What Are The Cheapest Cars to Insure?

When it comes to cars, buyers like what they like. Hardly ever do you see a new car buyer settle for anything less. But since the pandemic hit, we’ve seen a whole new automotive world. Supply chain shortages, lack of inventory, and high price tags have created a buyer’s worst nightmare. There are no deals available. There is little wiggle room to negotiate. The buyer must simply take what’s available.

To make matters worse, inflation has triggered a number of essential industries to follow suite in the raising of prices. With some of the highest reported inflation rates since the 1980s, even a drop to 8.5% in July doesn’t show promise. No matter which direction you drive or dealership you enter, you are guaranteed to spend top dollar.

Unfortunately, auto insurance rates are just as bad. Whether you drive new or used, the cost of insuring your vehicle has gone up this year. As a result, drivers are now scrambling to find better premiums since insurers have taken the same route as automotive manufacturers.

Searching for the cheapest cars to insure? Here’s your options.

There’s not a single American household that hasn’t felt the economic downturn of 2022. Cost of living is up. Food costs are soaring. And car ownership has become a money pit. Most families have had to make some serious lifestyle changes in recent months just to keep things afloat during this time.

Let’s put it this way, life has become really expensive, particularly for new car owners. In the face of high MSRPS and limited inventories, drivers are now dealing with unbearable insurance rate increases, never mind the city or state in which they drive. Of course some areas of the U.S. require less coverage in comparison to others and personal driving records will make an impact, but the overall consensus is insurance ain’t cheap.

Up to this point, the average cost of car insurance had steadily been growing ever since 2009. On average, those yearly spikes in price lingered around 1-2%, depending on a series of factors within the country. However, new reports show a much different scenario. Recent data projects that average yearly premiums are expected to rise by 4.9% in 2022. (As if car ownership wasn’t expensive enough!) The bottom line being is Americans are paying way more to have their cars insured.

You might ask, “What can be done?”.

As much as we’d like to find an easy solution to this financial predicament, the reality is there is not much of an option. Auto insurance is a necessity for driving. Which means, you either settle for the policy that insurers are willing to offer or continually shop around for a better rate. All the same, the main point is you will be paying more to drive a certain make or model in present times.

10 cheapest cars to insure, according to 2021 data

With all this in mind, the type of car you drive can help alleviate the financial burden of auto insurance rates. A little while back we stumbled upon a report by NerdWallet, that took a look at last year’s 25 bestselling models and subsequently analyzed the average auto insurance rates around the U.S.

The findings were definitely helpful for drivers who want to be conscious of the amount they’ll spend on a new car purchase. Of the 25 models studied, here were the top 10 cheapest cars to insure in 2021 ranking from most affordable to highest priced:

1. Subaru Outback: $1,336 annually
2. Subaru Forester: $1,347 annually
3. Honda CR-V: $1,359 annually
4. Jeep Wrangler: $1,409 annually
5. Hyundai Tucson: $1,406 annually
6. Mazda CX-5: $1,412 annually
7. Ford Escape: $1,427 annually
8. Honda Pilot: 1,442 annually
9. Chevrolet Equinox: $1,459 annually
10. Ford F-150: $1,465 annually

Taking into account the steep rise in insurance rates in 2022, most buyers can expect to pay a $100 or more than last year’s reported averages. If lucky, you may be able to snag lower rates if you have a clean driving record or qualify for a policy discount. Other ways to reduce your monthly premium is to sign up for a defensive driving program that will earn you money back for safe driving.

Bottom line

Driving a car is normally viewed as both a pleasure and a convenience for Americans. However, the current times have clearly changed the way we view our cars. Though we may love them, the cost of driving is really more than the average person would like to spend. To say expense has been on the minds of every driver this year would be an understatement.

With the average person in need of a safe and reliable ride, it’s important to consider every factor when choosing your next vehicle. Aside from price, loan terms, and sales tax, you need to think of the expenses that will follow. In short, to actually save on all car costs, it’s best to analyze the cheapest cars to insure and go from there.

Have car insurance tips of your own? Share them with us in the comment section below.