What is the least expensive car to insure?

The Honda HR-V was the cheapest car to insure out of the 50 vehicles we considered, with an annual auto insurance cost of $2,333.

This is 16% less than the average yearly premium across all vehicles we surveyed. Furthermore, the CR-V's insurance cost was $1,893 less per year than the most expensive car to insure — the Tesla Model S.

Vehicles with values between $25,000 and $30,000 actually had the lowest auto insurance rates at $2,631 per year on average — 7% less than the cheapest cars with values less than $20,000.

However, the most expensive cars — with values of more than $40,000 — did cost the most to insure, with an average annual car insurance premium of $3,459. This group included a Lexus SUV and two Tesla models.

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Cheapest cars to insure by car type

Auto shoppers will most likely have a specific type of vehicle that they are looking for when buying a new car. For example, if you need a vehicle that can hold many passengers, you are more likely to look at SUVs or minivans.

Which car make is the least expensive to insure?

Americans have an extensive range of car brands to choose from when shopping for a new vehicle, and certain car makes tend to be more expensive than others. For example, a Mazda or Volkswagen tended to be cheaper to insure when compared to luxury brands such as Lexus or Tesla.

The cheapest car type to insure

Generally, one would think that large or fast cars would be the most expensive to insure. However, SUVs, small station wagons and minivans proved cheaper to insure on average than compact cars.

Below you can see which types of car are usually cheaper to insure:

However, the two most expensive vehicles to insure were among the most expensive: the Tesla Model 3 and the Lexus RX.

Why does the car you drive affect your insurance rates?

Insurers set their premiums based on the likelihood that a driver of a certain vehicle will file a claim, and the expected cost of a claim should it be involved in an accident.

This is why sports cars, which are more likely to be involved in accidents because of their high performance, often are expensive to insure.

Vehicles that cost more to repair — or have high market values — will also often have higher insurance rates. This is because insurance companies anticipate having to pay out more for any comprehensive and collision insurance claims, which cover the cost to repair or replace your vehicle, for high-cost cars. Because of this heightened risk for insurers, they increase premiums. This is also why car insurance rates may decrease as your car ages — increasing the availability of replacement parts can make a repair cheaper.

However, sophisticated safety features such as early crash detection or advanced airbags may reduce your rates, as they may reduce the likelihood or severity of a crash, especially regarding injury. While vehicle damage claims are more common than bodily injury claims, the average payout for the latter is much higher.

Lastly, car theft also plays a role in your rates. Some cars are stolen more than others, so if you are driving one of those cars, your rates will probably be higher. However, drivers should keep in mind that there are many other factors at play that impact auto insurance rates, such as age.