The Cheapest Cars to Insure in 2021

If you're in the market for a new car, you're probably looking for something reasonably priced. However, even used cars can be costly to own when gas, maintenance, and, most importantly, car insurance are taken into account.

Many people are unaware that the type of vehicle you drive has a significant impact on your auto insurance costs. Before you buy a new car, it's a good idea to know which makes and models are the cheapest to insure. If you want cheap auto insurance, it may cause you to reconsider purchasing a specific vehicle.

Even if you find the lowest insurance rates, you'll probably want to know what kind of cheap car to insure in order to get the low car insurance rates you've heard about.

Cheapest cars to insure

The table below shows the cheapest cars to insure in the United States, as well as their MSRP, Kelley Blue Book (KBB) average price, and average car insurance cost.

What makes a car cheaper to insure?

Insurance companies price their policies based on a variety of factors, one of the most important of which is the car model. The cheapest car to insure is frequently one that prioritizes safety. Because different car manufacturers are associated with different types of drivers, selecting a model that is known for safe driving will usually reduce the cost of the insurance premium.

Families come to mind when people think of Honda minivans. Hondas are popular among insurers because they are a family-oriented brand, which means that parents can drive safely with their children in the back seat.

Insurance companies pay attention when a manufacturer is known for incorporating strong safety features in their vehicles. Subaru, for example, receives lower premiums because of its emphasis on driver and passenger safety features.

Insurers also consider how much it costs to replace parts after an accident, so insurance companies prefer to insure cars built with easily replaceable parts. Jeeps are known for being a tough brand with easily interchangeable parts, so insurance companies may insure the vehicle at a lower rate when the maintenance cost is factored in.

If you are considering purchasing a more environmentally friendly vehicle, keep in mind that insuring a hybrid or fully electric vehicle is more expensive than insuring a gas-powered vehicle. Electric vehicles are more valuable than gas-powered vehicles because they contain more technology and equipment.

If you crash a hybrid, it will cost a lot of money to repair. Not only would your insurance company have to pay for cosmetic damage, but it would also have to pay for the battery, sensors, cameras, and internal systems to be repaired or replaced. If you want to buy a Tesla or a Toyota Prius, be prepared to pay a much higher insurance premium.

Other factors that affect car insurance rates

1. Model year

When looking for low-cost car insurance, the model year may have an impact on your premium. A good rule of thumb is that the newer the model, the more expensive the insurance. Because newer cars are more expensive to repair and replace, they will also cost more to insure. However, some newer models include advanced safety features that insurers value, so even if the model is new, the safety features may offset the extra cost of insuring a newer car.

2. Theft

One-third of insurance payouts are for theft, and Honda Accords and Civics are the most stolen cars in America. Other vehicles in the top ten include Toyota Corollas and Nissan Altimas, neither of which are considered luxury vehicles. While Chevy Impalas, Ford F-150s, Dodge Ram pickups, and Jeep Grand Cherokees aren't exactly low-cost vehicles, they are among the most stolen—and companies keep this in mind when insuring vehicles. If you own one of these popular targets for car thieves, you will almost certainly have to pay more for car insurance.

3. Cost of repairs

Some automobiles are more expensive to repair than others. It probably goes without saying that repairing a Tesla is significantly more expensive than repairing a Honda CR-V. If your car has a lot of extra features, such as backup cameras, a GPS system, Apple CarPlay, or automatic windshield wipers, the insurance company will charge you a lot of money to repair those systems if they are damaged in an accident. As a result, your insurance premium would be much higher than it would be for a car with fewer gizmos.

4. Your claims history

If you have a history of filing insurance claims, you will pay a higher rate for car insurance. Unless your policy includes accident forgiveness, even minor fender benders can cause your premium to rise. When you file insurance claims, your insurance company classifies you as "high-risk." The insurance company must pay every time you file a claim for a covered loss, so in order to prepare for potential losses, they will charge you more money for coverage.

Types of cars with expensive insurance

Others can double your auto insurance, just as some cars are known for having low car insurance (or more). If you don't want to pay more than the average for insurance, avoid the following vehicles:

• Luxury and sports cars: In addition to being more expensive to buy and maintain than a standard vehicle, high-end automobiles are also more expensive to insure.
• Full-size vehicles: In the world of auto insurance, bigger isn't always better. While a large vehicle may make you safer, it is less safe for anything else you may collide with. Remember that your insurance doesn't just cover you; it also covers the damage you cause to others.
• Electric cars: Teslas are popular among drivers looking for a vehicle that does not require a trip to the gas station. Although the fuel savings are impressive, electric vehicles (EVs) are frequently more expensive to insure than a standard car. The cost of an EV repair is increased by high-tech, expensive parts and a limited number of mechanics.
• Vintage and collectible cars: Only a few insurance companies insure collector automobiles. Classic car values can be difficult to ascertain and are frequently exorbitant — after all, replacing a one-of-a-kind classic car is rarely possible.

Will a cheap car have cheap insurance?

Not all low-cost vehicles come with low-cost auto insurance. Consider getting a few auto insurance quotes before you buy a car to ensure that the deal you're getting pays off in the long run. There are several reasons why a cheap car does not always come with cheap insurance:

• If you are financing the low-cost car, you may be required to have more expensive full coverage on the vehicle in order to meet the lender's requirements.
• A cheap car may not have as many safety and accident-prevention features as a newer or more expensive model, such as anti-lock brakes, multiple airbags, or anti-collision systems.
• Older, less expensive vehicles may be less reliable than newer vehicles, resulting in more accidents or requiring more frequent repairs.
• Vehicles that have been declared totaled by an insurer, repaired, and resold may have mechanical or structural issues, which could mean that the next time they are involved in an accident, the crash will be more serious than expected.

Why does the type of car impact my car insurance?

Insurance companies evaluate risk before deciding whether or not to insure you. Aside from your driving history, where you live, and your age, they consider how expensive the car you drive is if involved in an accident. If they consider you to be a higher risk because you drive a high-end vehicle that requires more expensive repairs, a car model that is more likely to be stolen, or a vehicle that may not be considered as safe if involved in an accident, you will most likely pay more for car insurance.

Your state's insurance minimums, as well as whether you have a financed or higher-value vehicle, can all have an impact on your premiums. In the case of a financed vehicle or a newer model, full insurance coverage, which is more expensive than basic liability coverage, may be required. When looking for a cheap car to insure, it's best to consider the cost of insurance before purchasing a car — the decision you make today could cost you in the long run.