Newer car models typically come with higher insurance premiums. However, several 2024/2025 vehicles buck this trend with below-average rates, according to recent data from Insurify.
The average 2024/2025 vehicle costs $2,823 annually to insure — roughly $700 more than the national average of $2,112 for all vehicles. But some models offer significant savings for budget-conscious drivers.
The most affordable vehicles to insure share common characteristics, such as:
- Accessible purchase prices
- Favorable insurance loss histories
- Strong safety ratings
SUVs dominate the affordable insurance landscape, representing seven of the 10 cheapest models to insure.
Geographic location plays a crucial role in determining insurance costs. The most economical model varies by state. For example, Florida drivers find the Jeep Compass is the most affordable model to insure. In Maine, you will get the best insurance deal if you own a Chevrolet Equinox.
Regional factors like state insurance requirements, along with individual considerations such as a driver’s credit history and driving record, influence final premium costs.
Insurance companies evaluate multiple vehicle-specific factors when setting rates. These include typical repair costs, overall safety features, a model’s history of theft and historical loss data.
One automaker — Subaru — claims five of the top 10 spots for cheapest insurance costs among new models. Beyond Subaru, manufacturers such as Hyundai, Nissan, Honda, Acura and Ford also feature models with competitive insurance rates.
Here are the 10 cheapest new 2024/2025 cars to insure:
- Subaru Outback (midsize SUV): Average annual premium of $1,988
- Hyundai Santa Cruz (compact pickup): $2,068
- Subaru Forester (compact SUV): $2,077
- Subaru Ascent (midsize SUV): $2,086
- Subaru Legacy (midsize sedan): $2,188
- Subaru Crosstrek (subcompact SUV): $2,208
- Nissan Murano (midsize SUV): $2,209
- Honda Passport (midsize SUV): $2,239
- Acura RDX (compact luxury SUV): $2,294
- Ford Maverick (compact pickup): $2,295
- Tesla Model 3: $4,675
- Dodge Charger: $4,260
- BMW 8-Series: $4,233
- Tesla Model Y: $4,135
- Ford Mustang: $4,044
Insurify notes that many of the models on the “expensive” list have a history of high insurance losses. In addition, the two Teslas that appear on the list are a reminder that electric vehicles are often costly to insure because they are often newer and have expensive technology.
In its survey, Insurify looked at 97 million rates in its database from all 50 states and Washington, D.C. The rates reflect a typical driver between the ages of 20 and 70 with a clean driving record and credit that is average or better. Rates also reflect the average cost of full-coverage premiums.
Just remember to shop around for insurance when you buy a car and periodically thereafter. Fortunately, comparing rates is quick and easy (and free) with online comparison tools like this one. With just a few clicks, you can see quotes from multiple insurers and find out whether you’re overpaying. Given how frequently rates can shift, a few minutes of shopping around could save you hundreds of dollars a year.
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