Insurance costs depend more on the car's safety record and repair expenses than on its price tag
A car's insurance rate is set by what it costs the insurance company to fix it after a crash, how often drivers of that model file claims, and how expensive those claims tend to be. A used Honda Civic often costs less to insure than a new sports car, even though the sports car is fancier. A pickup truck with a high theft rate might cost more to insure than a sedan with the same safety features. The make, model, and year matter far more than whether the car is new or old.
Insurance companies use data from millions of claims to build rates for each specific vehicle. They know, for example, that a 2020 Toyota Camry gets into fewer accidents than a 2020 Dodge Charger, and that when a Camry does get damaged, the parts cost less. That difference shows up in your premium. You cannot change what car you already own, but if you are shopping for one, knowing which models carry lower insurance costs can save you hundreds of dollars a year.
Key Takeaways
- Safety features and crash test ratings lower insurance rates because they reduce the severity of accidents and the cost of repairs.
- Common cars with inexpensive parts — like the Honda Civic, Toyota Corolla, and Honda Accord — typically have lower insurance costs than rare or luxury models.
- Pickup trucks and SUVs often cost more to insure than sedans because they weigh more, cost more to repair, and are stolen more frequently.
- A car's age, engine size, and whether it has anti-theft devices all affect the rate your insurance company will quote you.
- Your driving record, location, and coverage choices matter more to your final premium than the car itself, so comparing quotes across insurers is essential.
Why some cars cost less to insure than others
Insurance companies charge based on risk — the likelihood that they will have to pay out a claim, and how much that claim will cost. A car that is involved in fewer accidents, or that costs less to repair when it is damaged, represents lower risk. That lower risk translates to a lower premium for you.
The data comes from claims history. If a particular model year has been in thousands of accidents, the insurance company knows the rate for that model will be higher. If a model is stolen frequently, theft coverage will cost more. If replacement parts are expensive or hard to find, repair costs drive the rate up. If the car has strong safety ratings and crumple zones that protect passengers, the severity of injuries goes down, and so does the average claim payout.
A brand-new luxury car might seem safer because it is new, but if it has expensive parts and a high repair cost, your insurance will be higher than for a three-year-old Honda. A sports car with a powerful engine and a history of speeding tickets filed by its drivers will cost more to insure than a family sedan, regardless of its safety features.
Cars with historically lower insurance rates
Certain models show up repeatedly in insurance data as lower-cost vehicles to insure. The Honda Civic, Toyota Corolla, and Honda Accord are among the most common cars on the road, which means parts are cheap and mechanics know how to fix them quickly. The Toyota Camry has a strong safety record and low theft rates. The Subaru Outback combines all-wheel drive capability with a reputation for reliability and moderate repair costs.
Minivans like the Honda Odyssey and Toyota Sienna typically have lower insurance rates than SUVs of similar size because they are involved in fewer accidents and are rarely stolen. Full-size sedans from Toyota and Honda generally cost less to insure than sports cars or luxury brands, even when the sedan is newer.
Pickup trucks vary widely. A Ford F-150 or Chevrolet Silverado will usually cost more to insure than a sedan because of their size, weight, and repair costs, but a used truck with a good safety record may cost less than a new sports car. The year and specific model matter as much as the category.
Cars that typically have higher insurance costs
Sports cars like the Dodge Charger, Chevrolet Camaro, and Ford Mustang carry higher premiums because they are involved in more accidents and are stolen more often. Insurance companies know that drivers of these cars file more claims. Luxury brands like BMW, Mercedes-Benz, and Audi have expensive parts and specialized repair shops, which raises the cost of claims.
High-performance vehicles and anything with a large engine displacement will cost more to insure. Vehicles with poor safety ratings or high rollover risk — some older SUVs and trucks — also carry higher premiums. Vehicles that are frequently stolen, like certain Dodge Chargers and Jeeps, will have higher theft and comprehensive coverage costs.
Exotic or rare cars are expensive to insure because parts are hard to find and few mechanics can repair them. Even if the car itself is not fast or powerful, rarity drives up the insurance cost.
How age, engine size, and features affect your rate
A newer car usually costs more to insure than an older one, because the replacement cost is higher. However, newer cars have better safety technology — automatic emergency braking, lane-keeping information, blind-spot monitoring — which can lower the rate. Some insurance companies offer discounts for these features, which can offset the higher replacement cost.
Engine size matters because larger engines are associated with higher speeds and more severe accidents. A four-cylinder sedan will cost less to insure than a V8 truck, all else being equal. Anti-theft devices like steering wheel locks, GPS trackers, or factory alarm systems can lower your comprehensive coverage cost because they reduce theft risk.
Safety ratings from the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS) influence rates. A car that scores well in crash tests and has strong structural protection will have lower rates than one that does not, because the expected cost of injuries and repairs is lower.
What matters more than the car itself
Your driving record, age, and location affect your insurance rate more than the car you drive. A 25-year-old with two accidents will pay more to insure a Honda Civic than a 50-year-old with a clean record will pay to insure a sports car. If you live in a city with high theft rates or frequent accidents, your rate will be higher regardless of the vehicle. If you drive 50 miles a day on the highway, you will pay more than someone who drives 5 miles a day in a quiet neighborhood.
Your coverage choices — how much liability you carry, whether you have collision and comprehensive coverage, and what your deductible is — matter more to your final bill than the car model. Dropping collision coverage on an older car will save you far more than switching from a Civic to a Corolla.
Different insurance companies price the same car differently. One company might charge $1,200 a year for a Honda Accord; another might charge $1,500. Getting quotes from multiple insurers is the only way to know what you will actually pay.
How to find insurance rates before you buy a car
If you are shopping for a car and want to know the insurance cost, contact insurance companies directly or use their online quote tools. You will need the vehicle identification number (VIN) or the make, model, and year. Most insurers will give you a quote in minutes without requiring personal information.
Compare quotes for the same car across at least three insurers. The variation can be substantial. You can also ask your current insurance company what they would charge for a specific vehicle before you buy it — this is free information and takes a few minutes.
Look up the car's safety ratings on the NHTSA website (safercar.gov) and the IIHS website (iihs.org). Check the National Insurance Crime Bureau (NICB) theft statistics for the model year you are considering. These resources are free and will give you a sense of whether the car you are looking at has a good or poor track record.
Frequently Asked Questions
Does buying a used car instead of a new one always lower insurance costs?
Usually, but not always. A used car costs less to replace, which lowers the rate. However, if the used car has a poor safety record or high theft rate, the insurance might be nearly as high as a newer model. A 10-year-old sports car might cost more to insure than a 3-year-old family sedan. Check the specific model and year before assuming used is cheaper.
Will adding safety features to my car lower my insurance rate?
Some features may have access to for discounts. Anti-theft devices, automatic emergency braking, and lane-keeping information may lower your rate, depending on your insurance company. Ask your insurer which features they discount before you buy them. The discount might not cover the cost of the feature itself.
Can I lower my insurance by choosing a different color car?
No. Insurance companies do not factor in color. The myth that red cars cost more to insure is false. The make, model, year, and safety record determine the rate, not the paint.
What if I already own a car with high insurance costs?
You cannot change the car's risk profile, but you can shop around for better rates, increase your deductible to lower your premium, drop optional coverage on an older car, or ask about discounts you may not be using. Bundling home and auto insurance, maintaining a clean driving record, and completing a defensive driving course can all lower what you pay.
Do hybrid or electric cars cost less to insure?
Not necessarily. Insurance rates for hybrids and electric vehicles depend on the same factors as any other car — repair costs, safety ratings, and theft rates. Some electric vehicles have expensive battery repairs, which can raise the rate. Others have strong safety features and low theft rates, which lowers it. Get a quote for the specific model you are considering.