Most Affordable Cars to Insure in 2024

The Subaru Outback, a new model that may appear to have steep insurance rates, is actually among the most cost-effective new cars to insure. This affordability in insurance extends to a wide range of vehicles, influenced by factors such as safety features and the costs associated with repair and replacement.

 List of Most Affordable Cars to Insure

Research covering 134 new vehicle makes, models, and insurance rates reveals that SUVs are the primary category among the top-10 most affordable cars to insure. These vehicles are divided into two groups: standard SUVs, including the Outback, CR-V, Tiguan, Trailblazer, and Escape; and crossover SUVs, comprising the CX-5, Countryman, HR-V, Sportage, and RDX.

 Insurance Affordability Among Popular Vehicle Models

For the bestselling vehicles in the United States, the average monthly car insurance premiums range from $195 to $333, showcasing a wide variation in insurance costs.

 Vehicle Type and Insurance Cost

In the United States, SUVs and trucks not only dominate sales but also feature prominently among the vehicles with the lowest insurance costs.

 High-Insurance Cost Vehicles

Vehicles such as certain electric vehicles and sports cars incur the highest average annual auto insurance rates. This is due to their high market value and the elevated costs associated with repairs and replacements, leading to higher insurance premiums.

 Factors Influencing Car Insurance Costs

Insurance companies calculate premiums based on various factors related to the driver and the vehicle, assessing the risk and potential loss from a claim. Common factors include age, annual mileage, claims history, coverage options, insurance history, credit history, driving record, gender, location, marital status, and the type of vehicle. These factors help insurers evaluate the likelihood of a claim and the potential cost involved.

 Impact of Car Models on Insurance Rates

“The most affordable cars to insure combine safety with affordability, like the Toyota Corolla,” explains Nick Schrader of Second Western Insurance Services. The model of a vehicle affects its insurability through factors like actual cash value, safety features, and loss probability. Vehicles with advanced safety sensors may be cheaper to insure due to reduced accident risks, whereas high-tech vehicles like Teslas may have higher insurance costs due to expensive repair needs post-accident.

A vehicle’s safety history can influence insurance costs, particularly liability coverage rates, if it’s known for causing severe injuries in accidents. Before purchasing, checking a vehicle’s safety rating with the Insurance Institute for Highway Safety is advised.

Vehicles that are frequently targeted by thieves, such as certain pickups and models from Honda, Hyundai, Kia, and Toyota, may have higher comprehensive insurance premiums.

 Strategies for Lowering Car Insurance Costs

To secure a competitive insurance rate, comparing quotes from various insurers is crucial. Schrader recommends exploring discounts for bundling policies, reducing mileage, and adding educational or professional credits. Additional tips include lowering deductibles, reconsidering collision and comprehensive coverages for older vehicles, paying premiums in full, completing approved driving courses, improving credit scores, and bundling home or renters policies with the same insurer to eliminate unnecessary duplicate coverages.