Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP®

UPDATED: Sep 29, 2021

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We’ve looked at the most expensive cars to insure, so it’d only be natural to look at the “least expensive cars to insure” as well. Where can you get the biggest bang for your buck in insurance, especially if you’re on a tight budget? Your first instinct may be to get the cheapest car you can, and in some ways, that works.

As expected, most cars that made this list are cheap to buy or lease, and come from the smaller car manufacturers, such as Kia, Saturn, and Hyundai. Some Minivans also made the list. But insurance companies don’t just drop prices for the cheapest vehicles. You might’ve noticed your insurance premiums drop when you bought a new car compared to what you paid for your 3-5 year old car. Simply put, these cars often have the newest safety and crash prevention technologies that prevent accidents and injuries. While they may cost more to replace, they could also save money in future claims. When you compare new cars with other new cars, though, replacement cost has a much bigger effect on the average premium.

How do we know which cars have the lowest cost of insurance?

Once again, the data comes from Forbes, and is based on an annual auto insurance policy for a 40-year old male driver with policy limits of $100,000 for bodily injury for one person, $300,000 for total injuries, and $50,000 for property damage (auto insurance liability limits). You can play around with the limits to raise or lower your average cost. These limits provide the average person with enough coverage to deal with most accidents and claims while maintaining a low average cost.

This supposed driver commutes an average of 12 miles per day to work, has a $500 deductible for collision and comprehensive coverage, and has elected to purchase uninsured motorist coverage. These are all coverages you may be required to carry if you’re financing or leasing your car, and it’s often the most expensive part of your insurance costs.

As noted in the article for expensive auto insurance premiums, the numbers shouldn’t be taken at face value, as a number of other factors will determine your actual premium, depending upon things like your age, driving record, and more (how car insurance rates are determined). The Kelley Blue Book value of any additional upgrades you choose can also factor in, especially if they’re safety-related. No matter what you want to drive, the best way to find the lowest rates for different types of vehicles is by running multiple quotes. You can work with an insurance agent to get a few quotes or go online. Some sites even allow you to fill out a survey one time to get quotes from several companies at once.

That said, here’s the list of the cheapest cars to insure based on the sample scenario:

1.    Hyundai Santa Fe – $832
2.    Kia Sportage – $840
3.    Hyundai Entourage – $848
4.    Kia Sedona – $857
5.    Kia Rio5 – $870
6.    Honda Odyssey – $871
7.    Smart fortwo – $881
8.    Saturn Vue – $911
9.    Mazda Tribute – $913
10.    Chrysler Town & Country – $915

(photo: drewgstephens)

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Can you save on the average cost of car insurance for the car you want?

What if you’ve already decided on a car like a Jeep Renegade Sport or Mazda CX-3 Sport? They aren’t on the list of the cars with the cheapest insurance, but this doesn’t mean that you have to overpay. Just like you would not being the hypothetical driver in the above scenario, you can run multiple insurance quotes based on your application.

You can see who’s offering the lowest rates and check for discounts and other options with insurance carriers. If you see a hyperlink for more information on a telematics or other discount program, check it out. You may save more money by taking the time to go through a few extra steps.

If you haven’t purchased your car yet, you can also see how big a difference it would make if you added optional features for a better safety rating. No matter what you’re driving, if you have a clean record or a few marks, if you drive a minivan or sports car, etc., you can find the most competitive average cost for you.