Are you tired of watching your car insurance premiums climb higher each year? You’re not alone. American drivers have seen auto insurance costs jump by an average of 31% since 2023, with no signs of decreasing. But here’s the good news: choosing the right vehicle can save you hundreds, even thousands, of dollars annually on insurance.
The reality is simple: not all cars cost the same to insure. While you might be focused on fuel economy, safety ratings, or monthly payments, overlooking insurance costs could be the most expensive mistake of your car-buying journey.
Why Your Car Choice Matters More Than Ever for Insurance Costs
Insurance companies aren’t just looking at your driving record when calculating premiums. Your vehicle’s make, model, and type play a massive role in determining what you’ll pay. According to recent data, the national average for full coverage car insurance has reached $2,697 per year but drivers of certain vehicles pay significantly less.
The problem? Most Americans don’t realize insurance costs can vary by more than $4,000 annually between different vehicle models. That’s a staggering difference that could fund an entire vacation or boost your retirement savings.
The 10 Cars with the Lowest Insurance Rates in 2026
Based on a comprehensive analysis of collision claim data from the Insurance Institute for Highway Safety (IIHS-HLDI) and premium research from leading insurance providers, here are the vehicles consistently ranking as the cheapest to insure:
| Vehicle | Average Annual Premium | Why It’s Affordable |
| Subaru Outback | $2,242 | Standard AWD, excellent safety features, low theft rate |
| Honda CR-V | $2,270 | 41% fewer collision claims than average, reliable parts |
| Toyota Tacoma | $2,389 | Durable construction, low claim severity |
| Subaru Forester | ~$2,300 | Advanced safety tech (EyeSight), modest repair costs |
| Honda Pilot | $2,430 | 33% fewer collision claims, family-friendly safety |
| Jeep Wrangler | $2,407 | 49% fewer collision claims (2-door model) |
| Ford Escape | $2,442 | Compact SUV with good safety ratings |
| Toyota RAV4 | $2,420 | Wide parts availability, strong crash ratings |
| Honda Odyssey | $2,446 | Minivan with excellent safety features |
| Acura RDX | $2,474 | Luxury features without luxury insurance costs |
Notice a pattern? Small to midsize SUVs dominate this list, and for good reason.
What Makes a Car Cheap to Insure? The Inside Formula
Insurance companies use sophisticated algorithms to calculate risk, but the factors boil down to a simple question: How much will it cost us if something goes wrong? Here’s what they’re evaluating:
Safety Features That Lower Your Premium
Modern vehicles equipped with advanced safety technology see significant insurance discounts. Look for:
- Forward collision warning and automatic emergency braking – Reduces accident likelihood by up to 50%
- Blind-spot monitoring – Prevents lane-change collisions
- Backup cameras and rear cross-traffic alert – Minimizes parking lot incidents
- Lane departure warning – Keeps drowsy drivers safe
Subaru’s EyeSight system and Honda’s Sensing suite are perfect examples of comprehensive safety packages that insurance companies reward with lower rates.
Anti-Theft Technology
Vehicles with high theft rates carry higher premiums. The Honda Civic, despite being affordable to repair, faces slightly higher rates due to its popularity among thieves. Conversely, vehicles with built-in anti-theft systems, immobilizers, and GPS tracking can qualify for discounts of 5-15%.
Market Value and Depreciation
This is where used cars shine. A three-year-old Subaru Outback costs significantly less to insure than a brand-new model because its market value has depreciated by roughly 30-40%. Lower replacement costs mean lower premiums, especially for comprehensive and collision coverage.
Repair Costs and Parts Availability
Insurance companies maintain extensive databases on repair costs. Vehicles with:
- Common, inexpensive parts (Honda, Toyota, Chevrolet)
- Simple design without complex technology
- Wide service network availability
…consistently cost less to insure than luxury vehicles requiring specialty parts or certified technicians.
Cheapest Cars to Insure by Vehicle Type
Your lifestyle determines what type of vehicle you need, but you can still find affordable insurance options in every category.
Most Affordable Sedans and Hatchbacks to Insure
If you need a fuel-efficient commuter car, these models offer the best insurance rates:
- Honda Civic – $2,678/year (Type-R model: 24% fewer collision claims)
- Toyota Camry – $2,697/year (matches national average)
- Mazda 3 – $2,725/year
- Toyota Prius – $2,774/year (hybrid savings on fuel too)
- Kia Forte – $2,863/year
- Nissan Altima – $2,934/year
Insider tip: The Chevrolet Bolt electric vehicle shows 37% fewer collision claims than average sedans, potentially offering even lower rates for eco-conscious drivers.
Most Affordable SUVs to Insure
SUVs dominate the affordable insurance category due to fewer collision claims and better occupant protection:
Small SUVs:
- Honda CR-V – $2,270/year (best overall value)
- Subaru Forester – ~$2,300/year (with EyeSight: 36% fewer claims)
- Toyota Corolla Cross Hybrid – ~$2,350/year (35% fewer claims)
- Volkswagen Taos – ~$2,400/year
Midsize SUVs:
- Jeep Wrangler (2-door) – $2,407/year (49% fewer claims)
- Honda Pilot – $2,430/year
- Jeep Cherokee – ~$2,450/year (34% fewer claims)
- Jeep Grand Cherokee – ~$2,475/year
According to AAA data, the average cost to insure a midsize SUV is $1,831 annually, compared to $1,583 for sedans but the SUV’s lower collision claim frequency often makes it the smarter financial choice.
Most Affordable Trucks to Insure
Pickup truck owners enjoy some of the lowest insurance rates, especially for heavy-duty models:
- Toyota Tacoma – $2,389/year (best midsize truck value)
- GMC Sierra 3500 – ~$2,500/year (62% fewer collision claims!)
- Chevrolet Silverado 1500 – $2,687/year
- Ford F-150 – $2,630/year
- GMC Sierra 2500 – ~$2,600/year (49% fewer claims)
- Toyota Tundra – $2,856/year
The GMC Sierra 3500 leads all vehicles with an astounding 62% fewer collision claims than average, making it one of the absolute cheapest vehicles to insure in America.
Vehicles You Should Avoid If You Want Low Insurance Rates
While some cars save you money, others will drain your bank account with sky-high premiums. Based on recent data, here are the most expensive vehicles to insure:
| Vehicle | Average Annual Premium | Why It’s Expensive |
| Audi R8 Quattro | $6,680 | High-performance sports car, expensive repairs |
| Tesla Model X | $5,354 | Costly EV repairs, proprietary parts |
| Tesla Model S Plaid | $5,301 | Limited repair facilities, high market value |
| Dodge Charger | $4,947 | High theft rate, performance model |
| Lexus RC F | $4,596 | Luxury sports coupe, specialized parts |
That’s a difference of more than $4,400 annually compared to insuring a Subaru Outback, enough to cover car payments for several months.
Smart Strategies to Lower Your Car Insurance Costs
Choosing the right vehicle is just the beginning. Here are proven tactics to reduce your premiums even further:
Compare Multiple Quotes Before Buying
Insurance rates vary dramatically between companies, sometimes by 40% or more for the same coverage. Before finalizing any vehicle purchase:
- Get the VIN from the dealership
- Request quotes from at least 3-5 insurance companies
- Compare identical coverage levels
- Factor the annual cost into your total ownership budget
Real example: A 35-year-old driver in Chicago might pay $2,200/year with one insurer for a Honda CR-V but only $1,550/year with another for identical coverage.
Maintain a Clean Driving Record
A single at-fault accident can increase your premium by 20-40%. A DUI conviction? Expect rates to double or triple. Safe driving isn’t just about safety; it’s about significant financial savings.
Bundle Your Policies
Most insurers offer 15-25% discounts when you bundle auto and home insurance. That’s an easy $300-500 in annual savings for most households.
Increase Your Deductible Strategically
Raising your collision and comprehensive deductibles from $500 to $1,000 can reduce premiums by 15-30%. Just ensure you have the savings to cover the higher deductible if needed.
Improve Your Credit Score
In most states, your credit score significantly impacts insurance rates. Drivers with excellent credit pay 50% less on average than those with poor credit. Focus on paying bills on time and reducing debt.
Ask About All Available Discounts
Insurance companies offer dozens of discounts, including:
- Good student discounts (for young drivers)
- Low mileage discounts
- Defensive driving course discounts
- Military and professional association discounts
- Loyalty discounts
- Paperless billing discounts
Common Mistakes That Increase Insurance Costs
Avoid these costly errors when shopping for auto insurance:
Mistake 1: Buying a Car First, Then Checking Insurance
This backwards approach can lock you into unaffordable premiums. Always get insurance quotes before signing purchase paperwork.
Mistake 2: Choosing Minimum Coverage to Save Money
While minimum liability coverage costs less upfront, a single accident could leave you financially devastated. The savings aren’t worth the risk.
Mistake 3: Staying with the Same Insurer for Years
Loyalty doesn’t pay in insurance. Rates change constantly, and switching companies every 2-3 years can save 10-20% on average.
Mistake 4: Ignoring Vehicle Type When Shopping
That sporty coupe might look appealing, but if it costs $2,000 more annually to insure than an SUV, you’re not getting the deal you think you are.
Mistake 5: Not Reviewing Coverage Annually
Your insurance needs change as your car depreciates and your financial situation evolves. Annual reviews ensure you’re not over-insured or under-protected.
Special Considerations: Electric Vehicles and Insurance
Electric vehicles (EVs) present a unique insurance situation. According to 2023 IIHS-HLDI research, EVs have fewer overall claims but more expensive property damage claims when accidents occur.
The bottom line: Some EVs cost similarly to their gas counterparts to insure, while others (like Teslas) carry premium rates. The Chevrolet Bolt electric, however, shows 37% fewer collision claims, proving affordable EV insurance is possible.
If you’re considering an EV, get specific quotes for both the electric and gas versions of similar models to compare true costs.
How Much Should Insurance Factor Into Your Purchase Decision?
Car ownership costs extend far beyond the monthly payment. According to Bankrate’s research, insurance represents the largest ongoing ownership cost even more than fuel.
Consider this breakdown for a typical new vehicle:
- Average monthly car payment: $742
- Average monthly insurance (full coverage): $225
- Fuel, taxes, maintenance: $200-400/month
Insurance alone costs $2,700 per year nearly 30% of total ownership costs. Choosing a vehicle that saves you $500-1,000 annually on insurance is like negotiating that much off the purchase price.
Expert insight: “Buying a car isn’t just about the sticker price. Auto insurance costs can add thousands of dollars to your household budget, and getting locked into an unaffordable insurance payment for several years could put you in a difficult situation.” – Shannon Martin, Bankrate Insurance Analyst
Regional Considerations: Insurance Rates Vary by State
Your location dramatically affects insurance costs. The same Honda CR-V might cost:
- $1,800/year in Maine
- $2,200/year in Illinois
- $3,500/year in Michigan
Urban areas see higher rates due to increased accident risk, theft, and vandalism. Rural drivers often enjoy 20-30% lower premiums for identical coverage.
The Bottom Line: Choose Wisely and Save Thousands
When asking, “What cars have the lowest insurance rates?” the answer is clear: small to midsize SUVs and pickup trucks from reliable manufacturers like Subaru, Honda, Toyota, Jeep, and Chevrolet consistently offer the best value.
The Subaru Outback leads all vehicles with the lowest average premium at $2,242 annually, while the GMC Sierra 3500 boasts the fewest collision claims at 62% below average.
But remember: the cheapest car to insure is worthless if it doesn’t meet your needs. Focus on finding the intersection of functionality, safety, and affordability.
Insurance rates change daily based on market conditions, claims data, and company pricing strategies. What qualifies as a great rate today might be outdated tomorrow. The smartest move? Get multiple quotes now, compare your options, and make an informed decision that protects both your safety and your wallet.
Frequently Asked Questions
What is the absolute cheapest car to insure in 2026?
The Subaru Outback currently holds the title at approximately $2,242 per year for full coverage, followed closely by the Honda CR-V at $2,270 annually. Both vehicles combine excellent safety features, low collision claim rates, and affordable repair costs.
Are SUVs really cheaper to insure than sedans?
Yes, in most cases. Small and midsize SUVs average lower insurance premiums than sedans because they have fewer collision claims and provide better occupant protection. The Honda CR-V costs about $400 less annually to insure than the average sedan.
How much can I save by choosing a cheaper car to insure?
The difference between the cheapest and most expensive vehicles to insure exceeds $4,400 annually. Even comparing middle-of-the-road options, choosing wisely can save $800-1,500 per year; that’s $4,000-7,500 over five years of ownership.
Do older used cars cost less to insure?
Generally yes, because their market value is lower, reducing replacement costs for comprehensive and collision coverage. However, very old cars lacking modern safety features might see smaller savings. The sweet spot is typically 3-5-year-old vehicles with good safety ratings.
How do I find out insurance costs before buying a car?
Request the VIN from the seller or dealership, then get quotes from multiple insurance companies. Most insurers provide instant online quotes. You can also use your current vehicle’s information and ask for quotes on the potential new vehicle for comparison.
What’s the best way to compare insurance rates?
Get quotes from at least 3-5 different companies for identical coverage levels. Use comparison tools, work with independent agents, or contact insurers directly. Ensure you’re comparing the same deductibles, coverage limits, and policy features for accurate results.
Will improving my credit score really lower my insurance?
In most states, yes. Drivers with excellent credit pay approximately 50% less than those with poor credit. Even improving from fair to good credit can save 15-25% on premiums, making credit improvement one of the best insurance-saving strategies.
Are electric vehicles more expensive to insure?
It depends on the model. While some EVs like Teslas carry higher premiums due to expensive repairs and limited service networks, others like the Chevrolet Bolt show fewer collision claims and may cost similarly to gas-powered alternatives. Always get specific EV quotes.
How often should I shop for new insurance rates?
Every 1-2 years at minimum, and definitely when experiencing life changes like moving, adding drivers, or buying a new vehicle. Insurance companies adjust rates constantly, and switching providers every few years can save 10-20% on average.
What discounts should I ask my insurance company about?
Request information on bundling discounts (home + auto), good driver discounts, low mileage discounts, safety feature discounts, good student discounts, professional association discounts, defensive driving course discounts, and loyalty discounts. Most drivers qualify for at least 2-3 discounts they’re not using.
