You take pride in being a savvy shopper. When shopping for a new automobile, you evaluate features and costs to ensure you’re getting the most excellent discount — and you also want to know which is the cheapest car to insure.
We looked at the top 25 best-selling models from the previous year and compared rates to see the cheapest to insure.
According to our statistics, the ten cheapest new car to insure in 2021 are:
- Subaru Outback
- Jeep Wrangler
- Honda CR-V
- Subaru Forester
- Ford Escape
- The Ford F-150
- Chevrolet Equinox
- Jeep Cherokee
- Toyota Tacoma
- RAV4 (Toyota)
While you may think that a less expensive car would have a lower insurance rate, this is not necessarily the case. The cost of car insurance varies widely, often dramatically, depending on the type of vehicle you drive (among other factors).
Suppose you wish to save some money on the expenses of your car. In that case, you should know that customers who purchase a Subaru Outback or Jeep Wrangler are likely to pay lesser rates than the average driver, as the national average cost of auto insurance is $1,427.
The impact of automobile types on insurance prices – right down to the trim level
Car insurance providers charge you and your vehicle depending on the risk they believe you and your vehicle pose. Insurers look at its claim history to estimate a vehicle’s risk, including accidents, repair expenses, and car theft rates. Higher auto insurance prices result from more and more expensive claims for a specific model. On the other hand, the cheapest cars to insure have fewer and lower-cost claims.
Car model-specific insurance premiums
The Honda CR-V and Subaru Outback are the most affordable automobiles to insure, which may come as no surprise. After all, according to the Insurance Institute for Highway Safety, or IIHS, both cars are top safety picks.
Nonetheless, your automobile insurance rate is determined by a variety of factors. According to the National Insurance Crime Bureau, despite receiving excellent safety ratings from IIHS, the Civic and Honda Accord were the most stolen vehicles in the US in 2018. This is most likely why these vehicles did not make our top ten list.
Car insurance rates and trim level
It’s also possible that adding amenities to your new car will raise your insurance costs. Vehicles with advanced safety features are more expensive to fix, and insurance may believe you’re more likely to speed and cause an accident if you choose a powerful engine.
Insuring the cheapest model of a new car can save you more than $200 per year than insuring one with features like GPS, a power moon roof, or a quality audio system.
Many enhancements are frequently bundled into multiple trim levels by car manufacturers. The base-level L, for example, is followed by the LE, SE, XLE, and XSE trim levels, each with more amenities and a higher beginning sticker price. The base trim level of each vehicle is used in our ranking of the cheapest vehicles to insure. Moving to a higher trim level on any car could result in a higher auto insurance rate.
Some automobiles to avoid if you want to save money on your insurance
Car insurance prices are frequently raised when certain sorts of automobiles are owned:
- Sports vehicles have some of the highest auto insurance rates because they’re engineered for speed and because their drivers are younger and hence more accident-prone, which drives up insurance costs.
- High-end luxury cars are often more expensive to insure since they are more costly to repair and replace if they are totaled.
- Due to their higher price tags and service expenses, replacing an EV battery alone can cost thousands of dollars, so electric vehicles can be more expensive to insure.
- Cars that criminals frequently target are likewise more expensive to insure. Comprehensive coverage provides for car theft, vandalism, fire, floods, and other hazards.
Insurance companies offer a broad range of discounts, rates, and premiums, making it tough to shop around. Compare vehicle insurance quotes to see which businesses in your state offer the most affordable coverage. Inquire about reductions with the insurance as well. Many insurance companies may give you a discount if your automobile includes safety features that lessen the chance of injury or theft.