I understand you might want to know which cars are cheaper to insure when you contact an auto insurance company. If you’re like me and looking for affordable car insurance, this post is for you. It’s all about finding the least expensive cars to insure this year. So, stay with me and read until the end.
Firstly, the cheapest cars to insure are the Honda CR-V, Chrysler Pacifica, and Honda Odyssey. These cars can save you over $1,000 a year compared to the more expensive models or brands of Honda cars.
In general, smaller minivans and pickup trucks are usually less costly to insure. However, large sedans can be more expensive to insure.
The cost of auto insurance can vary for different cars. Some reasons why some cars are cheaper to insure while others are pricier include:
- Expensive repair costs.
- Not-so-great safety records.
- Lack of anti-theft features.
Before you continue, familarize yourself with these guides below:
- Best Car Insurance for College Students
- Auto Insurance: What it is and How it Works
- Life Insurance: How Much you Need and What it Covers
What are the Cheapest Cars to Insure?
The priciest car to insure is the Tesla Model S, mainly because it costs a lot to repair. On the flip side, the most affordable and easiest car to insure is the Honda CR-V. It only costs about $2,346 per year for auto insurance. Why is that? Well, it’s because the Honda CR-V’s insurance cost is 22% lower than the average yearly premiums for all vehicles.
To put it simply, insuring a Honda CR-V is $2,346 a year, which is $2,397 less per year compared to the most expensive car to insure. I found this information while looking online, and ValuePenguin did a study on the 50 least expensive car models to insure. Here’s a list of some of them:
|Rank||Car name||Type of car||Vehicle price||Annual auto insurance rate|
|1||Honda CR-V||Small SUV||$25,102||$2,346|
|4||Ford F-Series||Standard Pick-up Truck||$22,849||$2,471|
|5||Toyota RAV4||Small SUV||$20,257||$2,475|
|6||Chevrolet Equinox||Small SUV||$19,837||$2,560|
|7||Chevrolet Colorado||Small Pick-up Truck||$17,816||$2,562|
|8||Toyota Tundra||Standard Pick-up Truck||$29,920||$2,577|
|9||Honda Ridgeline||Small Pick-up Truck||$27,226||$2,611|
|10||Ford Fiesta||Subcompact Car||$12,063||$2,621|
|11 (tie)||Dodge Grand Caravan||Minivan||$20,175||$2,634|
|11 (tie)||GMC Canyon||Small Pick-up Truck||$24,446||$2,634|
|13||Toyota Tacoma||Small Pick-up Truck||$22,749||$2,670|
|14||Nissan Frontier||Small Pick-up Truck||$25,992||$2,687|
|16||Honda Fit||Station Wagon||$17,760||$2,720|
|18||Ford Escape||Small SUV||$17,710||$2,834|
|19||Chevrolet Cruze||Compact Car||$14,849||$2,841|
|20||Chevrolet Tahoe||Standard SUV||$39,568||$2,888|
|21||Honda HR-V||Station Wagon||$20,679||$2,931|
|22||GMC Sierra||Standard Pick-up Truck||$23,357||$2,937|
|23||Ram Pickup||Standard Pick-up Truck||$20,157||$2,998|
|24||Chevrolet Impala||Large Sedan||$21,193||$3,001|
|25||Toyota Camry||Midsize Sedan||$20,147||$3,036|
|26||Honda Accord||Midsize Sedan||$23,561||$3,042|
|27||Honda Civic||Compact Car||$19,601||$3,042|
|28||Chevrolet Silverado||Standard Pick-up Truck||$24,773||$3,057|
|29||Nissan Sentra||Midsize Sedan||$13,475||$3,059|
|30||Chevrolet Traverse||Standard SUV||$28,009||$3,072|
|31||Ford Focus||Compact Car||$13,140||$3,083|
|32||Volkswagen Jetta||Compact Car||$14,754||$3,109|
|33||Kia Soul||Station Wagon||$15,186||$3,114|
|34||Chevrolet Camaro||Subcompact Car||$20,875||$3,141|
|35||Toyota Corolla||Midsize Sedan||$15,651||$3,164|
|36||Ford Taurus||Large Sedan||$18,123||$3,173|
|37||Nissan Murano||Station Wagon||$23,949||$3,188|
|38||Nissan Rogue||Station Wagon||$18,969||$3,193|
|39||Chrysler 300||Large Sedan||$21,029||$3,268|
|40||Nissan Altima||Midsize Sedan||$16,824||$3,269|
|41||Toyota Highlander||Small SUV||$29,207||$3,283|
|42||Jeep Grand Cherokee||Standard SUV||$26,125||$3,347|
|43||Toyota 4Runner||Standard SUV||$31,467||$3,355|
|44||Dodge Charger||Large Sedan||$22,760||$3,378|
|45||Ford Mustang||Subcompact Car||$22,218||$3,485|
|46||Nissan Versa||Compact Car||$11,947||$3,525|
|47||Ford Explorer||Standard SUV||$28,322||$3,587|
|48||Mercedes-Benz C-Class||Subcompact Car||$34,752||$4,122|
|49||Mercedes-Benz E / CLS-Class||Subcompact Car||$48,694||$4,129|
|50||Tesla Model S||Large Sedan||$69,184||$4,743|
Not Every Expensive Cars are high to Insure – True or False?
Who told you that every Expensive Cars are high to Insure? When it comes to buying auto insurance, some folks believe that the more expensive the car, the more you’ll pay for insurance. However, that’s not always true. The study mentioned earlier reveals that the least expensive cars don’t necessarily have lower insurance costs than pricier ones.
For example, cars priced between $25,000 and $30,000 actually have the lowest average auto insurance rates at $2,871 per year. Surprisingly, this is 6% less than the insurance rates for the cheapest cars, which are in the $10,000 to $15,000 price range.
But here’s the interesting part: there are still expensive cars that fit the traditional thinking. According to the study, most cars costing over $30,000 are indeed more expensive to insure, with annual insurance premiums averaging $3,847.
What type of Car is the Cheapest to Insure?
Let me be practical with this answer. When you’re in the market for a car, you probably choose a vehicle based on your specific needs. For example, you might opt for an SUV or a minivan, each serving different purposes and driving preferences.
To help you figure out which type of vehicle is more affordable to insure, I’ve gathered some data from a study published by ValuePenguin.
|Car type||Cheapest model||Average yearly rate|
|Small SUV||Honda CR-V||$2,346|
|Standard Pick-up Truck||Ford F-150||$2,471|
|Small Pick-up Truck||Chevrolet Colorado||$2,562|
|Subcompact Cars||Ford Fiesta||$2,621|
|Station Wagon||Honda Fit||$2,720|
|Compact Car||Chevrolet Cruze||$2,841|
|Standard SUV||Chevrolet Tahoe||$2,888|
|Large Sedans||Chevrolet Impala||$3,001|
|Midsize Sedans||Toyota Camry||$3,036|
Which Car Model is the lease Expensive to insure? Cheapest Cars to Insure
For you to know the least expensive Car Model to insure, first, you need to understand that there are many car brands available. However, for this study, we’ll focus on car makes from the United States of America. Other countries like Canada, Germany, South Korea, and more have their own car brands too.
Additionally, it’s worth noting that car models can be grouped into two main categories: luxury car brands and standard or regular car brands. And within the luxury category, there are even super luxury brands like Bentley, Rolls Royce, Lamborghini, Ferrari, Range Rover, Lexus, Mercedes, BMW, and many more.
Now, let’s take a look at the cheapest cars to insure based on their make.
|Rank||Make||Average yearly rate|
Why does the car you drive affect your insurance rates?
In the beginning, I mentioned three factors that influence the cost of car insurance. Now, let’s take a look at these factors and see how they impact the amount you pay for insurance.
First and foremost, if you work in the business of selling auto insurance, your primary concern is drivers getting into accidents. When accidents happen, drivers file claims, and as an insurance company, this means you have to spend money.
For example, if there’s a history of a specific car model having many claims filed by drivers in the past, it indicates a higher likelihood of accidents. As a result, drivers of such cars may have to pay higher insurance premiums. This is why owners of sports cars often pay more for insurance because sports cars are more prone to accidents.
Additionally, vehicles that are expensive to repair or replace also lead to higher insurance rates. If a car is costly to buy, it often results in higher insurance premiums. This is because if the car is involved in an accident that requires repairs or replacement, the insurance company may need to pay a significant amount, and they pass some of that cost on to the policyholder through higher premiums.
Lastly, let’s talk about anti-theft features. If a car is easily stolen, insurance companies may charge higher premiums because they might need to replace your car if it’s stolen. So, having anti-theft features in your car can help lower your insurance costs.
Other factors that impact auto insurance rates
To begin with, other factors contribute to the insurance rate consumers get. Thus, it includes;
1. Insurance rates by credit history
Another study I found online reveals that insurance premiums are influenced by the credit history of the person purchasing insurance coverage. In simpler terms, insurance companies consider your credit history when determining how much you’ll pay for car insurance.
The table below illustrates how much extra various insurance companies may charge you based on whether you have good credit, poor credit, or an excellent credit score. These charges are related to your spending habits and financial history.
|Insurance provider||6-month premium — Very Poor Credit||6-month premium — Great Credit|
People are Asking:
- How long does Credit Repair take?
- What is the Cost of Credit Score Repair
- What is the Best Credit Score Needed?
- Credit Clean-Up Services that Fix Errors
2. Insurance Rates by Age:
Honestly, age plays a significant role in determining how much you’ll pay for insurance coverage, particularly for young drivers. Teen drivers face the highest insurance premiums, while 50-year-olds enjoy the most affordable rates, with a substantial cost difference of over $5,500 per year.
To put it plainly, insurance companies consider teen drivers as high-risk and potentially costly clients to insure. Data reveals that teen drivers tend to drive more recklessly and are involved in more accidents than drivers in any other age group, especially older ones. The table below illustrates the rates offered by different insurance companies based on age.
|Insurance provider||6-month premium — 16-year-old||6-month premium — 50-year-old|
3. Other factors include;
- Driving history.
- Insurance history.
- Annual mileage.
How to Cut Car Insurance Costs Successfully
Car insurance premiums can indeed be costly, particularly for comprehensive coverage. However, car insurance is a mandatory requirement for every vehicle owner in the United States, and it’s also a legal requirement for the driver to have insurance coverage.
That said, it’s natural for everyone to want to pay as little as possible for their car insurance premium.
Before you choose an auto insurance plan, make sure it provides enough coverage for your car. Otherwise, you could end up with high costs when you need to make a claim. Here are some tips to help you save on car insurance:
- Compare insurance plans from different companies.
- Drive more cautiously to avoid accidents.
- Increase your deductible (the amount you pay before insurance kicks in).
- Insure multiple cars or drivers under the same policy.
- Consider taking a defensive driving course to lower your rates.
- Choose less expensive cars to insure, as pricier ones often come with higher premiums.
- Work on improving your credit rating, as it can affect your insurance costs.
- Speak to an insurance agent for guidance.
- Ask about available discounts.
- Opt for personalized insurance that allows you to remove unnecessary coverage.
- Consider pay-as-you-go insurance coverage, which can be cost-effective for some drivers.
In summary, there are many factors that significantly influence insurance rates and impact the cost of car insurance premiums. Essentially, the less risky your rating factors are, the lower your car insurance policy cost will be. While factors like your driving record and the type of vehicle you own have a notable impact on insurance costs, factors such as gender or marital status are considered less important in determining rates.
What can you do Now?
Thank you for reading all the way through. I have talked about all the cars with low Insurance Coverage for teens and parents. Feel free to leave a comment or share this information with your friends. Knowing about the cheapest cars to insure in 2020, 2021, and beyond can be helpful when deciding on the type and model of car to buy, as well as which auto insurance company to choose for coverage. Thanks again!
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