When looking for car insurance that won’t break the bank, you may feel like you need to compromise on coverage. However, the good news is that there are several affordable insurance policies available that offer reliable protection.
These policies range from basic liability coverage to more comprehensive options, and can fit within your budget. It’s important to keep in mind that affordability doesn’t always equate to suitability, so it’s crucial to carefully evaluate your options before making a decision.
With a bit of research and diligence, you can find a policy that provides the protection you need without putting a strain on your finances.
Car Insurance Explained
Insurance for cars is more than just a choice; It is mandated by law. This safety net protects you, your vehicle, and other drivers from financial loss in the event of an accident.
It covers your losses as a result of an accident, including injuries and property damage. It might also cover vehicle theft and damage brought on by fire, storms, or other natural disasters.
Therefore, make sure you have the appropriate auto insurance policy in place to guarantee your safety on the road.
Your Top Picks for Budget-Friendly Car Insurance
The kind of car you drive is just one of many factors that insurance companies take into consideration when determining your monthly premium. You should drive a car that your insurance company considers safe and dependable in order to get the best car insurance rate.
But which cars have the lowest insurance premiums? Here’s a list of the 10 cheapest cars to insure:
- Subaru Outback
- Honda CR-V
- Honda Pilot
- Ford Escape
- Honda Odyssey
- Ford F-150
- Jeep Wrangler
- GMC Sierra 1500
- Toyota RAV4
- Nissan Rogue
The typical driver will spend between $1,121 and $1,190 annually to insure one of these vehicles with full coverage.
The Insurance Information Institute says that the average annual cost of car insurance for all vehicles is $1,588, so driving any of the cars on this list could save you a lot of money.
Before you start looking for a new car, it helps to know which vehicles are the cheapest and most expensive to insure.
It’s important to think about the cost of insurance every month, and you can get estimates from insurance companies before you buy to make sure you stay within your budget.
An In-Depth Look At Cheap Insurance Cars
Let’s take a closer look at what makes these cars affordable now that you know which ones are the most affordable to insure. We’ll take a deeper look at factors that are often overlooked but can help you save money on car insurance and make better car buying decisions.
How Car Models Affect Insurance Rates
When determining your rate, a car insurance company takes a lot of things into account. The risk of the driver as well as the vehicle they drive determines the insurance premium.
Insurance companies calculate your rate based, among other things, on the number of accidents you’ve been in, how much it will cost to fix the car they insure, how often your model is stolen, and the safety features of your trim.
If you drive a vehicle in this category, your insurance premium will likely be higher because certain models and trim levels may pose a greater risk.
The cheapest automobiles to insure typically have fewer claims and lower payout costs for those that do. You can find information about the vehicles that the IIHS considers to be the safest based on various testing criteria on its website.
The additional features of your new vehicle are one more thing that insurance companies take into consideration. High-tech safety features, for instance, can be more expensive to fix, making them more expensive to insure.
Even though the majority of people believe that driver-assist technologies help keep drivers from making mistakes, insurance companies don’t think there is enough evidence to back up these claims.
Therefore, the fact that your new car has blind-spot detection or a back-up camera does not necessarily mean that your insurance company will offer you a significant discount.
An insurance company may believe that you are more likely to speed or drive recklessly and cause a collision if you select a more powerful engine option; Additionally, replacing a larger engine will cost more. Sports cars and luxury cars also cost more to insure for similar reasons.
On the other hand, compared to a vehicle with high-end features like navigation, a premium sound system, or a power moonroof, choosing the base trim or a lower-priced model of a new car can save you more than $200 per year. A vehicle without these features will cost less to insure because repairs are more expensive.
Safety Features and How They Impact Insurance Costs
Your vehicle’s standard and upgraded features, in addition to a number of other factors, influence the cost of your insurance. An insurance company may consider your vehicle to be safer and less likely to cause injuries in an accident because of certain advantages, such as high safety scores from the National Highway Traffic Safety Administration.
Antitheft systems, collision-avoidance features like lane departure warning, and the typical cost of parts are additional factors that insurance companies take into consideration. Your insurance premium will likely be lower if you buy a vehicle that is safer and more affordable to repair and replace.
Because they are typically driven by cautious individuals who live a more laid-back lifestyle, family-friendly automobiles also tend to be less expensive to insure.
Rates are set by insurance companies using data and past experience with a particular vehicle; Because insurance rates are based on previous claims experience, you can still benefit from driving a family vehicle even if you are not a family-oriented driver.
However, the knowledge and evaluation of a vehicle by an insurance company can also work against you. Because insurance rates are based on data from all accidents involving a particular vehicle, even if you drive safely and carefully, your premium may be higher if the make and model of your vehicle has a higher rate of claims or problems.
Common Factors That Determine the Cost of Car Insurance
A few of the factors that insurance companies use to determine your monthly premium include the year, make, and model of your vehicle.
Before you start looking for cheap car insurance, you should be aware of the other factors. The majority of insurance companies will use these factors to determine your premium:
- Your personal rating factors and information: This includes whether you have a clean driving record and your claim history.
- The average cost to repair or replace the vehicle: Your premium’s comprehensive and collision rates take this into account.
- Your vehicle’s make and model: : This includes the typical amount paid out for claims or accidents involving your vehicle’s make and model.
- The cost of damages to property or people your vehicle is likely to cause: This is taken into account when calculating your premium for liability and medical coverage—minimum coverage varies by state.
- The distance you drive each year: Not only will accurate mileage help you pay the right amount, but it will also protect you from having a problem with a claim if you provide false or inaccurate information.
- Your age and driving experience: This may have an impact on your risk of being in a collision, which can have an impact on your insurance premiums. This may be combined with any driving training you have.
- Your marital status: Married couples are statistically less likely to cause an accident or file an insurance claim, so this will have an effect on your premium.
- Your credit score: A lower insurance rate may be possible for you if you have a higher credit score.
- The size of the vehicle: Vehicles that are smaller and lighter are less likely to be damaged than those that are larger and heavier.
- Your gender: Female drivers are less likely to get into accidents and are cheaper to insure than male drivers.
- Your ZIP Code: This is used to determine the level of risk posed by your location. Premiums typically rise in areas where there are more uninsured drivers and a higher rate of crime.
Tips for Finding the Cheapest Car to Insure When Making a New Car Purchase
The national average cost of car insurance, which is $2,375 per year, is one of the many factors that went into ranking the cars that cost the least to insure. The Subaru Outback, which ranks first on the list of the cars that cost the least to insure, has an annual insurance cost of $1,603 on average.
The annual costs of the cars on the list of the least expensive to insure range from $1,603 to $1,880, which is less than the national average. You can save hundreds of dollars per year on insurance with any vehicle you choose.
Here’s the ranking of the cheapest vehicles to insure by average annual rate:
- Subaru Outback: $1,603.
- Honda CR-V: $1,635.
- Honda Pilot: $1,726.
- Ford Escape: $1,734.
- Honda Odyssey: $1,735.
- Ford F-150: $1,753.
- Jeep Wrangler: $1,820.
- GMC Sierra 1500: $1,867.
- Toyota RAV4: $1,869.
- Nissan Rogue: $1,880.
The IIHS and NHTSA give each of these vehicles high marks, and when claims are made, they cost little to fix or replace. If you want to save the most money on your car insurance, it might be a good idea to drive one of these vehicles.
Other Cars That Can Save You Money on Insurance
Consider purchasing a used vehicle if you’re looking for additional options for low-cost auto insurance. Older cars may cost less to insure than newer ones.
There are additional ways to save money. For instance, the following is a list of five car models that have some of the lowest insurance rates:
- Mazda: $2,092.
- Volkswagen: $2,126.
- Honda: $2,148.
- Ford: $2,190.
- Kia: $2,216.
Your monthly insurance premium will also be influenced by the class of vehicle you drive. The least expensive vehicle types to insure are:
- Small pickup trucks: $2,179.
- Small SUVs: $2,257.
- Standard pickup trucks: $2,313.
- Compact cars: $2,325.
- Midsize cars: $2,505.
Avoid These Vehicles If You Want Cheaper Insurance
Knowing which vehicles to avoid is helpful if you want to cut costs on your insurance. Due to their high-performance capabilities and the type of drivers who typically drive them, sports cars are among the most expensive vehicles to insure.
Based on data from their driving habits, many sports car drivers are young and lack experience and pose a higher risk of collisions.
Due to their high repair costs, luxury vehicles also require higher insurance premiums. When they are totaled in a collision, luxury cars typically cost more to repair and more to replace.
In fact, your car’s MSRP can affect how much you pay for insurance. Insurance costs will be lower for vehicles priced between $25,000 and $40,000 than for those with an MSRP of $50,000 or more.
Due to the vehicle’s higher cost of repair or replacement, electric cars also have higher prices. An electric vehicle battery, for instance, has an average lifespan of eight to ten years and can be repaired or replaced for thousands of dollars.
Insurance providers also take theft into account. Vehicles of high value and luxury are more likely to be stolen. In addition to covering vehicle theft, comprehensive auto insurance also covers fire, flooding, and vandalism. Having this coverage for a more expensive, high-end vehicle will cost you a lot more each month because it costs more.
These are some of the vehicles with the most expensive full-coverage annual insurance premiums:
- Dodge Charger: $2,824.
- Tesla Model Y: $2,804.
- Mercedes C300: $2,753.
- Cadillac Escalade: $2,743.
- Tesla Model 3: $2,577.
You should drive a car that costs less to insure in order to get the best insurance rate. The kind of car you drive is one of the many things your insurance company will consider when determining your premium for auto insurance.
You can get a lower insurance premium by selecting a vehicle that your insurance company considers to be safer and less expensive to repair or replace in the event of an accident or natural disaster.
Frequently Asked Questions:
What other factors should I consider when selecting a car insurance provider?
When choosing an insurance provider, it’s important to think about the rates they offer, the level of service they provide, how satisfied their customers are, and any special deals or incentives they might have. It’s also important to find out if the provider covers modified or classic cars as well as other makes and models of automobile.
Does Servicing Your Vehicle Affect Your Car Insurance?
No, unless it has damaged your car’s engine or caused an accident, maintenance does not directly affect your insurance rate.
Which car insurance provider currently offers the cheapest car insurance?
State Farm is currently the most cost-effective choice for automobile insurance. State Farm, the largest auto insurance company in the United States, provides plans at prices that drivers of all ages and backgrounds can afford.
If you’re a driver and want to cut costs on your premiums, Progressive and Geico are also good choices. To get the best deal on your auto insurance, compare rates from various companies.
