Photo credit: www.kiplinger.com
As new tariffs loom, potentially driving up car prices, many consumers are eager to purchase vehicles before these changes take effect. However, it’s essential to consider the long-term financial implications, particularly regarding car insurance rates, before finalizing any deals.
According to Bankrate, car insurance premiums have surged nearly 12% in 2025, with the average cost for full coverage reaching approximately $2,685 annually, while minimum coverage averages around $800 a year. This upward trend signifies a critical element for potential car buyers to examine: not all vehicles carry the same insurance costs.
When weighing the decision to buy a car pre-tariff, prospective buyers should not only aim to save on the purchase price but also consider which models tend to be more economical in terms of insurance. By doing so, they can avoid models with high insurance premiums that could negate savings made during the initial purchase.
The Most Affordable Cars to Insure
In 2025, the following five car models emerged as the most budget-friendly options for insurance, according to Bankrate:
Full Coverage | Minimum Coverage
Subaru Outback: $2,221 | $745
Jeep Wrangler: $2,380 | $854
Ford Escape: $2,409 | $780
Honda Odyssey: $2,425 | $754
Nissan Rogue: $2,557 | $821
Subaru vehicles consistently rank among the more affordable options for insurance, largely due to their strong safety ratings and lower repair costs. Additionally, brands like Honda and Ford generally offer vehicles that remain cheaper to insure, thanks to their affordability in repairs. In contrast, Toyota and Chevrolet models typically align with the national average regarding insurance costs.
The Costliest Cars to Insure
Conversely, certain vehicle models demand significantly higher insurance premiums. The following five models are among the most expensive to insure in 2025, as per Bankrate data:
Full Coverage | Minimum Coverage
Cadillac Escalade: $3,728 | $856
Dodge Challenger: $3,658 | $870
Tesla Model 3: $3,515 | $782
BMW 330i: $3,281 | $779
Audi Q5: $3,040 | $747
Notably, the insurance costs for Tesla vehicles may further escalate due to recent issues with vandalism and theft, which could lead insurers to reassess the risk associated with these cars. Similar situational spikes have previously impacted brands like Hyundai and Kia, due to rising theft rates following social media trends that highlighted the ease of stealing certain models.
Additional Factors Affecting Insurance Rates
The make and model of a vehicle are crucial in determining insurance rates, but several other factors also play a significant role:
Vehicle Age: Older cars usually have a lower market value, leading to decreased premiums. Opting for certified pre-owned vehicles can provide savings in both purchase cost and insurance.
Body Style and Trim: Cars with luxury or sporty body designs typically incur higher insurance costs. SUVs and standard trimmed trucks often offer the most economical insurance rates.
Technology and Features: Advanced features in newer models can complicate repairs, leading to increased costs. Buyers should weigh the potential insurance implications of luxury upgrades against their actual value.
Safety Rating: Vehicles are evaluated annually by organizations such as the National Highway Traffic Safety Administration (NHTSA), and those with better safety ratings often come with lower insurance premiums. Consumers can assess their prospective car’s safety rating by visiting the NHTSA website.
Conclusion
For those considering a new vehicle purchase this year, it is vital to incorporate the anticipated insurance costs into the decision-making process. If the selected model is among the pricier insurance choices, looking into certified pre-owned options or alternative ways to save on insurance could be beneficial to maintain financial sustainability.
Source
www.kiplinger.com