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When calculating your premium, insurance companies take many factors into account. The vehicle year, make and model remain the biggest factors that help determine how much you can expect to pay for your insurance policy. Whether you select a new high-end vehicle or one that's used but trustworthy, your insurance rates will vary based on the model of the vehicle you choose.
The Cheapest Cars to Insure
Experian has looked at the 50 most commonly insured vehicles and compared the average premium paid by policyholders. The results presented have been rounded to the nearest dollar. In case of a tie, we took a look at the prices to the cent to determine the order.
| 10 Cheapest Car Models to Insure | |||
|---|---|---|---|
| Rank | Make | Model | Average Premium |
| 1 | Subaru | Outback | $1,240 |
| 2 | Subaru | Impreza | $1,419 |
| 3 | Subaru | Forester | $1,464 |
| 4 | Honda | CR-V | $1,481 |
| 5 | Jeep | Wrangler | $1,481 |
| 6 | Hyundai | Tucson | $1,509 |
| 7 | Ford | Escape | $1,514 |
| 8 | Nissan | Rogue | $1,524 |
| 9 | Toyota | Prius | $1,551 |
| 10 | Chevrolet | Silverado | $1,564 |
When comparing car makes rather than individual models, the data suggests that the top 10 looks slightly different. If you are simply focused on a car make, not a particular model, here are some car manufacturers you might want to keep in mind.
| 10 Cheapest Car Makes to Insure | ||
|---|---|---|
| Rank | Make | Average Premium |
| 1 | Pontiac | $1,168 |
| 2 | Volvo | $1,599 |
| 3 | Subaru | $1,620 |
| 4 | Acura | $1,645 |
| 5 | Buick | $1,694 |
| 6 | Mazda | $1,698 |
| 7 | Toyota | $1,727 |
| 8 | Ford | $1,747 |
| 9 | Mini | $1,751 |
| 10 | Honda | $1,781 |
Tips for Choosing Your Next Car
When choosing a new vehicle, there are certain car traits to keep in mind. Here are three actions you can take to reduce the cost of your auto insurance premium:
Avoid the newest models. When you're involved in an incident, your insurance company is expected to cover some or all of the losses you sustain. If the vehicle is brand new and worth more, the amount an insurance company might have to pay in case of an incident goes up. This, in turn, can cause them to charge you more for your policy.
Skip luxury cars. Luxury vehicles tend to be more expensive to insure. In fact, the cost to insure a luxury car can climb into the thousands. That's because luxury cars tend to be more expensive to repair due to replacement parts generally being more costly and harder to find. High-end vehicles are also at a greater risk of being broken into or even stolen, as they are perceived as a more valuable prize for a potential robber.
Avoid cars that are most likely to be stolen/broken into. Vehicles without proper security installations can also be a treat for a thief. Without an alarm system, whether it's passive or active or a GPS car-tracking system, the threat of your vehicle being stolen is bigger. Making sure your car can't easily be stolen could help you land a lower insurance premium.
Other Factors That Affect Car Insurance Costs
Your vehicle type, despite being crucial when calculating your insurance premium, is not the only factor being considered. Insurance companies look at many different factors when deciding your quotes.
Let's look at some other aspects you should keep in mind when searching for insurance.
The Age of Drivers Listed on the Policy
Car insurance is generally more expensive when drivers under the age of 25 are listed on the policy. Young men can have an especially major impact on the cost of a policy. If you are a younger driver or would like to have your child listed on the policy, you can expect your rates to go up. Young drivers are statistically more likely to be involved in an accident as they gain experience behind the wheel.
If the young driver is a student maintaining good grades, you might be able to apply for a good student discount. The discount can help you decrease your policy premium by 14% on average, depending on the company.
Where You Live
Your ZIP code can have a major impact on your policy premium. Things like traffic density, infrastructure, local weather or crime rate can all have an influence on your insurance. If you are more likely to file a claim due to your location, your insurance company could adjust your premium accordingly.
Your Driving Record
Having a clean driving record is a great way of ensuring your policy premium remains low. Drivers who have not participated or been involved in any accidents and haven't been cited with any moving violations are viewed as more trustworthy by insurance companies. They are statistically less likely to get into an accident that costs the insurer money.
If you were recently involved in an accident, the likelihood of you filing another claim in the near future is much higher. Insurance companies prepare themselves by increasing your premium by as much as 20% to 50% (depending on the company) per claim on your record.
Level of Coverage
By law, almost every state requires drivers to carry at least liability coverage. This is the most basic insurance package that covers the losses you cause to property that belongs to others. There are more inclusive policy types, such as full coverage, that also cover damage to your own vehicle and damage that results from natural disasters.
Insurance companies typically offer many add-ons you might be interested in including in your policy. Whether it's full coverage, rental reimbursement or roadside assistance, anything extra you choose along with your liability coverage, while giving you extra peace of mind, will also contribute to your policy premium rising.
Vehicle Use
Statistically, the more you operate your vehicle, the more likely you are to be involved in an incident. Drivers whose expected annual mileage is higher than average can expect higher rates. In other words, a vehicle you only use for the occasional trip to the grocery store will be cheaper to insure than, say, a car you drive for a lengthy daily commute to work.
How Do I Get Cheap Insurance for My Car?
Exploring multiple options is always the best idea when shopping around for insurance. Even though one company might not offer you a satisfactory deal for your vehicle, another might have just the thing you need. Inputting the same data over and over with different companies can be a tedious task. You can use Experian's auto insurance comparison tool to request quotes from more than 40 respectable insurance companies.