The 5 Cheapest Cars to Insure in 2023

It’s no secret to the American consumer that prices are going up everywhere. Thanks to inflation, the disruption of supply chains in the wake of the COVID-19 pandemic, and various other reasons, the cost of everything is rising, from food and fuel to insurance. In particular, auto insurance has seen a sharp surge in price hikes, leaving motorists wondering how they can save a few dollars.

For drivers looking to purchase a new vehicle, the choice might be even tougher. A new car is a major expense on its own, newer cars are often more expensive to insure, thanks to the increased sophistication of modern car components and the high value of the vehicle. This makes the decision-making process even more challenging — not only do you have to think about the aesthetics, safety features, and performance, but also take into account how much it will cost to insure. So which cars are going to cost you the least to insure?

The Top-Selling Cars in 2023

First, let’s take a look at 2023’s top sellers:

1. Ford F-150
2. Chevrolet Silverado
3. Ram Truck
4. Toyota RAV4
5. Honda CR-V
6. Chevrolet Equinox
7. Nissan Rogue
8. Jeep Grand Cherokee
9. Ford Escape
10. Ford Explorer

You’ll probably notice something about this list right away. The majority of the cars on the list are… trucks and SUVs. In recent years, sedans and compacts have been falling behind trucks and SUVs in terms of sales. There’s a growing preference among American motorists for spacious and versatile transportation, and the increased fuel efficiency of modern SUVs has made them a more viable option — especially hybrids. Further, these larger vehicles are often safer while offering the power and utility many motorists want.

But there’s more to it than that. According to some, a rise in SUV and truck sales is a sign of a recovering economy, since these larger vehicles generally have a higher sticker price than sedans or compacts. But that’s not the only reason, either — SUVs and trucks are particularly popular among older, empty-nest couples, who are often drawn to the increased accessibility and roominess of SUVs.

For older people with developing mobility issues, this can be a major attraction. Also, SUVs are, in many ways, the heir to the family station wagon of old, which were famous for having more room for storage while still maintaining decent fuel economy.

These vehicles have been rising in popularity since around 2021 and are now outselling cars at a rate of 3 to 1. It’s such a seismic shift in sales that many American car dealerships have mostly quit selling cars entirely, and now focus solely on light trucks and SUVs.

The Most Affordable Cars to Insure in 2023

Now let’s look at the most affordable cars to insure in 2023.

1. Subaru Outback
2. Subaru Crosstrek
3. Honda CR-V
4. Ford F-150
5. GMC Sierra

You’ll probably notice something about this list right away, too: two entries, the Ford F-150 and the Honda CR-V, make an appearance on both list — meaning in addition to their safety features, versatility, and power, they’re also cheaper than average to insure. That can only be good news for drivers in the market for a new car.

Variations in Insurance Rates

One thing anyone who’s purchased or insured a vehicle can tell you: insurance rates can vary wildly based on a number of variables. When assessing your risk factor as a driver, insurers look at things like age, driving record, credit rating, and more. But one thing that often gets overlooked is location. A driver is going to pay a much different rate in Los Angeles or New York than they might in, say, Maryland or Georgia.

Let’s take Maryland, for example. According to numbers from Renata Belasco at insurance comparison site The Zebra, Maryland motorists pay 15% lower than the national average — just $1,305 in premiums per year. Added to which, the Honda CR-V, which appears on both lists above, just happens to be the most popular vehicle in the state. Which is to say, if you happen to live in Maryland, a Honda CR-V may be the best possible value you can get for the money — the most affordable car and cheap Maryland car insurance.

Other states are not so fortunate. Georgia, for example, has a 13% higher rate of premiums than Maryland. And when you get to the larger and more famous cities, you enter an entirely different world, insurance-wise: your yearly premium in Los Angeles is over $2,100 per year, and in New York, full coverage will cost you $3,000 or more.

Buying a new car involves a lot of decision-making. You have to balance budgetary concerns, features and amenities, and more. But if you’re in the market for an SUV or light truck, you stand to benefit a great deal from picking a top seller with highly affordable insurance.