Car insurance rates are based on a number of factors, including the make and model of your car. Cars that come with a higher price tag or need expensive, imported replacement parts are more expensive to insure than their more-affordable counterparts.
Alternately, cars that are more affordable to buy, cheaper to repair, and are less likely to be stolen usually have lower car insurance rates. If you’re car-shopping, safe, reliable daily drivers will probably be the cheapest when it comes to car insurance.
What cars are cheapest to insure?
The cheapest car to insure will vary based on your age, location, driving history, and which insurance company you choose. That said, the chart below shows the ten cheapest cars to insure out of the most popular makes and models in the U.S:
Average annual premium
Jeep Grand Cherokee
Cheapest car insurance rates by vehicle and company
Just because a car makes the list of most affordable vehicles to insure doesn’t guarantee you’ll get the lowest rate. Each car insurance company has its own process when it comes to setting rates, which means you could get a significantly lower rate by comparing quotes from multiple companies.
The chart below shows the average insurance rate by company for the ten cheapest vehicles by make and model in the U.S.:
Jeep Grand Cherokee
Cheapest electric cars to insure
Car insurance costs for electric vehicles vary just as much as car insurance costs for gas-powered cars. The chart below shows the average insurance rate for some of the most popular electric cars in the country:
Average annual premium
Chevrolet Bolt EV
Tesla Model 3
Tesla Model Y
Car insurance for Teslas is more expensive than other electric car makes and models, but Tesla has created its own in-house insurance designed specifically for its vehicles that typically offers lower rates than their competitors.
Why does the car you drive affect your insurance rates?
How much your vehicle costs has a big impact on your insurance rates, which is partly why some vehicle make and models cost more to insure than others.
Performance and luxury cars typically cost more to insure because they’re worth more, which means your car insurance company will need to pay you more if your car is totaled.
But there is more to it than just the cost of your car. Car insurance companies look at a number of features, including your vehicle’s safety options, likelihood of being damaged after an accident, and theft rates for your vehicle’s make and model when setting your rates.
What affects car insurance costs?
On a full coverage policy, the cost to repair or replace your vehicle plays a big part in setting your rates. For example, it will be significantly cheaper to replace a stolen Honda CR-V than a stolen Audi RS 5, which means the Audi will cost more to insure (all other factors being equal) to account for that higher cost.
The theft rate for each make and model also impacts your insurance rates. Some cars, like the Toyota Camry or Nissan Altima, have higher insurance rates partly because they are among the most stolen vehicles in the country.
The age of your vehicle also affects your car insurance rates. In most cases, older cars are cheaper to insure than newer cars. Many drivers find that, after a certain point, the value of their car drops low enough that they can afford to repair or replace their car out-of-pocket.
When you can afford to replace your car on your own, you may want to switch from full coverage to a liability-only car insurance policy to save money on your insurance.
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C.
For full coverage policies, the following coverage limits were used:
Bodily injury liability: $50,000 per person/$100,000 per accident
Property damage liability: $50,000 per accident
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by the state or insurer.
Rates for overall average rate and cheapest companies determined using averages for single drivers age 30, 35, and 45. Our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of insurance costs. Your actual quotes may differ.