Insure Wisely: Cost-Effective Cars That Keep Your Budget Intact
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Vance Cariaga
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T. Woods
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As with most financial matters, lowering your monthly car insurance cost means taking many different factors into consideration — including the car you drive. Some cars are more cost-effective to insure than others for a variety of reasons, including their safety features and reliability.
A smart car insurance strategy is to find vehicles that won’t take a big bite out of your monthly budget. MarketWatch recently conducted a review of average car insurance rates by make and model. As part of its analysis, MarketWatch looked over hundreds of rate estimates from dozens of providers using cost estimate data from Quadrant Information Services.
Here are the 25 cheapest car models to insure, according to MarketWatch:
| Vehicle Model | Monthly Average for 2023 Model |
Annual Average for 2023 Model |
| Subaru Forester | $164 | $1,974 |
| Mazda CX-30 | $168 | $2,017 |
| Subaru Outback | $169 | $2,025 |
| Subaru Crosstrek | $170 | $2,039 |
| Subaru Crosstrek Sport | $170 | $2,043 |
| Jeep Wrangler Sport | $170 | $2,045 |
| Honda CR-V EX | $172 | $2,059 |
| Volkswagen Tiguan SE | $175 | $2,097 |
| Kia Sportage LX | $176 | $2,113 |
| Subaru Impreza | $177 | $2,119 |
| Toyota Tacoma SR | $177 | $2,120 |
| Chrysler Pacifica Touring | $177 | $2,123 |
| Hyundai Tucson SE | $177 | $2,126 |
| Hyundai Kona SE | $177 | $2,127 |
| Kia Soul LX | $178 | $2,133 |
| Ford Escape | $179 | $2,142 |
| Subaru Outback Limited | $179 | $2,142 |
| Kia Sportage EX | $179 | $2,146 |
| Toyota RAV4 LE | $179 | $2,150 |
| Volkswagen Atlas SE | $180 | $2,158 |
| Mini Hardtop 2-Door Cooper | $180 | $2,160 |
| Chevrolet Colorado Work Truck | $180 | $2,162 |
| Subaru Forester Sport | $180 | $2,166 |
| Hyundai Santa Fe SE | $181 | $2,166 |
| Acura RDX | $181 | $2,167 |
Buying and driving one of the above models can help you save money on car insurance (along with a clean driving record, your location, and your age). But it works in the other direction as well — some cars will cost a lot more to insure for various reasons. These reasons include powerful engines that can lead to speeding tickets, cars that are more prone to accidents, and those that make inviting targets for thieves.
“There have been instances where insurers have temporarily stopped accepting new customer applications in some states for certain model years of Hyundai and Kia vehicles because theft losses for those models have increased dramatically.” Loretta Worters, a spokesperson for the Insurance Information Institute, told Consumer Reports in a recent blog.
The main problem was a “spate of YouTubers” posting videos demonstrating how to hot-wire certain models of these brands and driving away without having to use the ignition.
The trim and features you choose for your vehicle can also have a “major effect” on how much insurers charge, MarketWatch reported. For example, If you own a new car with high-tech features that cost more to repair or replace, auto insurers might charge higher rates to cover the potential expenses.
In addition to looking at the cheapest cars to insure, MarketWatch also looked at the most expensive brands to insure based on 2022 monthly averages. The list does not cite specific models. Here are the top five brands on the list:
- Dodge: $354 a month
- Tesla: $251 a month
- BMW: $195 a month
- Lexus: $189 a month
- GMC: $184 a month
In addition to driving the right kind of car, here are other ways to insure wisely and keep your budget intact:
- Switch to a different insurer that charges less for the same type coverage.
- Increase your deductible to lower your monthly payment and total cost.
- Install an anti-theft device.
- Research insurance discounts such as those provided to military personnel, government employees and students.
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