Buying a new car is a rite of passage for many adults, but it comes with some important considerations: cost of the vehicle, gas mileage, cost of added features and license and registration costs. It all adds up over a short period of time.
When buying a new car, one thing you want to keep in mind is how much insurance will cost you. The cost of your car could increase dramatically if you are buying something that is expensive to insure. If you are financing your car, you’ll likely be required to carry full coverage insurance rather than just liability.
Top 20 cheapest cars to insure
The cheapest cars to insure are largely SUVs and midsize vehicles. A 2019 Insure.com study pulled together a comprehensive list of the top 20 cheapest cars to insure. The Honda Odyssey LX comes in at number one with an average annual insurance cost of $1,298.00, and the Chevrolet Traverse L comes in at number 20 with an average cost of $1,374.00. Anything on this list is a good option if you’re looking for cheap car insurance, with only a $76 difference between the cheapest car and number 20.
|Make and Model||Average Annual Cost to Insure|
|1.||Honda Odyssey LX||$1,298|
|2.||Jeep Wrangler Sport||$1,304|
|3.||Subaru Outback 2.5i||$1,306|
|4.||Mazda CX-3 Sport||$1,307|
|5.||Honda HR-V LX||$1,325|
|6.||Honda CR-V LX||$1,333|
|7.||Jeep Renegade Sport||$1,338|
|8.||Ford Escape S||$1,344|
|9.||Subaru Forester 2.5i||$1,347|
|10.||Jeep Compass Sport||$1,349|
|11.||Mazda CX-5 Sport||$1,352|
|13.||Buick Encore 1SV||$1,354|
|14.||Honda Fit LX w/ Honda Sensing||$1,358|
|15.||Nissan Frontier S||$1,361|
|16.||Jeep Cherokee Latitude||$1,361|
|17.||Dodge Grand Caravan SE||$1,363|
|18.||Ford Transit Connect SL||$1,366|
|19.||GMC Canyon SL||$1,369|
|20.||Chevrolet Traverse L||$1,374|
Another key takeaway from this list is that the Honda Fit with Honda Sensing, number 14 on the list, is the only sedan to make the top 20. In addition to that, the average annual insurance rate based on a 2019 Quadrant Information Services with U.S. News study is $3,717.00.
Top 5 most expensive cars to insure
If you’re looking for the cheapest cars to insure to keep your budget in line, there are definitely some cars you need to avoid. The same 2019 Insure.com study from above pulled together a list of the more expensive vehicles to insure. The top five most expensive vehicles to insure are:
|Make and Model||Average Annual Cost to Insure|
|2.||Mercedes Maybach S650||$3,917|
|4.||Mercedes AMG GT R||$3,751|
|5.||BMW M760i xDrive||$3,705|
What factors into the cost of my insurance
There are a number of factors that determine your insurance premiums, not least of which is the type of car you drive. Some other factors include:
- Driving history
- Driving activity
- Vehicle size
- Vehicle safety rating
- Anti-theft/safety devices
- Where you live
- Age, gender and marital status
- Credit history, in some places
Your policy options will play a significant factor in your premiums as well. For example, the higher your deductible, the lower your insurance premiums. You may have a maximum limit on what your deductible can be depending on your auto lender. Double check so you compare insurance policies wisely.
Cars to avoid for cheap insurance
The most expensive cars to insure are all sports and luxury cars. The smaller your car, typically the more expensive the insurance rates. That has a lot to do with safety ratings for smaller vehicles. Some cars to avoid if you’re looking for the cheapest cars to insure:
- High-end, luxury cars
- Sports cars
- Exorbitantly expensive cars
- Cars with speciality parts
- Vehicles with low safety ratings
Frequently asked questions
What is the cheapest car to insure?
The cheapest cars to insure on average is the Honda Odyssey LX, but keep in mind your insurance will vary depending on your personal driving record as well as your personal information. Get multiple quotes so you can see which is the cheapest for you.
How does car make and model impact your car insurance rates?
The type of car you drive may be indicative of your driving style, and it’s certainly indicative of the level of safety you want to have while driving. Luxury and sports cars tend to have higher insurance rates than midsize SUVs, which tend to rate higher on safety scales.
What else impacts your car insurance rate?
Your personal information, driving record and, in some states, your credit history, will all impact your car insurance rates. When looking for the cheapest car insurance rates, it’s a good idea to stick with one of the top 20 so you’ll have lower insurance premiums.
Can I get cheap insurance if I’ve had an accident?
Yes, depending on who is at fault and how much damage was done, you may still be able to get cheap car insurance, especially if you drive a vehicle from our top 20 list. Complete a defensive driving course and ask your car insurance company about discounts you can get to help lower your rates after an accident.
Can I get cheap insurance if I’ve had a ticket for no insurance?
This will depend on a number of factors, and driving a car with cheap insurance rates will definitely impact the insurance rates you receive after driving with no insurance. Talk with several insurance providers to get the best quote for you.