How Your Car’s Make and Model Secretly Drives Up Your Insurance Rate

Fact-checked by the Smart Insurance 101 editorial team

Your car model insurance rate is one of the most underestimated factors in what you pay each month for coverage. According to Bankrate’s 2025 analysis of auto insurance costs, the average American pays $2,638 per year for full coverage — but that number swings dramatically based on the vehicle you drive. In July 2025, drivers switching from a mid-size sedan to a high-performance SUV have reported premium increases of 40% or more with zero changes to their driving record.

The trend matters now more than ever. New vehicle prices hit record highs in 2024, and repair costs for modern cars packed with sensors and advanced driver-assistance systems (ADAS) have pushed insurer payouts sharply upward. That means the gap between the cheapest and most expensive vehicles to insure is wider today than at any point in the last decade.

This guide is for anyone shopping for a new car, questioning their current premium, or trying to lower their auto insurance bill without sacrificing coverage. By the end, you will know exactly how insurers evaluate your vehicle, which makes and models cost the most and least to insure, and the concrete steps you can take to reduce your car model insurance rate starting today.

Step 1: How Do Insurance Companies Actually Calculate Your Car Model Insurance Rate?

Insurance companies calculate your car model insurance rate by assigning a vehicle symbol — an internal rating code that reflects the statistical risk associated with your specific make, model, trim, and model year. This symbol directly influences your base premium before any personal factors like your driving history are applied.

How the Vehicle Symbol System Works

Every insurer uses a proprietary version of the vehicle symbol system, but most are grounded in data compiled by the Insurance Information Institute (III) and actuarial firms like ISO (Insurance Services Office). The symbol captures expected claim frequency and claim severity for each vehicle.

Claim frequency measures how often a given model is involved in a covered loss. Claim severity measures how much that loss costs to pay out. A vehicle with both high frequency and high severity — like a luxury crossover with expensive sensors — earns a high symbol number and a higher base rate.

What to Watch Out For

Many buyers assume that a less expensive car automatically means a cheaper car model insurance rate. That is not always true. A $25,000 sedan with a turbocharged engine or a high theft rate can cost more to insure than a $35,000 family SUV with strong safety scores. Always check insurance quotes before finalizing a vehicle purchase — not after.

Step 2: Which Specific Car Features or Specs Drive Up Your Insurance Premium?

Certain vehicle features and specifications predictably raise your premium because they increase the cost of claims. The biggest premium drivers are horsepower, repair complexity, technology load, and curb weight — all of which are baked into your car model insurance rate the moment you drive off the lot.

The Features That Cost You the Most

High horsepower is the most well-known factor. Sports cars and performance trims are statistically involved in more high-speed accidents, which means larger collision claims. According to the Insurance Institute for Highway Safety (IIHS), vehicles with engines above 300 horsepower have meaningfully higher injury claim rates than standard sedans.

Advanced technology — particularly ADAS features like adaptive cruise control, lane-keep assist, and 360-degree camera systems — increases repair costs sharply. A bumper on a 2024 Honda Accord with radar sensors can cost $1,500 to $3,000 to replace, versus under $500 on a basic trim without sensors.

Body style also matters. Two-door coupes pay more than four-door sedans of identical engine size because insurers correlate coupe ownership with younger, higher-risk drivers. Convertibles pay a premium because their soft tops are expensive to repair and offer less structural protection in rollover accidents.

What to Watch Out For

Adding aftermarket modifications — performance exhaust, lowered suspension, or custom rims — can void your standard policy coverage and trigger a surcharge if not disclosed. Always notify your insurer of significant modifications. You can learn more about how these factors interact with your overall premium in our guide to car insurance quotes explained.

Step 3: Which Car Makes and Models Are the Most and Least Expensive to Insure?

The most expensive cars to insure in 2025 are predominantly luxury performance sedans, high-end SUVs, and electric vehicles with expensive battery systems. The least expensive are typically mid-size family sedans, minivans, and compact crossovers with strong safety ratings and widely available replacement parts.

Average Annual Full-Coverage Premiums by Vehicle Type

The table below uses average full-coverage premium data compiled by Bankrate’s 2025 auto insurance research and cross-referenced with III industry data. These figures reflect a 40-year-old driver with a clean record and good credit in a mid-cost U.S. state.

These numbers illustrate how dramatically a car model insurance rate can vary — the Tesla Model S costs more than double what the Honda Odyssey costs to insure annually, for the same driver profile.

What to Watch Out For

National average premiums mask significant regional variation. The same Honda CR-V costs $1,337 per year in Maine but over $2,400 per year in Florida due to local litigation rates, weather risk, and traffic density. Always pull state-specific quotes when comparing vehicle costs.

Step 4: How Do Theft Rates and Safety Ratings Affect Your Car Model Insurance Rate?

A vehicle’s theft rate and safety record are two of the most direct inputs into your comprehensive and collision premiums, respectively. High-theft models pay more for comprehensive coverage, while vehicles with poor crash outcomes pay more for collision, medical payments, and liability coverage.

How Theft Rates Get Priced In

Insurers use NICB (National Insurance Crime Bureau) vehicle theft data to assign theft surcharges. The Hyundai Elantra and Kia Soul became notorious theft targets following a social media challenge in 2022–2023 that exploited a software vulnerability. As a result, some insurers stopped writing new policies on affected models, while others applied surcharges of 15% to 20% on comprehensive premiums for those vehicles.

Conversely, vehicles with factory-installed immobilizers, GPS tracking, and encrypted key fobs often receive theft-deterrent discounts of 5% to 15% on comprehensive coverage. The Honda Accord, which ranked as one of the most stolen vehicles in prior years, saw its theft rate drop significantly after Honda implemented standard immobilizer technology — and premiums followed.

How Safety Ratings Lower Your Premium

The IIHS (Insurance Institute for Highway Safety) and NHTSA (National Highway Traffic Safety Administration) publish safety ratings that insurers directly reference when pricing collision coverage. A vehicle earning the IIHS “Top Safety Pick+” designation has demonstrated lower injury likelihood in crash tests — which translates to lower expected medical and liability payouts for the insurer.

Vehicles with strong active safety systems — including automatic emergency braking (AEB) and forward collision warning — have measurably lower claim rates. According to IIHS research, AEB reduces rear-end collisions by up to 50%, and insurers reward that statistic with premium discounts averaging $100 to $300 per year.

What to Watch Out For

Safety ratings are model-year specific. A 2021 Toyota RAV4 and a 2024 Toyota RAV4 may carry different ratings because of updated crash tests or revised trim specifications. Always verify the rating for your specific model year before assuming a discount applies.

Step 5: Does an Electric Vehicle Cost More to Insure Than a Gas-Powered Car?

Yes — electric vehicles cost meaningfully more to insure than comparable gas-powered models, primarily because of higher repair costs, battery replacement expenses, and the relative scarcity of certified EV repair technicians. The average EV owner pays 24% more per year in auto insurance than a driver with an equivalent gas-powered vehicle, according to the Insurance Information Institute’s EV insurance analysis.

Why EVs Cost More to Insure

The primary cost driver is the battery pack. A replacement battery for a Tesla Model 3 can cost $10,000 to $20,000, and even a minor undercarriage impact can trigger a total-loss determination if the battery is compromised. Insurers price this risk into comprehensive and collision premiums from day one.

Labor costs are also higher for EVs. Certified EV technicians command higher hourly rates than standard auto mechanics, and the repair network is smaller — meaning longer rental car periods while your vehicle is in the shop. Both factors increase insurer costs, which flow directly to your premium.

Tesla vehicles, in particular, are expensive to insure. The company’s direct-repair-only policy — requiring that damage be repaired exclusively at Tesla-certified facilities — further inflates costs by limiting competition among body shops. If you are comparing EV models, it is worth checking our step-by-step guide to car insurance quote comparison to understand how to shop effectively across carriers for EV coverage.

What to Watch Out For

Not all EVs are equally expensive to insure. A Chevrolet Bolt EV has significantly lower premiums than a Tesla Model Y because of its lower vehicle value, wider repair network, and less proprietary parts ecosystem. The car model insurance rate for an EV varies more by manufacturer than by fuel type alone.

Step 6: How Can You Use Your Vehicle Choice to Lower Your Insurance Rate?

The single most powerful lever for reducing your car model insurance rate before you ever call an insurer is choosing the right vehicle in the first place. Once you know what factors drive premiums up, you can deliberately shop for cars that check the opposite boxes: affordable parts, strong safety ratings, low theft rates, and modest horsepower.

A Step-by-Step Approach to Vehicle Selection for Lower Insurance

1. Identify your top vehicle candidates — narrow your list to 3–5 models that meet your lifestyle needs.
2. Check IIHS and NHTSA ratings for each candidate. Prioritize models with “Top Safety Pick+” from IIHS and 5-star overall ratings from NHTSA.
3. Look up theft data on the NICB’s annual “Hot Wheels” most-stolen vehicle list. Avoid models in the top 20 if possible.
4. Request insurance quotes before buying — call your current insurer or use an aggregator like NerdWallet’s auto insurance comparison tool with each model’s VIN or year/make/model information.
5. Compare trim levels — get a quote for both the base trim and the sport or premium trim. The difference in annual premium often surprises buyers.
6. Factor in comprehensive vs. collision tradeoffs — if you plan to carry only liability coverage on an older vehicle, theft rates matter less. Focus on the coverage types you will actually purchase.

Additional Tactics to Reduce Your Car Model Insurance Rate

Beyond vehicle selection, there are structural ways to reduce what you pay. Increasing your deductible from $500 to $1,000 can reduce your collision and comprehensive premiums by 10% to 25%. Bundling your auto policy with a homeowners or renters policy typically yields a 5% to 15% multi-policy discount.

Enrolling in a telematics or usage-based insurance (UBI) program — offered by Progressive (Snapshot), State Farm (Drive Safe and Save), and Allstate (Drivewise) — can reduce premiums by up to 30% for safe drivers. These programs monitor speed, braking, and mileage, rewarding low-risk behavior regardless of your vehicle’s base symbol.

For a complete breakdown of savings strategies, our guide on 9 ways to reduce your auto insurance covers these and additional discounts in depth. And if rising premiums across the board are affecting your budget, our article on why insurance premiums are exploding explains the macro forces at work in 2025.

What to Watch Out For

Do not let a manufacturer’s advertised “low cost to own” figure mislead you. Those estimates frequently omit insurance costs or use below-average driver profiles. Always calculate your personal insurance quote — not a national average — because your age, credit score, location, and driving record interact with vehicle risk in ways that national averages cannot capture accurately.

For drivers who are new to navigating auto insurance decisions, our complete guide to car insurance fundamentals is a strong companion resource. And if you are just getting started with your first policy, our tips for getting your first auto insurance walks through the process from scratch.

Frequently Asked Questions

Does the color of my car affect my insurance rate?

No — car color does not affect your insurance rate. Insurers do not ask for or record vehicle color when rating a policy. The persistent myth that red cars cost more to insure has no basis in actuarial data. What matters is your vehicle’s make, model, trim, model year, body style, and engine specifications.

How much more does it cost to insure a sports car vs. a sedan?

Insuring a sports car typically costs 30% to 60% more than a comparably priced sedan for the same driver. A base Toyota Camry averages around $1,594 per year for full coverage, while a Dodge Charger SRT can exceed $3,100 per year, according to Bankrate’s 2025 data. The gap is driven by higher horsepower, higher accident frequency, and more expensive parts.

Which cars have the cheapest insurance rates in 2025?

In 2025, minivans and mid-size family sedans consistently have the lowest car model insurance rates. The Honda Odyssey, Toyota Sienna, Subaru Outback, and Honda CR-V are among the most affordable to insure, with national average full-coverage premiums ranging from $1,498 to $1,680 per year. These vehicles benefit from strong safety ratings, low theft rates, and affordable repair parts.

Does a newer car always cost more to insure than an older one?

Not always, but generally yes. Newer cars have higher replacement values and more expensive sensor-laden components, which raises collision and comprehensive premiums. However, an older high-performance or high-theft vehicle can cost more to insure than a newer economy car. The car’s current market value, parts availability, and safety profile all factor into the equation alongside model year.

Will my insurance go up if I buy a luxury SUV instead of a standard one?

Yes — luxury SUVs reliably produce a higher car model insurance rate than non-luxury equivalents. A BMW X5 averages roughly $2,400 per year to insure fully, compared to about $1,680 for a Honda CR-V — nearly $60 more per month for the same driver. The difference reflects higher parts costs, more complex repair procedures, and higher vehicle value.

Can I lower my insurance rate by switching to a less powerful engine trim?

Yes, and this is one of the most effective and underused strategies. Choosing a base or mid-level trim with a smaller engine instead of the sport or performance trim of the same model can reduce your annual premium by $200 to $600. Insurers rate each trim separately because engine displacement and horsepower directly predict claim severity and frequency.

How do I find out what my car’s insurance symbol is before I buy?

You cannot access ISO vehicle symbols directly as a consumer — they are proprietary to insurers. However, the practical equivalent is to request a full-coverage insurance quote from your current carrier or an aggregator using the specific year, make, model, and trim you are considering. This gives you the actual rate that symbol produces for your profile. Most insurers can quote a vehicle before it is purchased using the VIN or a standard vehicle identifier.

Does a salvage title affect my car model insurance rate?

Yes, dramatically — and some insurers will refuse to cover a salvage-title vehicle at all. When coverage is available, insurers typically limit it to liability-only coverage, excluding collision and comprehensive. This means if a salvage-title vehicle is damaged or stolen, you bear the entire loss. Rebuilt-title vehicles sometimes qualify for full coverage, but at a surcharge of 20% to 40% above clean-title rates.

Will adding a teen driver to my policy cost more on a sports car than a sedan?

Significantly more. Adding a teen driver is already one of the largest premium increases a household can experience — typically $1,000 to $2,500 per year depending on the state. Pairing that teen with a sports car or performance SUV multiplies the surcharge because both risk factors compound. Assigning teen drivers to the lowest-risk vehicle in the household — typically the sedan or minivan — is the most effective way to limit the premium impact.

Should I check insurance costs before or after buying a car?

Always before. Checking insurance costs after you have signed a purchase agreement leaves you locked into a vehicle that may cost far more to insure than you budgeted. Request a specific quote for each vehicle on your shortlist before visiting the dealership. The five minutes this takes can save you hundreds of dollars per year over the life of ownership — and reveals which trim levels and models are genuinely affordable to own when total cost is factored in.