Cheapest Cars to Insure

Yes, older cars are cheaper to insure than newer cars in most cases because older cars are less valuable, so an insurer won't have to pay out as much in the event of a total loss. Plus, once an old car falls below a certain value, you may not have to pay for comprehensive and collision insurance anymore.

But a car's age actually has less of an impact on insurance premiums than its make and model. If your older car is a popular model with thieves, has hard-to-find replacement parts, or is a luxury car or high-end sportscar, it could cost more to insure than a brand-new car of a different make and model.

When your car is at a higher risk of being stolen, your premiums are likely to be higher, too. You may think that thieves love flashy sportscars, but many older cars are stolen to be dismantled for parts. Popular targets are chosen because their parts haven't changed much over the years or because so many of them are still on the road.

Top 5 Most Stolen Used Cars (More Expensive to Insure)

1. 1998 Honda Civic (1998)
2. 1997 Honda Accord (1997)
3. 2006 Ford F-150 (2006)
4. 2004 Chevrolet Silverado
5. 2017 Toyota Camry

There are other reasons an older car could be more expensive to insure. For instance, parts can become hard to find for discontinued makers, like Saab, or less popular models. Trouble finding replacement parts drives up repair costs. That increases the price of insuring a vehicle.

So, in general, older cars are cheaper to insure. But if your older car is one of the special cases with higher insurance costs, shop around for the best price. Not all insurance companies treat all older cars the same.

The cheapest car to insure in Colorado is an SUV because minimum coverage only costs $591 per year, on average. The cost to insure an SUV is less than the average cost of minimum car insurance coverage in Colorado ($996 per year).

Cost to Insure Different Types of Cars in Colorado

Note: Premiums are for a 45-year-old good driver in Colorado; individual premiums will vary.

It is important to note that while some cars will be cheaper to insure based on their reliability and brand, your specific premiums will vary depending on your age, location, and driving history. We recommend comparing multiple quotes before buying insurance so you can get the best deal.

To learn more, check out WalletHub's guide to the cheapest cars to insure.

The biggest factors that affect car insurance rates are state coverage requirements, age, and the car's make and model. The more coverage you're required to buy in your state and the more valuable your vehicle is, the more you'll pay for car insurance. Teen drivers also tend to pay more in premiums than older, more experienced drivers.

10 Factors That Affect Car Insurance Rates

1. State Requirements
2. Age
3. Car Make and Model
4. High-Risk Violations
5. Yearly Mileage
6. Credit History
7. Driving Record
8. Zip Code
9. Marital Status
10. Gender

View entire answer

The make of a car is the brand of the vehicle, while the model is the specific product name or product line from that brand. For instance, with a Chevrolet Equinox, Chevrolet is the make of the car, and Equinox is the model. Together, the make and model of a car identify a vehicle.

Car Make Examples

• Ford
• Dodge
• Toyota
• Nissan

Car Model Examples

• Mustang
• Caravan
• Camry
• Rogue

Why a Car's Make and Model Are Important

The make and model of a car matter because they help identify specific types of vehicles and make it easier to determine their value. This is especially important if you're buying or selling a vehicle or shopping for auto insurance.

The car model is particularly important in determining the value of your car, as each model has specific trim levels (extra interior and exterior features), body styles (such as sedan, coupe, minivan, pickup, SUV and hatchback) and appearances that can further distinguish a vehicle. Trim levels, also known as grades, are usually specified with names or initials.

For example, the 2020 Chevrolet Equinox comes in four model versions, with each additional level providing more options for comfort, tech and performance: L, LS, LT and Premier. In this case, the “L” model is the base trim level that doesn't have any special features; the “LS” trim level offers more comfort and tech features; the “LT” trim level offers even more features and three engine options; and the “Premier” trim level, the highest for this car model, offers all the available features and engine options.

The car model year is also important because vehicle designs can change drastically from year to year. The model year can be tricky, too, because it is rarely the same year as when the car was built. The make and model of a car can also influence insurance rates. For instance, cars with a higher safety rating are usually cheaper cars to insure.

How a Car's Make and Model Affects Insurance

How to Find a Car's Make and Model

To find the make and model of a car, look for the logos, badges, decals and emblems found on the vehicle's exterior, usually on the trunk or front grille. However, the types, prominence and combinations of these identifiers are unique to each car model.

For example, Cadillac has a script logo, front grill badge and decorative hood ornament that distinguish the car's make from others in a line-up. You can almost always find the model name of a Cadillac written on the trunk, too. Another example is how Audi vehicles have a distinctive emblem of four interlocked chrome circles placed prominently on the front hood or grille, which is sometimes accompanied by the car model name. You can also typically find the model name for Audi vehicles on the trunk.

Finding a Car's Make and Model Using the VIN

Another way to find the make and model of a car is by looking up its vehicle identification number (VIN), the unique 17-character code consisting of numbers and capital letters that acts as the vehicle's fingerprint. The VIN is usually found stamped into a plate and mounted on both the driver's side door jamb and dashboard, though there are exceptions to this rule, and you may find it in other places like under the hood in front of the engine block or on the front end of the frame of older cars. With the VIN, you can learn the car's make and model as well as information like the vehicle's specifications, country of assembly, recall records, warranty claims and past thefts.

Alternatively, you can check the owner's manual or vehicle registration for your car's make and model information.

Most Popular Car Makes

1. Ford
2. Chevrolet
3. RAM
4. Toyota
5. Honda
6. Nissan
7. GMC
8. Jeep
9. Subaru
10. Mazda

Source: Car and Driver, 2021

Most Popular Car Models

1. Ford F-Series
2. Chevrolet Silverado
3. RAM Pickup Truck
4. Toyota RAV4
5. Honda CR-V
6. Honda Civic
7. Toyota Camry
8. Chevrolet Equinox
9. Toyota Corolla
10. Nissan Rogue

Source: Kelley Blue Book, 2021

The best way to get cheaper car insurance is to compare quotes from multiple companies and then switch to whichever insurer offers the coverage you want at the cheapest rate. Other ways to get cheaper car insurance include taking advantage of discounts, improving your driving record, and raising your credit score.

10 Ways to Get Cheaper Car Insurance

1. Compare quotes every 6-12 months.

Every car insurance company calculates premiums slightly differently, so the quote you get from one company can easily be hundreds of dollars more expensive than another company's quote. Getting quotes from multiple insurers every time you need to renew your policy can help you realize if you're overpaying for the same amount of coverage. 

2. Take advantage of discounts.

All major car insurance companies offer a variety of discounts, which can save drivers as much as 35% in some cases. For instance, many insurers offer multi-policy and multi-car discounts, as well as good student and good driver discounts, and more.

3. Increase your deductible.

Raising your deductible will lower your premium, though it's important to choose a deductible amount that you can afford in an emergency. A car insurance deductible is an amount that you have to pay out of pocket before your insurer will cover the rest. Deductibles apply to several types of coverage, including collision and comprehensive insurance.

4. Improve your credit score.

Insurance companies use credit-based insurance scores, where allowed by state law since studies have shown that these scores effectively indicate a driver's likelihood of filing a claim. Given that insurance scores are based on credit report information, raising your credit score can help reduce your rate over time.

5. Consider usage-based insurance.

Usage-based insurance is a type of car insurance that calculates your premium based on your driving habits. Each company's usage-based program varies, but most consider your total mileage, braking, acceleration, and speed. These programs are ideal for safe drivers, especially those who do not use their cars for long commutes or frequent trips. 

6. Choose a car that is inexpensive to insure.

Cars that are particularly fast, powerful, and/or costly to repair are among the most expensive to insure. Insurers also charge higher premiums for cars that are more likely to be stolen. The next time you go car shopping, compare insurance quotes for different models in advance with this in mind. And if your premiums are prohibitively expensive now, consider trading in your vehicle for a car that is cheap to insure.

7. Take a defensive driving course.

In some states, insurance companies are required to give you a discount for completing a defensive driving course. Even where it isn't mandatory, insurers will sometimes provide a discount to encourage customers to improve their driving techniques.

If your insurer does not lower your premium just for taking a course, working on your driving skills will still pay off in the long run and help you keep your record clean. On that note, certain states also allow you to take a course in order to prevent driver's license points from affecting your car insurance rates.

8. Consider your coverage types and amounts.

All the different types of car insurance can make it difficult to determine what exactly is worth paying for. At a minimum, you need to fulfill your state's requirements and also purchase any coverage your lender or lessor requires. But beyond that, you can weigh whether each add-on coverage option is worth the price.

For instance, maybe you should drop uninsured motorist property damage insurance from your policy if you already have collision insurance. Or maybe you don't need rental reimbursement coverage anymore because you could borrow a family member's car if needed.

9. Practice good driving habits.

Moving violations like speeding tickets signal to your insurer that you are a risky driver, as do serious convictions like reckless driving. By driving safely, you can keep yourself safe and your premium low. If you have tickets or at-fault accidents on your driving record already, work on driving carefully from now on, since they will only affect your rate for a few years.

10. Check out local and regional companies.

Large car insurance companies spend billions on advertising every year, but smaller insurers may be able to provide the cheapest premiums in some cases. So, when you're shopping around, make sure to compare quotes from companies of all sizes. You can use WalletHub's cheap car insurance guide as a starting point. Just click on your state to compare the cheapest insurers.

Car insurance premiums are based on drivers' individual risk factors as well as the coverage types and limits they choose. Check out WalletHub's full guide on the factors that affect car insurance rates for more information.

No, red cars do not cost more to insure. The color of a car does not affect the cost of insurance, but other vehicle features such as make, model, year, body type, and engine size are considered when insurers are calculating premiums.

Some insurers offer discounts for cars with safety features that help to reduce or prevent injuries or theft, such as daytime running lights, passenger and side airbags, and anti-theft devices. But insurance companies won't even ask the color of your car when writing your policy, because it has no effect on the price.

Where does the red car insurance myth come from?

Many people think red cars are more expensive to insure because they have been linked to speeding or reckless and aggressive driving. In reality, studies investigating the relationship between car color and driving risk have found little to no correlation between color and accidents, tickets, or theft.

When it comes to the risk of being pulled over, studies have shown certain models are more likely to be stopped by police than others, but not certain colors. White cars have the lowest statistical risk of being in an accident, but red cars are no more likely to be in an accident than black, blue, silver, green, or any other color that registers below white on the visibility spectrum. And silver cars have the greatest statistical risk of theft, not red ones.

To date, no conclusive study has proven that car color has any measurable effect on safety or risk. Red may be associated with a flashy, all-American sports car, but insurance companies don't penalize all red-car lovers because of it. You'll pay lower premiums for family-friendly, conservative vehicles like SUVs and minivans and higher premiums for a fast-and-furious dream car, no matter what color.

Insurance on a Mustang is about $2,161 per year for minimum coverage, based on multiple third-party sources online. Your exact annual premiums will depend on your state's minimum coverage requirements, your age, your driving record, and which insurance company you choose. But you are likely to pay more for insurance on a Mustang than the average vehicle.

Factors That Affect the Cost of Insurance for a Mustang

The cost of car insurance varies based on the body type, age, and make of the specific vehicle. Typically, older vehicles are cheaper to insure simply because they are less valuable and thus less expensive to repair or replace. However, if you have upgraded features, this could make Mustang insurance more expensive, since vehicles with special features are often more complicated to repair.

To learn more, check out WalletHub's guides to the average cost of car insurance and factors that affect car insurance rates.

Insurance on a Tesla is about $3,165 per year for minimum coverage, based on multiple third-party sources online. Your exact annual premiums will depend on your state's minimum coverage requirements, your age, your driving record, and which insurance company you choose. But you are likely to pay more for insurance on a Tesla than the average vehicle.

Factors That Affect the Cost of Insurance for a Tesla

The cost of car insurance varies based on the body type, age, and make of the specific vehicle. Typically, older vehicles are cheaper to insure simply because they are less valuable and thus less expensive to repair or replace. However, if you have upgraded features, this could make Tesla insurance more expensive, since vehicles with special features are often more complicated to repair.

To learn more, check out WalletHub's guides to the average cost of car insurance and factors that affect car insurance rates.

Insurance on a Honda Civic is about $1,767 per year for minimum coverage, based on multiple third-party sources online. Your exact annual premiums will depend on your state's minimum coverage requirements, your age, your driving record, and which insurance company you choose. But you are likely to pay more for insurance on a Honda Civic than the average vehicle.

Factors That Affect the Cost of Insurance for a Honda Civic

The cost of car insurance varies based on the body type, age, and make of the specific vehicle. Typically, older vehicles are cheaper to insure simply because they are less valuable and thus less expensive to repair or replace. However, if you have upgraded features, this could make Honda Civic insurance more expensive, since vehicles with special features are often more complicated to repair.

To learn more, check out WalletHub's guides to the average cost of car insurance and factors that affect car insurance rates.

Older cars are less expensive to insure than newer cars, as older cars are cheaper to replace, but the exact cost of insuring an older car depends on a variety of factors, including the types of insurance and the coverage levels that a driver selects. The driver's age, driving history and claims record are also more likely to have a significant influence on auto insurance rates than the age of the car.  

There are exceptions to the rule that older cars are more affordable to insure, however, including some foreign-made and classic cars, which may have expensive parts and be difficult to replace. Insurance companies don't normally offer discounts for older cars, either.

You should pay special attention to the type of coverage you are paying for, if you are insuring an older vehicle. Allstate and the Insurance Informative Institute both say that if your annual premium is more than 10% of your car's value, you might consider dropping the comprehensive and collision coverage on it.

You should avoid paying more for coverage than the vehicle is worth. However, you might not be able to drop coverage if your car is leased or financed. Insurance requirements vary by state, too, so it's important to make sure you have at least the minimum amount of coverage needed for your situation, even if your car is older.

The best way to understand the cost of insuring an older car in your specific case is to get quotes from multiple insurance companies.