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Our rates are based on public rate filings obtained by analytics company First Interpreter. While we may partner with some of the carriers you see on our site, we maintain editorial independence and it does not affect the rates you see. Read more about our rating methodology or see our rigorous editorial policy.Â
Written by Elizabeth Rivelli
Edited by Alyssa DiCrasto
Last updated: August 8th, 2024
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Cheap cars for new drivers to insure
In most states, car insurance is a legal requirement for vehicle owners. But for young drivers, finding affordable car insurance can be challenging. Age is one of the biggest factors that affects the cost of auto insurance, and new drivers typically pay the highest rates. However some vehicles are cheaper to insure than others.
When looking for a car that will be cheap to insure for a new driver, remember that in general:
- Used cars are cheaper to insure than new cars
- SUVs, trucks, and sedans are cheaper to insure than sports cars or luxury vehicles Â
- Economy brands are cheaper to insure than luxury brands or electric vehicles
Read on for more info, average rates, and tips on how to save on car insurance for new drivers.
Why is car insurance expensive for new drivers?
Young drivers usually pay the most expensive rates for car insurance. Newly licensed drivers lack experience behind the wheel and are more likely to get into accidents than drivers in any other age group. Because young drivers have higher instances of insurance claims, insurance companies charge higher rates to offset the risk.Â
However, young drivers can usually get cheaper coverage if they stay insured on a parent’s car insurance policy. For example, in Illinois, the average cost of car insurance for teenagers on their own policy is $8,344 per year. To compare, when a parent adds a teen to their policy, the average premium is $4,166 per year. Â
- Because car insurance is so expensive for new drivers as it is, it’s important that they choose the right vehicle to keep insurance costs as low as possible.
Cheapest car for insurance for new drivers
There isn’t a single vehicle make and model that is the cheapest car for every new driver to insure. Car insurance rates depend on many factors besides your age and vehicle type, such as where you live, what coverage you want, and if you are eligible for discounts. Â
In the table below, you can see the cheapest vehicles to insure on average out of the top 100 most popular 2023 models. If you’re looking for a new car with reasonable insurance prices for new drivers, start with these ones.
Cheapest new cars to insure for new drivers
Model | Average Annual Premium |
---|---|
Subaru Outback | 1,839 |
Subaru Forester | 1,893 |
Mazda CX-5 | 1,941 |
Volkswagen Tiguan | 1,968 |
Jeep Wrangler | 1,972 |
Chevrolet TrailBlazer | 1,989 |
Honda HR-V | 2,002 |
Hyundai Kona | 2,026 |
Hyundai Tuscon | 2,032 |
Kia Sportage | 2,032 |
Hyundai Tuscon | 2,032 |
Ram ProMaster 3500 | 2,039 |
Honda Odyssey | 2,047 |
Subaru Impreza | 2,049 |
Toyota RAV4 | 2,049 |
Chevrolet Express 2500 | 2,062 |
Buick Encore | 2,073 |
Acura RDX | 2,083 |
Hyundai Santa Fe | 2,086 |
Ford Transit Cargo XL | 2,094 |
Kia Soul | 2,101 |
Honda Pilot | 2,106 |
Ram ProMaster 2500 | 2,127 |
Ford Escape | 2,133 |
Ford Transit Connect Passenger | 2,144 |
Toyota Highlander | 2,195 |
Cheapest car brands for new drivers to insure
The make of your car will impact the price of your car insurance. This is because some brands have higher value, some are more expensive to repair, and some are just more expensive to own. These brands will also be more expensive to insure. Â
Overall, Subarus are the cheapest brand of cars to insure for new drivers.
In general, economy brands like Honda and Toyota are less expensive to insure than luxury car brands like Acura and Lexus. Other cheap vehicle makes for car insurance include Hyundai and Honda.Â
For a new driver, an vehicle from an economy brand may be cheapest for insurance.Â
Cheapest type of car for new drivers to insure
The type of vehicle you choose will also impact the cost of car insurance. For instance, SUVs are generally the cheapest kind of vehicle for insurance, followed by trucks and sedans. Sports cars and electric vehicles tend to be more expensive to insure.Â
What to look for in a car for new drivers
- Age of the car: New cars are equipped with the latest technology and safety features, many of which can be beneficial for young drivers. However, new cars also tend to be more expensive to insure than used cars, which is something to consider when choosing an affordable vehicle.Â
- Safety features: Young drivers should always look for vehicles that have modern safety features. Because teens are more likely to get into accidents than older drivers, it can be helpful to choose a car that is equipped with collision avoidance systems, lane departure alerts, backup cameras, and 24/7 emergency assistance. Â
- Repair costs: New cars usually cost more to repair than used cars, which is one of the reasons why new cars cost more to insure. For teen drivers who may not be able to avoid expensive car repairs, it’s a good idea to research the estimated cost of repairs before choosing a make and model. Â
- Uninsured/underinsured motorist insurance: Gas mileage for vehicles can vary significantly. Some young drivers may benefit from a car with excellent gas mileage or a hybrid vehicle, which can help keep the cost of car ownership low.Â
Cheapest car for a teen to insure
The average cost of car insurance depends on a variety of factors, and the vehicle type is just one of them. There is not one vehicle that is the cheapest for all teens to insure. While our recent data shows that the cheapest car to insure overall is the Subaru Outback, some drivers might find that a different vehicle is actually less expensive.  Â
Before purchasing a vehicle, it’s a good idea for teen drivers to get personalized rate quotes for several car makes and models. Just because a vehicle has a low MSRP doesn’t mean it will have cheap insurance rates. Comparing rates for several vehicles can help you make the best decision when purchasing a new or used vehicle.Â
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Other ways to save money on car insurance for a new driver
There are many ways for new drivers to save money on their car insurance. Here are some tips for getting the most affordable auto insurance:Â
- Look for discounts: Many car insurance companies offer discounts specifically for young drivers. For example, you can typically find discounts for students who get good grades in school, or attend school 100 miles from home and don’t have access to their vehicle.Â
- Maintain a clean driving record: Your driving record has a big impact on the cost of auto insurance, regardless of age. Avoiding tickets, accidents, and other violations will help you get the best rate for your situation.Â
- Take a defensive driving course: You can usually get a discount on your car insurance premium if you complete an approved defensive driving course.Â
- Shop around: To find the cheapest car insurance for new drivers, it’s important to shop around and compare rates from multiple insurance companies. To simplify the process, you can take our short quiz to see how much you can expect to pay for car insurance.
Frequently asked questions on car insurance for a new driver
What are the cheapest cars for new drivers to insure?
The cheapest cars for new drivers to insure are typically those with strong safety ratings, low repair costs, and moderate market values. SUVs like the Subaru Outback, Subaru Forester, and Mazda CX-5 are among the most affordable options due to their safety features and repair costs. Economy cars such as the Honda Civic or Hyundai Elantra may also offer low insurance rates. It’s always best to compare quotes for specific makes and models to determine which car provides the most affordable coverage based on your location and driving profile.
Do older cars cost less to insure than newer models?
Yes, older cars generally cost less to insure than new cars. This is because older vehicles typically have a lower market value, which reduces the cost of coverage for comprehensive and collision insurance. However, there are exceptions: older cars without modern safety features or vehicles such as sports cars might still cost more to insure.
Are electric vehicles or hybrids more expensive to insure for teens?
In general, electric vehicles (EVs) and hybrids are often more expensive to insure for everyone – including teens. This is because these kinds of cars tend to have higher repair costs due to specialized components, such as batteries and electronic systems, and can be more expensive to replace in the event of a total loss. Teens driving EVs or hybrids may have even more expensive insurance because of their lack of experience. However, many insurers offer discounts for eco-friendly vehicles, which could offset some of the cost.
Is liability-only coverage a good option for a new driver?
It depends. Liability-only coverage will be less expensive than a policy that includes comprehensive and collision protection. However, this means that any damages to your own vehicle will not be covered by your insurance.
If you can afford to repair or replace your own vehicle if you have an accident, then liability-only coverage can be a good option for a new driver, especially to keep car insurance prices low. But if you cannot afford to repair or replace your vehicle out-of-pocket, liability-only insurance may end up costing you more than it saves you in the long run if you get in an accident (which new drivers are more likely to do anyway).
Do insurance rates go down after the first year of driving?
Yes, the price of car insurance usually goes down after the first year of driving as long as the driver maintains a clean driving record. This is because insurers reward experience and a history of safe driving. However, rates may not drop significantly until the driver reaches certain milestones, such as turning 25, gaining several years of experience, or qualifying for new discounts.
Why are insurance rates higher for new drivers?
Insurance rates are higher for new drivers because they are statistically more likely to be involved in accidents due to limited driving experience. This increased risk leads insurers to charge higher premiums to offset potential claims. Additionally, teens and young adults often have less familiarity with defensive driving techniques. Factors like the vehicle type, location, and policy specifics can also impact the cost of car insurance for new drivers.