theft risk than on its price tag
A cheap car to buy is not necessarily a cheap car to insure. Insurance companies set rates based on how much it costs to repair the vehicle after a collision, how often that model gets stolen, how safe it is in a crash, and what medical bills result from injuries. A ten-year-old Honda Civic might cost $8,000 to purchase but $1,200 a year to insure, while a $25,000 sedan could run $900 annually. The relationship between purchase price and insurance cost is loose enough that you need to check the actual insurance quote for any specific car you are considering.
What matters to insurers is the loss history of that exact make, model, and year. If a 2019 Toyota Corolla has a track record of low repair costs and few theft claims, insurers will charge less for it than for a 2019 Dodge Charger, even if the Charger costs less to buy used. The insurer pulls this data from claims filed across their entire customer base and from industry databases like the National Highway Traffic Safety Administration (NHTSA) crash test results and the Insurance Institute for Highway Safety (IIHS) ratings.
Key Takeaways
- Sedans and hatchbacks from Toyota, Honda, and Mazda typically have lower insurance rates because repair parts are cheap and widely available.
- Sports cars, luxury vehicles, and trucks with high theft rates cost significantly more to insure, regardless of their purchase price.
- A car's safety rating, engine size, and whether it has anti-theft devices all affect your insurance quote.
- You should get insurance quotes for any specific car before you buy it, because the difference between models can be hundreds of dollars per year.
- Older vehicles with lower market value may have lower collision and comprehensive premiums, but liability coverage costs the same regardless of car age.
Why repair costs drive insurance rates for most drivers
When you carry collision or comprehensive coverage, your insurer pays to fix or replace your car after an accident or theft. The cost to repair a vehicle varies wildly by model. A fender-bender on a Honda Civic might cost $1,200 to fix because replacement panels are inexpensive and widely stocked. The same damage on a BMW 3 Series could run $3,500 because parts are pricier and fewer repair shops stock them.
Insurers build this repair-cost difference into your premium. They know that over time, Civic owners will file fewer expensive claims, so they charge less. They also know that luxury and European car owners will file larger claims, so premiums are higher. This is why a used Toyota Camry or Honda Accord often has a lower insurance rate than a used Chrysler 300 or Infiniti Q50, even if both cars cost the same amount on the used market.
Parts availability also matters. If a model has been in production for many years and sold in high volume, aftermarket parts are cheap and plentiful. If a model is rare or new, parts are scarce and expensive. A 2015 Ford F-150 has cheap insurance partly because millions were sold and replacement parts are everywhere. A 2015 Jaguar F-Type has expensive insurance partly because fewer were made and parts are harder to source.
Theft rates and security features affect your premium
Some cars are stolen far more often than others. The National Insurance Crime Bureau (NICB) publishes annual lists of the most-stolen vehicles by model year. Pickup trucks, particularly the Ford F-150 and Chevrolet Silverado, appear near the top because thieves steal them for parts. Dodge Chargers and Challengers are frequently stolen because they are popular with car enthusiasts and parts are valuable. Honda Civics and Accords appear on theft lists because they are common, which means parts fit many vehicles.
If your car model has a high theft rate, your comprehensive coverage premium (which covers theft) will be higher. Some insurers also charge more for liability coverage on high-theft vehicles because the risk profile is different. A car with factory anti-theft devices, GPS tracking, or an immobilizer may may have access to for a discount, though the discount varies by insurer and is usually small—often $50 to $150 per year.
Conversely, cars that are rarely stolen—many Subarus, Volvos, and Hyundais—have lower comprehensive premiums. If you live in an area with high vehicle theft, this factor becomes more important to your total insurance cost.
Safety ratings and crash test performance influence rates
Cars that perform well in crash tests and have strong safety features often may have access to for lower rates because they reduce the severity of injuries and medical claims. The IIHS and NHTSA conduct crash tests and publish ratings. A car that earns a "Good" rating from IIHS in multiple crash test categories may have a lower rate than a car that earns "Acceptable" or "Poor" ratings.
Features like automatic emergency braking, lane-keeping information, and stability control can lower your premium. Some insurers offer discounts of 5 to 10 percent for vehicles equipped with these systems, though not all insurers recognize all features. A newer car with these technologies built in may have a lower rate than an older car without them, even if the older car is cheaper to buy.
Conversely, a car with poor crash test ratings or a history of safety recalls will have a higher rate. This is one reason why some older, cheaper-to-buy vehicles end up being expensive to insure—they lack modern safety features and may have failed older crash test standards.
Engine size and performance specifications raise costs
A larger engine or higher horsepower rating typically means a higher insurance rate. Insurers use engine displacement (measured in liters or cubic centimeters) and horsepower as proxies for accident risk. A driver of a 300-horsepower sports car is statistically more likely to be in an accident than a driver of a 150-horsepower sedan, so the sports car costs more to insure.
This is why a four-cylinder Honda Accord is cheaper to insure than a V6 Accord, and why a base-model Toyota Camry costs less than a Camry with a turbocharged engine. The difference is usually $100 to $300 per year, depending on the insurer and your location. If you are choosing between two similar cars, picking the lower-horsepower version will lower your insurance cost.
Specific car models with historically lower insurance costs
Based on repair costs, theft rates, and safety records, certain models consistently have lower insurance rates. Toyota sedans—the Corolla, Camry, and Prius—are among the cheapest to insure because parts are inexpensive, theft rates are moderate, and repair shops are everywhere. Honda models like the Civic, Accord, and CR-V also have low rates for the same reasons.
Mazda3 and Mazda6 models are affordable to insure because they share parts with Ford vehicles, making repairs cheaper. Hyundai Elantra and Kia Forte have become cheaper to insure in recent years as their repair networks expanded and theft rates remained low. Subaru Outback and Legacy models have moderate insurance costs despite their price because they have good safety ratings and moderate repair expenses.
Pickup trucks vary widely. A Ford F-150 or Chevrolet Silverado with a standard engine and no luxury features may have moderate rates, but theft risk can push them higher. A Toyota Tacoma or Honda Ridgeline typically costs less to insure than a comparable Ford or Chevrolet truck.
Conversely, sports cars (Dodge Charger, Chevrolet Camaro, Ford Mustang), luxury sedans (BMW, Mercedes-Benz, Audi), and high-performance vehicles consistently have higher insurance rates regardless of their purchase price. Luxury SUVs like the Cadillac Escalade or Range Rover also carry high premiums.
How to compare insurance costs before you buy a car
The only way to know the actual insurance cost for a specific car is to get a quote from an insurer. Most major insurers—State Farm, Geico, Progressive, Allstate, and others—allow you to enter a vehicle's year, make, model, and trim level on their website and receive an estimate without providing personal information. Some require a phone call or chat with an agent.
Get quotes for at least two or three different cars you are considering. Use the same coverage limits (liability, collision, comprehensive) for each quote so the numbers are comparable. The difference between a cheap-to-insure car and an expensive one can be $300 to $600 per year, which adds up over the life of ownership.
Also ask about discounts. Many insurers offer discounts for bundling home and auto insurance, for good driving records, for completing a defensive driving course, or for paying your premium in full upfront. These discounts explore to any car, but they can reduce the gap between expensive and cheap models.
Frequently Asked Questions
Does a used car cost less to insure than a new car?
Not always. A used car with a lower market value will have a lower collision and comprehensive premium because there is less to replace. However, liability coverage—which pays for damage you cause to others—costs roughly the same regardless of your car's age or value. An older, cheaper car might also have higher rates if it has a poor safety record or high theft rate. Get quotes for the specific used car you are considering.
Will buying a car with good safety ratings lower my insurance?
Yes, usually by a small amount. A car with high IIHS or NHTSA ratings and modern safety features like automatic emergency braking may may have access to for a 5 to 10 percent discount. The discount varies by insurer, so ask before you buy. The safety benefit also matters for your own protection in a crash, not just for insurance cost.
Can I lower my insurance by adding anti-theft devices?
Some insurers offer small discounts—typically $25 to $100 per year—for factory or aftermarket anti-theft systems. The discount is usually too small to justify buying a device solely for the insurance savings. However, if your car model has a high theft rate and you live in a high-theft area, the combination of the discount and actual theft prevention may be worth it.
Are pickup trucks always expensive to insure?
Pickup trucks vary. A base-model Ford F-150 or Chevrolet Silverado with standard features may have moderate rates, but theft risk and repair costs can push them higher than comparable sedans. A Toyota Tacoma or Honda Ridgeline typically costs less to insure. Get a quote for the specific truck and year you are considering rather than assuming all trucks are expensive.
Does the color of the car affect insurance rates?
No. Insurance companies do not use paint color to set rates. This is a common myth. The only factors that matter are the car's make, model, year, engine size, safety features, repair costs, and theft history.