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Cheapest Cars to Insure

by Agnieszka Fratczak,  Jan 15 2021

COVID-19 has affected our lives on many levels, including uncertain financial futures. You may have wondered how to cut down your expenses, including car insurance which is often not the cheapest. Pricing is based on a wide variety of factors like your driving record or location. While you don’t have too much control in these areas, you can definitely consider your vehicle’s make and model if you want to lower your car insurance premium. 

Why does your car model affect your policy premium?

The cheapest cars to insure

Why does your car model affect your policy premium?

Insurance companies base their pricing on the type of the vehicle you drive as some of them are more often involved in an accident. For example, sports vehicles tend to be more expensive than family cars since there’s more likelihood for speeding. 

Also, luxurious cars will cause a surge in your rate due to repair costs. Insuring them is usually way more expensive because of exclusive materials/specialty parts used in production (e.g. wood interior). You can count on a cheaper rate if your car is not very popular on the market. In case of damage, parts are available on hand which substantially diminishes repair costs.

Besides, insurers will definitely take a look at the claim rate of the vehicle you possess. If it’s high, meaning this type of car is often stolen, your policy premium will reflect that regardless of whether you have ever reported a claim. 

Another factor impacting policy premium is equipment. If your vehicle is equipped with sophisticated add-ons like a prime GPS or audio system it would likely cost more to repair it. Also, if its engine is more powerful, the car insurance company may view you as a high-risk driver who won’t abide by speeding rules. There’s a bigger chance you will get into an accident, so your pricing needs to reflect that.

Car insurance companies will likely reduce the policy premium if your vehicle is loaded with safety features such as airbags or back-up cameras, driving such a car can reduce the risk of a collision or cause less damage if one happens. 

The cheapest cars to insure

  1. Mazda CX-3 Sport (average policy rate $1,324)
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2. Honda CR-V LX (average policy rate $1,333)

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  1. Jeep Wrangler Sport S (average policy rate $1,334)
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  1. Subaru Outback 2.51 (average policy rate $1,335)
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  1. Fiat 500x Pop (average policy rate $1,336)
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  1. Honda Odyssey LX (average policy rate $1,353)
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  1. Subaru Forester 2.5i (average policy rate $1,373)
carsguide.com.au
  1. Mazda CX-5 (average policy rate $1,374)
edmunds.com
  1. Jeep Renegade (average policy rate $1,374)
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  1. Honda HR-V LX (average policy rate $1,377)
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In the ranking published on insure.com, Mazda CX-3 Sport turned out to be the least expensive vehicle to insure last year, with an average policy premium of $1,324. It’s a small CUV that’s family-friendly and equipped with many safety features. The national average is $1,904 and this model is way below the average price. It also earned IIHS’s Top Safety Pick in 2019. 

The second most affordable car when it comes to insurance is the Honda CR-V LX (with policy premium around $1,333), also packed with safety equipment.

The top three were closed out by Wrangler Sport S and with an insurance price of $1,334. Jeep drivers tend to drive safely and repair costs are relatively affordable due to basic and on hand available parts.

If you need assistance with lowering your policy premium, feel free to sign up with Gabi and get your free rate comparison across top US providers today!

Editorial content on Gabi.com is not written by a licensed insurance agent. It is intended for informational purposes only and should not be considered legal or financial advice.

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