What car has the cheapest insurance for a teenager?


Editorial team Published on

Affordable car insurance for teenagers usually comes from insuring them on a modest, safe, and mid-sized SUV or sedan rather than a separate policy.

Cheapest Vehicles to Insure

Insurance companies base rates on repair costs, safety ratings, and historical claim data. Safe, sturdy vehicles with lower horsepower and high crash-test scores are the cheapest to insure. Top affordable models include:

  • Toyota RAV4 (Average annual premium: ~$1,580)
  • Hyundai Tucson (Average annual premium: ~$1,613)
  • Honda CR-V (Average annual premium: ~$1,722)
  • Mazda CX-5 (Average annual premium: ~$1,773)
  • Subaru Outback (Average annual premium: ~$1,929)

Traditional midsize or compact sedans like the Honda Civic and Toyota Corolla also feature low insurance rates due to their high safety marks and inexpensive replacement parts.

Types of Cars to Avoid

  • Sports cars and high-horsepower vehicles: Insurers flag these for aggressive driving risk and high speed.
  • Tiny or micro cars: Small cars offer less protection in major collisions with larger vehicles.
  • Luxury cars: High replacement and repair costs drive up comprehensive and collision premiums.

Tips to Lower Teen Insurance Costs

  • Add the teen to your policy: Keeping a teen on a parent or guardian's existing policy is significantly cheaper than buying them a standalone individual policy.
  • Good student discounts: Many major insurers offer discounts (often up to 25%) for teens maintaining a B average or a 3.0+ GPA.
  • Driver's education: Completing an approved professional driver training course lowers premiums with many providers.
  • Telematics apps: Enrolling in safe-driving programs (like State Farm's Steer Clear or Liberty Mutual's RightTrack) tracks driving habits and yields initial sign-up discounts.

For official vehicle safety and teen recommendations, review the guidance from the Insurance Institute for Highway Safety and Kelley Blue Book.