When buying a car, many people fixate on the sticker price, fuel efficiency, or reliability ratings—but one of the most underestimated costs of vehicle ownership is insurance. Insurance premiums can vary drastically from one model to another, even within the same brand or segment.
Surprisingly, two vehicles that cost the same to purchase can differ by thousands over time in insurance costs. These discrepancies are based on several factors including repair costs, safety ratings, theft likelihood, and how statistically risky each car is perceived by insurers.
That’s why it’s important to look beyond aesthetics and horsepower when considering your next vehicle. Whether you’re looking to save every rupee possible or simply curious about which cars insurance companies deem riskiest, understanding insurance trends by model is crucial.
In this feature, we’ll explore both ends of the spectrum—five cars with the lowest insurance rates and five with the highest. The first list will help budget-conscious drivers find value beyond just fuel economy. The second will serve as a warning for those who might be unknowingly walking into exorbitant coverage costs.
Let’s begin by exploring the five cars that are the most affordable to insure—and why they’ve earned that distinction.
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5 Cars With Lowest Insurance Rates
While car buyers often hunt for fuel-efficient, reliable, or budget-friendly models, insurance premiums deserve just as much attention—if not more. Insurance is a recurring cost that impacts your wallet month after month, year after year.
Some cars consistently carry lower premiums due to their safety features, inexpensive repair costs, low theft rates, and less aggressive driver demographics. These factors combine to form a picture of “lower risk” in the eyes of insurance providers.
Cars that tend to be family-friendly, compact, or non-sporty in design usually fall into this category. They’re not flashy or built for high-speed thrills, which reduces the chances of reckless driving incidents or high-speed crashes.
More importantly, these models are cheaper to repair and less likely to be stolen, making them a safer bet for insurance companies. The result? Lower premiums for the consumer.
This list is tailored for the practical buyer—someone looking for peace of mind, predictable expenses, and long-term value.
It’s not about sacrifice; many of these cars still offer modern tech, comfortable interiors, and strong reliability records. We’re highlighting five models known for consistently offering the lowest insurance rates in the market today.
Whether you’re a new driver, a college student, or simply a budget-savvy car owner, these picks can help you save significantly over time. Let’s break down the top five most affordable cars to insure and explore what makes each one stand out.
1. Subaru Outback (Approx. $1,200/year)
The Subaru Outback is a consistent front-runner when it comes to vehicles with the lowest insurance costs in the United States—and it’s not just by chance.
Blending SUV-like capability with the comfort of a wagon, the Outback checks nearly every box insurance companies look for when calculating lower-risk premiums.
First, the Outback is one of the safest vehicles on the road. Most trims come standard with Subaru’s EyeSight Driver Assist suite, which includes adaptive cruise control, pre-collision braking, lane departure warning, and lane centering.
The Insurance Institute for Highway Safety (IIHS) regularly gives the Outback its highest safety designation, “Top Safety Pick+,” thanks to its crashworthiness and advanced safety systems. From an insurer’s perspective, safer cars lead to fewer claims—hence lower premiums.
Second, the Outback appeals to a practical, risk-averse demographic. It’s commonly driven by families, outdoor adventurers, and retirees rather than aggressive, thrill-seeking drivers. Insurance providers closely track who typically drives each model, and calmer, more experienced drivers translate to fewer accidents and a lower likelihood of claims.
Another factor working in the Outback’s favor is its relatively low repair costs. Despite its AWD system and off-road-ready design, it remains easy and affordable to maintain.
Subaru has a well-established service network across the U.S., and parts availability is solid. Insurance companies reward cars that are cheap and straightforward to fix.
Additionally, the Outback is not a common target for thieves. Models with high theft rates typically lead to more comprehensive coverage claims, but the Outback avoids this risk thanks to its practical, under-the-radar appeal.
Lastly, it’s a car built for the long haul. Owners often keep their Outbacks for years thanks to their durability and reliability. The longer you stay with a vehicle and keep a clean driving record, the more stable your insurance rates become.
For U.S. buyers looking for safety, all-weather capability, and budget-friendly ownership, the Subaru Outback is a standout. It offers real-world utility with none of the flashy, high-risk baggage—and insurance companies take notice.
2. Honda CR-V (Approx. $1,250/year)
The Honda CR-V continues to be a gold standard for affordable insurance in the U.S., and it’s easy to see why. This compact SUV hits the sweet spot between reliability, safety, and practicality—all major factors that insurance companies reward with lower premiums.
One of the CR-V’s strongest advantages is its crash test performance. With top-tier ratings from both the National Highway Traffic Safety Administration (NHTSA) and the Insurance Institute for Highway Safety (IIHS), it earns “Top Safety Pick” accolades year after year.
Features like collision mitigation braking, lane-keeping assist, adaptive cruise control, and a robust airbag system contribute to fewer and less severe accidents. That translates directly to fewer insurance claims and lower rates.
The CR-V also appeals to a mature, responsible demographic—families, retirees, and commuters—not thrill-seekers or high-risk drivers.
This behavioral trend leads insurers to view CR-V owners as low-risk policyholders. Insurance rates are influenced by who typically drives the car just as much as by the car itself.
Then there’s the cost of repairs. The CR-V benefits from Honda’s extensive dealer and service network, meaning repairs are relatively quick and affordable.
Since parts are widely available and labor is standardized, insurance companies know they won’t face steep repair bills in the event of damage.
Another reason for the CR-V’s insurance-friendly status? It’s rarely targeted by car thieves. While Hondas in general are sometimes sought after, the CR-V is less frequently stolen than high-performance or luxury models, which lowers comprehensive insurance costs.
In terms of value, few vehicles pack as much practicality into a compact footprint. The CR-V offers excellent fuel efficiency, roomy interiors, and dependable performance without trying to be flashy or sporty. That modest persona makes it less risky to insure.
Suppose you’re a budget-conscious American buyer who wants a safe, durable, and family-friendly vehicle without the long-term sting of high insurance premiums.
In that case, the Honda CR-V is an excellent choice. It balances peace of mind with low ownership costs, making it a go-to recommendation for first-time buyers and veterans alike.
3. Mazda CX-5 (Approx. $1,260/year)
The Mazda CX-5 strikes a rare balance between upscale design, engaging performance, and surprisingly low insurance premiums—making it a smart choice for budget-conscious drivers who don’t want to compromise on driving experience.
With an average annual insurance cost of around $1,260, the CX-5 continues to be one of the most affordable compact SUVs to cover in the U.S.
One of the key reasons for its low insurance rate is its high safety performance. The CX-5 has earned consistent praise from the Insurance Institute for Highway Safety (IIHS), receiving the “Top Safety Pick+” rating thanks to its strong crash-test scores and advanced safety tech.
Mazda includes features like automatic emergency braking, blind-spot monitoring, adaptive cruise control, and lane-keeping assist even in many of its base models. These systems dramatically reduce the risk of accidents—something insurers reward with lower premiums.
The CX-5’s target market also works in its favor. It’s mostly driven by responsible, practical owners—young professionals, suburban families, and empty nesters—who have lower accident rates compared to the typical driver of sportier or more expensive vehicles.
Insurance companies track the behavior of these groups closely, and the CX-5 tends to fall into the “low-risk” zone.
Moreover, repair costs for the CX-5 remain modest. Mazda offers strong reliability, and replacement parts are generally affordable.
Since insurance companies factor in the cost to repair or replace a vehicle after an accident, the CX-5’s relatively economical repairs help lower its overall insurance profile.
Another plus: it’s not a common theft target. Unlike flashy sports cars or heavily modified sedans, the CX-5 doesn’t attract car thieves in large numbers, which helps keep comprehensive insurance rates low.
Finally, Mazda has carved a niche for delivering near-luxury quality at mainstream prices, and the CX-5 is the prime example. It looks and feels more premium than many of its competitors, yet it avoids the high insurance costs typically associated with luxury nameplates.
In summary, the Mazda CX-5 is a smart pick for U.S. buyers who want style, comfort, and peace of mind—all without paying a premium to insure it.
4. Hyundai Tucson (Approx. $1,270/year)
The Hyundai Tucson has earned a solid reputation as one of the most well-rounded compact SUVs in the U.S., and one of the most affordable to insure.
With an average annual insurance premium of around $1,270, the Tucson offers a compelling blend of safety, reliability, and affordability—key ingredients insurers value when calculating risk.
One of Tucson’s greatest strengths is its suite of standard safety features. Hyundai has made it a point to include advanced driver-assist technologies even on base trims.
This includes forward collision warning with automatic emergency braking, lane-keeping assist, driver attention warning, and pedestrian detection.
These systems reduce the likelihood and severity of accidents, leading directly to fewer insurance claims and lower premiums.
In crash testing, the Tucson consistently receives high marks from the IIHS and NHTSA, including Top Safety Pick honors in several recent model years. That means insurers view it as a lower liability, which positively impacts coverage rates.
The Tucson also enjoys relatively low repair and maintenance costs. Hyundai’s extensive dealership network across the U.S. ensures parts are readily available and labor costs remain competitive. If something does go wrong, insurers know they won’t be paying exorbitant repair bills, which helps keep premiums down.
Unlike sportier or higher-end crossovers, the Tucson doesn’t attract drivers known for risky behavior. It tends to be favored by families, commuters, and retirees—all demographics that statistically file fewer insurance claims. This “low-risk” driver profile makes the Tucson an attractive model for insurance companies.
Another factor working in its favor is its low theft rate. Unlike more popular or flashier models, the Tucson isn’t high on the list for car thieves, which helps reduce the cost of comprehensive insurance coverage.
In terms of value, the Tucson gives buyers a lot for their money—good fuel economy, a strong warranty, and a quiet, well-appointed cabin.
But the hidden value comes in the form of ownership costs, especially insurance. It’s a dependable, safe, and cost-effective choice that won’t hit your wallet hard when it’s time to renew your policy.
If you want a practical SUV that’s easy on both the road and your insurance budget, the Hyundai Tucson is a standout pick.
5. Ford Escape (Approx. $1,280/year)
Rounding out the list of vehicles with the lowest insurance rates is the Ford Escape, a compact SUV that delivers a winning combination of mainstream appeal, advanced safety, and low long-term costs—including some of the most affordable insurance premiums in its class.
With an average annual insurance cost of about $1,280, the Escape remains a top choice for drivers who value peace of mind and manageable expenses.
A major reason behind the Escape’s insurance affordability is its impressive safety record. It consistently earns top marks from both the NHTSA and IIHS, with recent models achieving “Top Safety Pick” designations.
Features like pre-collision assist with automatic emergency braking, blind spot monitoring, lane-keeping system, and cross-traffic alert come standard on many trims, which helps reduce accident-related insurance claims.
Another factor working in the Escape’s favor is its wide appeal to practical, family-oriented drivers—a demographic that typically has fewer accidents and insurance claims.
Insurance providers take driver profiles seriously, and the Escape’s audience is seen as responsible and relatively low-risk.
Then there’s repair cost and parts availability. The Escape benefits from being a longtime staple in Ford’s lineup, meaning parts are abundant and relatively inexpensive across the country. Labor costs are also reasonable at most service centers.
This makes collision repairs and routine maintenance less costly for insurers, who in turn pass those savings on to you through lower premiums.
Also helping its insurance profile is the fact that the Ford Escape isn’t commonly targeted by car thieves. It lacks the high resale value or street appeal of luxury models or performance vehicles, which means comprehensive coverage costs stay relatively low.
And while it may not be the flashiest option in the segment, the Escape holds its own with strong fuel economy, a smooth ride, and tech-forward interior options like SYNC 4 and smartphone integration.
It delivers everything a typical commuter or small family would need—without drawing higher insurance costs along the way.
For U.S. drivers looking for a well-rounded, sensible SUV that doesn’t punish them with excessive premiums, the Ford Escape is an easy recommendation.
5 Cars With the Highest Insurance Rates
While many drivers shop for vehicles based on horsepower, luxury, or style, few stop to consider how those features may impact one very important—and recurring—expense: insurance. The truth is, some cars are magnets for high premiums.
Whether it’s because they’re expensive to repair, have high theft rates, or attract riskier drivers, certain models consistently land at the top of the insurance-cost spectrum.
Insurers use a wide variety of data when setting premiums. Factors like how much damage a car typically sustains in crashes, how expensive it is to fix, how often it’s stolen, and the types of drivers who typically own it all influence the final rate.
High-performance vehicles, for example, are more likely to be driven aggressively, which leads to more claims. Luxury brands, on the other hand, often carry advanced technologies and premium materials that are far more expensive to repair or replace. This all adds up—quickly.
Understanding which cars cost the most to insure can help buyers avoid unexpected financial strain.
You might find a great deal on a used luxury coupe, only to be shocked later by sky-high coverage costs. Or you might choose a powerful muscle car, unaware that insurers see it as a risk magnet.
In this section, we’ll explore five vehicles that consistently rank among the most expensive to insure in the U.S. These cars are often flashy, powerful, or high-value—and while they may turn heads on the street, they’ll also grab attention from your insurance provider.
If you’re drawn to these types of vehicles, it’s important to go in with eyes wide open. Let’s take a closer look at the top five insurance-heavy cars, and why they cost so much to cover.
1. Tesla Model S (Approx. $2,450/year)
The Tesla Model S is an all-electric luxury sedan that offers jaw-dropping performance, cutting-edge technology, and sleek styling—but it also comes with one of the highest insurance premiums on the market.
With an average annual insurance cost of about $2,450, it’s nearly double what you’d pay for a mainstream crossover.
One of the key reasons for its high insurance rate is the cost of repairs. While Tesla’s design and construction are technologically impressive, they are also complex and expensive to fix.
Most body repairs must be performed at Tesla-certified service centers, and even minor damage can require costly part replacements due to the vehicle’s aluminum body panels and integrated sensors. Labor and parts simply cost more, which insurers pass on to owners.
Second, the Model S is a high-performance vehicle. Even base models can go from 0–60 mph in under 4 seconds, and the Plaid trim does it in under 2. This level of acceleration is on par with supercars—and insurers treat it as such.
High-speed potential often translates to higher risk of accidents, especially when combined with distracted or inexperienced drivers.
The advanced tech features, like Autopilot and Full Self-Driving (FSD), are still relatively new in terms of insurance data.
Despite Tesla’s claims of safety, the uncertainty and mixed crash statistics around semi-autonomous driving have made insurers cautious. Any system failure or driver misuse can lead to major liability concerns, driving premiums upward.
The vehicle’s value also plays a big role. The Model S starts around $75,000 and can exceed $100,000 depending on configuration.
That’s a huge potential payout for insurers in case of a total loss or theft, both of which are more expensive for high-end EVs compared to similarly priced gas-powered vehicles.
Despite its sky-high premiums, the Tesla Model S remains popular for those who prioritize innovation, sustainability, and blistering speed. But buyers should be prepared: the futuristic perks come with a future-sized insurance bill.
2. BMW M5 (Approx. $2,400/year)
The BMW M5 is one of the most powerful and sophisticated sedans on the road—but with all that performance and luxury comes an equally commanding insurance bill.
Averaging around $2,400 per year in insurance premiums, the M5 is among the costliest vehicles to cover in the U.S.
At its core, the M5 is a high-performance sports sedan capable of producing over 600 horsepower and reaching 0–60 mph in about 3 seconds.
Insurance companies view this level of power as a red flag, associating it with more aggressive driving behavior and higher accident potential. Even if you’re a responsible driver, you’re still paying for the risk profile of the car.
Another major contributor is the cost of repairs and parts. The M5 is packed with high-end components—adaptive suspension, carbon ceramic brakes, a twin-turbo V8, and complex electronics.
BMW parts and labor are expensive to begin with, but the M5’s specialty tuning and M-specific components drive those costs even higher. Insurers factor in how much they’d have to spend to fix even moderate damage, and with the M5, those repair bills can be enormous.
Additionally, the M5’s luxury status makes it a theft target. High-end vehicles, especially those from prestige brands like BMW, are more likely to be stolen or vandalized.
This increases comprehensive insurance costs, which account for non-collision-related incidents like theft, weather damage, or vandalism.
Then there’s the issue of driver demographics. The M5 appeals to performance enthusiasts and luxury buyers—groups that statistically file more claims, either from speeding-related incidents or complex repair needs after accidents.
Insurers analyze not just the car, but who is likely to drive it—and in the M5’s case, that demographic pushes premiums upward.
Finally, BMW’s reputation for expensive post-warranty ownership also plays a part. While warranties may cover new models, insurers know older M5s become increasingly expensive to maintain, with higher claims linked to electrical and mechanical failures.
If you’re considering the M5, be prepared to pay top dollar not just at the dealership, but every year through your insurance provider. For many, the thrill is worth it—but the cost of coverage is as elite as the car itself.
3. Dodge Challenger SRT Hellcat (Approx. $2,390/year)
Few cars on American roads turn heads—or shred tires—like the Dodge Challenger SRT Hellcat.
With its supercharged 6.2L V8 producing upwards of 717 horsepower, the Hellcat is one of the most extreme muscle cars you can buy straight from a dealership. Unsurprisingly, it also comes with a supercharged insurance premium, averaging $2,390 per year.
At the center of this high cost is the sheer performance potential. The Hellcat is capable of 0–60 mph in about 3.6 seconds and a top speed well over 190 mph. These specs put it in the same realm as some European exotics—but insurers aren’t just wowed, they’re wary.
Vehicles with this kind of power are more likely to be involved in high-speed accidents, and insurance companies price that risk accordingly.
Another factor: driver behavior. The Hellcat doesn’t exactly attract conservative drivers. Its marketing, exhaust note, and raw acceleration appeal to enthusiasts who often drive aggressively. Insurers know this.
Statistically, performance-oriented muscle cars like the Hellcat are more likely to be involved in speeding-related crashes, making them more expensive to insure across the board.
The repair costs are also significant. While Dodge vehicles are generally less expensive to maintain than European rivals, the Hellcat’s specialized components—like performance brakes, high-strength drivetrain parts, and reinforced suspension—are costly to replace. And because of the power involved, damage from even minor collisions can be severe.
The Hellcat also has one of the highest theft rates in the country. Its desirability among car thieves—particularly for joyrides or illegal street racing—has driven up comprehensive coverage costs. Some insurers even require additional anti-theft measures or GPS tracking systems before offering full coverage.
Lastly, the car’s rear-wheel drive setup makes it less stable in poor weather conditions. In states with winter climates, this increases the likelihood of accidents, further raising premiums for certain drivers.
For muscle car fans, the Challenger Hellcat is the ultimate expression of raw American horsepower. But behind all that noise and power is a vehicle insurers view as high-risk, high-cost—and that makes its insurance as intense as its performance.
4. Mercedes-Benz S-Class (Approx. $2,350/year)
The Mercedes-Benz S-Class is the flagship of luxury sedans—synonymous with cutting-edge technology, lavish comfort, and prestige.
But all that refinement comes at a price far beyond the sticker tag. The average annual insurance premium for the S-Class hovers around $2,350, making it one of the costliest vehicles to insure in the U.S.
One of the biggest reasons for this high rate is the complexity and cost of repairs. The S-Class is loaded with advanced systems: adaptive suspension, multi-contour massaging seats, active safety features, and ultra-HD displays.
Even minor bodywork may involve recalibrating multiple sensors, cameras, or radar modules. Any damage—especially to the front or rear—can lead to repair bills in the five-figure range. Insurers know this, and price policies to cover the likelihood of expensive claims.
The initial value of the vehicle is another major factor. A new S-Class can easily top $120,000 when fully loaded.
The higher the replacement cost, the higher the comprehensive and collision coverage. Even older S-Class models remain costly to fix or replace due to their engineering and feature density.
The S-Class also sees higher labor rates for repair, as servicing often must be done at Mercedes-Benz authorized dealerships using proprietary tools.
That alone drives up claim costs. Additionally, genuine OEM parts for this model are pricey, and aftermarket support is limited.
The vehicle’s appeal to luxury buyers adds another layer of risk for insurers. While many S-Class owners are cautious, the profile of an affluent driver who frequently leases or rotates cars means more claims involving newer vehicles.
In some regions, higher rates of property damage liability and even fraud contribute to steeper insurance pricing.
Despite all this, the S-Class remains a symbol of success and automotive excellence. It’s a rolling showcase of what Mercedes-Benz can do—but that engineering excellence comes with considerable insurance implications.
If you’re considering an S-Class, it’s worth remembering that the car’s elegance extends to its cost of ownership. With insurance premiums rivaling that of sports cars, the S-Class proves that luxury doesn’t just cost more up front—it costs more over time, too.
5. Audi R8 (Approx. $2,500/year)
The Audi R8 is the definition of an everyday supercar—blisteringly fast, stunningly designed, and built with the precision and quality Audi is known for.
But this halo car comes with one of the steepest insurance premiums in the country. With an average annual insurance rate of around $2,500, the R8 tops many lists of the most expensive cars to insure in the U.S.
There are several key factors driving that number. First and foremost is performance. The R8’s V10 engine—shared with the Lamborghini Huracán—can rocket the car from 0 to 60 mph in just over 3 seconds.
Supercar performance levels always trigger higher insurance rates, simply because the potential for accidents, especially high-speed ones, is significantly increased.
Next is the price and exclusivity of the vehicle. With starting prices well over $150,000 and limited production numbers, any claim related to collision or theft represents a high-dollar payout for insurers.
The R8’s aluminum space frame, carbon fiber elements, and exotic drivetrain make it costly to repair or replace, even in cases of moderate damage.
Servicing the R8 also isn’t your average mechanic’s job. Repairs often require specialized technicians, custom tools, and OEM parts sourced from Audi’s performance division.
Labor hours are longer, diagnostics are more intricate, and all of this contributes to higher claim costs, which trickle down to your premium.
Then there’s driver behavior and risk profile. Supercars attract enthusiasts—drivers who enjoy spirited driving or track days.
That’s not a flaw, but insurers statistically associate these habits with more frequent and more severe claims. The R8, though reliable by exotic standards, still falls into this “high-risk” category.
Lastly, the R8 is an eye-catcher, which unfortunately also makes it a theft target in some areas. Even though it’s not stolen as often as some mass-market vehicles, when it is, it’s a total loss—and an expensive one at that.
In short, the Audi R8 offers extraordinary thrills, stunning presence, and exclusivity—but insuring one is not for the faint of heart or wallet. If you’re in the market for a supercar, make sure your insurance budget is just as prepared as your driving skills.
When it comes to choosing a vehicle in the U.S., most buyers focus on upfront pricing, fuel efficiency, or features. Yet one of the most important—and often overlooked—factors is insurance cost.
As we’ve explored, the car you drive plays a major role in how much you’ll pay in premiums every year. And those differences can add up fast.
On one end of the spectrum, vehicles like the Subaru Outback, Honda CR-V, and Ford Escape deliver more than just dependability—they also offer outstanding value through some of the lowest insurance rates in the country.
These models earn their place on the budget-friendly list through a combination of strong safety ratings, low repair costs, and ownership by responsible demographics.
For families, students, and commuters alike, these vehicles help keep not only your maintenance bills low but also your annual insurance expenses in check.
In contrast, high-performance and luxury vehicles like the Tesla Model S, BMW M5, and Audi R8 bring excitement, speed, and status—but also some of the highest insurance premiums on the market.
From complex technology to exotic parts and riskier driver profiles, these cars raise red flags for insurers, who charge accordingly to cover potential claims.
Even if you can afford the car’s sticker price, you need to account for thousands more per year in insurance just to keep it on the road.
Ultimately, insurance isn’t just a byproduct of vehicle ownership—it’s a long-term cost consideration that can heavily influence the total price of owning a car.
Being aware of how different models affect your premium helps you make smarter, more financially sound decisions.
A lower-cost car with modest insurance may leave more room in your budget for upgrades, travel, or savings. Meanwhile, a high-insurance vehicle might require lifestyle adjustments just to afford annual coverage.
Whether you’re chasing practicality or indulging in performance, understanding the insurance impact of your next vehicle is essential.
Because behind every monthly premium is a reflection of risk, repair, and reputation—and those factors drive the real cost of being behind the wheel.
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