New drivers typically pay much higher rates for car insurance, and16-, 17-, and 18-year-old drivers pay higher rates than any other age group. But age isn’t the only thing that impacts your rates — the type of car you drive can also affect how much you pay for car insurance.
Young or inexperienced drivers should look for cars that are safe to drive, equipped with helpful features, and relatively cheap to insure. But choosing the right company will also help new drivers find their cheapest car insurance rates, which is why it’s so important to shop around and compare quotes.
The cheapest cars to insure for new drivers
The type of vehicle you buy has a big impact on your car insurance rates. Sports cars, luxury vehicles, and other expensive cars typically come with a hefty insurance premium, while used SUVs and sedans often mean lower insurance rates.
Teens and newly-licensed drivers pay the most for car insurance of any group, but rates vary by the type of car they drive and by the company they choose.
Based on our research, these are the cheapest cars to insure based on the most popular vehicles in the U.S.:
Ford F-150
Honda CR-V
Toyota Tacoma
Ford Escape
Subaru Outback
GMC Sierra
Chevy Equinox
Jeep Wrangler
Jeep Grand Cherokee
Subaru Forester
Keep in mind that many factors impact your rates, including your state, age, ZIP code, driving history, and what type of car you drive.
For example, the same driver trying to insure a Subaru Outback would pay a different rate in North Carolina, where average rates are generally lower, than they would in Michigan, which has some of the highest average car insurance rates in the nation.
The best way to make sure you are getting the lowest possible rate is to compare quotes from multiple companies.
→ Learn more about the best car insurance for 18-year-old drivers
Can older vehicles save you money on car insurance?
Yes, in many cases, choosing an older model vehicle can save you money on car insurance, especially if you’re a new driver. Not only are older model vehicles usually cheaper to repair or replace but, if the cost of the car is low enough that you can afford to replace it out of pocket, you have the option of choosing liability-only coverage.
For example, according to Kelley Blue Book, in many places in the U.S. you can purchase a used 1996 Toyota Corolla for less than $4,000.
An 18-year-old single male driver with a clean driving record who buys that Corolla and chooses a liability-only policy through GEICO would only pay $1,124 per year for car insurance — much less than average rates for a new car.
Although older cars are usually cheaper to insure than newer cars, some makes and models may not get much cheaper to insure over time. Exotic and performance cars will likely have higher insurance rates than other cars made the same year, while some cars become classic vehicles over time and require special insurance.
→ Learn more about insurance rates by car
Car insurance rates for teens
According to the Insurance Institute for Highway Safety, teenage driver crash rates are nearly four times higher than drivers over 20.
Because teens are brand new drivers, and more likely to be in an at-fault accident or file a claim, insurance companies charge much higher rates for teenage drivers. But new drivers will usually find the best car insurance rate by joining an existing family policy instead of getting their own car insurance.
Here are the cheapest companies for insuring a brand-new, 16-year-old driver on a family policy:
Company | Monthly rate with a new driver | Annual rate with a new driver | |
NJM | $190 | $2,280 | |
MAPFRE | $202 | $2,424 | |
USAA | $225 | $2,700 | |
GEICO | $231 | $2,772 | |
Auto-Owners Insurance | $242 | $2,904 | |
Nationwide | $258 | $3,096 | |
Farm Bureau | $267 | $3,204 | |
American Family | $280 | $3,360 | |
Country Financial | $287 | $3,444 | |
State Farm | $291 | $3,492 |
→ Learn more about the best car insurance for 16-year-old drivers
What is a good first car for a teenager?
There is a reason most high school parking lots are filled with Toyota Corollas, Honda Civics, and Ford Fusions — small, reliable, affordable coupes and sedans are an excellent choice for a teenager.
When choosing a car for a teenage driver, there are several factors you’ll want to consider, including:
Cost to insure: Insurance for teen drivers isn’t cheap, and a single accident or moving violation is enough to cause their car insurance costs to skyrocket. Choosing a car that is cheaper to insure can save you a lot of money on your car insurance.
Cost to repair or replace: Teenagers have higher insurance rates because they are more likely to be in an accident or file a claim than an adult. This means teens may have more car repairs and be more likely to total a car than their parents, so choosing a car that is cheap to repair or replace can help you save a significant amount of money over the years.
Safety features: Drivers of all ages benefit from having safety features, like lane departure warnings, tire pressure monitors, and electronic stability control, to help prevent accidents.
Ease of use: Large trucks and SUVs can be difficult to handle on the road (and in the parking lot) so many parents choose to buy their teens a smaller car instead.
Frequently asked questions
How much should a 16-year-old spend on a car?
Generally speaking, parents are advised to spend no more than $10,000 on a car for a new driver. However, the right amount to spend on a car depends on your financial situation. Some people may not want to spend that much on a car for a teenager, but others may have a budget that allows them to spend more.
Do smaller cars have cheaper insurance?
Some smaller cars have cheaper insurance, but size isn’t the only factor that impacts your insurance rates. The cost to repair or replace a vehicle and the likelihood of a vehicle being stolen are also contributing factors to your insurance rates.
What is a reliable first car?
Several Toyota models, including the Prius, Sienna, RAV4, 4Runner, and Tundra, all make the Consumer Reports list of the most reliable cars on the market. Other cars that make the list are Kia Optima, Ford Expedition, and Hyundai Azera.
Methodology
Policygenius has analyzed car insurance rates provided by Quadrant Information Services for every ZIP code in all 50 states, plus Washington, D.C.
For full coverage policies, the following coverage limits were used:
Bodily injury liability: 50/100
Property damage liability: $50,000
Uninsured/underinsured motorist: 50/100
Comprehensive: $500 deductible
Collision: $500 deductible
In some cases, additional coverages were added where required by the state or insurer. For overall rates by company, our sample vehicle was a 2017 Toyota Camry LE driven 10,000 miles per year.
