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Cheapest Cars to Insure in 2020

The type of car you drive plays a big part in determining the amount you pay for car insurance. Here you will find a list of the cheapest cars to insure. This guide will help you understand what factors are considered in determining your rate and outline the top 5 cheap cars to insure.

While common sense tells us it costs less to insure a Ford Fiesta than a Ferrari, car insurance can be a difficult thing to wrap your head around. Keep in mind insurance companies consider different factors aside from just the year, make, and model of your vehicle to determine your monthly premium. This blog will help you understand what other factors insurance companies consider when giving you a rate on those shiny new wheels.

What Determines Monthly Premium?

Age of the vehicle: Older vehicles are typically cheaper to insure because they are less valuable than newer cars. Older cars don’t have the same safety features as newer cars and due to depreciation, a 2012 Chevy Malibu has a much lower value than a 2018 Chevy Malibu, for example.

When your car is less valuable, it means your insurance company has a lower liability. The cost of repairing your vehicle might roughly be the same amount of money; however, your insurance company is only liable to cover the replacement value of your vehicle. It’s easier to “total” an older car, which means the repairs exceed the replacement value.

Repair costs: The cost of vehicle repairs accounts for a large amount of the money paid out in car insurance claims. Therefore, the cost to repair your vehicle is considered when an insurance company determines your total premium.

Cost of the parts: The cost of the most commonly replaced car parts is also considered. The lower the cost of the parts, the lower the car insurance premium will be. To get the best car insurance rate, the cost of car parts will need to be relatively low.

The value of the car: The value of the car brand new is used as an indication of how much the car will cost the insurer to repair or replace.

Performance of the car: The statistics clearly show that high-performance cars that reach great speeds are the most likely to make insurance claims. Consider acceleration and top speeds when shopping for a car (if cheap car insurance is a priority).

Car security: The cheapest cars to insure will often be ones that have built-in security features by the manufacturer, such as alarms, high-security locks, or immobilizers which prevent the car from being hotwired. The security rating of a car is denoted by letters ranging from E, A, P, D down to U. Each letter indicates a different security rating:

  • 'E' means the vehicle exceeds requirements for a car of its type.
  • 'A' means acceptable.
  • 'P' is a provisional rating, meaning there hasn’t been enough data to rate the car.
  • 'D' means the model doesn’t meet minimum requirements, so you might find it difficult to get the car insured at a lower premium.
  • 'U means the level of security is a long way behind the standard required. If this happens, you might find it difficult to get the car insured, or an insurer might ask that you add extra security features before they’ll insure you.


Why are Convertibles More Expensive to Insure?

Convertibles generally cost more to insure than other types of cars. The most common and straightforward reason your car insurance will go up when you buy a convertible is because they are typically more expensive. The price of your car insurance is directly related to the value of your car, so if you buy an expensive convertible you can expect a correlating price jump in your insurance.

Convertibles are often considered to be more prone to vandalism and theft than closed-top cars. If they have a soft top, there’s always the chance that someone could cut into your convertible for theft. Insurance companies like to safeguard themselves against this possibility. If your heart is set on a convertible, go for a smaller, lighter convertible. These will typically not cost as much to insure because insurance companies will often assume that they can’t be used to drive as recklessly.

Keep in mind that insurance companies will assume that if you have a car that goes fast, then it has a higher chance of getting in an accident.

Helping You Save

Drive Safely: Insurance companies like to reward drivers who have a good driving record, and you will often take advantage of a cheaper rate if you’ve proven yourself to be a safe driver over the years.

Increase your deductible: This is an easy trick to lower your monthly premium. A higher deductible simply means you will pay more out of pocket in case of an accident, so you are taking a risk. However, your monthly premium will go down, so it can be worth it if you are a safe driver looking for savings.

Older Cars Vs. Classic Cars

When we talk about insuring an older vehicle, we’re talking about insuring ordinary older vehicles. It’s cheaper to insure an older vehicle than a newer vehicle; generally speaking, it costs less to insure a 10-year-old Toyota Corolla than a 3-year-old Toyota Corolla. However, this rule changes when we’re talking about classic cars. Classic cars often have their own classic car insurance. You can talk to your insurance company to find out if your car qualifies for such special insurance.

Generally speaking, to qualify for classic car insurance your classic vehicle needs to be a certain age. It also needs to be a secondary vehicle, which means you don’t drive it very often. Some classic car insurance companies also require you to park your vehicle in a secure location, like a locked garage. Classic car insurance rates are on average 40% less than standard auto insurance rates.

Busted Myths

Whether you drive a candy-apple red roadster or a white minivan, you've probably heard from someone (who also heard it from someone) that red cars cost more to insure and white cars cost less. While the color of your car can reflect your personal taste, it will not have a direct impact on your car insurance rate.

Car insurance companies do not determine premiums based on car color alone. Rather, insurers look at your driving history, your claims history, your credit history (in some states), and the make, model, and year of your car to assign the appropriate rates.

So if you're on the fence of buying that hot new convertible in ruby or a maroon minivan, rest assured that your car insurance rate will not be affected by your aesthetic choice. To ensure that you qualify for the best car insurance rates, focus on being a safer driver, and owning a safe, reliable vehicle.

Red car insurance myth busted. 

Cheapest Cars to Insure

Each year, The Zebra compares car insurance rates in every state for approximately 3,000 different vehicle models to find both the cheapest and most expensive vehicles to insure. This year, their report shows that the Subaru Outback takes the checkered flag for being the least expensive 2020 vehicle to insure in their annual ranking. The Chevy Colorado placed second, and the Ford Escape rounded out the top three. The chart below will break down the average insurance cost by car.

So why is the Subaru Outback such a great bargain when it comes to auto insurance? The Outback is classified as family-oriented, meaning most owners drive with plenty of caution. This keeps their claim history relatively inexpensive, which insurance companies really like. This kind of vehicle would be a great option when it comes to the lowest cost cars to insure.

Rank Least Expensive Insurance Cost by Car Model
1    Subaru Outback            $1,392
2    Chevy Colorado            $1,414
3    Ford Escape            $1,438
4    Fiat 500X            $1,441
5    Subaru Crosstrek            $1,446

In retrospect, the chart below will highlight the top 5 most expensive cars to insure. The Audi R8 takes the cake as being the most expensive on their list.

Rank      Most Expensive     Insurance Cost by Car Model
1      Audi R8                $4,102
2      BMW i8                $4,032
3      Dodge Viper                $3,921
4      Nissan GT-R                $3,865
5      Porsche 911                $3,403

When you are shopping for your auto insurance keep in mind that if you’ve only used national insurers in the past, try looking at a local company like A-Abana, as often times local companies are able to provide you with a cheaper rate.