Fact-checked by the Smart Insurance 101 editorial team
Quick Answer
As of July 2025, the cheapest cars to insure include the Subaru Outback, Honda CR-V, and Ford F-150, with average annual premiums as low as $1,358. Vehicles with strong safety ratings, low theft rates, and affordable repair costs consistently earn the lowest rates from insurers like GEICO, State Farm, and Progressive.
The cheapest cars to insure share three traits: high safety scores, inexpensive parts, and low theft appeal. According to the Insurance Information Institute’s 2024 auto data, the average U.S. driver pays $1,759 per year for full coverage — but choosing the right vehicle can cut that figure by hundreds of dollars annually. If you’re still learning the fundamentals, our guide on everything you need to know about car insurance is a strong starting point.
With 2026 model-year vehicles now hitting dealerships and insurers updating their rate tables, timing your purchase with this data could deliver immediate savings.
What Makes a Car Cheap to Insure?
Insurers price risk — not sticker price. A vehicle earns low premiums when it causes fewer injuries in crashes, costs less to repair, and is rarely stolen.
The Insurance Institute for Highway Safety (IIHS) and the National Highway Traffic Safety Administration (NHTSA) publish annual crash-test ratings. Vehicles earning “Top Safety Pick+” from IIHS or a five-star NHTSA rating qualify for lower bodily injury and collision premiums at most carriers. Repair costs matter equally: a car with proprietary sensors or aluminum-intensive construction can cost 40% more to fix after a minor collision, according to CCC Intelligent Solutions’ 2024 crash repair report.
Theft rates also drive comprehensive premiums. The National Insurance Crime Bureau (NICB) publishes a Hot Wheels report annually identifying the most stolen vehicles. Models on that list carry surcharges that can add $200–$400 per year to comprehensive coverage.
Key Takeaway: Vehicles with IIHS Top Safety Pick+ ratings and low theft scores from the National Insurance Crime Bureau consistently earn the lowest full-coverage premiums — often saving drivers $300–$500 per year versus high-risk models.
Which 2026 Models Are the Cheapest Cars to Insure?
The models below consistently rank at the bottom of insurance cost surveys from Bankrate, NerdWallet, and Insurify for 2025–2026 model years. These are not base trims — they reflect average full-coverage quotes across major ZIP codes.
The Subaru Outback leads most rankings, averaging $1,358 per year for full coverage. Its symmetrical all-wheel drive and standard EyeSight driver-assist suite earn it top safety marks. The Honda CR-V follows closely at roughly $1,390 per year, benefiting from Honda’s inexpensive OEM parts network. The Ford F-150 (standard cab, base trim) averages $1,420 annually — surprising given its size, but its steel frame, widespread parts availability, and high safety ratings keep costs low. The Jeep Wrangler Sport and Mazda CX-5 also appear in the lowest-cost tier, per Bankrate’s 2025 cheapest-to-insure analysis.
Sedans in this tier include the Honda Accord and Subaru Legacy. Both offer standard advanced driver assistance systems (ADAS) that reduce at-fault claim frequency — a direct factor in carrier pricing models used by State Farm, Allstate, and GEICO.
| Vehicle (2026) | Avg. Annual Premium | Key Cost Factor |
|---|---|---|
| Subaru Outback | $1,358 | IIHS Top Safety Pick+, low theft rate |
| Honda CR-V | $1,390 | Low repair costs, strong safety ratings |
| Ford F-150 (base) | $1,420 | Parts availability, high safety scores |
| Mazda CX-5 | $1,435 | Standard ADAS, low claim frequency |
| Honda Accord | $1,447 | Broad insurer competition, reliable parts |
| Subaru Legacy | $1,462 | Low theft, standard safety tech |
| Jeep Wrangler Sport | $1,480 | Low comprehensive claims, wide coverage options |
Key Takeaway: The Subaru Outback is the single cheapest car to insure in 2026, averaging $1,358 per year for full coverage, according to Bankrate’s vehicle insurance cost data — roughly $400 less than the U.S. national average.
Which Vehicle Types Cost the Most to Insure?
Knowing which categories to avoid is just as valuable as knowing the cheapest cars to insure. Luxury vehicles, electric vehicles with proprietary repairs, and sports cars carry the highest premiums.
The Tesla Model S averages over $4,000 per year in full coverage, driven by expensive battery components and Tesla’s limited repair network. High-performance vehicles like the BMW M3 and Dodge Charger SRT Hellcat regularly exceed $3,500 annually, per Insurify’s 2024 vehicle cost index. Sports cars trigger higher liability rates because insurers use historical claim data showing elevated at-fault accident frequency among this segment.
Full-size pickup trucks with premium trims — such as the Ram 1500 Limited or Ford F-150 Raptor — cost significantly more to insure than base trims of the same model. The difference can exceed $800 per year for the same driver profile. This is a key reason why our comparison table above specifies “base trim” for the F-150.
“The vehicle itself is one of the most controllable variables in your insurance premium. Switching from a high-performance model to a top-rated mid-size SUV can save a driver more than a clean driving record alone.”
Key Takeaway: Luxury EVs and sports cars can cost $2,000–$3,000 more per year to insure than the cheapest alternatives. According to Insurify’s vehicle cost index, the gap between the most and least expensive vehicles to insure now exceeds $2,600 annually for the same driver profile.
How Can You Lower Your Car Insurance Further?
Choosing one of the cheapest cars to insure is step one — but your premium is also shaped by your driving record, credit score, ZIP code, and coverage selections.
Telematics programs offered by State Farm (Drive Safe & Save), Progressive (Snapshot), and Allstate (Drivewise) can reduce premiums by 10–30% for low-mileage or safe drivers. Bundling auto with homeowners or renters insurance typically saves $150–$400 per year at major carriers. Raising your comprehensive and collision deductible from $500 to $1,000 reduces those components of your premium by an average of 15–30%, according to Consumer Reports’ car insurance cost guide.
Your credit-based insurance score is a major pricing factor in most U.S. states. Insurers using credit data — authorized by state regulators in approximately 45 states — can charge drivers with poor credit up to 76% more than those with excellent credit for the same vehicle. Improving your credit score is one of the highest-leverage actions you can take. For a deeper look at how insurance pricing works across multiple coverage types, see our breakdown of what determines the cost of insurance. You can also find specific tactics in our guide on 9 ways to reduce your auto insurance.
Key Takeaway: Telematics programs can cut premiums by up to 30%, and raising your deductible to $1,000 saves an average of 15–30% on collision costs, per Consumer Reports — savings that compound on top of choosing a low-cost vehicle.
How Do You Compare Quotes for the Cheapest Cars to Insure?
Getting the lowest rate on a cheap-to-insure vehicle requires comparing at least three to five carriers before committing. Premiums for identical vehicles vary by $600 or more between the highest and lowest quotes for the same driver.
Use direct carrier websites (GEICO, State Farm, Progressive, USAA if eligible) alongside independent comparison platforms. Each carrier weights risk factors differently — Progressive may price a new driver competitively while GEICO offers better rates for experienced drivers with one prior claim. Our step-by-step guide to car insurance quote comparison walks through exactly how to structure this process. If you prefer having an expert do the shopping for you, our post on choosing an insurance broker explains when that approach makes financial sense.
Request quotes using the same coverage limits across all carriers — at minimum, state-required liability limits plus full coverage (comprehensive and collision) with a $500 deductible. This creates an apples-to-apples comparison. Also verify that each quote reflects the specific trim level of the vehicle you are purchasing, as premiums can vary by $200–$800 between base and premium trims of the same model.
Key Takeaway: Shopping at least 5 carriers for the same vehicle can reveal premium differences exceeding $600 per year. Comparing quotes for cheapest cars to insure using identical coverage terms is the most reliable way to confirm the lowest available rate — see our car insurance quotes explainer for a full breakdown.
Frequently Asked Questions
What is the single cheapest car to insure in 2026?
The Subaru Outback is the cheapest car to insure in 2026, averaging $1,358 per year for full coverage. Its IIHS Top Safety Pick+ rating, low theft rate, and affordable parts all contribute to below-average premiums across major carriers.
Do electric vehicles cost more to insure than gas-powered cars?
Yes, most electric vehicles cost more to insure. EVs average $500–$1,500 more per year in full coverage premiums due to expensive battery systems and limited repair shop availability. The Tesla Model S, for example, exceeds $4,000 annually in many markets.
Does the color of my car affect insurance rates?
No — car color does not affect insurance premiums. Insurers price based on the vehicle’s make, model, trim, safety ratings, theft data, and the driver’s profile. Color is not a rating factor used by any major U.S. carrier.
How much does car insurance cost for a new driver on one of the cheapest cars to insure?
New drivers typically pay $2,800–$4,500 per year even on a cheap-to-insure model like the Honda CR-V or Subaru Outback. Age and driving experience are the dominant pricing factors for inexperienced drivers, partially offsetting the vehicle savings.
Is it cheaper to insure older cars?
Older cars are often cheaper to insure because you can drop collision and comprehensive coverage once the vehicle’s value no longer justifies the premium. A car worth less than $4,000 may cost more to fully insure annually than its market value warrants. Liability-only coverage on an older paid-off vehicle can cost as little as $500–$700 per year.
Which insurer offers the best rates for the cheapest cars to insure?
GEICO and State Farm consistently offer the most competitive rates on low-risk vehicles like the Subaru Outback and Honda CR-V. USAA provides the lowest rates overall but is restricted to military members and their families. Always compare quotes directly, as the best insurer varies by driver profile and ZIP code.
Sources
- Insurance Information Institute — Auto Insurance Facts and Statistics
- Bankrate — Cheapest Cars to Insure (2025)
- Insurify — Cheapest Cars to Insure: Vehicle Cost Index 2024
- Insurance Institute for Highway Safety (IIHS) — About Our Safety Ratings
- National Insurance Crime Bureau — Hot Wheels Report
- Consumer Reports — How to Lower Your Car Insurance Costs
- CCC Intelligent Solutions — Crash Course Industry Insights 2024
