With prices of new cars rising thanks to inflation and a global chip shortage, many drivers are turning towards used cars for their needs. Here’s a list of used cars for cheap insurance.
Ever since the government eased lockdown restrictions, Americans have been flocking to car dealerships to get their hands on a new set of wheels. However, car manufacturers cannot keep up with the demand due to a global computer chip shortage. The frenzy for new cars has led to new car prices soaring through the roof. Fortunately, government stimulus payments, low-interest rates, and high savings have led to a used car boom.
That said, the recent spike in demand for older cars has also led to a hike in used car prices. Popular models, such as the Honda CR-V and the Toyota Camry, have seen a 45 percent increase in their prices compared to last year. Now, you might be wondering if there’s even a chance of saving money by buying a used car. Thankfully, there are several ways to save money by buying a used car. The most effective of the lot is to buy used cars that have cheap insurance rates.
Read: Buying a used car? Here are 7 things to look out for.
Insurance rates are a crucial factor to consider when buying a used car, and some used cars are cheaper to insure than others. Log on to Way.com App or click the banner below to get affordable car insurance quotes for your used car!
Here, we look at a few used cars to help you save hundreds of dollars in car insurance every year!
What is the cheapest used car to insure?
If you’re familiar with the world of car insurance, then you may know that cars that have a strong safety rating, fewer claims history, and lower repair costs are cheaper to insure than others.Â
Now, some of you may know that cars from Japanese and Korean car manufacturers are affordable. What you may not know is that they have also built a reputation for their reliability and affordable repair costs. Hence, it’s not surprising that almost all cars on our list of top 10 used cars for cheap insurance are from the likes of Honda, Toyota, and Hyundai.
Top 10 used cars with cheap insurance rates
| Make and model | Avg. insurance rate per year |
| Honda CR-V | $986 |
| Honda Odyssey | $993 |
| Honda Fit | $1,007 |
| Subaru Outback | $1,015 |
| Toyota Camry | $1,023 |
| Subaru Forester | $1,095 |
| Volvo V70 | $1,114 |
| Kia Spectra | $1,122 |
| Toyota Sienna | $1,129 |
| Hyundai Elantra | $1,137 |
Based on the model, you could get your hands on one of these cars for anywhere between $15,000 to $30,000. That makes these used cars significantly cheaper than their modern, up-to-date versions. While you may lose out on a few features offered in the modern versions, you gain cheaper insurance rates. And that’s a price we’d be willing to pay.Â
Need Apple CarPlay or Android Auto in one of these older models? You could get them from a dealership that sells aftermarket accessories for way lesser than what it would cost you to buy a brand new car.
While the value of these used cars has been on the rise of late, they are still significantly cheaper than a brand new car. And as you know, the less value your car has, the cheaper it is to insure.
Read: Soaring gas prices: Cars with over 40MPG
Here are a few more options for used cars with cheap insurance rates
With millions of cars sold every year, there’s never a shortage of used cars in the market. However, not all of them can guarantee cheap insurance rates. Here are a few models we found that are affordable and cheap to insure.
Hatchbacks
- Volkswagen Golf
- Mini Cooper
- Ford Fiesta
- Toyota Prius
- Toyota Scion xB
- Mazda 3
Sedans
- Toyota Avalon
- Hyundai Accent
- Mercury Sable
- Honda Civic
- Honda Accord
- Volvo S60
- Saturn SL1
- Ford Escort
- Pontiac Grand Am
- Pontiac Sunfire
SUVs
- Subaru Legacy
- Chevrolet Suburban
- Ford Edge
- Ford Expedition
- Chevrolet Silverado
- Honda Pilot
The car insurance rates for the models mentioned above will depend on the model year you buy. However, you could find an insurance policy with an annual premium of under $1,000 by comparing car insurance quotes from several firms. Tap the banner below to use our free car insurance tool and get quotes from the best car insurance companies in under 10 minutes!
What are the factors that determine used car insurance rates?
Determining insurance rates for a used car works pretty much the same as for a brand new vehicle. Car insurance companies look at factors such as safety features, type and value of the vehicle, and more to set your used car insurance rate.
Safety features: Liability insurance, which protects you, other people, and passengers from damage, accounts for a large portion of your auto insurance premium. As far as insurance companies are concerned, it is less risky to insure a car with high crash safety ratings. Thus, cars with robust safety features are among the cheapest used cars for auto insurance.
Read: Basics of liability insurance
Anti-theft features: If you purchase full coverage car insurance, your insurer will pay for the cost of replacing your vehicle if it gets stolen. Cars with anti-theft features such as an audible alarm and GPS tracking devices are less expensive to insure because they either deter thieves or make the car simpler to retrieve.
Read: Best options for full coverage car insurance
Car’s value: You purchase car insurance to cover the entire value of your car. Hence, you’ll pay more for car insurance if your used car is worth $30,000 than you would if it were worth $10,000.
Sports cars are a no-go: The type of car can influence your insurance rates. For example, insuring sports cars is more expensive than insuring minivans. To determine premiums, insurers use statistics. And current statistics prove that minivans are involved in fewer accidents than sports cars.
Repair costs: Models sold in the international market, such as the Toyota Camry and the Honda CR-V, are typically less expensive to repair than a car built exclusively for the domestic market.
Read: Catalytic converter thefts: Most targetted cars listed
How to save money on insurance
There are several ways to save money on car insurance when buying a used car. In fact, in most jurisdictions, opting for the most basic liability insurance can save you more than $500 per year on car insurance. The following are some of the most effective methods to save money on used automobile insurance:
Shop around and compare quotes: Almost every major insurance provider offers free car insurance quotes. Get a free estimate by entering your ZIP code and car type into the online form. Some insurance companies prefer to insure older, used vehicles, and other insurers prefer newer cars and have more modern safety features. Hence, it’s a good idea to shop around to find a car insurance policy that best fits your needs.
Read: Shopping for car insurance 101
Opt for liability-only insurance: If you have a less valuable used car, you could remove collision and comprehensive coverage and opt for a liability-only policy. Almost all states require drivers to carry liability insurance, including bodily injury and property damage liability coverage. A used car may be worth only a few thousand dollars, meaning that even a little accident can result in a total loss (if it costs more to repair your vehicle than the vehicle is worth, then your car is considered a total loss). Switching from full coverage to liability car insurance can save you $1,000 per year on used car insurance. Depending on your state, liability insurance could cost as little as $300 to $500 per year.
Take advantage of discounts: Some insurers will give you a discount right away, while others will make you fight for it. You might be eligible for more discounts than you think. To save money on car insurance, you can combine your plans, take advantage of good student discounts, or enroll in a defensive driving course.
Read: Guide to all kinds of insurance discounts for your car
Additional tips for used car cheap insurance
Compare insurance rates before buying: If you’re looking for a used car, compare insurance quotes first. You might believe that old cars have lower insurance prices than new cars; however, cars have different insurance premiums for various reasons. You don’t want to save thousands on a used car only to end up paying hundreds more on insurance each year.
Avoid electric vehicles (EVs): While electric vehicles are more popular than ever, even older versions are expensive to insure. For example, it might cost thousands of dollars to replace an EV battery in a used electric car. Electric cars also have higher repair costs and valuations, which can increase insurance premiums.
Read: All you need to know about Tesla car insurance discounts
Check vehicle theft rates: Thieves target some used cars more than others. Some used cars, for example, are easier to break into than others. Thieves are aware of this and target certain models more frequently than others, and insurers are aware of this and will factor vehicle theft rates into their premium calculations.
Read: Top 10 most stolen cars in Texas
Consider trim, model, and additional features: If your used car is a higher-end model, you could pay hundreds more for safeguarding all the features on your car. Car insurance prices could skyrocket if you upgrade to a higher trim level. For example, it is easier and cheaper to replace steel wheels on a lower trim of a model than alloy wheels on the higher trim of the same car.
Buying a used car? Way.com is your best bet for used car insurance
If you’re in the market for a used car, consider any model from the list above to find cheap car insurance. You could save thousands of dollars in car insurance every year by picking the right make and model. However, make sure you compare quotes from several car insurance companies before buying a policy, as the cost of used car insurance can vary widely. Use our car insurance tool to get started and get the best car insurance rates for your zip code.
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