Cars with cheapest insurance rates: Several factors affect your insurance rate, but one of the main contributors to your overall insurance cost is the make and model of your vehicle. The age of your vehicle, the cost of repairs after an accident, and the likelihood of your vehicle being stolen all affect the cost of your insurance. The good news is that you can use this information to your advantage: deciding to buy one of the best cars with cheapest insurance rates can lower your premium.
Popular Cars With Cheapest Insurance Rates Base On Car Models
While several factors affect auto insurance premiums, certain vehicles usually get affordable coverage. We got car insurance quotes for the 25 most popular vehicles in 2021 to find out which models have the cheapest car insurance.
The rates below are based on a 32-year-old male driver in North Carolina with a clean driving record and good credit. Each premium in the table applies to fully comprehensive insurance. These estimates are based on the average of Geico and Progressive citations.
Cheapest Cars to Insure by Model
|Dodge Grand Caravan
|Jeep Grand Cherokee
|BMW 3 Series
Cheapest Cars to Insure by Make
|Average Annual Premium
It is no surprise that Nissan, Honda, and Toyota are in the top three. Cars from these manufacturers have consistently received high ratings for vehicle safety over the years. All three brands are well represented in the Insurance Institute for Highway Safety (IIHS)’s Top Safety Picks for 2019.
Cheapest Cars to Insure by Car Type
|Average Annual Premium
When most motorists think of their dream car, the dependable minivan might not be the first vehicle to hit the curb. Finally, minibusses are there for transporting children and groceries. But that’s why minivans are the cheapest type of car to insure – they’re not exactly designed for makeshift neighborhood drag racing. Minivans are popular with families for their overall safety, and insurance companies consider such vehicles less risky to insure because people with family members in the car are less likely to engage in risky behavior on the road.
Within the minivan category, the Dodge Grand Caravan is the cheapest minivan to insure, with an average annual premium of $1,786. The list below also provides a quick overview of the cheapest SUVs, pickups, sedans, and crossovers to insure.
Why Vehicle Type Affects Auto Insurance Rates
Car insurance premiums are determined by many factors, including age, driving experience, where you live, and the type of car you drive. This data helps companies assess the risk of insuring you and your vehicle. Higher risk means higher rewards. When an insurance company looks at the vehicle you drive, they consider the vehicle’s overall safety rating, potential repair costs, and relevant historical trends such as claims and theft rates for that particular make and model.
In general, cars with a poor safety rating, high repair costs, and a high insurance damage rate (e.g. in the event of an accident, theft, etc.) must expect higher insurance premiums. A poor vehicle safety rating is important because it means the driver and passenger are more likely to suffer serious injuries in an accident, which will likely result in more expensive medical or personal injuries.
Your vehicle accessories are also included in the insurer’s risk and premium calculation. Vehicles equipped with advanced features like four-wheel drive and larger engines are more expensive to insure because their repair costs are higher.
Vehicle Factors Affecting Auto Insurance Rates
Even if you don’t choose one of the cheaper models above, it’s still possible to find affordable plans. Below we address critical elements that auto insurance companies consider when setting insurance premiums.
- Age of the vehicle: Most people assume that older cars get cheaper car insurance, but that’s not always the case. Some new cars receive a lower premium due to additional safety features, but this is often offset by higher repair costs.
- Vehicle Type: Small SUVs and minivans generally get lower auto insurance rates, while sedans and large SUVs cost more to insure. The cars with cheapest insurance rates is hard to find for electric, luxury, and sports car owners.
- Trim level: The nicer the trim level of your car, the more expensive your car insurance is likely to be. That’s because premium models have features that cost more to replace.
- Safety Features: If your car performs well on safety tests conducted by the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety, it likely has lower ratings. Safety features like airbags, anti-lock brakes, and seat belts also reduce the cost of your car insurance.
- Car theft figures: Certain models of cars are more likely to be stolen than others, according to an annual survey by the National Insurance Crime Bureau (NICB). Vehicles that are common targets for thieves are likely to have more expensive auto insurance policies.
Decisions affecting auto insurance rates
Some decisions a driver makes can affect the cost of their car insurance. Here’s a look at some of those factors:
- Coverage: The minimum coverage for your vehicle costs less than comprehensive insurance. However, in the event of an accident, you have little protection for your car if you opt for the minimum state coverage.
- Deductible: Those with a high deductible get lower auto insurance rates but also pay more out of pocket if damage occurs.
- Bundled Policies: You can pay a lower price if you buy other types of insurance, such as Homeowners or renters, in the same policy as your car insurance.
- Annual Mileage: Insurance companies typically charge lower rates for policyholders who drive less because they spend less time on the road, which reduces the likelihood of an accident.
Personal factors affecting car insurance rates
Even the cars with cheapest insurance rates can be expensive to insure if personal factors suggest you’re a high-risk driver. The following are some characteristics that often lead motorists to higher auto insurance premiums:
- Logbook: If your driving history includes a recent accident, speeding ticket, or DUI, you can expect to pay significantly more for auto insurance. The cheapest fares are usually given to people with no traffic violations or current insurance claims.
- Age, gender, and marital status: Teenage drivers, young male drivers, and singles of both sexes tend to pay more for auto insurance. As men age past 20, rates drop and match what female drivers pay.
- Credit Score: People with bad credit scores get extremely high auto insurance quotes because providers see them as high-risk drivers. Drivers with poor credit ratings often pay even higher rates than drivers with speeding penalties and culpable accidents.
- Location: You’ll pay more if you live in an area with high crime, more uninsured drivers, or a lot of accidents. People in urban areas like New York City or Southern California tend to pay higher fees than those in rural areas.
Good credit and a clean driver’s record can make it easier to get cars with cheapest insurance rates. While the cars with the cheapest auto insurance rates may have lower costs, if your records point to potential risks, coverage is still likely to cost more than the national average.
Discounts On Car Insurance At Lower Rates
You can find cheaper premiums by carefully considering the auto insurance discounts offered by the providers. Below we look at some ways policyholders can save money.
|Car Insurance Discounts
|Safe driver discount
|Gives lower premiums to those who’ve been accident-free for multiple years
|Good student discount
|Generally offers cheaper prices for students with at least a B average
|Offers discounts to those who insure multiple cars under the same auto policy
|Reduces prices for motorists who bundle auto coverage with other insurance policies
|Rewards active-duty military members with lower insurance premiums
|Vehicle safety features discount
|Provides a discount for drivers with air bags, anti-lock brakes and anti-theft devices in their cars
|Lowers rates for older motorists, especially after they take an approved driving course
|Usage-based insurance discount
|Tracks motorists’ driving habits and reduces rates for those who follow safe practices
Should I choose the cheapest car insurance rate?
It’s a bad idea to automatically select Cars with cheapest insurance rates or to choose providers who offer cheap auto insurance. Shockingly low rates may indicate an insurer is not offering enough coverage and is targeting drivers looking to save money.
As you spend less by choosing your state’s minimum coverage requirements, consider your options and needs. Auto insurance quotes are cheaper if you opt-out of comprehensive and collision insurance, but personal and property insurance won’t cover your costs after an accident.
The cars with the cheapest auto insurance rates usually do well in crash tests, but they’re not necessarily the right models for everyone. Compare your needs with the potential costs quoted by insurance agents before deciding on a car.
Our Recommendations For Cars With Cheapest Insurance Rates
If you’re looking for cars with the cheapest auto insurance rates, you might also be wondering which providers offer affordable coverage. Based on our research, we found that finding competitive auto insurance premiums from Geico and Progressive is easy.
- AM Best financial strength rating: A++
- Better Business Bureau (BBB) rating: A+
Drivers looking for one of the most comprehensive car insurance coverages should take a closer look at Geico. The company is known for its affordable coverage options and excellent credit ratings to ensure your car is well protected in the event of an accident.
However, Geico’s customer satisfaction scores were close to the J.D. average in most regions. Power 2021 USA Motor Insurance StudySM. Our team contacted Geico to comment on the customer satisfaction ratings but received no response.
- AM Best financial strength rating: A+
- BBB Rating: not rated
It’s not easy for drivers with bad credit or less than perfect driving skills to get great auto insurance, but Progressive can be a good choice for them. While it probably won’t have the cheapest coverage, Progressive insures many drivers who are overlooked by other providers.
One of the downsides of Progressive is that JD Power U.S. 2021 was the second-worst provider in the country. Auto Claims Satisfaction StudySM with a score of 862 out of 1,000. Our team has contacted Progressive for comment on damage satisfaction but has not received a response.
5 Tips For Choosing The Cheapest Car To Insure
1. Avoid luxury cars
High-end vehicles, whether large or medium-sized, are some of the most expensive vehicles to insure because of their value. According to the Insurance Institute for Highway Safety (IIHS), the cars with the highest comprehensive insurance claims include luxury brands such as Bentley, Mercedes-Benz, and BMW. And in Our analysis, a person driving a Lexus can pay up to $1,000 more in annual insurance premiums than someone driving a Nissan.
2. Don’t buy the latest model
Newer models attract higher premiums simply because they’re worth more. Our research found that buying a $36,000 vehicle could mean you pay $1,000 more in annual insurance premiums than buying and insuring a vehicle for just $9,000.
3. Stay away from sports cars
Sports cars have traditionally been more expensive to insure because of their powerful engines and other speed-focused features, making them more accident-prone. According to the IIHS database, sports cars such as the Lamborghini Huracan and the Maserati Granturismo are among the vehicles with the highest levels of accident damage.
4. Reconsider hybrids
Hybrid vehicles tend to be more expensive to insure because they have a higher selling price than traditional vehicles. Hybrid vehicle parts are also more expensive to repair and replace. Take the hybrid battery for a Toyota Prius, for example — it can cost $2,200 to $2,600 to replace, not counting labor.
5. Beware of popular models among thieves
Unsurprisingly, vehicles that are attractive to car thieves can expect higher insurance premiums. The top 5 most stolen vehicles, according to the National Insurance Crime Bureau, are the Honda Civic, Honda Accord, Ford pickup, Chevrolet pickup, and Toyota Camry.
There are many ways to save on car insurance. But as you can see, buying the right type of car is one of the most important.
Frequently Asked Questions: Cars With Cheapest Insurance Rates
Which car model has the cheapest insurance?
Of the most popular 2021 models in the United States, the Subaru Outback and Honda CR-V are the cars with the cheapest auto insurance rates. The estimates we received averaged just under $802 a year for comprehensive car insurance for these models.
Is Geico the cheapest?
Geico is one of the cheapest auto insurance companies in the country, although rates vary by driver. To find out if Geico is best for you, compare Geico auto insurance deals to deals from companies like State Farm, USAA, and Progressive.
Is it cheaper to insure a newer car?
Newer cars are often cheaper to insure because of their advanced safety features, but that’s not always the case. Because of expensive repairs and advanced components, some newer cars cost more to insure than older vehicles.
Are vending machines cheaper to insure?
No, cars with automatic transmissions are usually more expensive to insure than cars with manual transmissions. Vending machines almost always have higher repair costs, which are passed on to drivers in the form of slightly more expensive insurance rates.
Our average insurance estimates from the largest insurers in all 50 states and Washington, D.C. Tariffs were for 35-year-old male and female drivers in good standing with no tickets or violations and with the following coverage limits:
- $100,000 Personal Injury Liability Insurance per person.
- $300,000 Accidental Personal Injury Liability Insurance.
- $100,000 property damage liability insurance per accident.
- $100,000 uninsured motorist personal injury coverage per person.
- $300,000 uninsured personal injury coverage per accident.
- Personal Accident Insurance with a $1,000 deductible.
- Comprehensive coverage with a $1,000 deductible.
Additional minimum coverages have been added in states where required. Some policies include additional coverage at the insurer’s discretion. These are sample rates generated via Quadrant Information Services. Your prices will be different.
Vehicles listed were the top-selling models in the United States for 2021, according to Kelley Blue Book data. MSRP and insurance rates apply to 2021 models.