Which Used Cars Have the Lowest Insurance Rates?
If you're shopping for a used car, it's smart to factor in the cost of car insurance before signing the paperwork. Insurance premiums can vary significantly between vehicles, and choosing the right used model could help you save hundreds of dollars a year. In this article, we'll explore which used cars have the lowest insurance rates and highlight the factors that impact auto insurance costs for pre-owned vehicles.
What Makes a Used Car Cheap to Insure?
Car insurance companies consider a range of vehicle-specific and driver-specific factors when calculating rates. When it comes to the vehicle itself, the following elements can greatly influence your premium:
Safety Features
Used cars with modern safety features like airbags, anti-lock brakes, blind-spot monitoring, backup cameras, and forward collision alerts often qualify for lower insurance premiums. These features help reduce accident risk and the severity of injuries, which in turn lowers the likelihood and cost of claims.
Anti-Theft Devices
Cars with high theft rates typically have higher insurance premiums. However, if a used vehicle is equipped with anti-theft systems like alarms or immobilizers, your insurer may offer a discount due to the reduced risk of theft.
Market Value
A lower market value generally translates to lower auto insurance costs. Because used cars have already depreciated, they typically cost less to repair or replace in the event of a loss, which helps keep premiums more affordable.
Vehicle Type
Certain types of vehicles-such as luxury models, electric cars, or sporty coupes-tend to have higher premiums due to their increased repair costs or accident severity rates. In contrast, small SUVs and large pickup trucks are among the cheapest types of cars to insure.
Repair Costs
Cars with common, inexpensive parts are usually cheaper to insure than models with rare or costly components. Avoid heavily modified vehicles or those with expensive aftermarket upgrades, as they can drive up your insurance premium.
Which Cars Have the Lowest Insurance Rates?
According to data from the Insurance Institute for Highway Safety (IIHS) and the Highway Loss Data Institute (HLDI), vehicles with lower bodily injury claim frequencies tend to have lower insurance rates. Here are some of the cheapest cars to insure based on this data:
Subaru Outback
One of the most affordable used SUVs to insure, the Subaru Outback features standard all-wheel drive and a suite of advanced safety features, including blind-spot monitoring and forward collision warning. It also benefits from a low theft rate and modest repair costs.
- Average Insurance Cost: ~$1,807/year
- Monthly Premium: ~$151 (varies by state, driving history, and model year)
Jeep Cherokee and Compass
Jeep models like the Cherokee and Compass are tied with Subaru for the lowest average full coverage premium among manufacturers. These small SUVs often include essential safety features and are relatively affordable to repair, making them a smart choice for budget-conscious drivers.
Shop Used Jeep Cherokee Shop Used Jeep Compass
Chevrolet Equinox
With a low MSRP and favorable safety ratings, the Chevy Equinox is another excellent option for those seeking low car insurance rates. Chevy vehicles also average around $204/month for full coverage.
Honda CR-V and Toyota RAV4
Both the CR-V and RAV4 have reputations for reliability and safety. Their strong crash-test results, wide availability of replacement parts, and modest price tags make them consistent top picks among the cheapest used SUVs to insure.
Shop Used Toyota CR-V Shop Used Toyota RAV4
Insurance Rates by Car Manufacturer
When it comes to affordable auto insurance, certain car manufacturers consistently rank among the cheapest to insure. Subarus and Jeeps are frequently tied for having the lowest insurance rates, thanks in part to their reliability, safety features, and lower average claim costs. Chevrolets also offer relatively low insurance premiums, followed closely by brands like Honda, Kia, and Nissan. Other major manufacturers such as Ford, Toyota, and Hyundai also tend to offer competitive insurance costs. On the other hand, brands like BMW typically come with higher insurance rates due to their luxury status and more expensive repair costs.
Cheapest Types of Cars to Insure
The type of vehicle you drive plays a big role in determining your car insurance premiums. In general, small SUVs and large pickup trucks are among the cheapest types of vehicles to insure. These vehicle types often have lower claim frequencies and repair costs, making them less risky in the eyes of insurers. Small cars also tend to be more affordable to insure than larger vehicles. Meanwhile, midsize and large SUVs, as well as midsize and large sedans, often come with slightly higher insurance costs due to their overall value and repair expenses.
Choose Wisely, Save Monthly
When asking which used cars have the lowest insurance rates, the answer lies in more than just the vehicle's price tag. Safety features, theft rates, repair costs, and type of vehicle all play a role in determining your insurance premium.
If you want to reduce your monthly auto insurance costs, consider shopping for a used small SUV like the Subaru Outback or a dependable model from Jeep, Chevrolet, or Honda. These vehicles strike a great balance between affordability, safety, and long-term value.
Pro Tip: Always get an insurance quote before you buy to avoid surprises and make a fully informed decision.
