Being a saving money savvy shopper doesn’t stop at finding the right car; it extends to securing affordable insurance. To help you make an informed decision, we analyzed data on last year’s 25 best-selling car models and delved into insurance rates across every ZIP code in the U.S. Following are considered the cheapest cars to insure in 2023 based on annual premiums:
Subaru Outback – $1,512
Subaru Crosstrek – $1,516
Honda CR-V LX – $1,517
Mazda CX-5 2.5 S – $1,547
Hyundai Tucson SE – $1,597
Ford Escape – $1,609
Jeep Wrangler Sport – $1,617
Toyota Tacoma SR – $1,647
Ford F-150 XL – $1,651
Toyota RAV4 LE – $1,652
Factors Influencing Car Insurance Rates
1. How Car Models Affect Insurance Rates — Down to the Trim
Car insurance rates aren’t solely based on the price of the vehicle. These rates differ drastically depending on factors such as the likelihood of filing a claim and potential claim costs. Insurers consider claim history information, accidents, repair costs, and car theft rates in specific areas to determine a vehicle’s risk.
Models with a history of more insurance claims, especially those with expensive claims, generally cost more to insure. On the other hand, the cheapest cars to insure often have fewer and lower-cost claims.
2. Trim Level and Car Insurance Rates
Your choice of trim level can also impact insurance rates. Car manufacturers bundle various features into different trim levels, and adding high-tech safety equipment or opting for a more powerful engine may raise insurance costs. Features that increase repair costs or are associated with a higher risk of accidents can influence rates.
Vehicles to Avoid for Cheaper Insurance
While certain vehicles top the list for affordable insurance, others can drive up insurance rates. Here are types of vehicles that often result in higher insurance costs:
Sports Cars: Known for high auto insurance rates, sports cars, beyond their speed, face higher fatality rates in accidents due to their lightweight build.
High-End Luxury Cars: Expensive to repair and replace, luxury cars incur higher insurance costs.
Electric Vehicles (EVs): The high price tag and repair costs, especially for components like EV batteries, contribute to pricier insurance for electric cars.
Cars Targeted by Thieves: Vehicles frequently stolen can lead to increased insurance costs as comprehensive insurance covers theft, vandalism, and other damages.
Shopping Around for the Best Rates
Insurance rates can vary significantly among companies. To find the most affordable coverage:
Compare Quotes: Obtain car insurance quotes from different companies to identify the lowest rates for your vehicle in your state.
Ask About Discounts: Inquire about discounts; many insurers offer price breaks for safety features that reduce the risk of injuries or theft.
Remember, being a smart shopper involves not just finding the right car, but also securing cost-effective insurance coverage. Shop wisely, compare quotes, and explore potential discounts to ensure you’re getting the best deal on both your car and its insurance.