The Cheapest Cars to Insure

When buying a car, people want to be smart. When shopping for a new car, they consider their budget, what the vehicle will cost, how many miles they plan to drive, and the fuel economy. However, not all people consider the cost of insuring the vehicle. Although it may seem like a smart idea to get a great deal on a brand new car, not all vehicles are affordable to insure. Bankrate compared auto insurance rates of the most popular models of 2020 to determine which cars are the best to insure.

Top 10 Cars with the Cheapest Car Insurance

Although a lower car won’t guarantee lower insurance premiums there are still affordable vehicles that can be insured. Bankrate compared the top-selling 2020 models and found that the Subaru Outback was the most affordable for minimum coverage, at $510, and $1,475 for complete coverage. The Honda CR-V is close behind at a $527 annual premium for minimum coverage and $1366 for full coverage including optional comprehensive and collision. This sport utility vehicle has been a popular choice for many years because of its spacious seating and fuel efficiency.

Avoid these cars if you want to save money on your insurance

While price isn’t everything, budget vehicles with high safety ratings and low claim-filing rates usually offer the cheapest auto insurance premium. Luxury cars and sports are more expensive to buy and usually have the highest annual premiums. The Honda CR-V compact SUV is always cheaper to insure and own than luxury cars like a Lamborghini, Porsche or Lamborghini.

To save money on your auto insurance, it is better to avoid these types of vehicles:

  • Luxury cars of the highest quality
  • Compact cars are expensive
  • Specialized parts for cars
  • Low safety ratings for vehicles

Insurance rates are affected by the car’s make/model

It is just one factor that affects how much insurance costs. Besides your driving record, age, ZIP code and credit-based insurance score, the vehicle’s make and model are also significant rating factors when calculating the premium, according to the Insurance Information Institute.

Based on factors like claim filing rates, repair costs, and instances of theft, insurers determine the premiums they will charge for certain models and makes. Insurers will charge more for a model that has been subject to a lot of claims in recent years, regardless of its price or driving record. Insurance premiums can be higher for vehicles that are cheap because of high repair costs. However, higher-priced vehicles might be less expensive to insure because of favorable claims histories, high safety ratings, driver assistance technology, and minimal repair costs.

Other attributes that could affect the premium of a vehicle include:

  • AgeInsurance for older cars is usually cheaper than insurance for newer models.
  • SizeLarger, more powerful vehicles can cause more damage to the roads, which leads to higher auto insurance premiums.
  • Trim level:The cost of insurance and the price of a vehicle’s purchase will be affected by the upgrades.
  • Safety featuresSafety features that are better in vehicles reduce the chance of theft or collision. They also tend to be associated with lower insurance premiums.

Questions frequently asked

What is the average price of car insurance?

The average cost of auto insurance in the U.S. is $1,738, but the price varies from one driver to another, depending on location, ZIP code, credit-based insurance score, driving record and type of car. To find the best price for your needs, it’s a smart idea to compare quotes from different insurers that offer the same coverage options.

How can I lower my car insurance premium

There is no single way to reduce auto insurance premiums because they depend on many factors, including driver and vehicle. You can lower your auto insurance premiums by buying a vehicle that is less expensive, maintaining good driving records, and keeping an eye on credit. Talk to your auto insurance agent or licensed insurance professional about what might be driving up your insurance rates.

Which are the top car insurance companies?

There is no best car insurance company. It’s a good idea to shop around and compare carriers, then speak with a licensed insurance professional before purchasing a policy.