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Ranking the Cheapest Cars to Insure

Ranking the Cheapest Cars to Insure

He prides himself on being a smart shopper. When shopping for a new car, research features and shop around to make sure you're getting the best deal, and you also want to know which cars are the least expensive to insure.

The 10 least expensive cars to insure in 2020

  1. Subaru Outback.
  2. Jeep Wrangler.
  3. Honda CR-V.
  4. Subaru Forester.
  5. Ford Escape.
  6. Ford F-150.
  7. Chevrolet Equinox.
  8. Jeep Cherokee.
  9. Toyota Tacoma.
  10. Toyota RAV4.

Although you might expect a cheaper car to have a lower insurance rate, this is not always the case. Auto insurance rates vary, sometimes significantly, depending on the type of vehicle you drive (among other factors).

Looking to save on car expenses? With the national average cost of car insurance reaching $ 1,427, customers who buy a Subaru Outback or Jeep Wrangler will likely pay lower rates than the average driver.

Here is the average insurance rate for each of the 25 best-selling cars, along with the manufacturer's suggested retail price for the 2020 model and the premium as a percentage of the MSRP.

How Car Models Affect Insurance Rates: Up To The Model

Auto insurance companies set rates based on the risks that you and your car have established. To determine vehicle risk, insurance companies consider claims history, including accidents, repair costs, and vehicle theft rates. Higher, and more expensive, claims for a particular model mean higher auto insurance rates.

In contrast, the cheapest cars to insure tend to have fewer and fewer claims.

Insurance rates according to car model

It may not be surprising that the Subaru Outback and Honda CR-V are the cheapest models for sure. After all, both cars are the best safety options, according to the Insurance Institute for Highway Safety, or IIHS.

However, there is no single factor that determines the price of your auto insurance. For example, while the Honda Accord and Honda Civic also received the highest IIHS safety scores, they were the most stolen cars in the country in 2018, according to the National Office of Insurance Crimes. This is probably why these cars are not at the top of our list.

Trim level and car insurance rates

Adding features to your new car can also increase insurance rates. Cars with high-tech safety equipment cost more to repair, and if you choose a more powerful engine, insurance companies may think that you are more likely to speed up and have an accident.

Insuring the cheapest model of a new vehicle can be more than $ 200 a year cheaper than insurance with extras like GPS, a power moonroof, or a premium audio system.

Automakers typically bundle multiple upgrades across different trim levels. For example, Toyota Camry trim levels include the entry level L, followed by LE, SE, XLE, and XSE, each with more features and a higher starting tag price. NerdWallet's Cheapest Car Rating uses the base trim level for each vehicle. For any car, moving to a higher trim level could also mean moving to a higher auto insurance rate. 

Do you want cheaper insurance? Avoid these compounds

Owning these types of vehicles often increases car insurance rates:

  • Sports cars have the highest auto insurance rates, not just because they're built for speed - the drivers of these cars tend to be younger and therefore more accident-prone, adding to the cost of insurance .
  • Premium auto insurance is often expensive because it can be expensive to repair and more expensive to replace if you charge for it.
  • Electric vehicle insurance can be more expensive due to its higher prices and repair costs; Replacing an electric vehicle battery alone can cost thousands of dollars.
  • The cars most attacked by thieves cost more for insurance. Pay full insurance in case of theft of your vehicle; It also covers damage from sabotage, fire, flood, and other problems.

Prices vary widely between insurance companies, so it is important to shop around. Compare auto insurance quotes and see which companies offer the lowest insurance in your state. Also ask insurance companies about discounts. Many deals offer price reductions if your car has safety features that reduce the risk of injury or theft.