Finding the best cheap car to insure as a first car is one of the smartest financial moves a new driver can make. Car insurance for first-time drivers averages $2,800–$4,500 per year — and that’s before you factor in a car payment. The vehicle you choose has a massive impact on your premium, sometimes saving (or costing) you $1,000+ a year. Here’s exactly which cars to look at and why.
Why Your Car Choice Matters So Much
Insurance companies calculate your premium based on how likely your car is to be stolen, how expensive it is to repair, and how it performs in crash tests. Sports cars, luxury vehicles, and high-horsepower rides are red flags. Older, modestly powered sedans and hatchbacks with strong safety ratings are gold. As a first-time driver already paying a higher rate for your inexperience, picking the right car is the biggest lever you have for keeping costs down.
The Best Cheap Cars to Insure for First-Time Drivers
1. Honda Civic (2018–2022)
The Honda Civic consistently ranks among the cheapest cars to insure in the country. With a 4-cylinder engine, excellent IIHS safety ratings, and affordable repair costs, insurers love it. Expect to pay around $1,400–$2,200 per year for a 20-year-old driver on a used Civic. You can find a solid 2019 or 2020 model for $18,000–$22,000 on AutoTrader or CarMax.
2. Toyota Corolla (2017–2022)
The Corolla is Toyota’s everyman sedan, and it makes a perfect first car. Low theft rates, cheap OEM parts, and top safety scores keep premiums down. Insurance for a young driver typically runs $1,300–$2,100 annually. A used 2018 Corolla LE lists for around $17,000–$20,000 — reliable, understated, and easy on your wallet every renewal period.
3. Mazda3 (2018–2021)
If you want a little more personality without paying more to insure it, the Mazda3 is a standout pick. It earns top safety marks and uses the same affordable parts network as other mainstream Japanese sedans. Annual premiums for young drivers typically land between $1,500–$2,300. Look for used models in the $17,000–$21,000 range on AutoTrader or Carvana.
4. Subaru Impreza (2017–2021)
The Impreza comes standard with all-wheel drive — a big deal if you live in a snowy state — and still keeps insurance costs manageable. Its IIHS Top Safety Pick ratings and modest 152 hp engine make it a low-risk bet for insurers. Young drivers can expect to pay roughly $1,600–$2,400 per year. Used 2018–2020 models typically run $18,000–$23,000.
5. Honda Fit (2015–2020)
For drivers on a tighter budget, the Honda Fit is a hidden gem. This small hatchback has a low sticker price ($12,000–$17,000 used), a tiny engine, excellent safety scores, and rock-bottom insurance costs — often $1,200–$1,900 per year for younger drivers. Honda discontinued the Fit after 2020 in the US, but used models are plentiful and dirt cheap to own and insure.
What Actually Makes a Car Cheap to Insure
Insurance companies don’t pick numbers out of thin air. Here’s what they’re looking at when they set your rate:
- Safety ratings: IIHS and NHTSA scores directly influence your premium. Top-rated vehicles get meaningfully lower rates.
- Theft rates: High-theft models cost more to insure. Check the Highway Loss Data Institute theft rankings before you buy.
- Repair costs: Luxury and European brand parts are expensive. Stick to Honda, Toyota, and Mazda for cheap parts and mechanics who know them inside out.
- Engine size: A 150–180 hp 4-cylinder is the sweet spot. Avoid turbo engines and V6+ as a first car if you care about keeping your premium low.
- Vehicle age: A 3–5 year old used car lets you consider dropping comprehensive and collision if the car’s value doesn’t justify the cost, saving you hundreds annually.
How to Cut Your Premium Even Further
Even after picking a smart vehicle, there’s more savings on the table. Get quotes from at least three insurers — start with Geico, Progressive, and State Farm. Rates for the same driver and car can vary by $500+ per year between companies. Then stack these discounts:
- Good student discount: A GPA of 3.0 or higher gets you 8–15% off at most major insurers.
- Defensive driving course: A one-day course (typically $30–$60) can shave 5–10% off your premium. Many states mandate insurers offer it.
- Usage-based programs: Progressive Snapshot and State Farm Drive Safe & Save track your driving and can cut your rate by up to 30% if you drive safely and don’t rack up miles.
- Stay on a parent’s policy: If it’s an option, being added as an additional driver on a parent’s policy is almost always cheaper than a standalone policy in your own name.
Key Takeaways
- The Honda Civic, Toyota Corolla, Mazda3, Subaru Impreza, and Honda Fit are consistently the best cheap cars to insure for new drivers.
- Focus on strong safety ratings, low horsepower, and cheap repair costs when shopping.
- Get quotes from at least three insurers — Geico, Progressive, and State Farm are a solid starting point.
- Stack discounts: good student, defensive driving, and usage-based programs add up fast.
- A 3–5 year old used car often lets you reduce coverage levels and save even more each month.
Ready to start shopping? Browse listings on AutoTrader or CarMax for the models above, then run insurance estimates through Geico, Progressive, and State Farm before you commit to anything. Locking in both a smart car choice and a competitive rate could save you $1,500 or more in your first year — money better spent on road trips than on premiums.
Featured photo by Jerrick Castillo on Unsplash