Which car brands are the cheapest to insure?

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Subaru, Chrysler, and Mazda are among the cheapest mainstream car brands to insure, with average annual insurance premiums starting around $2,000 to $2,180.

Cheapest Car Brands

  • Subaru: Costs around $2,088 to $2,182 per year on average, driven by high safety ratings on models like the Forester and Outback.
  • Chrysler: Averages about $2,008 annually, making it one of the lowest-cost makes for coverage.
  • Mazda: Averages around $2,021 to $2,723 depending on the model, helped by affordable repair costs on crossovers like the CX-5.
  • Buick: Averages roughly $2,148 to $2,676 per year.
  • MINI: Averages about $2,159 to $2,208 annually.

Specific Affordable Models

If you want low insurance, specific vehicle models matter more than the brand name. The most budget-friendly individual models include:

  • Honda CR-V: Averages roughly $1,932 per year ($161 monthly).
  • Subaru Forester: Averages around $2,013 per year.
  • Mazda CX-5: Averages around $2,021 per year.
  • Toyota Corolla: Frequently tops lists for low-cost maintenance and parts replacement.

Why These Brands Cost Less

  • Safety features: Advanced driver-assist systems reduce accidents and win insurer discounts.
  • Lower repair costs: Widespread, affordable parts keep claims inexpensive.
  • Driver behavior: Practical SUVs and sedans attract fewer high-risk speeding claims than luxury sports cars.

What car is the cheapest car to insure?

The Subaru Outback and Subaru Forester consistently rank as the cheapest new cars to insure, alongside compact SUVs like the Honda CR-V and Mazda CX-5.

Insurance costs change based on your location, age, and driving record. However, insurance companies look at specific vehicle traits to set base rates.

Why Certain Cars Cost Less to Insure

  • Safety ratings: Top scores from the Insurance Institute for Highway Safety (IIHS) lower your risk of injury claims.
  • Repair costs: Cars with cheap, easy-to-find replacement parts reduce repair bills for insurers.
  • Lower horsepower: Slower cars attract fewer reckless driving claims.
  • Vehicle value: Modest price tags mean a lower payout if the car is totaled or stolen.

Top Affordable Models

  • Subaru Outback: Average full coverage starts around $1,083 to $2,000 per year.
  • Subaru Forester: Average monthly rates sit near $100 to $147.
  • Honda CR-V: Known for high safety marks, averaging about $161 per month.
  • Mazda CX-5: Frequently tops industry lists with low annual averages around $1,912.
  • Toyota Corolla: A reliable, budget-friendly sedan option with lower replacement costs.

You can check out WalletHub or Progressive for more detailed breakdowns on vehicle insurance factors.

What is the $3000 rule for buying cars?

The $3,000 rule is a car-buying budgeting guideline that suggests you should have at least $3,000 available before purchasing a vehicle.

How the Rule Works

  • Down payment: Use the money to lower your monthly loan amount.
  • Cash purchase baseline: Serve as a starting budget for an older, used car.
  • Financial cushion: Pay for immediate ownership costs after buying, like insurance, taxes, registration, fuel, and unexpected repairs.

Key Considerations

  • Total cost: Avoid focusing only on the monthly payment; remember to budget for maintenance.
  • Market differences: Depending on local pricing, $3,000 might only buy an older vehicle or a partial down payment. You can review local options via a dealer guide like Brown's Ford of Amsterdam.
  • Alternative rule context: A separate "repair vs. replace" rule sometimes suggests keeping a car if its annual repair costs stay under $3,000 compared to buying a new vehicle. You can read more about this perspective on Autoblog.

Which car has the cheapest insurance in Canada?

The Subaru Outback and Mitsubishi Mirage consistently rank among the cheapest vehicles to insure in Canada, with average annual insurance costs starting around $1,500 to $2,000 depending on the model year and your location.

Top Affordable Vehicles to Insure

  • Mitsubishi Mirage: Often ranks as the cheapest compact/budget car to insure, averaging around $1,534 per year due to low repair costs and basic specifications.
  • Subaru Outback: Highlighted as a top-tier affordable option for midsize options/SUVs with high safety marks, averaging near $2,041 annually.
  • Toyota Corolla & Honda Civic: Traditional Canadian staples that offer competitive insurance rates thanks to high safety ratings and cheap, widely available replacement parts.
  • Volkswagen Golf: Frequently tops lists for budget-friendly premiums among popular passenger cars in various provinces like Alberta and Ontario.

Why Certain Cars Cost Less to Insure

  • Repair and Parts Costs: Vehicles with cheaper, abundant parts cost less for insurers to fix after a minor accident.
  • Safety Ratings: Cars featuring top safety credentials (such as IIHS Top Safety Pick ratings) reduce the risk of severe injury, lowering overall policy risk.
  • Theft Rates: High-theft vehicles carry steep surcharges, whereas modest, everyday commuter cars suffer from fewer targeted thefts.

You can check and compare specific localized estimates using the Ratehub Insurance Quoter or Rates.ca.

Which car will be the cheapest to insure in 2026?

The Buick Envista and Subaru Outback rank as the cheapest cars to insure in 2026, with average full-coverage rates starting around $117 to $161 per month depending on the provider and driver profile.

📊 Top Affordable Vehicles for 2026

  • 🚗 Buick Envista
    • Monthly average: ~$161
    • Why it's cheap: Low repair costs and high safety tech.
  • 🚙 Subaru Outback
    • Monthly average: ~$117–$191
    • Why it's cheap: Top-tier crash ratings and standard all-wheel drive.
  • 🚙 Honda CR-V
    • Monthly average: ~$122–$161
    • Why it's cheap: Exceptional safety scores and low claim severity.
  • 🚙 Subaru Forester
    • Monthly average: ~$119
    • Why it's cheap: Affordable replacement parts and modest power.

💡 Why These Cars Cost Less

  • 🛡️ Safety Ratings: High IIHS and NHTSA scores reduce injury claims.
  • 🛠️ Repair Costs: Common parts are inexpensive to source and replace.
  • 📉 Theft Rates: Mainstream SUVs attract fewer thieves than luxury or sports models.

These 10 Cars Have the Lowest Insurance Rates!

9 related questions found

Which car brands are the least expensive to insure?

Subaru, Mini, Jeep, Buick, and Chevrolet are among the least expensive car brands to insure.

According to data compiled by Consumer Reports, average annual insurance premiums vary by brand due to factors like safety ratings, repair costs, and vehicle value.

Least Expensive Brands

  • Subaru: Averaging around $2,182 per year, boosted by high safety scores on models like the Forester and Outback.
  • MINI: Averaging around $2,535 per year.
  • Jeep: Averaging around $2,636 per year.
  • Buick: Averaging around $2,676 per year.
  • Chevrolet: Averaging around $2,704 per year, though high-performance sports cars like the Corvette can raise overall averages.

Why Certain Brands Cost Less

  • Safety ratings: Cars with high crash-test scores from the IIHS reduce injury and collision claims.
  • Affordable parts: Economy brands feature cheaper replacement parts, lowering repair bills for insurers.
  • Lower theft rates: Practical SUVs and family vehicles are stolen less often than luxury or high-horsepower sports cars.

Does car color affect insurance?

Car color does not affect car insurance rates.

Car insurance companies do not ask for or track your vehicle's paint color. When you apply for insurance, companies use your Vehicle Identification Number (VIN), which identifies the make, model, year, and features of the car—not its color.

Why the Myth Exists

  • Sports Cars: The popular belief that red cars cost more to insure comes from the false idea that bright colors attract higher accident rates or more speeding tickets. In reality, insurers charge more for certain sports cars because of their high-performance engines and expensive repair costs, not because they are red.
  • The VIN limitation: Paint color is not recorded in a vehicle's VIN data, meaning insurers have no practical way to factor color into their pricing models.

The Only Exception: Custom Paint Jobs

Standard factory paint colors have zero impact on rates. However, if you invest in an expensive custom paint job or specialized wrap, standard insurance policies may not fully cover the added value if the car is damaged. To protect a custom paint job, you must purchase extra coverage, such as custom parts and equipment (CPE) endorsement, which can slightly raise your overall premium.

What Actually Affects Insurance Rates

Insurers determine your rate based on real, measurable risk factors:

  • Vehicle type: Make, model, safety ratings, engine size, and repair costs.
  • Driving history: Your record of accidents, traffic tickets, and DUIs.
  • Location: Where you live and park your car.
  • Personal factors: Your age, gender, marital status, and credit-based insurance score (where allowed).

How much car can I afford if I make $70,000 a year?

On a $70,000 salary, you can generally afford a car priced between $22,000 and $25,000, assuming a standard loan and reasonable down payment.

Budget Guidelines

  • Monthly Take-Home Pay: About $4,822 after taxes.
  • Car Payment Limit: Keep your monthly loan payment under 10% to 15% of your take-home pay, which is roughly $482 to $723 a month.
  • Total Car Cost Ceiling: Limit all car expenses (payment, insurance, gas, and maintenance) to 20% of your take-home pay, or about $964 a month max.

Purchase Price Estimates

  • Used Car: Around $21,800 (using a 60-month loan with 10% down).
  • New Car: Around $24,600 (depending on current interest rates and loan terms).
  • As discussed in communities like Reddit Personal Finance, most users [consensus] suggest buying a reliable, gently used vehicle (such as a 2-to-3-year-old sedan) to save money on steep initial depreciation and insurance costs. You can also test different numbers using financial tools like the Kelley Blue Book Car Affordability Calculator.

What is the 20% rule when buying a car?

The 20% rule in car buying refers to making a down payment of at least 20% of the car's purchase price in cash or trade-in value.

What the 20% Rule Does

  • Prevents negative equity: Cars lose value quickly. Putting 20% down keeps you from owing more than the car is worth (being "upside down" on the loan).
  • Lowers monthly payments: A larger upfront payment reduces the total amount you need to borrow.
  • Reduces interest: Borrowing less money means you pay less total interest over the life of the loan.

Part of the 20/4/10 Rule

The 20% down payment is usually the first part of a larger budgeting formula called the 20/4/10 rule:

  1. 20%: Put at least 20% down.
  2. 4 Years: Limit your loan term to 48 months (4 years) or less.
  3. 10%: Keep total monthly car costs (loan payment, insurance, gas, and maintenance) under 10% of your monthly income.

(Note: Some conservative financial advisors prefer a 20/3/8 rule, which calls for a 20% down payment, a 3-year loan, and a maximum of 8% of income toward car expenses.)

Who has the highest car insurance rates in Canada?

Ontario and Alberta consistently rank as having the highest average car insurance rates in Canada.

Highest Provinces

  • Ontario: Features some of the highest private auto insurance costs in the country, with average annual premiums hovering around $1,920 per year.
  • Alberta: Ranks near or at the top depending on the specific industry index used, with average annual premiums also surpassing $1,700 to $3,000 depending on driver risk profiles and data metrics.

Highest Cities

  • Brampton and Vaughan (Ontario): Frequently trade places for the highest municipal auto insurance rates in Ontario, with average annual premiums in these cities exceeding $2,700 to over $3,300.
  • Calgary and Edmonton (Alberta): Carry the heaviest urban premium burdens within Alberta due to high traffic volumes, repair costs, and injury claims.