Last updated Aug. 1, 2024 by Okechukwu Nkemdirim
As the cost of living continues to rise, finding ways to save money becomes increasingly important. One significant area where you can save is auto insurance. The vehicle you drive has a considerable impact on your insurance premiums. Cars with high safety ratings, low theft rates, and affordable repair costs often come with cheaper insurance rates. Here’s a list of the cheapest cars to insure in 2023, plus a detailed overview of why these particular models are easy on your wallet when it comes to insurance costs.
Methodology
Before diving into the list, let’s talk about how this information is gathered. Insurance providers consider various factors to determine the cost of premiums, including:
- Vehicle safety ratings: Cars with high safety ratings are less likely to result in costly injury claims, which lowers insurance costs.
- Repair costs: Vehicles with parts that are inexpensive and readily available tend to be cheaper to insure.
- Theft rates: Cars that are less commonly stolen often come with lower premiums.
- Driver demographics: Information about the typical driver of a specific car model, such as age and driving history, can also influence insurance rates.
Top 10 Cheapest Cars to Insure in 2023
1. Honda CR-V
The Honda CR-V continues to be among the cheapest cars to insure, thanks to its excellent safety ratings and reliability. The car is equipped with modern safety features like adaptive cruise control, lane-keeping assist, and collision mitigation braking.
2. Subaru Outback
The Subaru Outback’s all-wheel drive, high safety ratings, and moderate repair costs make it an affordable option for insurance. Add to that its outdoor adventurer appeal, and it’s easy to see why it ranks highly on the list.
3. Mazda CX-5
Mazda’s CX-5 is known for its stylish design and high-performance features. Its crash test ratings and lower-than-average repair costs significantly contribute to its low insurance premiums.
4. Toyota Tacoma
This midsize truck is highly reliable and has a strong resale value. Its safety features and the typical cautious driving pattern associated with pickup truck drivers also help reduce insurance costs.
5. Chevrolet Equinox
The Chevrolet Equinox is another SUV that makes the list due to its excellent safety ratings. This model is known for its reliability, and its parts are widely available and affordable, which help in keeping insurance costs low.
6. Ford Escape
The Ford Escape’s range of safety features, such as automatic emergency braking and blind-spot monitoring, makes it a favorite among insurers. The vehicle’s moderate repair costs and reliability contribute to its low insurance premiums.
7. Hyundai Tucson
The Hyundai Tucson is equipped with multiple safety features and has a good reliability record. Its parts are also affordable, meaning insurance costs are generally low.
8. Kia Sportage
Kia’s Sportage comes with numerous advanced safety features and is generally affordable to repair. Its high safety ratings further contribute to its low insurance rates.
9. Jeep Compass
The Jeep Compass is often cheaper to insure, thanks to its excellent safety ratings and the availability of affordable parts. The vehicle’s reliability is another plus.
10. Honda Odyssey
Minivans like the Honda Odyssey are frequently among the cheaper vehicles to insure. This is due to their high safety ratings and the typical driving patterns of their owners, who tend to be safer drivers.
Factors that Influence Insurance Rates
Safety Ratings
Safety ratings have a direct impact on insurance costs. Cars with advanced safety features and high crash-test scores are less likely to result in significant injury claims. Consequently, these vehicles often come with lower insurance premiums.
Driving Record
If a particular car model attracts drivers who have clean driving records, it generally leads to cheaper insurance costs for that model.
Repair Costs
Insurance companies look at the cost and availability of parts when determining premiums. Cars with easily accessible and affordable parts are generally cheaper to insure.
Theft Rates
Cars that are commonly stolen have higher insurance premiums. Therefore, models that are not attractive to thieves tend to have lower rates.
Driver Demographics
The typical age, gender, and driving history of the driver of a specific car model can influence insurance premiums. For instance, cars generally driven by older individuals or families may be cheaper to insure.
Vehicle Type
Different types of vehicles attract different premiums. For example, sports cars usually come with higher insurance rates because they are often driven aggressively, whereas minivans or SUVs typically have lower rates.
✓ Short Answer
Factors such as high safety ratings, moderate repair costs, low theft rates, and the typical driving behavior associated with the vehicle’s demographic contribute to the low insurance premiums for these cars.
How to Further Reduce Insurance Costs
Shop Around
Different insurance companies may offer varying rates for the same car. It’s crucial to get multiple quotes before settling on an insurance provider.
Bundles
Consider bundling your auto insurance with other policies like home or renters insurance to get a better deal.
Higher Deductibles
Choosing a higher deductible can lower your monthly premiums. Ensure you have enough savings to cover the deductible if an accident occurs.
Usage-Based Insurance
Some insurance companies offer usage-based policies where your premium is based on your driving habits. Good drivers can often benefit from lower rates.
Discounts
Inquire about discounts that could further reduce your insurance costs. These might include discounts for safe driving, good students, or even for being a member of certain organizations.
Maintain a Clean Driving Record
The best way to keep your insurance costs low is to maintain a clean driving record. Avoiding accidents and traffic violations will make you eligible for lower premiums over time.
Conclusion
Choosing a car that is cheap to insure can save you a significant amount of money in the long run. The cars listed above are widely recognized for their low insurance premiums due to various factors such as high safety ratings, affordable repair costs, and low theft rates. As with any financial decision, it pays to research and consider multiple factors before making a choice. Ensure you also shop around for the best insurance rates to maximize your savings.
FAQs
Q: Why are safety ratings important for insurance costs?
A: Safety ratings are crucial because cars with high safety ratings are less likely to result in costly injury claims. Insurance companies offer lower premiums for safer cars to reflect this reduced risk.
Q: Do repair costs affect insurance premiums?
A: Yes, cars with parts that are inexpensive and readily available are generally cheaper to insure. High repair costs can increase the insurance premiums.
Q: How does the typical driver of a car model influence insurance rates?
A: Insurers look at the demographics and driving records of drivers typically associated with a car model. Cars driven by individuals with clean records generally enjoy lower insurance rates.
Q: Are SUVs more expensive to insure than sedans?
A: Not necessarily. Many SUVs like the Honda CR-V and Subaru Outback have high safety ratings and low repair costs, making them cheaper to insure than some sedans.
Q: Can I reduce my rates by adjusting my deductible?
A: Raising your deductible can lower your monthly premiums, but make sure you can afford the out-of-pocket costs in case of an accident.
Choosing a car with lower insurance premiums can lead to significant savings over time. Make an informed choice by considering factors like safety ratings, repair costs, and the typical profile of the driver associated with the vehicle. Always remember to shop around for the best insurance quotes to maximize your savings.
