The cost of insuring a car keeps going up. After three years of unprecedented volatility in car prices, there are signs that the overall market could be trending back towards ‘normal.’ At the same time, the average cost of auto insurance continues trending upward.

For consumers, increasing insurance premiums paired with expensive maintenance and rising fuel costs creates an affordability crunch.

Why are insurance prices increasing, what are the cheapest cars to insure, and how can you save on car insurance? Let’s dig into that and more.

At CarEdge, we strive to empower car buyers with negotiation know-how to save thousands at the dealership. But the savings don’t have to end there. New numbers are in, and there’s plenty to learn from the data. We’ll take a look at the average cost of auto insurance in 2023. Then, we’ll get into the most and least expensive cars to insure, and what you can do to save on car insurance right away.

Skip ahead to any topic with the table of contents below.

The True Cost of Insuring a Car Is Rising in 2023

Did your auto insurance premium increase recently? You’re not alone. New insights from Bankrate’s annual report The true cost of auto insurance in 2023 detail how much more Americans are spending to insure their vehicles. Nationally, full coverage auto insurance costs $2,014 per year on average, translating to a ~$168 monthly payment in the United States. On average, Americans are spending 2.93% of their annual income on auto insurance. That’s up from 2.57% last year. 

Why is car insurance getting more expensive? 

The costs of auto repairs increased over the past year as inflation drove prices for parts and labor through the roof. Making matters worse, some car parts were next to impossible to find due to overseas supply shortages. 

These factors are combining to drive up the cost of auto repairs, which insurance companies have unsurprisingly passed on to drivers through higher premiums. Insurance rates are reactionary, so we won’t see them go down market-wide until auto repair costs decline. 

The States With the Most Expensive Auto Insurance

The latest numbers from Bankrate show that car insurance is a lot more expensive in some states. Median incomes vary widely from one area to the next, so the analysts devised a new metric to represent the “true cost” of auto insurance premiums across the US: 

“True cost rankings are determined by the average total percentage of income spent on car insurance and not average premiums. The higher the ranking, the higher the true cost of car insurance.” 

These are the states with the highest true cost of car insurance, according to Bankrate:

1. New York (5.05% of income spent on car insurance)

2. Florida (4.90% of income spent on car insurance)

3. Louisiana (4.77% of income spent on car insurance)

4. Kentucky (3.90% of income spent on car insurance)

5. Alaska (3.66% of income spent on car insurance)

The States With the Least Expensive Auto Insurance

In the states with the least expensive car insurance, some are even seeing slight decreases in average premiums in 2023. 

These are the states with the lowest true cost of car insurance, according to Bankrate:

1. Maine (1.03% of income spent on car insurance)

2. Vermont (1.16% of income spent on car insurance)

3. New Hampshire (1.45% of income spent on car insurance)

4. Idaho (1.58% of income spent on car insurance)

5. Connecticut (1.69% of income spent on car insurance)

The Cheapest Cars to Insure in 2023 (All Brands)

The cheapest cars to insure are often the ones with lowest sticker prices. But this isn’t always the case. Factors like safety features, repair costs, and typical driver profile all play a role. We analyzed over 300 models and ranked the least and most expensive luxury and popular cars to insure.

Our rankings are based on a 40 year old good driver with full coverage and good credit that drives around 13,000 miles annually. These are the cheapest cars to insure right now:

1. Mazda ($1,494 average annual cost to insure)

2. MINI ($1,514 average annual cost to insure)

3. Chrysler ($1,588 average annual cost to insure)

4. Jeep ($1,591 average annual cost to insure)

5. FIAT ($1,628 average annual cost to insure)

6. Subaru ($1,637 average annual cost to insure)

7. Honda ($1,659 average annual cost to insure)

8. Kia ($1,666 average annual cost to insure)

9. Buick ($1,678 average annual cost to insure)

10. Volkswagen ($1,731 average annual cost to insure)

See the full list of the least expensive cars to insure.

The Most Expensive Cars to Insure in 2023 (Popular Brands)

These are the most expensive cars to insure today. Keep in mind that brand rankings are an average of all models. 

1. Ram ($2,011 average annual cost to insure)

2. Nissan ($1,968 average annual cost to insure)

3. Ford ($1,835 average annual cost to insure)

4. Mitsubishi ($1,821 average annual cost to insure)

5. Toyota ($1,818 average annual cost to insure)

6. Chevrolet ($1,784 average annual cost to insure)

7. GMC ($1,782 average annual cost to insure)

8. Hyundai ($1,745 average annual cost to insure)

9. Dodge ($1,731 average annual cost to insure)

10. Volkswagen ($1,731 average annual cost to insure)

See the full list of the most expensive cars to insure.

Wondering why even the most expensive popular brands are less expensive to insure than the national average? Over 18% of new car sales are for luxury brands, and luxury models are much more expensive to insure. See the average cost to insure luxury cars here. 

Save On Car Insurance: It’s Time to Shop Around

We recommend shopping around for lower car insurance rates at least once a year, especially as premiums are rising. You’re likely to save a chunk of money when you do. A ValuePenguin survey found that 76% of people who shopped around found a lower rate for the same coverage.

Best Auto Insurance Rates

When drivers compare competitive quotes with CarEdge Insurance, it becomes clear that lower rates are out there, but only for those who shop around. Drivers are finding the lowest car insurance rates with Progressive and Travelers Insurance. 

See if you can save hundreds of dollars every year simply by comparing quotes with CarEdge. 

Worried about spam phone calls and emails? Rest easy with our no-nonsense quote comparison tool.

If you found a lower rate with CarEdge, let us know in the comments below!