Car ownership in the U.S. is becoming more expensive each year, especially for young drivers and budget-conscious families. Beyond the price tag of the car itself, auto insurance costs can be a major financial burden. That’s why smart buyers are now searching not just for affordable vehicles, but also for cars that come with low insurance premiums.
In this comprehensive guide, we’ll explore the top 5 cheap cars with low insurance costs in 2025. These vehicles strike the perfect balance between affordability, safety, reliability, and low operating costs—making them ideal choices for students, new drivers, or anyone looking to cut expenses.
What Affects Car Insurance Rates in the U.S.?
Before diving into the list, it’s crucial to understand what factors affect your insurance premiums. Insurers calculate risk based on the following:
- Vehicle type and repair cost
- Safety ratings and crash test results
- Likelihood of theft
- Driver demographics (age, location, driving history)
- Mileage and vehicle use (personal vs. commercial)
Generally, cars that are affordable, have excellent safety ratings, low repair costs, and a low theft rate will result in lower insurance premiums.
1. Subaru Impreza (2025)
Average Price: $22,995
Estimated Annual Insurance Cost: $1,510
Why It’s Affordable:
- AWD standard on all trims
- Excellent safety ratings (IIHS Top Safety Pick)
- Low repair and parts cost
The 2025 Subaru Impreza continues its legacy of value-packed reliability. With standard all-wheel drive and a solid set of tech features, it’s a great pick for those in snowy states. Insurance premiums remain low due to its outstanding safety and low claim history.
2. Honda Civic (2025)
Average Price: $24,050
Estimated Annual Insurance Cost: $1,480
Why It’s Affordable:
- High resale value
- Proven reliability
- Fuel-efficient and tech-forward
A long-time favorite among U.S. drivers, the Civic is not only efficient but also impressively cheap to insure. Its high safety ratings and durable build make it a top choice among insurance providers.
3. Mazda3 (2025)
Average Price: $23,950
Estimated Annual Insurance Cost: $1,460
Why It’s Affordable:
- Sporty design with top safety tech
- Low repair frequency
- Excellent gas mileage
The 2025 Mazda3 offers a refined interior, sleek styling, and driver-assist features that help reduce accident risks. These elements contribute to its low insurance cost, making it a great blend of form and function.
4. Toyota Corolla (2025)
Average Price: $21,900
Estimated Annual Insurance Cost: $1,420
Why It’s Affordable:
- Bulletproof reliability
- Standard Toyota Safety Sense 3.0
- Low theft rates and high safety scores
The 2025 Toyota Corolla remains a staple in the budget car market. Its extensive list of standard safety features keeps both drivers and insurance companies happy. It’s particularly attractive for young drivers and families.
5. Hyundai Elantra (2025)
Average Price: $21,750
Estimated Annual Insurance Cost: $1,410
Why It’s Affordable:
- Generous warranty
- Strong crash test ratings
- Affordable repair and maintenance
Hyundai continues to push value with the 2025 Elantra. Featuring a bold design, advanced driver assistance systems, and strong safety scores, it delivers on all fronts. The low annual insurance cost makes it one of the cheapest cars to own overall.
Best-Selling Car Safety Accessories on Amazon for Lower Insurance Rates
Investing in car safety accessories can further reduce your insurance premiums. Many providers offer discounts if your car is equipped with certain anti-theft or collision prevention tools.
1. Wheel Clamp Lock Anti-Theft Device
- Prevents theft and adds a layer of protection
- Ideal for teens and college parking lots
Buy Wheel Clamp Lock Anti-Theft Device
2. Blind Spot Mirror Set
- Enhances visibility and reduces accident risks
- Universally compatible with most vehicles
3. Backup Camera Kit
- Essential for older cars without factory rear cameras
- Easy installation and helps avoid collisions
These products can be paired with your insurance provider’s safety features discounts—check with your agent.
Tips to Further Lower Your Insurance Premium
Even if you choose a cheap car with a low insurance cost, you can further reduce your premiums by:
- Bundling home and auto insurance
- Maintaining a clean driving record
- Installing anti-theft devices
- Opting for higher deductibles
- Using pay-per-mile or telematics insurance programs
Final Thoughts
Choosing a car isn’t just about the sticker price. Factoring in insurance costs, maintenance, and fuel efficiency ensures long-term affordability. In 2025, the vehicles on this list prove that you can drive something reliable, stylish, and safe without breaking the bank on insurance premiums.
Looking to maximize your savings? Combine your vehicle choice with smart accessory purchases and a proactive insurance strategy. It’s all about driving smarter in 2025.
