Cheapest Cars to Insure in 2025

Certain brands and models have reputations for safety, repair costs, likelihood of theft and overall risk, all of which directly impact premiums. Most insurance companies maintain detailed loss histories for every make and model, tracking claims frequency and severity. Vehicles with consistent safety records and lower claim rates earn preferential pricing.

Older cars with higher mileage have lower insurance costs due to decreased value. Well-maintained vehicles may also qualify for discounts. Very old cars might lack modern safety features, which can affect premium calculations.

Advanced systems like automatic emergency braking, lane departure warning and blind-spot monitoring can lead to insurance savings. Vehicles earning top safety pick awards or five-star ratings receive premium discounts because they reduce injury severity and claim costs.

Vehicles with expensive or hard-to-find parts cost more to insure because insurers expect higher payouts for potential repairs. Many insurers track average repair costs for each model. Vehicles with readily available, affordable parts and straightforward repair processes earn lower premiums.

Cars frequently targeted by thieves will have higher premiums due to the increased likelihood of a claim. The most stolen vehicles of 2024 include the Hyundai Elantra, Hyundai Sonata and Chevrolet Silverado 1500, which means those cars may have higher insurance rates to compensate for the increased possibility of theft.

Sports cars and other high-performance vehicles are typically more expensive to insure due to their increased speed potential and accident risk. Insurance companies examine driver behavior patterns associated with different vehicle types.

While not always the case, smaller cars like sedans often have more affordable insurance than larger vehicles like SUVs or trucks. Insurance companies consider how vehicle weight, height and design influence crash outcomes when setting premiums.

Higher trim levels with luxury features and add-ons increase a car's value, leading to higher insurance costs. Insurance companies adjust premiums based on the vehicle's replacement cost and the expense of repairing luxury features.

Cars with larger, more powerful engines are often more expensive to insure due to their higher performance capabilities. Vehicles with moderate engine sizes and power output receive more favorable rates.

Car insurance rates are most expensive for young drivers below 25. Their inexperience and higher tendency for risky behavior make insurance companies more likely to pay out claims. After turning 25, rates should steadily decline but may increase again around age 65. 

The cheapest car insurance for teens is one where they’re added to an existing policy, paying only half as much as they would on their own.

Some states let insurance companies charge different prices based on your gender. This is especially true for younger drivers. "States like California, Hawaii, Massachusetts, Michigan, North Carolina and Pennsylvania have banned this practice. Check your state's specific regulations as insurance laws vary by location.

Your driving record is the main factor affecting your insurance rates. Brand-new drivers who lack a record face the highest rates. Those with multiple at-fault accidents, tickets, DUIs or other violations also tend to see high rates. Keeping a clean driving record can lower your insurance costs.

Insurance prices vary depending on your location, even within your state. This is due to differences in accidents, thefts and insurance claims. States with higher minimum coverage requirements may have higher premiums. However, California, Hawaii, Massachusetts and Michigan prevent insurance companies from using your ZIP code to set rates, promoting fairer pricing.

More coverage means higher costs. When you get full coverage (including liability, comprehensive and collision), insurance companies consider your age, driving record and location to set your price. This differs from liability-only coverage, which mainly depends on your chosen coverage limits. But if you have a car loan or lease, you'll likely need full coverage as required by the lender.

With full coverage, you'll have deductibles for both collision and comprehensive insurance. You can set these deductibles at the same amount or choose different ones (for example, $500 for collision and $250 for comprehensive).

A car insurance deductible is what you pay out of pocket when you file a claim for car damage. Choosing higher deductibles can lower your insurance premiums since the company expects to pay less. Liability coverage doesn't have a deductible since it covers damages you cause to others, not your own vehicle.