Which Cars Cost Less to Insure and Why

Insurance costs depend more on the car itself than on you

The vehicle you choose affects your insurance rate as much as your driving record does. Insurers price based on repair costs, safety ratings, theft frequency, and how often drivers of that model file claims. A Honda Civic costs less to insure than a Dodge Charger because parts are cheaper, repair shops stock them, and the claims history is lower. A Subaru Outback costs less than a BMW 3 Series even when both are the same age, because Subaru owners tend to file fewer claims and parts cost less.

You cannot change your past driving record, but you can choose a car that insurers rate as lower-risk. The difference between the cheapest and most expensive cars to insure can be several hundred dollars per year on the same policy.

Key Takeaways

• Insurance rates for the same model year can vary by $500 to $1,200 per year depending on the specific vehicle, so checking insurance costs before you buy matters as much as the purchase price.
• Sedans and wagons cost less to insure than sports cars, luxury vehicles, and trucks, because they have lower repair costs and lower theft rates.
• Newer cars with strong safety ratings and standard safety features cost less to insure than older cars, even though they cost more to buy.
• You can request a quote from your insurer for any specific car model before you commit to buying it, and the quote is free and does not affect your rate.
• Used cars that were popular when new tend to have lower insurance costs because parts are abundant and repair shops know how to fix them quickly.

Sedans and compact cars have the lowest insurance rates

Four-door sedans and hatchbacks are the cheapest category to insure. Models like the Honda Civic, Toyota Corolla, Hyundai Elantra, and Mazda3 consistently rank among the lowest. These cars are affordable to repair, have abundant used parts, and attract drivers who file fewer claims. A Honda Civic sedan typically costs $100 to $200 less per year to insure than a Honda Civic coupe, even though they are the same model.

Wagons and crossovers in the compact to midsize range also sit in the lower tier. The Toyota Corolla Cross, Subaru Outback, and Mazda CX-5 cost less to insure than larger SUVs or performance-oriented crossovers. These vehicles balance practicality with lower repair costs and lower theft rates.

Sports cars and luxury vehicles cost significantly more

Insurance companies charge more for sports cars because drivers of those vehicles file claims at higher rates, and repairs are expensive. A Dodge Charger, Chevrolet Camaro, or Ford Mustang will cost $300 to $600 more per year to insure than a comparable sedan. Luxury brands like BMW, Mercedes-Benz, and Audi carry higher premiums because parts are costly, specialized labor is required, and replacement vehicles are expensive.

High-performance versions of otherwise ordinary cars also jump in price. A Subaru WRX costs more to insure than a standard Subaru Impreza, and a Volkswagen GTI costs more than a regular Golf. Insurers track the specific trim level and engine type, not just the model name.

Trucks and large SUVs fall in the middle to higher range

Full-size pickup trucks and large SUVs typically cost more to insure than sedans but less than sports cars. A Ford F-150 or Chevrolet Silverado costs $150 to $300 more per year than a midsize sedan. Repair costs are higher because the vehicles are larger and parts are more expensive, and drivers of trucks file claims at moderate rates.

Compact trucks like the Toyota Tacoma and Honda Ridgeline cost less than full-size trucks but still more than sedans. Midsize SUVs like the Toyota 4Runner and Jeep Wrangler fall into the higher range because they are expensive to repair and attract drivers who use them in ways that increase claim frequency.

Newer cars with safety features cost less despite higher purchase price

A new car with automatic emergency braking, lane-keeping assist, and a high safety rating will cost less to insure than an older car without those features, even though the new car costs more to buy. Insurance companies offer discounts for safety technology and base rates on crash test results. A 2024 Honda Civic with a five-star safety rating costs less to insure than a 2015 Honda Civic, because the newer car is less likely to be in a serious accident.

When you compare two used cars of the same age, the one with better safety ratings and more standard safety equipment will have lower insurance costs. Check the National Highway Traffic Safety Administration (NHTSA) ratings and Insurance Institute for Highway Safety (IIHS) ratings before you buy. These ratings directly affect what insurers charge.

Popular used cars cost less to insure than rare or specialty models

Used cars that sold in high volumes when they were new have lower insurance costs because repair shops stock parts and mechanics know how to fix them quickly. A 2018 Toyota Camry costs less to insure than a 2018 Subaru BRZ, even if both are the same age, because Camrys are far more common and parts are cheaper and easier to find.

Specialty vehicles, imports, and models that were produced in small numbers carry higher insurance costs. Repair shops may need to order parts from across the country, and labor time increases. If you are considering a used car, check how many of that model were sold in your region — higher volume means lower insurance costs.

How to check insurance costs before you buy

Contact your current insurer or get quotes from multiple insurers and ask for a quote on the specific vehicle you are considering. Provide the year, make, model, trim level, and engine type. The quote is free and does not affect your current rate or your driving record. Most insurers can provide a quote in minutes online or by phone.

Compare the insurance cost across several vehicles in your price range before you decide which one to buy. A car that costs $2,000 less to purchase but $300 more per year to insure will cost you more over five years. Factor insurance into the total cost of ownership, not just the sticker price.

Frequently Asked Questions

Does the color of the car affect insurance cost?

No. Insurance companies do not adjust rates based on color. This is a common myth. The only factors that matter are the vehicle's make, model, year, trim level, engine type, safety features, and claims history for that specific model.

Will buying a used car instead of new lower my insurance?

Usually, yes, but not always. A used car costs less to insure if it is the same model as a newer version, because repair costs are lower. However, an older car with poor safety ratings may cost more to insure than a newer car with better ratings, even though the older car costs less to buy.

Can I get a lower rate by choosing a different car after I already own it?

No. Your insurance rate is locked in for the vehicle you own. You would need to sell the car and buy a different one to get a different rate. You can request a quote for a different vehicle before you buy it to see if the insurance savings justify the purchase.

Do hybrid and electric cars cost more or less to insure?

It varies by model. Some hybrids and electric vehicles cost less to insure because they attract cautious drivers and have lower repair costs. Others cost more because parts are specialized and repair shops charge higher labor rates. Request a quote for the specific model you are considering.

What if I want a sports car but cannot afford the insurance?

Request quotes from multiple insurers — rates vary significantly between companies for the same vehicle. You can also raise your deductible to lower the premium, though this means you pay more out of pocket if you have an accident. Some insurers offer discounts for safety courses or bundling policies.