Top Cars with Cheap Insurance in 2025: Affordable Options

Have you ever found the perfect car, only to be hit with an insurance quote that’s far higher than you expected? After weeks of searching, test-driving, and negotiating, you finally choose a car that suits your life—then the monthly premium arrives, and suddenly, your dream car feels like a financial burden.

This is a common frustration for many car buyers. The total cost of owning a car goes well beyond its purchase price. Hidden costs, especially insurance, can quickly stretch your monthly budget and create long-term financial stress. Often, drivers don’t realize how much insurance will cost until after they’ve signed the paperwork, locking them into an unaffordable payment for years. What should be an exciting new car experience turns into a headache.

So, how do you avoid this financial trap? Finding a car with cheap insurance isn’t about chance; it’s about making an informed decision. This guide will arm you with the knowledge to make a budget-friendly choice. We’ll explain why some cars are cheaper to insure and provide lists of the most affordable options across every major category. Whether you’re a new driver, a growing family, or looking to go electric, this guide will help you choose a car that’s both a joy to drive and easy on your wallet.

Why Are Some Cars Cheaper to Insure Than Others? The Core Factors

Before diving into specific models, it’s essential to understand how insurance companies think. At its core, an insurance premium is a reflection of risk. Insurers analyse vast amounts of data to predict how likely a specific vehicle is to be involved in a claim and how much that claim is expected to cost. Cars with a lower statistical risk profile will always have cheaper insurance. The primary factors that determine this risk include:

• Vehicle Safety Ratings: A car’s ability to protect its occupants and prevent accidents is a top consideration. Vehicles that receive high marks from the Insurance Institute for Highway Safety (IIHS)—especially those earning a Top Safety Pick or Top Safety Pick+ award—and a 5-star rating from the National Highway Traffic Safety Administration (NHTSA) are proven to be safer. This lower risk of injury directly translates to lower insurance costs.
• Repair and Replacement Costs: The sticker price (MSRP) is just the beginning. Insurers look at the cost of parts and labour for standard maintenance. A mainstream domestic SUV with widely available parts will be far cheaper to repair after a fender-bender than a luxury import with specialised carbon-fibre components. The lower the potential repair bill, the lower your collision and comprehensive premiums will be.
• Claim History and Frequency: Insurers rely heavily on data from organisations like the Highway Loss Data Institute (HLDI) to evaluate how different models perform in real-world scenarios. This data reveals which cars are involved in frequent accidents and which tend to result in expensive bodily injury claims. A minivan, for instance, is typically driven more cautiously than a high-performance sports car, resulting in a lower claim frequency.
• Theft Rates: The likelihood of your car being stolen directly impacts your comprehensive insurance premium. The National Insurance Crime Bureau (NICB) regularly publishes lists of the most stolen vehicles. Models that are frequent targets, like some full-size pickups and popular sedans, often carry higher insurance costs.
• Vehicle Type and Size: Bigger isn’t always more expensive. While a large SUV might cause more damage in an accident (increasing liability risk), it also offers better protection to its occupants, potentially lowering the cost of medical claims. This is a key reason why many midsize SUVs and minivans are cheaper to insure than smaller sedans.

The 10 Cheapest Cars to Insure in 2025

Our analysis, based on average complete coverage premium data from numerous sources, reveals that practical, safe, and reliable vehicles dominate the list of the most affordable cars to insure. For comparison, the national average cost of car insurance is $2,679 per year for a full coverage policy. The models below fall significantly below that average.

Finding Cheap Insurance for Every Type of Driver and Car

Your vehicle needs are unique. You might be a teen looking for a first car or a family needing more space. The good news is that affordable insurance options exist in every category.

Cars with Cheap Insurance for Young and New Drivers

Teens and new drivers face the highest insurance premiums of any age group due to their lack of experience. Choosing the right car is one of the most effective ways to manage these high costs. The best cars for cheap insurance for new drivers are typically smaller, have less powerful engines, and are packed with safety features.

• Top Vehicle Picks:
  • Honda Civic: A perennial favourite known for its reliability, safety, and modest engine size. The average premium is around $2,662/year.
  • Toyota Corolla: Similar to the Civic, it’s a dependable and safe choice with low repair costs.
  • Subaru Impreza: Standard all-wheel drive provides an extra layer of safety, which insurers like.
  • Kia Forte: Offers modern safety features at an affordable price point, with an average premium of $2,846/year.
• Why These Cars Work: These models are in lower insurance groups because they are less likely to be driven at high speeds and are generally inexpensive to fix if an accident occurs. Their strong safety ratings also mean occupants are better protected, reducing the risk of costly medical claims.
• Pro Tip for Teens: Some companies, like Farm Bureau, are known for offering some of the cheapest liability-only rates for teen drivers, sometimes as low as $143 per month. Always compare quotes and ask about good student discounts.

Cheap Family Cars to Insure

For families, safety is the top priority, and insurers reward this. Minivans and midsize SUVs are consistently among the cheapest vehicles to insure because they are built to protect passengers and are typically driven by responsible, risk-averse drivers.

• Top Vehicle Picks:
  • Honda Odyssey: Often cited as the cheapest minivan to insure, with top-tier safety scores. The average premium is $2,423/year.
  • Chrysler Pacifica: Another highly-rated minivan with competitive insurance rates.
  • Subaru Forester: A compact SUV with excellent visibility, standard AWD, and a bodily injury claim frequency 54% lower than average.
  • Toyota RAV4: A reliable and safe choice for families, with an average premium of $2,394/year.
• Why These Cars Work: These vehicles are packed with advanced driver-assistance systems (ADAS) and are designed to perform well in crash tests. Their intended use as family hauliers means they are statistically involved in fewer at-fault accidents, making them a safe bet for insurers.

Fast Cars with Surprisingly Cheap Insurance

Think a fun, sporty car is out of reach because of insurance? Think again. While high-end supercars have astronomical premiums, some performance-oriented vehicles are relatively affordable to insure.

• Top Vehicle Picks:
  • Mazda MX-5 Miata: This iconic roadster is lightweight and has a modest engine, making it less of a risk than heavyweight muscle cars. Its excellent handling can also help drivers avoid accidents.
  • Subaru BRZ / Toyota GR86: Like the Miata, these coupes focus on balance and handling rather than raw power. They are less expensive to repair than high-end European sports cars.
• Why These Cars Work: Insurance companies look at horsepower, repair costs, and claim history. These models have a lower power-to-weight ratio and are cheaper to fix than a Porsche or Audi R8. They offer the thrill of a sports car without the insurance penalty of a supercar.

Cheap Car Insurance for Electric Cars (EVs)

Electric cars are cheaper to fuel and maintain, but insuring them can be more complex. Premiums are often higher than for comparable gasoline cars, but this is starting to change.

• The Insurance Challenge:
  • High Repair Costs: The specialised components, especially the high-voltage battery pack, can cost thousands of dollars to repair or replace after an accident.
  • Specialised Labour: Not all body shops are equipped to handle EV repairs, leading to higher labour costs.
  • High Purchase Price: EVs generally have a higher MSRP, increasing the potential payout if the car is totalled.
• Affordable EV Options:
  • Chevrolet Bolt EV: With a bodily injury claim frequency 37% below average, it is one of the most affordable EVs to insure.
  • Nissan Leaf: Another established EV with a strong safety record and a claim frequency 22% below average.
  • Tesla Model 3/Y: While more expensive than other EVs, some insurers are becoming more competitive. Companies like GEICO and Progressive now have extensive experience with Teslas and can offer reasonable rates.
• Pro Tip for EVs: Look for insurers that offer specific EV coverage, which may include protection for charging cables, wall chargers, and battery issues.

Cheap Vintage and Classic Car Insurance

Insuring a classic car is a different process than insuring a daily driver. Suppose your car is 15 years or older and not used for regular commuting. In that case, you can get specialised classic car insurance, which is often surprisingly affordable.

• How It Works:
  • Agreed Value Coverage: Instead of paying the depreciated market value (Actual Cash Value) after a total loss, you and the insurer agree on the car’s value upfront. This protects your investment.
  • Specialised Insurers: Companies like Hagerty and Grundy are experts in the classic car market and offer policies tailored to collectors.
  • Usage Restrictions: Policies typically have mileage limits (e.g., 5,000 miles per year) and require the vehicle to be stored in a secure garage.
• Why It’s Cheaper: Insurers know that classic car owners are enthusiasts who take exceptional care of their vehicles and drive them sparingly, resulting in a very low risk of claims.

What to Avoid: Cars That Are Expensive to Insure

While some cars are cheap to insure, others can significantly increase your premiums. Avoiding certain models is an effective way to keep your insurance costs under control.

1. High-End Luxury Cars: Brands like BMW, Mercedes-Benz, and Audi often come with high insurance costs. Their expensive parts, specialized repair technologies, and higher labor rates mean that even minor accidents can lead to costly claims. For example, insuring an Audi R8 Quattro can cost an average of $6,684 per year.
2. High-Performance Sports Cars: Cars built for speed carry a higher risk of accidents and are often driven more aggressively. Models like the Dodge Charger ($4,940/year) and Lexus RCF ($4,609/year) come with powerful engines that can lead to higher premiums.
3. Frequently Stolen Vehicles: Cars that are popular targets for thieves tend to have higher comprehensive insurance rates. Full-size trucks like the Ford F-150 and popular sedans like the Honda Accord often make this list.
4. Modified Cars: Any modification, whether it’s a turbocharger, custom spoiler, or upgraded sound system, can increase your insurance premium. Modifications often raise the vehicle’s value, make it more attractive to thieves, and elevate its performance risk. If you want to keep your insurance costs low, it’s best to keep your car in its stock form.

Your Action Plan: How to Find the Cheapest Insurance for Your Car

Finding an affordable policy is about more than just picking the right car; it’s about using a smart strategy. Follow these steps to ensure you get the best possible rate.

1. Research Before You Buy: Don’t wait until you’re at the dealership. Use online resources to check the safety ratings (IIHS, NHTSA) and average insurance costs for the models you’re considering.
2. Get Insurance Quotes First: Once you’ve narrowed your choices, contact insurance companies for quotes. Suppose you have the Vehicle Identification Number (VIN) of a specific car you’re looking at. In that case, you can get a precise quote. This step alone can save you from making a costly mistake.
3. Shop Around and Compare: Rates can vary by hundreds of dollars between companies for the exact driver and vehicle. Get quotes from at least three to five different insurers, including national brands like GEICO and Progressive, as well as smaller, regional companies.
4. Ask for Every Discount: Don’t assume discounts are applied automatically. Ask your agent about every possible way to save, including:
   • Bundling: Combining your auto policy with home or renters insurance.
   • Good Driver: For having a clean record for a set number of years.
   • Good Student: For young drivers with a “B” average or better.
   • Safety Features: For things like anti-lock brakes, airbags, and anti-theft systems.
   • Defensive Driving Course: For completing an approved course.
5. Choose the Right Coverage and Deductible: State minimum coverage is rarely enough to protect you financially. However, you can manage costs by choosing a higher deductible for your collision and comprehensive coverage. A deductible of $1,000 instead of $500 can significantly lower your premium.
6. Maintain a Good Driving Record: This is the most powerful long-term strategy. Avoiding accidents and traffic violations will keep your rates low, no matter what car you drive.

Conclusion: Smart Choices Lead to Big Savings

The price you pay for car insurance is not a mystery. It is a calculated risk based on predictable factors. By choosing a vehicle known for its safety, reliability, and reasonable repair costs, you are taking the most critical step toward securing an affordable premium. Whether you are a young driver just starting, a family in need of a safe and practical haulier, or an enthusiast looking for a fun ride, there is a car with affordable insurance that fits your needs.

By combining the knowledge in this guide with a smart shopping strategy—comparing quotes, asking for discounts, and maintaining a clean record—you can take control of your insurance costs. You can find a car that is not only a joy to own but also a responsible and sustainable part of your financial life.