Why Your Car Choice Affects Insurance Costs
Finding the best cars for cheap car insurance can make a huge difference in your long-term ownership costs. While most people focus on price, styling, performance, or fuel economy when choosing a vehicle, your car also directly impacts how much you’ll pay for insurance. Vehicles that are considered safer, less costly to repair, and less likely to be stolen often qualify for lower premiums. This means that selecting the right make and model can save you hundreds of dollars each year.
When you pick a car, you’re not just choosing a mode of transportation—you’re locking in an insurance cost profile that may last for years. Insurance companies evaluate vehicles based on factors such as repair costs and parts availability, safety ratings and crash-test performance, theft frequency for that make/model, likelihood of injury claims associated with the type, and the vehicle’s MSRP and depreciation. By opting for a car with modest repair needs, strong safety features, and low theft risk, you can help keep your insurance premium affordable.
Sources like Bankrate, MoneyGeek, and Lemonade have compiled data on the cheapest cars to insure in 2025. (Bankrate, MoneyGeek, Lemonade)
Top Cars That Are Cost-Effective to Insure
Below are nine car models commonly ranked among the best choices for affordable insurance in 2025.
| Model | Type / Segment | Why It’s Insurance-Friendly | Approx. Premium Range / Notes* |
|---|---|---|---|
| Mazda CX-5 | Compact SUV | Excellent safety scores, widely available parts, moderate repair cost | MoneyGeek lists it among the cheapest insured: ~$364/year with Nationwide |
| Subaru Forester | Compact SUV | Strong crash-test ratings, moderate repair costs | Consistently in low-insurance lists |
| Honda CR-V | Compact SUV | Reliable history, good safety, common model (parts availability) | Bankrate cites it as among the cheapest to insure |
| Subaru Outback | Wagon / Crossover | AWD, safety features, good resale value | Included in lowest-insurance group |
| Toyota Tacoma | Pickup / midsize truck | Durable, parts commonality, moderate power options | Appears in Bankrate’s low-insurance vehicles |
| Honda Civic | Compact sedan | Low repair costs, efficient engines, strong safety record | Frequently cited as insurance-friendly |
| Toyota Camry | Midsize sedan | Proven track record, moderate power, numerous parts suppliers | Bankrate & SoFi list Camry in cheap insurance sedans |
| Toyota Prius | Hybrid sedan | Moderate performance, strong reliability, strong resale | Listed by SoFi among affordable insured sedans |
| Kia Forte | Compact sedan | Economical parts, lower performance, solid safety for class | Included in Lemonade’s “best for cheap insurance” list |
* Premium ranges depend heavily on your location, driving history, coverage levels, and insurer choice. These models are commonly ranked among the lowest-cost-to-insure models.
What Makes These Cars Cheap to Insure
1. Strong Safety Ratings & Crash-Test Performance
Vehicles that do well in IIHS / NHTSA tests reduce the risk of serious injury claims. Many of the models above are rated top safety picks. (Lemonade)
2. Parts Availability & Repair Costs
The more common a vehicle, the easier it is for insurers to estimate repair costs. Models like the CR-V, CX-5, and Civic share parts widely, which lowers claims processing expenses.
3. Moderate Performance & Engine Power
High horsepower and performance attract higher risk. Many cost-effective models use modest engines that insurers deem safer for daily use.
4. Lower Theft Risk
Cars that are less likely to be stolen or broken into tend to reduce comprehensive claim costs. Models with built-in anti-theft systems help further lower premiums.
5. Resale Value / Depreciation
Cars that retain value limit the risk of “total loss” claims. Insurers prefer models with predictable depreciation.
Real-World Case Studies
Case Study 1: The Young Driver
Sarah, a 22-year-old new driver in Texas, was comparing insurance premiums for a Honda Civic vs. a Dodge Charger. The Charger carried nearly double the premium because insurers flagged it as higher performance and higher risk. By choosing the Civic, Sarah saved over $1,200 per year on insurance, money she could instead put toward student loans.
Case Study 2: The Family Driver
Mark and Laura, parents of two in Ohio, debated between leasing a Toyota Camry or an SUV like the Ford Explorer. While the Explorer offered more space, the Camry carried an insurance rate nearly 30% lower thanks to its lower repair costs and excellent safety record. Their decision saved about $800 annually.
Case Study 3: The Retiree
David, a retired teacher in Florida, needed a reliable car for daily errands and road trips. He considered a luxury SUV but opted for a Subaru Outback instead. Not only was the purchase price more affordable, but the insurance premium was almost half that of the luxury model—helping him stay within a fixed retirement budget.
Tips to Lower Insurance Even More (Beyond the Car Choice)
Choosing the right car is a major step—but it’s not the only one. To maximize your savings:
- Choose lower trim levels (avoid sporty / performance variants).
- Maintain a clean driving record — tickets and accidents hurt more than many realize.
- Bundle multiple policies (home + auto).
- Raise your deductible (if you can afford the out-of-pocket).
- Use telematics / usage-based programs: safe-driving rewards.
- Install anti-theft devices (alarms, immobilizers).
- Compare quotes annually — insurers change rates often.
Frequently Asked Questions
Q: Do SUVs cost more to insure than sedans?
Not always. As data shows, compact SUVs like Mazda CX-5 and Subaru Forester can be among the cheapest vehicles to insure. (MoneyGeek)
Q: What about electric or hybrid cars?
Hybrid vehicles like the Prius are already listed among the more affordable insured sedans. (SoFi) Electric vehicles can be more costly to repair due to battery and unique components—expect some premium increases unless insurance options specifically account for EVs.
Q: Will my insurance always be low just because I picked one of these cars?
No. Your personal factors—age, driving history, location, credit (in some places)—play a big role. These car choices simply tilt the baseline in your favor.
Q: Should first-time drivers pick only very small cars to lower insurance?
Small, low-powered cars (e.g. compact hatchbacks) do tend to fall in lower insurance brackets—especially for new or young drivers. But safety and repair cost matter too.
Q: Do pickup trucks cost more to insure than sedans?
It depends. Models like the Toyota Tacoma are relatively inexpensive compared to full-size trucks, which may carry higher repair and liability costs.
Final Thoughts: The Best Cars for Cheap Car Insurance
In 2025, cars like the Mazda CX-5, Subaru Forester, Honda CR-V, and Toyota Camry stand out as smart picks when your goal is to minimize insurance cost without sacrificing usability or safety.
But remember—the car is just one piece of the puzzle. Combine your choice with clean driving habits, smart coverage levels, and regular quote shopping to truly slash your insurance premium.
If you’re shopping for your next vehicle, think beyond the sticker price—factor in the ongoing insurance costs that can add thousands over the life of ownership.
If this guide helped you narrow your options, share it with friends or on your social feed—and explore our blog for more tips on smart car ownership in 2025.
