Decoding Car Insurance: Choosing the Right Vehicle for Lower Premiums

Blog > Decoding Car Insurance: Choosing the Right Vehicle for Lower Premiums

If you’re a smart shopper, you probably know that buying a car can be a tricky business. Unless you know exactly what to expect when car shopping, there’s some fine print which can turn your brand new car into a financial drain — or simply render it undrivable.

And we’re talking about car insurance.

Car insurance is a mandatory expense and the archenemy of meticulous monthly budgeting. It seldom goes down and can easily go up, typically skyrocketing if you’re on the wrong side of a fender-bender or have a not-so-pleasant incident involving your vehicle. Fortunately, car insurance rates vary by model and there are plenty of cheap insurance vehicles to choose from, with all the vehicle safety features, comfort, and fuel economy to match your needs and lifestyle.

Why Do Car Insurance Rates Vary by Model?

Insurance assessment can be pretty sneaky, and a lot of consideration goes into how much risk you and your vehicle pose to an insurance company. To evaluate your car’s risk, insurers look at things like the claim history of your specific car and model, how much repairs cost (and how often things break down), car theft rates, accidents, and other liabilities. The more claims your car has and the more expensive they are, the more your insurance premiums are going to cost. But that’s not all, because insurers are also going to take notice of your vehicle’s trim and factor in all the high-tech bells-and-whistles your car came with, which can carry hefty claim costs of their own when they call for repairs. You’ll also want to consider how powerful your engine is when you’re thinking about insurance costs — because the insurance company surely will. The more powerful your engine, the more of a liability you are for speeding and dangerous driving (even if you swear you could drive Miss Daisy). With that said, there are some specific vehicle types you’ll want to avoid if low insurance costs will be a major selling point for you.

Want Cheaper Car Insurance? Avoid These Vehicle Types

If you’re looking to pay minimal rates for insurance, you’ve gotta start somewhere. A good early strategy is to simply avoid the vehicle types listed below:

Sports Cars

The bottom line: the faster the car, the higher the insurance. Speed means liability, which translates into more accidents and higher risk to insurers. If you’re looking for cheap insurance vehicles, you’ll want to check the car’s top speed and maybe go for something a little more practical.

Very Big Cars

Large SUVs and trucks tend to come with a higher insurance premium for the simple fact that they’re bigger and can cause more damage to other cars in an accident.

Expensive Cars

It should come as no surprise that the more expensive the car, the higher the insurance costs. This is the first thing insurance companies consider when pricing your insurance and base it on parts and total vehicle replacement.


Your new vehicle doesn’t have to be a racecar to have significant horsepower. Insurers will take a good look at your engine specs and factor it in when tallying up your claim costs. Just because your SUV can fit a family of 7 doesn’t mean it won’t turn into a road rocket in case you’re late for a work meeting.

Cars Popular Among Thieves

We’re not trying to discourage you from buying that car you’ve always wanted because of the risk of theft, but the fact of the matter is that certain types of cars are stolen more than others, whether for parts or vehicle quality. Insurance companies will definitely consider the nuances of car theft when pricing your premiums.

List of Cheap Vehicles to Insure in 2023

Now that we’ve gotten some facts out of the way, let’s take a look at some great cars that offer very affordable insurance rates in 2020. These cars offer lower insurance costs due to their great vehicle safety features and a smaller helping of all the insurance claim factors listed above.

  • Chevrolet Spark Hatchback
  • Mitsubishi Mirage Hatchback
  • Ford Fiesta Sedan
  • Nissan Versa Sedan
  • Mitsubishi Mirage G4
  • Hyundai Accent Sedan
  • Chevrolet Sonic Sedan
  • Kia Rio Sedan
  • Toyota Yaris Sedan
  • Honda Fit

Even More Factors that Contribute to Car Insurance Rates

You’re not out of the woods yet! Other important factors that your insurance company will consider when pricing your premiums are things like your age, driving record, if you’ve had any previous accidents (huge factor), where you live (urban areas result in higher insurance costs due to higher rates of accidents and theft) and how far you have to drive to work or school all rolled up with the other claim costs we’ve already mentioned. As you’ve probably already guessed, getting the lowest car insurance cost is going to take a little bit of research, patience and friendly guidance from a local car insurance agent to determine the right car for the right budget.

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