At Budget Insurance Agency, we know car insurance is more than just another bill — it’s a major piece of your monthly budget. And if you’re shopping for a new ride (or even a used one), the car you choose can make a big difference in how much you’ll pay for coverage.
We get this question all the time:
“What’s the cheapest car to insure?”
Whether you’re a parent buying a first car for your teen, a budget-conscious college grad, or just tired of skyrocketing premiums, you’re in the right place. We’ve teamed up with analysts, combed through insurance data, and looked at real-world examples to help you find the cheapest cars to insure in 2025 — plus why they cost less, and how to lower your premium even further.
Why Some Cars Are Cheaper to Insure Than Others
Insurance companies don’t pull numbers out of thin air. They use tons of data to figure out risk — and some vehicles just come out ahead.
Here’s what makes certain cars more affordable to insure:
Strong safety ratings – Fewer accidents and injuries mean fewer claims.
Low repair costs – Economical parts and labor = smaller payouts.
Good theft deterrents – Popular models with anti-theft systems deter criminals.
Mild performance specs – Sports cars tend to cost more due to higher speed risk.
Low claim frequency – Fewer claims for certain models drive down rates across the board.
Think of it this way: insurance is partly a reflection of how risky a car is for the insurer. Lower risk = lower premium.
Top 10 Cheapest Cars to Insure in 2025
Here are some of the best cheap insurance cars based on recent industry data from ValuePenguin, NerdWallet, and the Insurance Institute for Highway Safety (IIHS).
| Rank | Make & Model | Avg. Annual Premium | Why It’s Affordable |
|---|---|---|---|
| 1 | Subaru Outback | $1,295 | Excellent safety ratings, low theft risk |
| 2 | Honda CR-V | $1,310 | Affordable repairs, high reliability |
| 3 | Mazda CX-5 | $1,335 | Advanced safety tech, good crash results |
| 4 | Toyota RAV4 | $1,345 | Common parts, low claims history |
| 5 | Hyundai Tucson | $1,360 | Economical, low accident severity |
| 6 | Ford Escape | $1,375 | Great IIHS scores, easy to maintain |
| 7 | Chevrolet Equinox | $1,385 | Family-friendly SUV, low repair costs |
| 8 | Kia Sportage | $1,390 | Budget-friendly SUV with solid reviews |
| 9 | Toyota Corolla | $1,395 | Reliable, high MPG, low cost of parts |
| 10 | Honda Civic | $1,410 | Longstanding reputation for affordability |
Anecdote: One of our team members recently helped her teenage nephew insure a used 2021 Honda Civic. With some good driver discounts and a little policy bundling, they kept his monthly premium under $120 — even as a brand-new driver.
Best Cheap Insurance Cars for First-Time Drivers
We’ve all been there — your first car, your first insurance quote, and a price tag that makes your jaw drop.
If you’re a young driver or shopping for one, these vehicles are known to be easy on insurance rates:
Subaru Impreza
Hyundai Elantra
Toyota Corolla
Volkswagen Jetta
Kia Forte
These models are cheap to insure, easy to find on the used market, and packed with safety features that insurance companies love.
What Makes a Vehicle the Cheapest Car to Insure?
You might wonder: What is the cheapest car to insure and why?
Here’s a quick checklist:
Low horsepower (less temptation to speed)
Affordable parts (repairs won’t break the bank)
Proven reliability (no surprises down the road)
Standard safety features (blind-spot monitors, AEB, etc.)
These are the same traits shared by all the cheapest insurance vehicles on our list.
SUVs vs. Sedans vs. Trucks: What’s Cheapest to Insure?
You might assume smaller = cheaper, but compact SUVs consistently top the charts for low-cost insurance.
Why?
More visibility = fewer crashes
Better safety = smaller injury claims
Designed for families = driven more cautiously
In contrast, sports cars and luxury models tend to sit at the top of the premium pile due to high performance and repair costs.
Pro tip: Don’t overlook a gently used SUV from a few years ago — it can offer a perfect balance of low insurance and low purchase price.
How to Lower Your Car Insurance Rate (No Matter What You Drive)
Even if your car didn’t make the “cheapest to insure” list, you can still save with a few smart moves:
Bundle your home and auto insurance
Sign up for usage-based insurance (safe driving = rewards)
Increase your deductible (as long as you can afford it)
Ask about discounts for good students, safe drivers, or multi-vehicle households
Shop around every 6–12 months — rates change!
Anecdote: A customer from Florida recently told us she dropped her premium by $480 a year just by switching to a pay-per-mile policy for her low-mileage Nissan Sentra.
FAQ: What You’re Probably Wondering About Cheap Insurance Cars
Q: What’s the absolute cheapest car to insure right now?
A: In 2025, the Subaru Outback and Honda CR-V consistently rank as the cars with the cheapest insurance based on national averages.
Q: Are used cars cheaper to insure than new ones?
A: Often, yes — but not always. Some newer cars come with advanced safety tech that can lower your rate, especially if you’re insuring a teen driver.
Q: Are SUVs more expensive to insure than sedans?
A: Surprisingly, no! Many compact SUVs like the RAV4 or CX-5 are among the lowest insurance cars thanks to great crash ratings and low claims frequency.
Wrapping It Up: Your Next Step Toward Smarter Car Ownership
Finding the cheapest car to insure isn’t just about luck — it’s about smart research and knowing what insurers look for.
From compact SUVs to reliable sedans, there are plenty of vehicles with low insurance rates that still check all the boxes for safety, comfort, and price.
At Budget Insurance Agency, we specialize in helping drivers just like you find affordable coverage that fits your budget — no surprises, no gimmicks.
Ready to see how much you could save?
Get a quote from Budget Insurance Agency today.
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