Insurance costs depend more on the car's repair bills and accident history than on its price tag

The cheapest cars to insure are usually older sedans and trucks with straightforward repair costs, high safety ratings, and low theft rates. A five-year-old Honda Civic or Toyota Corolla typically costs less to insure than a new sports car or luxury sedan, even though the new car might cost more to buy. Insurance companies set rates based on what they actually pay out in claims — repair costs, medical bills, and theft losses — not on how much you paid for the vehicle.

The single biggest factor is repair cost. A fender-bender on a Honda Accord might cost $800 to fix; the same damage on a BMW might cost $2,500. Insurers know this from years of claims data, so they charge more to insure the BMW. Safety features and crash test ratings matter too. A car that protects occupants well and avoids accidents in the first place costs insurers less money over time, which lowers your premium.

Theft rates also drive insurance costs up. If a model is stolen frequently in your area, you will pay more. Some older trucks and sports cars have high theft rates because parts are valuable or they are straightforward to steal. Conversely, a boring family sedan that nobody wants to steal will have lower theft-related claims, which means lower rates.

Key Takeaways

  • Honda Civic, Toyota Corolla, and Toyota Camry models from the past five to ten years typically have the lowest insurance rates because repairs are inexpensive and parts are widely available.
  • Repair cost is the primary driver of insurance rates — a car that costs $500 to repair after a minor accident will cost less to insure than one that costs $2,000 for the same damage.
  • Safety ratings and crash test performance lower insurance costs because cars that protect occupants well and avoid accidents reduce what insurers pay out in claims.
  • Theft rates vary by model and region, so a car that is cheap to insure in one state might cost more in another if it is frequently stolen there.

Car models with the lowest insurance costs

Toyota and Honda dominate the low-insurance list because their vehicles are reliable, affordable to repair, and hold their value. A Toyota Camry, Corolla, or RAV4 from 2015 or later will almost always cost less to insure than a comparable Ford, Chevrolet, or Nissan model. Parts are cheap and widely available, repair shops are everywhere, and insurance companies have decades of claims data showing these cars are safe bets.

Honda Civic, Accord, and CR-V models follow the same pattern. Subaru sedans and the Subaru Outback also rank low because they have strong safety ratings and moderate repair costs. Mazda3 and Mazda6 are similarly affordable to insure. Pickup trucks like the Toyota Tacoma and Honda Ridgeline cost less than sports trucks or luxury trucks because they are simpler to repair.

Avoid sports cars, luxury sedans, and high-performance vehicles if insurance cost matters to you. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost significantly more to insure than a Civic, even if you buy a used one. Luxury brands like BMW, Mercedes-Benz, and Audi have expensive parts and specialized repair requirements, which pushes insurance rates up. Hybrid and electric vehicles can also cost more to insure because battery and electrical repairs are expensive.

How repair costs affect your insurance rate

Insurance companies use repair cost data from collision repair shops to set rates. When you get a quote, the insurer looks up your specific car's make, model, and year in a database that tracks average repair costs. If your car is cheap to fix, the rate is lower. If it is expensive to fix, the rate is higher.

A Honda Civic might have an average repair cost of $400 to $600 for a minor collision. A BMW 3 Series might cost $1,200 to $1,800 for the same damage. Over time, this difference adds up. If you file a claim every five years on average, the BMW will cost the insurance company far more, so they charge you a higher premium to cover that risk.

Parts availability matters too. If a car model has been in production for decades and millions are on the road, aftermarket parts are cheap and plentiful. If a car is rare or new, parts are expensive and hard to find. Insurers factor this in. A 2020 Toyota Corolla has cheap, available parts everywhere. A 2020 Porsche 911 does not.

Safety ratings and accident prevention features

Cars with high crash test ratings from the National Highway Traffic Safety Administration (NHTSA) or the Insurance Institute for Highway Safety (IIHS) cost less to insure. These ratings measure how well a car protects occupants in a crash and how well it avoids crashes in the first place. Insurers use this data because cars that protect people well result in fewer medical claims.

Modern safety features like automatic emergency braking, lane-keeping information, and blind-spot detection also lower rates. Some insurers offer discounts of 5 to 10 percent if your car has these features. Older cars without these features will cost more to insure, all else equal, because they are involved in more accidents.

A Toyota Camry or Honda Accord from 2018 onward will have excellent safety ratings and modern safety technology, which keeps insurance costs down. An older car from 2010 or earlier might have lower safety ratings, which means higher insurance costs even if the car itself is cheaper to buy.

Theft rates and where you live

Theft rates vary dramatically by car model and by region. In some cities, older Honda Civics and Accords are stolen frequently because the parts are valuable and the cars are straightforward to steal. In other regions, pickup trucks or SUVs are the most common theft targets. Your insurance rate reflects the theft risk for your specific car in your specific area.

If you live in a city with high theft rates for a particular model, you will pay more to insure that car, even if it is normally cheap to insure elsewhere. A Honda Civic might be inexpensive to insure in a rural area but costly in an urban area where Civics are frequently stolen. Conversely, a luxury sedan might be cheap to insure in a city where nobody steals it, but expensive in a region where it is a common theft target.

You cannot change where you live to lower your insurance rate, but you can choose a car model that is not frequently stolen in your area. Ask your insurance agent which models have high theft rates in your region, and factor that into your decision.

Age and mileage of the vehicle

Newer cars cost more to insure than older cars of the same model, primarily because repair costs are higher. A 2024 Honda Civic will cost more to insure than a 2019 Honda Civic. However, very old cars (15+ years) can cost more to insure if they have poor safety ratings or if parts are hard to find.

Mileage affects insurance rates too, though less dramatically than age. A car with 80,000 miles will cost slightly more to insure than the same car with 40,000 miles, because higher-mileage cars are statistically more likely to be in accidents. However, the difference is usually small — a few dollars per month.

The sweet spot for low insurance costs is usually a car that is three to eight years old. It is old enough that the purchase price has dropped significantly, but new enough that safety features and repair technology are modern. A 2018 or 2019 Toyota Corolla or Honda Civic will typically cost less to insure than a brand-new model and far less than a luxury car.

What to do when comparing insurance quotes

When you are shopping for a car and insurance cost matters, get quotes for the specific models you are considering. Do not rely on general statements about which cars are cheap to insure. Insurance rates vary by insurer, by your driving history, by your location, and by the exact year and trim level of the car.

Use online quote tools from major insurers like State Farm, GEICO, Progressive, and Allstate. Enter the vehicle identification number (VIN) or the make, model, and year, and you will get a quote in minutes. Compare the same coverage levels across all quotes — liability limits, collision, comprehensive, and deductibles should be identical so you are comparing apples to apples.

Ask each insurer about discounts for safety features, bundling home and auto insurance, good driving records, and completing a defensive driving course. These discounts can reduce your rate by 10 to 30 percent, which sometimes matters more than the base rate for the car itself.

Frequently Asked Questions

Is a used car always cheaper to insure than a new car?

Usually, but not always. A used luxury car can cost more to insure than a new economy car because repair costs are higher. A five-year-old BMW will likely cost more to insure than a brand-new Honda Civic. The make and model matter more than age alone.

Do electric cars cost more to insure?

Yes, typically. Battery and electrical system repairs are expensive, and repair shops are less common than for gas cars. Insurance rates for electric vehicles are usually 10 to 25 percent higher than for comparable gas-powered cars, though this gap is narrowing as more shops gain informed.

Will my insurance rate go down if I add safety features to my car?

Not retroactively. Insurance rates are set based on the car's factory features. If you add aftermarket safety equipment, some insurers may offer a small discount if you ask, but it will not be large. Buying a car that comes with safety features from the factory is more effective.

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 make, model, year, repair costs, safety ratings, theft rates, and your driving history.

Can I lower my insurance by choosing a car with a manual transmission?

Rarely. Some insurers offer tiny discounts for manual transmissions because they are less common and slightly less likely to be stolen, but the discount is usually under $5 per month. It is not a meaningful factor in your decision.