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The Cheapest Cars to Insure in 2020
Many people don’t realize that the type of car you drive has a big impact on your auto insurance cost. Before you purchase a new car, it helps to know which makes and models tend to be the most expensive to insure. It might make you think twice about buying a certain vehicle if you want low-cost auto insurance.
But even if you can find the lowest insurance rates, you probably want to know which cars also come with those cheap car insurance rates.
Cheapest cars to insure
The table below includes the cheapest cars to insure in the United States, including their MSRP, Kelley Blue Book (KBB) average price, and their average price of car insurance.
|Rank||Model||MRSP||KBB Average Price||Annual premium||6-month premium*||Monthly premium**|
|1||Honda Odyssey LX||$31,790||$29,111||$1,298||$649||$108.16|
|2||Jeep Wrangler Sport||$31,795||$28,312||$1,304||$652||$108.66|
|3||Subaru Outback 2.5i||$26,645||$26,258||$1,306||$653||$108.83|
|4||Mazda CX-3 Sport||$20,390||$20,892||$1,307||$653.50||$108.91|
|5||Honda HR-V LX||$20,920||$21,083||$1,325||$662.50||$110.41|
|6||Honda CR-V LX||$25,150||$24,565||$1,333||$666.50||$111.08|
|7||Jeep Renegade Sport||$23,715||$22,971||$1,338||$669||$111.50|
|8||Ford Escape S||$24,885||$24,929||$1,344||$672||$112|
|9||Subaru Forester 2.5i||$24,495||$24,051||$1,347||$673.50||$112.25|
|10||Jeep Compass Sport||$22,280||$22,907||$1,349||$674.50||$112.41|
What makes a car cheaper to insure?
Insurance companies price their policies with a number of factors in mind—and one of the most important factors is the car model. Different auto manufacturers are associated with different types of drivers, so choosing a model that is known for safe driving will usually reduce the cost of the insurance premium.
When people think about Honda minivans, families come to mind. Insurers like covering Hondas because they are a family-oriented brand, which means that parents will be driving safely with their kids in the back seat.
If a manufacturer is known for integrating strong safety features in vehicles, insurance companies take notice. Brands like Subaru that focus on driver and passenger safety features are usually awarded lower premiums.
Insurers also factor in how much it costs to replace parts after an accident, so insurance companies like to insure cars built from parts that are easy to replace. Jeeps are known as a rugged brand with parts that are easily interchangeable, so insurance companies might insure the vehicle at a lower rate when taking the maintenance cost into account.
If you’re thinking about buying a more eco-friendly vehicle, keep in mind that insuring a hybrid or fully electric car is more expensive than insuring a gas-powered car. Electric vehicles are worth more than gas-powered vehicles because there is more technology and equipment under the hood.
If you crash a hybrid, it will cost a pretty penny to fix. Not only would your insurance company have to pay for cosmetic damage, but it would also have to pay to repair or replace the battery, sensors, cameras and internal systems. If you have your heart set on a Tesla or Toyota Prius, be prepared to pay a much higher insurance premium for it.
Other factors that affect car insurance rates
1. Model year
When looking into insurance comparison for cars, the year of the model might affect your premium. A good rule of thumb is the newer the model, the more the insurance will cost. Newer cars cost more to fix and replace, so they will also cost more to insure. However, some newer models come with advanced safety features that insurers love, so even if the model is recent, the safety features could offset the additional cost of insuring a newer car.
[ Read: What Is the Make and Model of a Car? ]
All told, one-third of insurance payouts go toward theft, and the most stolen cars in America are Honda Accords and Civics. Others in the top 10 include Toyota Corollas and Nissan Altimas — not exactly luxury cars. While Chevy Impalas, Ford F-150s, Dodge Ram pickups, and Jeep Grand Cherokees aren’t what you’d call discount cars, they, too are among the most stolen vehicles—and companies keep this in mind when insuring cars. If you’ve got one of these popular targets for car thieves, you will likely pay more for car insurance.
3. Cost of repairs
Some cars are more expensive to fix than others. It probably goes without saying that a Tesla is significantly pricier to fix than a Honda CR-V. If your car has lots of bells and whistles, like backup cameras, a GPS system, Apple CarPlay or automatic windshield wipers, it costs the insurance company a lot of money to repair those systems if they get damaged in an accident. As a result, your insurance premium would much be higher than it would be for a car without as many fancy features.
4. Your claims history
If you’ve filed insurance claims in the past, you will pay a higher rate for car insurance. Even the smallest fender bender can cause your premium to increase unless your policy has accident forgiveness. When you file insurance claims, your insurance company puts you in the “high-risk” category. Every time you file a claim for a covered loss, the insurance company has to pay, so to prepare for potential losses, they’ll charge you more money for coverage.
[ Related: Why Is My Auto Insurance Premium So High? ]
Types of vehicles to avoid
Luxury and sports cars are often expensive for drivers to insure. In fact, among the top 10 most expensive cars to insure in 2019, according to Insure.com, every one of them was either a luxury car, sports car or both. Seven models of Mercedes made the top 10. The most expensive car to insure — the Nissan GTR — costs $3,941 a year in premiums, more than three times as much as the cheapest models.
When it comes to auto insurance, bigger isn’t always better. Despite the feeling of safety you might get from driving a giant SUV, your insurance company may consider a bigger car to be costlier than a smaller one. That’s because while a huge vehicle might actually make you safer, it’s less safe for anything else you might crash into. Remember that your insurance isn’t just covering you — it’s covering you and the damage that you do to others. So when you drive a vehicle that’s likely to cause more damage, that can cost more every month to insure.
To find cars that won’t break the bank to insure, we looked at Insure.com’s list of the cheapest cars to insure. After digging into the different makes and models, we researched which factors those cars shared, and why those factors made them the cheapest cars to insure.