Car shoppers are paying more than ever for new models, and the cost of insuring them has also been going up in recent years.
The average annual cost of full-coverage car insurance in the United States for a 2025 or 2026 model-year car is $2,879, according to a new study released by Compare.com.
The finding comes as the average price of a new car rose to $49,855 in July, according to Cox Automotive’s Kelley Blue Book. The average price was up 0.2% from June’s $49,757 and 1.9% from July 2025, according to the group.
“Record-high new-vehicle prices are already increasing the cost of car ownership, and insurance costs add to that bottom line,” Compare.com said in its report. “Newer vehicles are 34% more expensive to insure, on average, according to Compare.com data. That’s largely thanks to the advanced driver-safety technology now standard in most new models.”
Here are the 10 models identified in the study as having the lowest average annual insurance costs:
The 10 Cheapest Cars to Insure
1. Subaru OutbackStarting price: $34,995Average annual insurance cost: $1,969
Charles Singh of the USA TODAY Cars team said the Outback’s wagon-like design does not make for the most conventional midsize family SUV, but it occupies a necessary space in its segment.
2. Subaru ForesterStarting price: $29,995Average annual insurance cost: $2,135
Mark Phelan of the Detroit Free Press called the 2026 Forester a pleasant surprise, noting its useful features.
3. Subaru CrosstrekStarting price: $26,995Average annual insurance cost: $2,207
Phelan described the Crosstrek hybrid as attractive, capable and efficient, with appealing fuel economy.
4. Subaru AscentStarting price: $40,795Average annual insurance cost: $2,207
Phelan said the Ascent fills a gap in Subaru’s lineup with advanced features and an interior designed to carry families.
5. Ford TransitStarting price: $48,400Average annual insurance cost: $2,270
Singh called the Transit a practical choice for drivers who need a specialized cargo area.
6. Ford MaverickStarting price: $28,145Average annual insurance cost: $2,291
Singh said the Maverick offers more than 500 miles of driving range without a large gas tank or diesel engine, making it an option for drivers looking to reduce fuel costs.
7. Hyundai Santa CruzStarting price: $29,750Average annual insurance cost: $2,296
Phelan said the Santa Cruz combines a comfortable five-passenger cabin with a usable truck bed.
8. Ram 3500Starting price: $48,155Average annual insurance cost: $2,332
Phelan highlighted the heavy-duty pickup’s towing capacity and diesel engine in a vehicle-of-the-year roundup.
9. Honda PassportStarting price: $44,950Average annual insurance cost: $2,361
Phelan described the 2026 Passport TrailSport as a capable and comfortable off-road SUV.
10. Ford Bronco SportStarting price: $31,945Average annual insurance cost: $2,392
Phelan said the 2025 Bronco Sport performed well on highways and winding roads during a test drive.
Reporting by Keith Laing, USA TODAY. This article originally appeared on USA TODAY.
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