SUV vs. sedan: Which is cheaper to insure in 2025?

Are SUVs cheaper to insure than sedans?

Yes, SUVs are generally cheaper to insure than sedans. According to our data, the average annual cost of car insurance for an SUV is $2,553, while the average yearly premiumThe payment required for an insurance policy to remain in force. Auto insurance premiums are quoted for either 6-month or annual policy periods. for a sedan is $3,221. This is based on 100/300/100 liability limits and $500 deductibles.

The Insurance Institute for Highway Safety (IIHS) states that the medical payouts for people involved in accidents in SUVs are less than for sedans because SUVs offer more protection due to their weight and size. Insurance companies factor this in when determining how much your insurance premiums will be, which is why you’ll often pay less for an SUV than a sedan.

Small and mid-sized SUVs are cheaper to insure than sedans. For example, the Subaru Crosstrek (a compact SUV) costs $2,064 per year to insure, while the Subaru Legacy (a sedan) costs $2,148.

You often see the pricing reverse when you get into bigger or luxury SUVs. For example, a Range Rover Sport (a large luxury SUV) costs about $4,448 a year to insure, while a Volvo S90 (a hybrid sedan) costs $3,580 a year. Even this can vary depending on the sedan and how exotic or expensive it is.

Your insurance costs will depend on the specific vehicle you purchase, your ZIP code, your driving record, the amount of coverage you choose and (in most states) your credit score. Always shop around with multiple carriers to get the right policy and price.

What vehicle factors determine car insurance premiums?

“There are a lot of factors that go into the cost of insurance,” says Jill M. Bisco, associate professor of risk management at Illinois State University.

Here are a few of the vehicle-related factors that affect car insurance rates:

Vehicle type and model. The make and model factor heavily into what you’ll pay for your insurance premiums. It’s generally cheapest to insure a small or midsize SUV.  Luxury or sports cars and oversized SUVs and trucks are more expensive to insure; in this case, an economy sedan is the way to go. It’s based on the cost of parts, safety features, crash tests and theft profile.

Vehicle value and repair costs. “If the parts for a specific vehicle are more expensive than those of another or the availability is limited, then the vehicle with the more expensive parts will likely cost more for insurance. This is why we often see two-door cars more costly to insure than a very similar car with four doors (greater part of the vehicle could be a door in a two-door vehicle). Repair costs are a significant part of the physical damage coverage of vehicles (e.g., comprehensive and collision),” Bisco says.

Safety ratings and crash test results. “Vehicles that have a track record of having significant damage when involved in accidents will likely cost more to insure. For instance, sometimes new models of vehicles have design issues which result in the increased likelihood of an accident,” Bisco says.

“Beyond physical damage, insurers also look at the amount of damage that a vehicle can cause,” she says. “Larger vehicles, when impacting with another vehicle, will likely cause more property damage to the other vehicle and may also cause significantly more bodily injury to the passengers in the other vehicle. This may be an area where one will see SUVs and pickups costing more for liability insuranceLiability insurance covers sums that an insured becomes legally obligated to pay because of bodily injuries or property damage, or financial losses caused to other people.. When at fault for an accident, these vehicles could cause greater bodily injury and property damage and therefore, the insurer could charge more in this area.”

Theft rates. “Vehicles that are more often stolen will likely have a higher cost for insurance. Over the years, organizations that track the theft of vehicles will release lists of the most stolen vehicles in the U.S. Again, insurers watch this and their own track record and will adjust rates to align with the risk of theft,” Bisco says

Other factors affecting your insurance rates are your driving record and ZIP code. You can use an online insurance rate calculator to estimate what your insurance might cost for a particular type of vehicle. All you need to input is your ZIP code, the make and model of your vehicle and the amount of coverage you want to purchase.

How much does it cost to insure an SUV? 

The average annual insurance premium for an SUV is $2,553 a year. 

Smaller and midsize SUVs are cheaper to insure than bigger or luxury SUVs. They also have cheaper replacement parts and perform well in safety tests. Larger or luxury SUVs may cost more to repair or perform differently in safety tests. All vehicles must meet rigorous safety standards, but some perform better than others.

Here are a few examples of popular SUVs and their average insurance costs:

Small/midsize SUVs:

• Honda Pilot $2,076
• Chevy Trailblazer $2,012
• Toyota RAV4 Hybrid $2,189

Luxury SUVs:

• Porsche Cayenne Coupe $3,619
• Mercedes-AMG GLC-Class $3,162
• Lexus RX Hybrid $2,725

Take a look at the table below to see what it costs to insure various SUVs.

How much does it cost to insure a sedan?

The average annual cost to insure a sedan is $3,221 a year. Again, this also depends on the make and model. Insuring an economy car is cheaper than insuring a sports car. Sports cars have more expensive parts, and insurance companies see them as riskier because they have powerful engines that may encourage reckless driving. If your vehicle is desirable to thieves, your insurance will cost more. How does it perform in safety tests? The better it does, the lower your premium is likely to be.

Here are a few popular sedans and their average insurance costs from the data below:

• Subaru Legacy $2,148
• Hyundai Sonata $2,639
• Lexus ES $2,924
• Audi A4 $2,993
• Tesla Model 3 $3,466
• BMW i7 $5,480

Take a look at the table below to see different types of sedans and their insurance costs. The cheapest sedan to insure is the Subaru Legacy, at $2,148 a year.

How to lower insurance costs regardless of vehicle type

There are a few tried and tested ways to save on auto insurance, whether you have an SUV, sedan or other type of vehicle. These can help you lower your car insurance:

• Shop around and compare quotes. Always shop around. One carrier might have very different pricing from another.
• Bundle policies. The home and auto bundling discount is often the highest discount offered by an insurance company, ranging from 10% to 25%.
• Increase deductibles. “First, take a look at the deductibles that you have for comprehensive (sometimes called other-than-collision) and collision,” Bisco says. “Check on the cost savings to move to higher deductibles. Keep in mind that the deductible is the portion that you must pay before insurance starts to pay so you need to ensure that you have sufficient funds to cover it should something happen. With that said, sometimes the savings to move to higher deductibles can be significant, and with no incident in a year or two, you could have saved the difference. Save this so when something happens, you have the funds to cover the new higher deductible.”
• Choose vehicles with good safety ratings. The better the results, the more favorably the insurance carrier looks at your vehicle when calculating premiums.
• Maintain a clean driving record. Always maintain a safe driving record and try to avoid speeding tickets and other moving violations, as these increase your insurance significantly.

“Before you purchase a vehicle, I would highly recommend speaking to your insurer about the cost to insure the vehicle,” Bisco says. “As mentioned before, there are factors that impact the cost of insurance that consumers may not be aware of. Rather than buying a vehicle and then finding out that the insurance is more costly than expected, checking before the purchase can save these headaches.”

Final thoughts: SUV vs. sedan insurance cost

When deciding on the vehicle you want to buy, it’s important to know how the make and model of your vehicle will affect your car insurance rates. Small and midsize SUVs are generally cheaper to insure than sedans. They are considered very safe by insurers and are typically inexpensive to repair.

Full-sized, luxury or sports models are always more expensive to insure and repair due to expensive or hard-to-get parts. 

A sedan is often cheaper to buy right off the lot, but be sure to get quotes for the insurance. It’s important to know what your budget will be for the price of the car and the insurance on top of it. While most cars pass rigid safety tests, SUVs tend to fare better in accidents, which is why their insurance rates are typically lower.

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