Car insurance rates have been climbing steadily in recent years, with the national average for full coverage now hovering around $2,300 to $2,500 annually, depending on the source. For many drivers, the make and model of their vehicle can make a difference of several hundred dollars a year—sometimes even $1,000 or more. Choosing a car that’s statistically safer, less expensive to repair, and less likely to be stolen can lead to meaningful savings without sacrificing reliability or features.
In this guide, we’ll break down the cheapest cars to insure in 2025 based on the latest data from major analysts like Bankrate, MoneyGeek, Forbes Advisor, and Insurify. These figures reflect average full-coverage premiums for a typical 40-year-old driver with a clean record, but your own rate will vary based on location, driving history, credit score, and other factors.
What Determines How Much You’ll Pay to Insure a Car?
Insurance companies don’t set rates arbitrarily. They rely on vast claims data to assess risk for each vehicle. Here’s what typically drives lower premiums:
- Strong safety ratings — Models earning Top Safety Pick or Top Safety Pick+ awards from the Insurance Institute for Highway Safety (IIHS) tend to have fewer severe accidents and injuries.
- Affordable repair costs — Vehicles with readily available parts and simpler designs cost less to fix after a crash.
- Low theft rates — Cars that aren’t popular with thieves avoid the surcharge that comes with higher comprehensive claims.
- Moderate performance — High-horsepower sports cars and luxury vehicles attract riskier driving behavior and expensive claims.
- Vehicle type — Crossovers, SUVs, and minivans generally fare better than sedans or performance cars in insurance pricing, largely due to their safety profiles and driver demographics.
Crossovers and midsize SUVs dominate the “cheapest to insure” lists year after year for these exact reasons.
Top 10 Cheapest Cars to Insure in 2025
Drawing from multiple 2025 analyses, here are the standout models that consistently rank at the top for low insurance costs. These are primarily compact and midsize crossovers with excellent safety records.
| Rank | Model | Vehicle Type | Average Annual Full Coverage Premium* | Key Reasons for Low Rates |
|---|---|---|---|---|
| 1 | Mazda CX-5 | Compact SUV | $1,950 – $2,100 | Exceptional IIHS safety scores, affordable parts, low claim frequency |
| 2 | Subaru Outback | Midsize Wagon/SUV | $2,000 – $2,200 | Standard AWD, top crash-test performance, mature driver appeal |
| 3 | Honda CR-V | Compact SUV | $2,050 – $2,250 | Reliable reputation, strong safety features, low repair costs |
| 4 | Subaru Forester | Compact SUV | $2,050 – $2,200 | Similar to Outback: excellent safety, AWD standard, low theft |
| 5 | Honda HR-V | Subcompact SUV | $2,000 – $2,150 | Small size with big safety tech, inexpensive to maintain |
| 6 | Toyota Tacoma | Midsize Pickup | $2,100 – $2,300 | Durable build, strong resale, fewer high-speed claims |
| 7 | Jeep Wrangler Sport | Compact SUV | $2,100 – $2,250 | Surprisingly low collision severity despite off-road image |
| 8 | Hyundai Tucson | Compact SUV | $2,050 – $2,200 | Modern safety suite, competitive pricing on parts |
| 9 | Ford Escape | Compact SUV | $2,100 – $2,300 | Good safety ratings, widespread parts availability |
| 10 | Honda Odyssey | Minivan | $2,150 – $2,400 | Family-oriented demographics, top minivan safety scores |
*Premium estimates are national averages compiled from 2025 data across Bankrate, MoneyGeek, Forbes, and Trusted Choice analyses. Actual quotes can be 20-30% higher or lower depending on your state and profile.
These vehicles routinely save drivers $500–$1,000 annually compared to the national average, especially when paired with a good driving record.
Best Choices by Vehicle Category
If you’re shopping within a specific segment, here’s where the savings are strongest:
- Compact SUVs → Mazda CX-5 and Honda HR-V lead the pack. They’re nimble for city driving yet packed with driver-assist tech that insurers reward.
- Midsize SUVs/Wagons → Subaru Outback remains a perennial favorite. Its all-wheel-drive system and rugged reliability appeal to safer, more experienced drivers.
- Pickups → The Toyota Tacoma stands out—it’s tough enough for work but doesn’t carry the high-risk profile of full-size trucks.
- Minivans → Honda Odyssey and Chrysler Voyager/Pacific Hybrid often undercut even SUVs, thanks to family-focused ownership patterns and excellent crash protection.
Sedans like the Honda Civic or Toyota Corolla can also be budget-friendly, but they generally cost slightly more to insure than comparable crossovers in current data.
Tips to Lower Your Insurance Premiums Even Further
Picking the right car is a great start, but you can stack additional savings:
- Shop around — Rates for the same vehicle can vary by hundreds between carriers. Compare at least three quotes.
- Bundle policies — Combining auto with home or renters insurance often yields 10-25% discounts.
- Maintain good credit — In most states, higher credit scores translate directly to lower rates.
- Take advantage of discounts — Ask about safe driver, low-mileage, defensive driving course, or telematics programs.
- Raise your deductible — Moving from $500 to $1,000 can cut premiums noticeably if you have an emergency fund.
- Drive safely — A clean record over three to five years is the single biggest rate reducer.
Final Considerations When Buying
While insurance savings matter, don’t choose a car solely on premium costs. Factor in fuel economy, reliability ratings (check sources like Consumer Reports), resale value, and how well it fits your lifestyle. A vehicle that’s cheap to insure but expensive to maintain or fuel could erase those savings over time.
Always get personalized quotes before signing on the dotted line—many insurers let you run estimates by VIN even before purchase.
In today’s market, smart shoppers who prioritize safety and practicality are rewarded at the pump and on their insurance bill. Models like the Mazda CX-5 and Subaru Outback prove you don’t have to spend big to drive something reliable and affordable to protect.
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