The Cheapest Car on the Lot Could Cost the Most to Insure
What Car Shoppers Need to Know
- Mid-size SUVs and pickup trucks have cheaper insurance rates because of their smaller rates of loss in certain insurance coverage categories.
- Cheaper small cars have higher insurance rates due to driver demographics.
- Driver-assistance technology such as precollision systems can also help lower insurance rates.
Insurance companies don’t freely share the cheapest cars to insure, so to get a clear picture on which cars are considered higher risk to insurance companies — and potentially more expensive to insure — we looked at insurance loss data from the Insurance Institute for Highway Safety’s Highway Loss Data Institute. Overall losses represent the average cost of insuring a vehicle for one year, according to HLDI. So which cars are likely cheaper to insure? The answer may surprise you.
Related: What You Need to Know About Car Insurance
Cheap Cars Aren’t Necessarily the Cheapest to Insure
Insurance loss data from HLDI is compiled by vehicle class and size, broken down by six insurance coverage categories: collision, property damage liability, comprehensive, personal injury protection, medical payment and bodily injury. The most revealing data we found is that the cheapest cars are often the most expensive to insure. Model-year 2022-24 vehicles including the Mitsubishi Mirage G4, Nissan Versa and Sentra, and Kia Forte have the highest instances of PIP. The Mirage G4 was the worst, with coverage 182% and 197% above average on PIP and medical payments, respectively; bodily injury was 132% above average.
Drivers of these vehicles tend to be considered higher risk to insurance companies, meaning they’re more likely to get into accidents that result in injury. The flip side of this is that these cheap cars might fare better on collision and comprehensive coverage due to their cheaper costs.
Minis, Volvos and Mid-Size Pickups Represent Cheapest Insurance Losses
Surprisingly, the models that may be the cheapest to insure are vehicles you probably wouldn’t expect. Of all the vehicles across segments listed in the data, the 10 below had the lowest insurance loss averages across all categories.
| Vehicle | Average | Body Style | Collision | Property Damage | Comprehensive | PIP | Medical Payment | Bodily Injury |
| Mini SE Hardtop | -42% | Hatchback | -39% | -36% | -47% | -46% | — | — |
| Mini Cooper | -36% | Hatchback | -30% | -35% | -33% | -35% | -49% | -37% |
| Volvo XC40 | -35% | SUV | -24% | -31% | -23% | -35% | -42% | -53% |
| Mini Convertible | -34% | Convertible | -35% | -43% | -11% | -48% | — | — |
| GMC Canyon | -33% | Pickup | -31% | -14% | -35% | -51% | -59% | -7% |
| Nissan Frontier | -32% | Pickup | -26% | -32% | -26% | -44% | — | — |
| GMC Yukon | -32% | SUV | -34% | -17% | -25% | -48% | -53% | -18% |
| Subaru Forester | -30% | SUV | -36% | -37% | -16% | -24% | -24% | -45% |
| Subaru Crosstrek | -29% | SUV | -37% | -34% | -32% | -21% | -18% | -30% |
| Ford Ranger | -28% | Pickup | -20% | -30% | -25% | -36% | — | — |
Note: Dashes indicate insufficient claims data for that coverage type — not a score of zero. The percentages here are also composite scores calculated as an average of the data provided by HLDI.
The data here is surprising because these vehicles do away with the argument that cheap vehicles mean cheap insurance. The most surprising average is the Mini SE Hardtop’s. The electric version of the Mini averages 42% lower losses, while the gas version of the Mini, specifically the Convertible, is right behind it with a -34% average.
The data also suggests that Subarus are more affordable to insure, with the Forester and Crosstrek having -30% and -29% averages, respectively, largely thanks to technology. According to HLDI data, these models fare better because of Subaru’s EyeSight driver-assistance tech.
The Nissan Frontier and GMC Canyon being in the top 10 might also surprise some considering their averages of -32% and -33%, respectively. While the HLDI data doesn’t do much to show why these two pickups are better on average, these lower averages could have something to do with things such as buyer demographics and vehicle use.
How to Shop for Car Insurance
Most people shop around when looking for insurance to get the best price, obtaining quotes from various providers. But getting insurance coverage is much more than just the best price. You have to know what to look for when comparing coverage. One of the best things any insurance shopper can do is to check the HLDI insurance loss data. It gives helpful insight into coverage loss on a particular model and can help determine which car to buy.
Shoppers should also pay attention to injury coverages. Collision and comprehensive coverages are important, of course — especially if you have the vehicle financed because it’s required by most banks — but these coverages usually align with a vehicle’s value. Where most drivers get hit with the financial surprise is in PIP, medical payments and bodily injury coverages. These coverages also make a difference on cheaper cars like the Mitsubishi Mirage.
Insurance shoppers who also haven’t chosen a vehicle yet should also consider models with advanced driver safety systems, like Subaru’s EyeSight and Volvo’s IntelliSafe. Data from Mercury Insurance shows that these features, and even less sophisticated safety features like antilock brakes and a rearview camera, can help lower insurance costs. Finally, with the extremes being at the bottom and top of the market, those shopping for insurance should consider practical mid-size vehicles, as the data does suggest that staying in the sweet spot of the market can help with insurance costs.
Read More About Car Insurance on Cars.com:
- How Much Car Insurance Do I Need? 5 Key Coverage Considerations
- Volvo Launches Car Insurance Services — Even if You Don’t Own a Volvo
- IIHS: Here Are the Vehicles Most, Least Likely to Be Stolen
- Why Are EVs More Expensive to Insure Than Gas Cars?
- Are Hybrid Cars More Expensive to Maintain or Repair Than a Gas Car?
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