If you’re shopping for a car and dreading the insurance bill that comes with it, you’re not alone. Finding a cheap car that has the lowest insurance rates is one of the smartest financial moves you can make — and yes, the car you pick matters a lot. We’re talking hundreds of dollars a year in savings just by choosing the right vehicle before you even leave the dealership.
Insurance companies set your premium based on repair costs, theft rates, safety ratings, and how often that model shows up in accident claims. A flashy sports car looks great in the driveway. It’ll cost you every single month. The good news? Plenty of practical, reliable vehicles come with surprisingly low annual insurance costs.
Which Cheap Car Has the Lowest Insurance Rates?
Based on average full-coverage premiums from insurers like Geico, Progressive, and State Farm, here are the standout winners:
1. Honda CR-V (~$1,050/year average)
The CR-V consistently tops the list. It’s boring in the best possible way — safe, popular, cheap to repair, and not exactly a vehicle thieves get excited about. Full coverage through Geico can run as low as $85/month for drivers with clean records. Hard to argue with that.
2. Hyundai Elantra (~$1,060/year average)
The Elantra is one of the cheapest sedans to insure in the country. Affordable to buy, cheap to fix, and widely available — making it a triple win if you’re watching your budget. Newer trims with Honda Sensing-style safety tech bring the rate down even further.
3. Subaru Outback (~$1,100/year average)
Subaru has a loyal following for a reason. The Outback earns top marks in IIHS crash tests and attracts a generally careful driver demographic — which insurers reward. Both Progressive and State Farm offer competitive rates on this one.
4. Jeep Wrangler (~$1,120/year average)
This one surprises people every time. The Wrangler looks rugged and adventure-ready, but it’s genuinely one of the cheapest vehicles to insure. Parts are widely available, theft recovery rates are solid, and base models keep values modest. Allstate especially tends to price these well.
5. Ford F-150 (~$1,140/year average)
America’s best-selling truck is also surprisingly affordable to insure — particularly the base XL and XLT trims. USAA (for military families) and State Farm both offer strong rates on trucks. Buy a work truck, not a luxury trim, and the insurance bill reflects that.
Why These Cars Cost Less to Insure
There’s a clear pattern among the cheap cars that have the lowest insurance costs. They tend to share a few key traits:
- High safety ratings — strong NHTSA and IIHS scores mean fewer serious injury claims
- Affordable, available parts — common vehicles with widespread parts supply keep repair bills low
- Lower theft rates — thieves prefer high-resale-value cars; the Wrangler and CR-V aren’t top targets
- Moderate horsepower — high-performance engines correlate with more accidents, which insurers price in aggressively
How to Lock In the Lowest Rate
Even after choosing the right car, you can still overpay if you skip this step: compare at least three quotes. Use a tool like The Zebra, or go direct to Geico, Progressive, and State Farm. Rates on the same car and same coverage can vary by $400 or more per year between insurers. That’s not a rounding error — that’s real money.
Your credit score also plays a major role in most states. Insurers use it heavily when pricing premiums, and jumping from fair to good credit can cut your rate by 15–20%. If you’re financing the car too, fixing your credit first improves your APR and your insurance bill at the same time.
Two other levers worth pulling: raise your deductible from $500 to $1,000 (saves roughly 10–15% on premium) and ask your insurer directly about discounts. Bundling home and auto, low annual mileage, and completing a defensive driving course through AAA or your insurer all qualify for breaks most people never bother to claim.
Key Takeaways
- The Honda CR-V, Hyundai Elantra, and Subaru Outback are consistently among the cheapest vehicles to insure in the US
- Prioritize high safety ratings and low repair costs — they drive insurance premiums down more than anything else
- Always pull quotes from at least three insurers — Geico, Progressive, and State Farm are the right starting point
- Your credit score and deductible level have an outsized impact on what you actually pay
- Full coverage on the right vehicle can run as low as $85–95/month for clean-record drivers
The bottom line: the cheap car with the lowest insurance rates isn’t just good for your wallet at purchase — it keeps saving you money every month for as long as you own it. Before you fall in love with anything on the lot, pull an insurance quote first. It takes five minutes and could save you $500 a year.
Your next move: get side-by-side quotes from Geico, Progressive, and State Farm before you sign a single piece of paperwork. Compare all three, pick the winner, and drive off knowing you didn’t leave money on the table.
Featured photo by Ladislav Stercell on Unsplash