How Much Do New Cars Cost to Insure?

New car full coverage averages $280 per month, or $3,360 per year. This reflects liability, comprehensive and collision coverage, which most lenders require on any financed or leased vehicle. There's a wide range of costs by brand. Buick's new model average is $1,382 per year, while Cadillac's is $3,842 per year.

New cars aren't always more expensive to insure than older versions of the same model. The difference depends on how much the vehicle's replacement value has changed against how much its safety technology has improved. The BMW X7 costs $611 less per year new than at five years old, while the Tesla Model Y costs $1,933 more per year new than its older equivalent.

Safety ratings, repair costs, and theft rates affect new car insurance rates.

Rates vary more by brand than you would expect. A new Buick and a new Cadillac both come from General Motors, but annual premiums are different by more than $2,400.

Rates for a specific brand average all trims and configurations within a lineup, so individual model rates can differ from the brand average. Affordable insurance can also be found by pairing a lower-cost model with a carrier that prices new vehicles competitively.

The Buick Encore GX Preferred is the cheapest new car to insure at $106 per month ($1,278 per year). The Karma Kaveya Base is the most expensive at $954 per month ($11,446 per year), a gap of $10,168 per year for full coverage on two brand-new vehicles. Between those extremes, mainstream models like the Chevrolet Equinox LT and Honda Passport Ex-L run $175 to $188 per month.

The most expensive models have low production volume, proprietary repair systems or high-performance powertrains. Each of those factors increases claim costs, which insurers pass directly into premiums.

New BMW models range from $192 per month ($2,301 per year) for the 2-Series 228 Gran Coupe to $471 per month ($5,654 per year) for the M5, making BMW one of the wider-ranging brands to insure within a single lineup. Performance variants like the M4 and M5 cost more than the standard series models because of higher repair costs, greater horsepower and elevated theft risk.

The Toyota Supra carries competitive insurance rates. The Supra GR 3 runs $218 per month ($2,618 per year), and the Supra GR 3.0 Premium averages $230 per month ($2,760 per year). New Supras run $335 more per year to insure than their five-year-old equivalents.

The Tesla Model Y Launch Series Long Range averages $380 per month ($4,566 per year) for full coverage. This is among the most expensive new models. Tesla's proprietary repair systems, limited certified repair network and high battery replacement costs push premiums higher than the comparable gas-powered SUVs.

These models are among the more affordable full-size SUVs. The Passport Ex-L costs $188 per month ($2,254 per year), while the Passport Trailsport Elite tops the lineup at $219 per month ($2,630 per year). New Honda Passports cost $1,103 more per year than their 5-year-old versions.

New Hyundai Ioniq 9 models carry full coverage rates between $222 and $238 per month. The Performance Limited AWD runs $222 monthly ($2,667 annually), while the Performance Calligraphy Design AWD tops out at $238 monthly ($2,859 annually). Both trims undercut the Tesla Model Y by $142 to $158 per month, saving $1,704 to $1,896 annually for comparable electric SUV coverage.

The Range Rover Evoque P250 Core S COSTS $197 per month ($2,367 per year). The Range Rover Velar P250 Dynamic SE runs $251 per month ($3,014 per year). New Land Rover Range Rover Evoque models average $1,123 more per year than their 5-year-old versions, and the Velar carries a $1,777 gap.

New Ford Transit cargo vans fall in the mid-range for insurance costs. The Transit 150 Cargo Low Roof W/RWB is the most affordable at $194 per month ($2,329 per year), with the Medium Roof W/LWB slightly higher at $203 per month ($2,439 per year). New Ford Transits cost $703 more per year to insure than their five-year-old equivalents. Ford's broad service network and widely stocked parts keep that gap smaller than comparable vehicles from specialty brands.

New Chevrolet models are among the more affordable options in this dataset. The Equinox LT averages $175 per month ($2,103 per year), while the Trailblazer runs $188 per month ($2,253 per year). The Equinox Activ and RS both reach $201 per month ($2,412 per year). Understanding the lapse impact on rates matters for Chevrolet buyers who finance, since a coverage gap after purchase can erase the savings that come with choosing a lower-cost model.

New GMC Terrain models cost more to insure than the mechanically similar Chevrolet Equinox because of GMC's higher trim positioning. The Terrain Elevation averages $190 per month ($2,284 per year), while the Terrain Denali tops the lineup at $258 per month ($3,095 per year). New GMC Terrains cost $1,239 more per year than their 5-year-old versions, one of the larger new-versus-used gaps among non-luxury brands in this dataset.

New Kia EV9 models insure at lower rates than most electric SUVs in this dataset. The EV9 Land starts at $197 per month ($2,369 per year), while the EV9 GT tops out at $216 per month ($2,590 per year). At the model level, the Kia Sportage costs $1,213 more per year to insure new than at 5 years old. Kia's available service network and parts pricing keep EV9 premiums $164 to $183 per month below the Tesla Model Y. Checking available insurance discounts for EV safety technology can reduce these figures further.

The Buick Encore GX is the most affordable new car brand in this dataset. The Encore GX Preferred averages $106 per month ($1,278 per year), the Sport Touring runs $111 per month ($1,334 per year) and the Avenir tops the lineup at $128 per month ($1,535 per year). New Buick Encore GX models cost $611 more per year than their 5-year-old counterparts, but even the new car rate is $769 per year less than the next-cheapest brand average in this dataset.

New Cadillac Escalade IQ models are among the most expensive to insure in this dataset. The Escalade IQ Luxury averages $374 per month ($4,491 per year), while the Escalade IQ Premium Sport tops the lineup at $434 per month ($5,211 per year). At the brand level, new Cadillacs cost $1,292 more per year to insure than their 5-year-old equivalents, the largest brand-level new-versus-used gap in this dataset.

New Genesis GV70 models insure in a mid-luxury range. The GV70 2.5T starts at $217 per month ($2,607 per year), the GV70 2.5T Select runs $230 per month ($2,760 per year) and the GV70 2.5T Advanced reaches $250 per month ($3,000 per year). Genesis rates run $17 to $74 per month lower than Jaguar F-Pace models at comparable price points.

New Jaguar F-Pace models carry high premiums because of a limited U.S. service network and high-cost imported parts. The F-Pace P400 R-Dynamic S averages $234 per month ($2,810 per year), while the F-Pace SVR 575 Edition tops the lineup at $324 per month ($3,882 per year). New Jaguar F-Pace models cost $577 more per year than their 5-year-old versions, a smaller new-versus-used gap than several non-luxury brands given the F-Pace's already-high repair costs at any age.

The Karma Kaveya Base is the most expensive new car to insure in this dataset at $954 per month ($11,446 per year). Karma is an ultra-low-volume manufacturer with proprietary components and a minimal U.S. service network, both of which push repair costs far above anything in the mass-market or mainstream luxury segments. Buyers should request insurance quotes before purchase, as the annual premium alone can rival the financing cost of several other vehicles on this list.

You don't have to accept the first rate you're quoted. These four steps can reduce what you pay before and after purchase.

New cars cost more to insure because they carry a higher replacement value. Replacement value is one of several rating factors, alongside driver age, location, driving history and credit score. Full coverage reimburses you and your lender for damage to the vehicle, and insurers price that risk against the car's current market value. A brand-new vehicle costs more to replace on day one than the same car five years later.

The relationship isn't guaranteed. Some new models cost less to insure than their older counterparts because advanced driver assistance systems lower the likelihood and severity of claims. The BMW X2 costs $900 less per year new than at five years old, and the BMW X7 costs $611 less. Lower-mileage drivers can find additional savings through mileage-based pricing programs.

New car insurance averages $280 per month, but your actual rate depends on the model you choose. The Chevrolet Equinox LT costs $2,103 per year to insure while the Karma Kaveya costs $11,446. Request model-specific, trim-level quotes from at least three insurers before finalizing any purchase, then stack safety feature and bundling discounts on top. 

Use an insurer comparison strategy. Get 3-5 quotes from different carriers through online tools like MoneyGeek's car insurance comparison calculator and page to help you find the best rates and policies. That combination of smart vehicle selection and carrier comparison produces the biggest savings.

New car insurance raises a lot of questions, especially for first-time buyers or anyone upgrading from an older vehicle. These answers cover the most common ones.

MoneyGeek pulled auto insurance rate data from Quadrant Information Services and compared prices from 79 insurers across every U.S. ZIP code. Rates are based on a 40-year-old driver with good credit, no violations and 12,000 miles driven annually. Full coverage includes a 100/300/100 liability split with comprehensive and collision coverage at a $1,000 deductible. The term 100/300/100 means $100,000 bodily injury liability per person, $300,000 per accident and $100,000 property damage liability.