Cheapest Cars to Insure For Teens and Adult – Low Insurance Coverage

I can understand why you might be seeking an answer to the most affordable car to insure. If you are like me that is looking for insurance coverage, but then the cheapest by car model or make, then this post is for you. This post is written out of curiosity in search of the cheapest Cars to insure in 2020 and 2021. So seat tight and read to the end.Cheapest Cars to Insure

To start with, the cheapest car to insure are Honda CR-V, Chrysler Pacifica, and Honda Odyssey, the reason being that they offer annual savings of $1,000 and above when you measure it with the most expensive models or Honda makes.

In general, minivans and small pickup trucks on average are the least expensive cars to insure. Be it as it may, large sedans are known to cost much buying insurance policy or coverage.

However, while the above-stated car makes is the least to insure. On a contrary, auto insurance costs vary for vehicles based on certain reasons and factors. In other words, certain factors contribute to why some cars are cheap to insure while others are high. Factors like;

  • High repair costs.
  • Poor safety record.
  • Few or no anti-theft features.

What are the Cheapest Cars to Insure?

First, the highest expensive car to insure is the Tesla Model S, the reason been the high repair cost. On the other hand, the least/cheapest and easiest car to insure is the Honda CR-V with an annual auto insurance cost of $2,346. Why is it so? That’s because Honda CR-V $2,346 insurance cost is 22% less than the average yearly premiums across all of the vehicles.

Again, the CR-V’s insurance costs were $2,397 less per year than the most expensive car to insure. So, to make this clearer, while researching online I came across a study ValuePenguin conducted on the least 50 car models or make to insure. Thus, the below list came into view.

RankCar nameType of carVehicle priceAnnual auto insurance rate
1Honda CR-VSmall SUV$25,102$2,346
2Chrysler PacificaMinivan$21,996$2,416
3Honda OdysseyMinivan$26,391$2,457
4Ford F-SeriesStandard Pick-up Truck$22,849$2,471
5Toyota RAV4Small SUV$20,257$2,475
6Chevrolet EquinoxSmall SUV$19,837$2,560
7Chevrolet ColoradoSmall Pick-up Truck$17,816$2,562
8Toyota TundraStandard Pick-up Truck$29,920$2,577
9Honda RidgelineSmall Pick-up Truck$27,226$2,611
10Ford FiestaSubcompact Car$12,063$2,621
11 (tie)Dodge Grand CaravanMinivan$20,175$2,634
11 (tie)GMC CanyonSmall Pick-up Truck$24,446$2,634
13Toyota TacomaSmall Pick-up Truck$22,749$2,670
14Nissan FrontierSmall Pick-up Truck$25,992$2,687
15

Kia Sedona

Minivan$22,877$2,699
16Honda FitStation Wagon$17,760$2,720
17Toyota SiennaMinivan$25,189$2,746
18Ford EscapeSmall SUV$17,710$2,834
19Chevrolet CruzeCompact Car$14,849$2,841
20Chevrolet TahoeStandard SUV$39,568$2,888
21Honda HR-VStation Wagon$20,679$2,931
22GMC SierraStandard Pick-up Truck$23,357$2,937
23Ram PickupStandard Pick-up Truck$20,157$2,998
24Chevrolet ImpalaLarge Sedan$21,193$3,001
25Toyota CamryMidsize Sedan$20,147$3,036
26Honda AccordMidsize Sedan$23,561$3,042
27Honda CivicCompact Car$19,601$3,042
28Chevrolet SilveradoStandard Pick-up Truck$24,773$3,057
29Nissan SentraMidsize Sedan$13,475$3,059
30Chevrolet TraverseStandard SUV$28,009$3,072
31Ford FocusCompact Car$13,140$3,083
32Volkswagen JettaCompact Car$14,754$3,109
33Kia SoulStation Wagon$15,186$3,114
34Chevrolet CamaroSubcompact Car$20,875$3,141
35Toyota CorollaMidsize Sedan$15,651$3,164
36Ford TaurusLarge Sedan$18,123$3,173
37Nissan MuranoStation Wagon$23,949$3,188
38Nissan RogueStation Wagon$18,969$3,193
39Chrysler 300Large Sedan$21,029$3,268
40Nissan AltimaMidsize Sedan$16,824$3,269
41Toyota HighlanderSmall SUV$29,207$3,283
42Jeep Grand CherokeeStandard SUV$26,125$3,347
43Toyota 4RunnerStandard SUV$31,467$3,355
44Dodge ChargerLarge Sedan$22,760$3,378
45Ford MustangSubcompact Car$22,218$3,485
46Nissan VersaCompact Car$11,947$3,525
47Ford ExplorerStandard SUV$28,322$3,587
48Mercedes-Benz C-ClassSubcompact Car$34,752$4,122
49Mercedes-Benz E / CLS-ClassSubcompact Car$48,694$4,129
50Tesla Model SLarge Sedan$69,184$4,743
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Expensive Cars are high to Insure – What a Myth

Basically, when you talk about buying Auto insurance coverage, people normally think the more expensive the car the higher the insurance cost. But that is not true. Thus, the study above shows that the least expensive vehicles did not always have lower insurance costs than more expensive cars.

For example, vehicles that cost between $25,000 and $30,000 in a real sense have the lowest auto insurance rates at $2,871 per year on average, which is 6% less than the cheapest cars that cost between $10,000 and $15,000.

That said, there are still expensive cars that align with the conventional thinking of many. Also, from the above case study, it’s clearly seen that most expensive cars that cost more than $30,000 are actually higher to insure with annual car insurance premiums of $3,847.

What type of car is the cheapest to insure?

Of the truth, when you want to buy a car, I’m sure you did have chosen what car type to buy depending on your needs. You might choose to buy an SUV or a minivan. Both do completely different jobs. And both are used for different travel or driving purposes.

So, to help know that type of vehicle that is cheap when it comes to buying an insurance policy, I have also drawn some data from the case study ValuePenguin published.

 

Car typeCheapest modelAverage yearly rate
Small SUVHonda CR-V$2,346
MinivanChrysler Pacifica$2,416
Standard Pick-up TruckFord F-150$2,471
Small Pick-up TruckChevrolet Colorado$2,562
Subcompact CarsFord Fiesta$2,621
Station WagonHonda Fit$2,720
Compact CarChevrolet Cruze$2,841
Standard SUVChevrolet Tahoe$2,888
Large SedansChevrolet Impala$3,001
Midsize SedansToyota Camry$3,036

 

Cheapest Cars to Insure – Which is the least expensive Car Model to insure?

First, you need to know that there are lots of car brands or make out there. However, for the sake of this study, we are going to focus on car make from the United States of America. Although other countries like Canada, Germany, South Korea, etc. have lots of car brands.

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More so, you need to bear in mind that car models are two views; there are luxury car brands and standard or ordinary car brands. Even at that, there are super luxury car brands. Like Bentley, Rolls Royce, Lamborghini, Ferrari, Range Rover, Lexus, Mercedes, BMW, and lot’s more. Below is the Cheapest Cars to Insure by make.

 

RankMakeAverage yearly rate
1Honda$2,736
2GMC$2,785
3Chrysler$2,842
4Chevrolet$2,890
5Kia$2,907
6Toyota$2,913
7Ram$2,998
8Dodge$3,006
9Ford$3,036
10Volkswagen$3,109
11Nissan$3,153
12Jeep$3,347
13Mercedes-Benz$4,125
14Tesla$4,743

 

Why does the car you drive affect your insurance rates?

At the beginning of this post, I listed three factors that contribute to the cost of insuring a car. So, here now I will talk about those factors and how they affect how much you will pay to insure a car.

It will briefly explain, if you sell auto insurance, the major thing that should be your concern is drivers getting into auto accidents. Because when they do, surely they will file a claim. And that on your own side as an insurance company will result in spending.

Take, for instance, if there is a record showing that a particular car model has lots of claims filed in the past by drivers. It simply tells an insurance company a particular car model has a probability of a high accident rate. Therefore, drivers have to pay extra. The more reason drivers of sports cars pay more. Because sports cars are likely to get involved in an auto accident.

On the other hand, vehicles that cost more to repair. Even vehicles that cost much to buy have higher insurance rates. Because in the event of an auto accident or coalition that will require that the vehicle be repaired or replaced the insurance policy has to at least make you pay a high premium that will almost equal the amount to replace the car or repair damages.

Finally, before I go further in discussing other factors that affect insurance rates, I would like to talk about the Anti-theft features. If a particular model of car can be easily stolen, it’s a basis for an auto insurance company to make you pay a higher premium. Because in such instances they might need to replace your car.

Other factors that impact auto insurance rates

To begin with, other factors contribute to the insurance rate consumers get. Thus, it includes;

Insurance rates by credit history

Another case study found online shows that the rates of premium paid are affected by the credit history of the person buying the insurance coverage. In other words, insurance companies use credit history to calculate how much an individual pays to ensure his/her car. The table below shows how much extra different insurance companies make you pay for having either good credit, poor credit, or excellent credit score. Or spending habits.

Insurance provider6-month premium — Very Poor Credit6-month premium — Great Credit
Allstate$1,692$885
Farmers$1,293$714
GEICO$1,087$512
Liberty Mutual$1,921$705
Nationwide$1,059$637
Progressive$1,658$617
State Farm$1,435$527
USAA$1,199$475
Average$1,418$634
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Insurance Rates by Age:

See, to be sincere, age plays a major role in deciding how much more you will pay for insurance coverage, especially for young drivers. Thus, the most expensive insurance premiums are paid by teen drivers. On the other hand, the most affordable insurance rates are paid by 50-year-olds. That’s a cost gap of over $5,500 per year.

In other words, insurance companies view teen drivers as very risky and potentially expensive clients to insure. Thus, data show that teen drivers drive more recklessly and get into more accidents than drivers in any other age group. Especially the advanced in age. As such, the table below shows what goes for each insurance company.

Insurance provider6-month premium — 16-year-old6-month premium — 50-year-old
Allstate$4,393$930
Farmers$4,013$755
GEICO$2,221$549
Liberty Mutual$5,268$693
Nationwide$2,518$646
Progressive$5,047$712
State Farm$2,040$608
USAA$2,114$461
Average$3,452$669

Other factors include;

  1. Driving history.
    2. Location.
    3. Gender.
    4. Insurance history.
    5. Annual mileage.

How to Cut Car Insurance Costs

Of a truth, car insurance premiums can be expensive, especially for comprehensive car insurance plans. Thus, if you own a car, you can’t simply ignore car insurance premiums as it is mandatory for every vehicle owner to have car insurance coverage. Infant, in the United States its law that your vehicle must be under insurance including the driver.

Be it as it may, it goes without saying that everyone wants to pay as minimum as possible for their motor insurance premium.

That said, here’s a catch:

Before you opt for any auto insurance plan, ensure that it offers adequate insurance coverage for your car. Otherwise, you might end up paying a bomb at the time of claim processing. Aside from that;

  1. Firstly, Compare insurance plans from different companies.
  2. Drive more carefully.
  3. Also, Increase your deductible.
  4. Insure multiple cars or drivers.
  5. Also, Take a defensive driving course.
  6. Stick with less expensive cars, as expensive ones cost more.
  7. Also, Improve your credit rating.
  8. Speak to an agent.
  9. Also, Ask for a discount.
  10. Choose personalized insurance to enable you to remove coverage you may not need.
  11. Lastly, Go for pay as you go insurance coverage.

Summary

To cap it up, Insurance rates are heavily affected by so many things as it increases the price a customer pays for car insurance premiums. In other words, the less risky your rating factors are, the cheaper your car insurance policy will be. Although, some auto insurance rating factors such as a driving record or vehicle type have relatively sizeable impacts on car insurance costs. On the other hand, factors like gender or marital status are deemed less important.

It’s Your Turn Now

Finally, I want to thank you for reading to this point. Don’t forget to comment or share it with your friends. As the knowledge of the Cheapest Cars to Insure in 2020, 2021, and beyond will help them in making decisions of what car type, model, and which auto insurance company to turn to for coverage. Thanks a lot.

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