Cheapest Cars to Insure

Many drivers mistakenly assume that auto insurance premium levels are a constant. In actuality, insurers look at a number of factors to set an individual price per driver, including:

• The full-replacement value of the car.
• The estimated cost of repairs to the cars.
• The perception of the car’s performance. (Some cars have a reputation for being “fast” or have high popularity with thieves.)
• The driver’s record of citations and accidents.
• The age of the driver.

Currently, the cheapest car to insure in the United States is the Hyundai Santa Fe crossover at $832 a year, roughly $70 a month. The base GLS has a 2.7-liter V6 producing 185 hp. A five-speed manual transmission is standard, with a four-speed automatic available. (At the SE level, drivers gain a 3.3-liter V6 for 242 hp with a five-speed automatic.)

The Kia Sportage, at $840 a year, comes in at second place. Available in both the LX and EX, the 2-liter four-cylinder and a 2.7-liter V6 engine options deliver 140 and 173-hp respectively. Both the Santa Fe and the Sportage are a good illustration of how form factor effects perception for insurance risk. Underwriters assume that owners of larger vehicles, including SUVs and minivans, are family drivers and thus are likely to drive more safely.

In ascending order, the next eight cheapest vehicles to insure include:

- Hyundai Entourage - $848
- Kia Sedona - $857
- Kia Rio5 - $870
- Honda Odyssey - $871
- SmartForTwo - $881
- Saturn Vue - $911
- Mazda Tribute - $913
- Chrysler Town & Country - $915

Even if you are driving one of the least-expensive models to insure, there are always more discounts you can investigate. Make sure you’re deriving maximum benefit from the following:

- Field of education.
- Type of employment.
- Military service, both past and present.
- Holding multiple policies with one company.
- Paying on a quarterly or annual basis.
- The vehicle’s safety and anti-theft systems.
- The number of miles regularly driven

Given the fact that the average national cost of insurance per year was $1,810 a year or $150 a month in 2009, any of the vehicles on this list represents substantial insurance savings. The most expensive in premium terms, the Chrysler Town & Country, carries an average monthly insurance cost of about $76.

If you’re shopping for a new car on a tight budget, you need to think about monthly insurance premiums as part of the total cost of owning the vehicle. In the midst of the current economic recession, it probably makes good sense to defer the car of your dreams in favor of a fuel-efficient, insurance-friendly model. After all, that dream car won’t be much fun if you can’t afford to do more than leave it parked in the driveway.