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What makes a car cheap to insure
The traits that keep a car's insurance cost low, from modest price and cheap repairs to low theft appeal, plus a checklist for shortlisting models.
A car is cheap to insure when it costs little to repair or replace, is unattractive to thieves, protects its occupants well and tends to be driven carefully. In practice that usually means a moderately priced, mainstream model with common parts and good crash ratings, often a small SUV, minivan or family sedan rather than a luxury, performance or very large vehicle. Your own record and location still matter more than any car choice, but the right model can trim the collision and comprehensive part of the bill noticeably.
The seven traits of a cheap-to-insure car
- A modest price. Collision and comprehensive pay up to the car's actual cash value, so a cheaper car caps the insurer's worst case. The Texas Department of Insurance notes that collision and comprehensive rates are highest for luxury, high-performance and sports cars.
- Inexpensive, available parts. Mainstream models with parts shared across many vehicles are cheaper and quicker to fix. Repair cost is one of the main vehicle factors the Insurance Information Institute lists.
- Low theft appeal. The Highway Loss Data Institute (HLDI) reports that theft losses are lowest for cheaper vehicles that are unpopular with thieves, such as station wagons. Security design matters too: theft losses soared for Hyundai and Kia models without electronic immobilizers starting in mid-2020; see The Kia and Hyundai theft wave and insurance.
- Good occupant protection. Fewer and less serious injury claims help the medical and injury parts of your premium. HLDI finds injury claim frequency tends to fall as vehicle size increases within each class.
- Not oversized. Bigger vehicles cost more to repair and do more damage to what they hit, so HLDI sees collision and property damage liability losses rise with size within each class.
- A family-oriented image. HLDI finds crash damage, injury and even theft claims are relatively rare for station wagons and minivans, which tend to appeal to less aggressive drivers.
- No performance badge. Performance trims and engines usually carry a higher vehicle symbol than the base version of the same model.
How body styles tend to compare
These are general patterns from HLDI's analysis of 2022-24 models, not rankings of individual cars.
| Vehicle type | Typical insurance pattern | Main reason |
|---|---|---|
| Minivans and station wagons | Favorable across most coverages | Careful drivers, low theft losses |
| Small and midsize SUVs | Often favorable | Good occupant protection at moderate prices |
| Pickups | Low collision losses; damage to others rises with size | Few collision claims, but weight adds to the damage they cause |
| Mainstream small cars | Low repair costs, higher injury claim frequency | Cheap to fix, less protection in crashes with bigger vehicles |
| Luxury cars and SUVs | High claim costs | Expensive to buy and repair |
| Sports cars | High collision claim costs; large sports cars have the highest relative theft losses | Price, and appeal to thieves |
| Large two-door cars | High losses under all coverages | HLDI says the class appeals to aggressive drivers and thieves |
Within each type, individual models vary widely. HLDI's insurance losses by make and model tables show where a specific model sits relative to the average; IIHS and HLDI insurance loss data: what it shows about cars explains how to read them.
Trade-offs to keep in mind
Cheap to insure is not the same as safe. A small, inexpensive car may carry a low collision rate because it is cheap to fix, but the Insurance Institute for Highway Safety notes that larger, heavier vehicles generally provide more protection. Medical bills and lost income after a serious crash are not limited to what your premium covers.
Technology raises some costs while lowering others. Automatic emergency braking and other driver-assistance systems prevent crashes, but their cameras and sensors make some repairs more expensive. driver-assistance sensors and the cost of repairs explains why a minor bumper repair can now cost far more than it used to.
Older is cheaper, up to a point. An older car with low value can be insured with liability only, which is often the cheapest setup of all. The catch is that you then pay for your own repairs or replacement after a crash or theft.
The premium is one part of the cost. Fuel, maintenance, depreciation and financing usually dwarf the difference in insurance between similar cars. Compare total monthly cost, not just the premium.
A worked example
These figures are hypothetical. You are choosing between two used compact SUVs at the same price. Your quotes come back with the same liability cost, but different collision and comprehensive costs:
| Model A | Model B | |
|---|---|---|
| Liability and injury coverages | $900 | $900 |
| Collision ($500 deductible) | $520 | $690 |
| Comprehensive ($500 deductible) | $150 | $280 |
| Annual premium | $1,570 | $1,870 |
Model B costs $300 a year more to insure, about $25 a month, or $1,500 over five years. If Model B is more reliable or gets better fuel economy, that difference might be worth paying; if the two are otherwise equal, Model A wins. The point is to price both before you buy, not after.
A shortlist checklist
Use this list for each car you are considering:
- Is the price, and the price of its common parts, moderate for its class?
- Does it have an electronic immobilizer and a low theft profile?
- Do its IIHS and NHTSA ratings show good crash protection for its size?
- Are its HLDI collision and comprehensive losses at or below average?
- Are you looking at a base or mid-level trim rather than a performance version?
- Will its driver-assistance sensors make minor repairs expensive?
- Have you gotten real quotes for the exact trim or VIN from at least two insurers?
Record the answers and quotes side by side in the car insurance quote comparison worksheet. For the step-by-step process of pricing insurance before a purchase, see check insurance costs before you buy a car. For the mechanics behind these patterns, see how the car you drive affects your insurance rate.
Ways to cut the cost of any car
Whatever you choose, a few levers apply: choose a higher deductible if you have savings to cover it, ask for safety and anti-theft discounts, keep the car in a garage where possible, and drop collision and comprehensive when the car's value no longer justifies them.
Key takeaways
- Cheap-to-insure cars are moderately priced, inexpensive to repair, unpopular with thieves and protective of their occupants.
- HLDI data shows minivans and wagons faring well and luxury cars, sports cars and large two-door cars faring poorly.
- Trim matters: performance versions usually cost more to insure than base models.
- A car that is cheap to insure is not automatically the safest choice for you.
- Price the exact trim or VIN with real quotes before you buy.