What Are the Cheapest Cars to Insure?

Leonardo Castro
November 3, 2020

Owning a car can be a huge plus but there are also many related costs. One of the major costs of owning a car is car insurance, which accounts for about around 25% of the annual cost of car ownership. It’s important to shop around for car insurance if you buy a car because it is a significant cost.

Car insurance varies from driver to driver with some paying lower insurance rates than others due to many factors such as age, state and driving record. Another factor that will affect your car insurance is your vehicle. The model, year, and type of car will affect your car insurance rate considerably. On average, car insurance costs around $1,904 a year, which is an increase of $92 dollars from last year.

To avoid high car insurance costs avoid buying a sports car or luxury car, because they tend to have the highest car insurance premiums compared to sedans and compact cars. Cars that are luxurious, sporty or have specialty parts have some of the highest car premiums due to higher costs in repairs. Cars with low safety ratings are seen as more risky to insure and therefore have higher premiums.

Typically less expensive models of cars tend to have much lower insurance rate costs because their parts are much cheaper to repair and replace. Another factor that lowers the cost of insurance is the size of the car. Large and midsize SUVs are the vehicles with the lowest insurance rates because of their lower personal injury, medical, and bodily insurance payouts. In other words these larger cars are seen as much safer than because they protect passengers. Cars that have high ratings on safety tend to have a much lower insurance rate because they have lower damage costs in accidents.

Some cars offer much lower insurance costs and help us save money. One study revealed that the cheapest cars to insure in 2020 have average rates starting at $1,324 a year. Honda, for one, had some of the lowest insurance costs compared to other car makers.

1. The cheapest car to insure in 2020 was the Mazda CX-3 Sport, with an average annual insurance cost of $1,324. This small SUV has lots of safety features including an automatic emergency braking system and adaptive front lighting technologies. The CX-3 also received IIHS Top Safety Pick in 2019, which resulted in lower insurance premiums. This vehicle has a 148 horsepower engine, which is enough to get the family around and keep insurance rates low. Last year, the Mazda CX-3 Sport ranked fourth place in cheapest cars to insure.

2. Coming in second is the Honda CR-V LX with an average annual premium of $1,333. This Honda SUV is equipped with many safety features such as the Honda sensing system, forward collision warning with automatic emergency braking and its newly added lane departure warning with steering assistant.

3. Coming in third place is the Jeep Wrangler JL Sport S with an average annual premium of $1,334. Not only is this Jeep equipped with the basic necessities but the car parts are affordable to replace, which helps keep its insurance rate premium low.

4. In fourth place is the Subaru Outback 2.51 with an average annual premium of $1,335. This vehicle also comes with many safety features like the EyeSight Driver Assistance technology, Advance Adaptive Cruise Control, and Lance Centering function. These features have allowed this vehicle to win numerous safety awards such as the 2020 IIHS Top Safety Pick.

5. In fifth place we have the Fiat 500X Pop with an average annual premium cost of around $1336. This small SUV comes with seven airbags, Blind-spot Monitoring, rear path detection, backup camera and adaptive cruise control. Having an initial MSRP of $25,000 and a low insurance rate makes this an SUV worth considering for those on a budget.

6. The Honda Odyssey LX minivan comes in at sixth place with an average annual premium of $1,353. It boasts a front-crash prevention system that helps it rate as a safe car.

7. The Subaru Forester 2.5i is a comfortable family SUV that has an average annual premium of around $1,373. This 4-door vehicle has scored high in safety ratings for several years in a row.

8. The compact Mazda CX-5 SUV is a highly rated safety vehicle that has an average annual price of $1,374. This vehicle was awarded five stars for side impact protection and overall crash safety from the National Highway Traffic Safety Administration.

9. Jeep Renegade Sport is an SUV that has lots of space for the family and an average annual premium cost of around $1,374.

10. Finishing in the tenth spot is the Honda HR-V LX with an average price of $1,377. The IIHS gave this vehicle a superior rating for front-crash prevention, and the NHTSA gave it 5 stars for overall safety.

While these ratings and pricing will change each year, these cars are sure to stay high in ranking and low in insurance rates in the coming years too. To pay the least for the best insurance, your best bet is to look at multiple insurance quotes with SmartFinancial by entering your zip code below!

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