Car insurance premiums vary widely depending on vehicle make and model. With the cost of car insurance on the rise — average annual premiums are $2,068 in 2025, according to U.S. News & World Report — finding a car that is both reliable and less expensive to insure may be a top priority.
This article takes a look at the cheapest cars to insure this year, including a breakdown of premiums by vehicle type, to help you strike a balance between a vehicle that meets your needs and a cost you can afford.
Key Points
• The cheapest sedans to insure in 2025 include the Honda Civic, Toyota Camry, Mazda 3, Toyota Prius, and Kia Forte.
• For SUVs, the Subaru Outback, Honda CR-V, Honda Pilot, and Ford Escape offer the lowest insurance rates.
• Pickup trucks with the lowest insurance costs are the Toyota Tacoma, Ford F-150, Chevrolet Silverado 1500, Toyota Tundra, and GMC Sierra.
• Insurance rates are influenced by repair costs, safety features, theft likelihood, vehicle size, and potential for causing damage.
• Personal factors like driving history, location, age, gender, and credit history significantly impact insurance premiums.
Cheapest Cars to Insure
Whether you’re a first-time buyer looking to trade in an older vehicle or simply trying to cut costs, you may consider the following nine cheapest cars to insure in 2025. This data is from a June 2025 survey conducted by Bankrate.
| Model | Average annual full coverage premium |
|---|---|
| Subaru Outback | $2,229 |
| Honda CR-V | $2,258 |
| Jeep Wrangler | $2,375 |
| Toyota Tacoma | $2,379 |
| Toyota RAV4 | $2,395 |
| Honda Pilot | $2,417 |
| Honda Odyssey | $2,426 |
| Ford Escape | $2,427 |
| Acura RDX | $2,457 |
Cheapest Cars to Insure by Vehicle Type
Insurance premiums can vary widely depending on the type of vehicle you buy. For example, a sports car insurance rate might cost far more than a midsize SUV. Here’s a breakdown of the most affordable vehicles to insure across categories, including sedans, SUVs, and pickup trucks.
Cheapest Sedans to Insure
If you’re looking for a budget-friendly ride, these sedans stand out for their affordability.
| Model | Average annual full coverage premium |
|---|---|
| Honda Civic | $2,662 |
| Toyota Camry | $2,680 |
| Mazda 3 | $2,710 |
| Toyota Prius | $2,765 |
| Kia Forte | $2,846 |
Cheapest SUVs to Insure
SUVs combine practicality and strong safety ratings, which can help keep premiums down.
| Model | Average annual full coverage premium |
|---|---|
| Subaru Outback | $2,229 |
| Honda CR-V | $2,258 |
| Honda Pilot | $2,417 |
| Ford Escape | $2,427 |
Cheapest Pickup Trucks to Insure
For those looking for even greater utility, these pickup truck models offer the lowest rates.
| Model | Average annual full coverage premium |
|---|---|
| Toyota Tacoma | $2,379 |
| Ford F-150 | $2,608 |
| Chevrolet Silverado 1500 | $2,663 |
| Toyota Tundra | $2,845 |
| GMC Sierra | $2,919 |
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What Makes a Car Cheap to Insure?
Insurance companies consider a variety of factors when setting rates. Understanding these car insurance cost factors can help you choose a vehicle that’s cheaper to insure.
Lower Repair & Replacement Costs
Vehicles that cost less to repair — for example, those that use common or standard parts — are usually less expensive to insure, especially when it comes to collision and comprehensive coverage types. That’s because when you’re in an accident in which you’re not at fault, the other party’s insurance will kick in to cover damage. But if you are at fault, or you hit an inanimate object, your own collision or comprehensive coverage kicks in.
It also stands to reason that the more expensive a car is, the more expensive it is to replace. As a result, it represents a higher risk to insurers. And they’ll likely compensate for that risk with higher rates.
Strong Safety Ratings & Features
Strong safety features can decrease the likelihood of an accident and severe injury, which can decrease the size of insurance claims. For this reason, strong safety rates are often correlated to lower premiums.
Lower Likelihood of Theft
Comprehensive coverage typically covers the cost to replace your car if it is stolen. Statistically speaking, the more prone your vehicle is to theft, the higher your comprehensive rate may be. For instance, in 2023, Hyundai vehicles, especially those that lacked electronic immobilizers, were among the most targeted by thieves. As a result, premiums for these cars were relatively high.
Insurers will also look at factors such as geography. If you’re in an area that sees a lot of theft, premiums may be higher than in areas where theft is relatively rare.
Vehicle Size & Damage Potential
While larger vehicle size can make a car safer, it also increases the potential that it may cause extensive damage to other vehicles. Larger vehicles, such as those used for towing or hauling, may have higher liability rates. Liability coverage protects you against damages caused to another vehicle and passenger injury.
Larger vehicles that are used for commercial purposes may have an increased likelihood of claims, which can also increase insurance rates.
Driver Profile Plays a Key Role
Your profile and driving record play a big part in the cost of your insurance. Your premiums will likely be lower if you have never been in an accident and you don’t have any traffic violations.
Your profile may also play a key role. For instance, car insurance rates by age vary widely. Teens are typically in more accidents than older adults, and higher risk often translates into very high insurance rates. As teens gain experience, these rates typically decrease. Senior drivers tend to be the safest and are often offered lower rates.
Other factors, such as gender, may come into play as well. Male drivers tend to be in more accidents than female drivers, so premiums for men may be higher than for women.
Finally, insurers may take a look at your credit history. Insurers have found that poor credit is often correlated with higher claims. As a result, they see people with lower scores as high risks, which translates to higher premiums.
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The Takeaway
When it comes to keeping car ownership affordable, choosing a vehicle with lower insurance costs can make a big difference. Factors such as driving history and your profile may come into play, but opting for models with low repair costs that are known for safety and reliability can go a long way toward keeping costs down.
When you’re ready to shop for auto insurance, SoFi can help. Our online auto insurance comparison tool lets you see quotes from a network of top insurance providers within minutes, saving you time and hassle.
FAQ
Are SUVs more expensive to insure than sedans?
Generally speaking, SUVs tend to be less expensive to insure than sedans due in part to the fact that they tend to have relatively high safety ratings.
Does the color of a car affect insurance rates?
The color of your car does not affect your insurance rates. This is a well-worn myth. Insurance companies will look at other factors, such as the make, model, age, and usage of your car when setting rates.
Is my insurance guaranteed to be cheap if I buy one of these cars?
No, car insurance premiums are based on many factors. The rates given here are average, but the rates offered to you will be based on your personal circumstances, location, driving record, and profile. These factors could increase the cost of insurance.
Are older cars cheaper to insure?
Auto insurance might cost less for older cars. As your car depreciates in value, insurers have to pay less in the event of an accident. With older cars, you may decide to drop optional coverage, such as collision and comprehensive coverage. That said, your rate will depend more on factors like your location and the car’s make and model than it will on age.
photo credit: iStock/andreswd
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