How does your car make and model impact your insurance rates? 

Make and model are terms used to describe types of vehicles. Make refers to the brand, such as Toyota or Honda. The make usually refers to the manufacturer, but the two are not always synonymous. For example, the Toyota Motor Corporation owns both the Toyota and Lexus brands.

Meanwhile, the model refers to the specific vehicle within a manufacturer’s product line. For example, some of Volvo’s models include the XC90, XC60, XC40 and the fully electric EX90. Models can be divided further into trims, which include different features or upgrades. The Volvo XC60, for example, comes in three trim levels: Core, Plus and Ultra. Core is the base manufacturer’s suggested retail price, while Ultra adds about $10,000 to the cost.

Make, model and trim impact insurance rates because they impact the cost of the vehicle. For example, if a luxury car like a Lexus is stolen or damaged, it will be more expensive to repair and replace than a Toyota, leading to higher premiums for comprehensive and collision coverage. These coverages pay for damage to your own vehicle and are often the costliest coverages on a policy—so, make and model are particularly impactful when considering rates for full coverage policies.

However, certain makes and models also have more claims than others, indicating that they tend to be involved in more accidents and cause more severe damage and/or injuries to others, which liability coverage would pay for. Drivers of these vehicles may also pay higher rates.

Since auto insurance pricing is based on many factors, vehicle type being only one of them, there’s no clear-cut list of cars that are more or less expensive to insure. For example, you may end up with a lower rate if you insure a cheap car, but it’s not a guarantee. If you’re a young driver or have violations on your record, these factors can outweigh the value of your car and lead to higher premiums.

That said, looking at the insurance loss data from the IIHS can indicate certain makes and models that may be cheaper to insure, on average, based on the rate and severity of insurance claims.²

The following cars may be cheaper to insure based on bodily injury liability claims, meaning they are less likely to be involved in accidents that cause injuries to others:

• Volvo XC90 plug-in hybrid 4dr 4WD (59 percent lower claim frequency than average)
• Audi Q5 plug-in hybrid 4dr 4WD (59 percent lower claim frequency than average)
• Volvo XC60 4dr (54 percent lower claim frequency than average)

For full coverage, the following cars may be cheaper to insure, given that they have lower rates of collision claims:

• Toyota Tundra double cab LWB (52 percent lower losses than average)
• Jeep Wrangler 2dr 4WD (47 percent lower losses than average)
• Subaru Crosstrek 4WD (46 percent lower losses than average)

When it comes to cars that are more expensive to insure, the same logic applies. Certain cars, such as luxury vehicles, are more expensive to insure on average, but being a safe driver and taking advantage of discounts can lower your rate, so it’s not an exact science.

Here are the cars that are likely more expensive to insure based on bodily injury liability claims:

• Dodge Charger (160 percent higher claim frequency than average)
• Dodge Charger HEMI (148 percent higher claim frequency than average)
• Dodge Charger HEMI (138 percent higher claim frequency than average)

And here are vehicles for which full coverage may cost more based on collision claims:

• McLaren 720S convertible (652 percent higher losses than average)
• BMW M4 2dr 4WD (641 percent higher losses than average)
• BMW M8 4dr 4WD (599 percent higher losses than average)

Here are some tips for finding a car that’s cheaper to insure:

1. Research Insurance Rates in Advance: If you have a specific car in mind, your insurance company can provide an estimated quote based on the make, model, year and your driving history. This helps you understand the potential insurance costs before committing to a purchase.
2. Shop for Used Cars From Recent Model Years: Used cars from recent model years often strike a balance between affordability, cost to repair/replace (which impacts insurance premiums) and modern safety features. These vehicles may qualify for safety feature discounts without the higher insurance costs associated with brand-new cars.
3. Avoid High-Performance Vehicles: Sports cars, luxury cars and high-performance cars typically come with higher insurance premiums due to their increased risk of accidents and repair costs.
4. Opt for a Practical Vehicle: Midsize sedans, hybrid models and SUVs with lower theft rates and repair costs are usually more affordable to insure compared to luxury or specialty vehicles.
5. Review Claims Data: Research industry reports on average insurance losses by vehicle type. Cars with lower average claims for collision, property damage and comprehensive coverage are likely to cost less to insure.

Car make and model is one of the main factors that car insurance companies consider when calculating risk profiles and insurance premiums, but it’s far from the only factor. While it can be a good idea to consider general trends in pricing, such as newer cars generally being more expensive to insure than older cars, there is no way to guarantee a low rate simply based on the car you drive. If you have a particular vehicle in mind, you can contact your insurance company for an estimated insurance quote before you purchase it. Investing in a safe car and maintaining a clean driving record are two great ways to help keep your rates low.