Top 10 Cheapest Cars to Insure: Full Guide for Insurance Buyers 

We’ve all been there — shopping for a car. You usually focus on fuel economy, reliability, resale value, good looks, and, of course, cost. But confusingly, one of the most “hidden” costs is insurance, and your selection of vehicle will have a substantial impact on your annual rate.

Most drivers are experiencing rising auto insurance costs in 2025. According to Bankrate, the average auto insurer full-coverage premium in the U.S. stood at just under $2,680 annually (as of June 2025).

So, even if you select “cheap to drive, expensive to insure” car models, you’ll pay over time. You could pay thousands before a five or ten-year ownership term, on the different insurance rates between a “good choice” car model and a “bad choice” car model.

That’s what this guide provides you with:

• A data-driven report on the Top 10 cheapest cars to insure in the U.S. in 2025
• Reasons why the factors insurers use are important
• A “Checklist on How to Lower Your Rates”
• Thoughts on state-by-state variation with caveats

Let’s dive in.

Why Vehicle Choice Impacts Your Insurance Premiums

Insurers study how often a car model gets into claims (frequency) and how expensive those claims are (severity). When both are high, premiums rise.

• The Highway Loss Data Institute shows passenger cars have a collision claim frequency of around 6.2 per 100 insured vehicle years, averaging about $9,400 per claim.
• Theft cases can exceed $50,000 per vehicle for newer models.
• Rising parts prices and complex electronics mean claim severity has grown faster than frequency.

Bottom line: Cars that are involved in more accidents or are more expensive to repair are more expensive to insure.

Key auto-related rating factors (repair cost, parts availability, theft rates, safety features)

Here’s what most affects your insurance rate:

Repair & parts cost: Luxury or imported models with pricey sensors and electronics cost more to fix.

Parts availability: Rare parts mean longer repair times and higher bills.

Theft rates: Cars with high theft risk, like certain Hyundai and Kia models, have steeper premiums.

Safety features: Crash-avoidance tech reduces accidents but increases repair costs if damaged. Cars with strong crash ratings usually get lower liability premiums.

Impact of make/model popularity, age, and trim level

Popularity: Common models are cheaper to fix but may be theft targets.

Age: Older cars cost less for liability coverage, but can be totaled easily due to outdated parts.

Trim level: Basic trims are cheaper to insure; sporty or luxury trims raise risk and repair cost.

Trade-offs: safety features may increase repair costs but reduce claim risk

Advanced safety features help prevent crashes but make repairs pricier. Sensors and cameras are costly to replace. So while you might pay slightly more for insurance, your injury and out-of-pocket risk drop—often worth the trade-off.

Quick TIp

To keep insurance low, choose a car with low claim frequency, reasonable repair costs, solid safety ratings, and minimal theft risk.

U.S. National Benchmark: Average Insurance Costs in 2025

In 2025, the average annual cost for full coverage car insurance in the U.S. is approximately $2,638, while minimum coverage averages around $806 per year. This represents a 12% increase from the previous year, indicating a rising trend in insurance premiums.

Range & Variance by State

Insurance costs vary significantly across states due to factors like population density, road conditions, and local regulations. For instance:

California: Full coverage averages $3,083 per year, 16% above the national average.

Idaho: Offers some of the lowest rates, with full coverage averaging $1,436 annually, 46% below the national average.

New York: Full coverage costs about $4,032 per year, significantly higher than the national average.

Example Distribution: Low-Cost vs. High-Cost Models

The type of vehicle you drive plays a crucial role in determining your insurance premium. For example, a compact sedan like the Honda Civic may have lower premiums due to its affordability and safety features. In contrast, a luxury vehicle such as the BMW 7 Series could lead to higher premiums because of its repair costs and theft risk. It’s essential to consider these factors when selecting a vehicle to ensure manageable insurance expenses.

By understanding these benchmarks and variances, you can make more informed decisions about your car insurance, potentially saving money by choosing vehicles that align with your budget and insurance goals.

Top 10 Cheapest Cars to Insure in 2025

These vehicles are popular choices for drivers seeking lower insurance costs due to their safety, reliability, and moderate repair expenses. Estimated premiums are based on full-coverage national averages and may vary by state and driver profile.

1. Mazda CX-5

Compact SUV known for reliability and high safety ratings.

Estimated Annual Premium: ~$1,877

Why It’s Affordable: 

• High safety ratings reduce accident-related claims
• Moderate repair and maintenance costs
• Easily available replacement parts
• Reliable track record lowers insurer risk

2. Honda CR-V

Popular crossover with proven reliability and low operating costs.

Estimated Annual Premium: ~$1,881

Why It’s Affordable: 

• Low theft rates
• Moderate repair costs
• Widely available parts
• Strong crash-test performance

3. Hyundai Kona

Description: Subcompact SUV with strong safety features and efficient design.

Estimated Annual Premium: ~$1,890

Why It’s Affordable: 

• Compact size lowers accident severity
• Affordable repair parts
• Strong safety features
• Moderate claim frequency

4. Subaru Outback

All-wheel-drive wagon with excellent safety and versatility.

Estimated Annual Premium: ~$1,893

Why It’s Affordable: 

• All-wheel drive reduces risk in adverse conditions
• Excellent safety ratings
• Durable construction
• Moderate repair costs

5. Subaru Crosstrek

Description: Small crossover combining safety, efficiency, and all-wheel drive.

Estimated Annual Premium: ~$1,897

Why It’s Affordable: 

• High safety scores
• Reliable AWD system
• Low accident severity
• Affordable repair parts

6. Toyota Tacoma

Compact pickup truck with strong durability and resale value.

Estimated Annual Premium: ~$2,377

Why It’s Affordable: 

• Durable construction minimizes damage claims
• Widely available replacement parts
• Lower-risk trims for personal use
• Moderate repair costs

7. Hyundai Tucson

Economical compact SUV with modern safety tech.

Estimated Annual Premium: ~$1,941

Why It’s Affordable: 

• Low accident severity
• Affordable parts and maintenance
• Strong safety ratings
• Reliable performance

8. Ford Escape

Compact SUV with strong safety performance and easy maintenance.

Estimated Annual Premium: ~$1,375

Why It’s Affordable: 

• High safety ratings
• Easy-to-repair design
• Low theft rates
• Moderate repair costs

9. Chevrolet Equinox

Family-friendly SUV with dependable performance.

Estimated Annual Premium: ~$1,385

Why It’s Affordable: 

• Common, reliable parts
• Moderate repair costs
• Good safety ratings
• Low accident claim frequency

10. Kia Niro

Hybrid SUV offering fuel efficiency and solid safety features.

Estimated Annual Premium: ~$1,950

Why It’s Affordable: 

• Low theft risk
• Affordable hybrid maintenance
• Strong crash-test ratings
• Moderate claim severity

Quick keytakeaways

Compact SUVs and crossovers dominate this list because they combine safety, moderate repair costs, and overall value, making them consistently among the cheapest cars to insure in 2025.

Cheapest Cars to Insure by Class / Segment

When shopping for a car, considering insurance costs is crucial. Here’s a breakdown of the most affordable vehicles to insure in 2025, categorized by class or segment: 

Low-Cost Sedans & Hatchbacks

Cheapest SUVs / Crossovers

Best Low-Priced Trucks / Pickups / Vans

Cheapest Hybrid / Electric / Alternative-Fuel Models

Cheapest Cars to Insure for Young / New Drivers

Young drivers (teens, new licensees) are among the costliest to insure. Their risk of accidents and claims is statistically higher. But even in that class, certain models stand out as mitigators of cost.  Below are the cheapest cars to insure for young / New drivers.

Why these models work better for young drivers: 

• They carry lower claim severity in class (not extreme horsepower). 

• Safety and crash avoidance features help offset the higher risk baseline. 

• Insurers have more stable data about them — less “wildcard risk” premium loading. 

Cheapest Cars to Insure by State / Region

Car insurance premiums vary significantly across the United States due to factors like state laws, population density, weather conditions, and accident rates. Understanding these regional differences can help you make informed decisions when purchasing a vehicle and selecting insurance coverage. 

Why Rates Vary So Widely by State 

Several state-specific factors influence insurance premiums: 

• State Laws: Minimum coverage requirements and regulations can impact insurance costs. 

• Population Density: Higher population densities often lead to increased traffic and a higher likelihood of accidents. 

• Theft Rates: Areas with higher vehicle theft rates may experience increased premiums. 

• Uninsured Driver Rates: States with higher percentages of uninsured drivers can lead to higher costs for insured motorists. 

Average Full-Coverage Premiums by State 

According to Bankrate’s 2025 data, the national average cost for full coverage car insurance is $2,638 per year. However, premiums can vary significantly by state. 

State-by-State Premium Examples 

Here are some examples of average full-coverage premiums in select states: 

• Florida: $3,267 per year 

• Louisiana: $2,989 per year 

• California: $2,017 per year 

• Maine: $1,243 per year 

• Vermont: $1,283 per year 

These figures highlight significant regional differences in insurance costs. 

Tips for Residents of High-Cost States

If you reside in a state with high insurance premiums, consider the following strategies to mitigate costs: 

• Maintain a Clean Driving Record: Avoid accidents and traffic violations to keep premiums lower. 

• Opt for Higher Deductibles: Increasing your deductible can lower your monthly premium, but ensure you can afford the out-of-pocket cost in case of a claim. 

• Bundle Policies: Consider bundling your auto insurance with other policies, such as home or renters insurance, to receive multi-policy discounts. 

• Shop Around: Regularly compare quotes from different insurance providers to ensure you’re getting the best rate. 

• Consider Vehicle Type: Certain vehicles may be more expensive to insure; opting for cars with high safety ratings and lower repair costs can help reduce premiums. 

Understanding how state-specific factors influence car insurance premiums can empower you to make informed decisions and potentially save on insurance costs. Always consider your personal circumstances and consult with insurance professionals to find the best coverage for your needs. 

Quick Tip

Live in a high-premium state? Compare quotes often and bundle policies — small changes like higher deductibles or safer car choices can lead to big savings.

How to Lower Your Premium: Practical Checklist

Even after choosing a low-insurance model, your personal choices matter. Here’s a no-nonsense checklist on how to lower your premium. 

• Raise your deductible: A higher deductible (e.g., $1,000 vs. $500) can lower your premium. Just make sure you can afford the out-of-pocket hit. 

• Maintain a clean record: Traffic tickets, accidents, and claims are the fastest way to lose any discount. 

• Bundle insurances: Home, renters, umbrella, or other policies with the same insurer often yield a “multi-policy” discount. 

• Use safety / anti-theft gear: Alarms, immobilizers, dash cams, tracking systems all help. 

• Ask about discounts: Many insurers offer “good student,” “safe driver,” “low mileage,” “multi-car,” “paperless / autopay” discounts. 

• Shop / re-quote annually: Insurance markets are volatile. Getting fresh quotes can sometimes reveal surprises. 

• Improve credit (if applicable in your state): Where allowed, insurers may reward better credit profiles. 

Applied consistently, you might shave off 10–30% (or more) from your model’s baseline premium. 

What Reddit Users Say About the Cheapest Cars to Insure

Reddit users often share firsthand experiences and insights about car insurance costs, especially for young drivers. Their discussions highlight that the cheapest cars to insure are typically older, less flashy models with good safety records and low theft rates. 

Top Picks from Reddit Discussions 

• Mazda MX-5 Miata (1990–2005)
  Redditor “Resident_Mongoose395” mentions that the NA/NB Mazda MX-5 Miata is among the cheapest vehicles to insure, with some users reporting full coverage premiums as low as $75 every six months. This is attributed to its affordability, low theft rates, and the fact that it’s not commonly driven by younger, high-risk drivers. Reddit 

• Volvo XC60 and XC90
  In a discussion about the cheapest cars for new teenage drivers, a user found that the Volvo XC60 was the most affordable to insure, followed by the XC90. Interestingly, a 2012 C6 Corvette was 30% cheaper to insure than a Volvo S60, which is typically considered a safe and reliable vehicle.  

• Hyundai i10
  In the UK, the Hyundai i10 is frequently recommended for new drivers due to its low insurance costs. One Redditor shared that the cheapest car to insure as a learner was a nine-year-old Hyundai i10, which had over 100,000 miles and remained reliable.

Final Thoughts & Next Steps

If you’re car shopping and care about reducing your insurance burden: 

• Start your shortlist using models like Mazda CX-5, Honda CR-V, Subaru Outback, Hyundai Kona, and Subaru Crosstrek. 

• For younger drivers, lean toward proven, safe, moderate-power crossovers (Outback, CR-V, CX-5) rather than sporty or luxury trims. 

• Before you buy, shop real quotes (from at least 3 insurers) using your driver + ZIP + trim data. 

• Apply the checklist above to push your premium down further. 

• Reassess every renewal cycle — insurance pricing moves faster than car depreciation. 

Over three decades in the U.S. insurance business, I can tell you the secret most buyers don’t recognize: your choice of car is one of your strongest levers in keeping insurance costs under control. Too often, people pick a car for looks or performance and only later discover they’re locked into exorbitant premiums for years.