The 10 New Vehicle Models with the Largest Insurance Rate Decreases
Several factors influence auto insurance costs, particularly driving record and location. But insurers also review data related to the vehicle itself to assess risk and set premiums, especially factors that affect claim frequency or severity. For example, luxury vehicles often cost more to insure because they’re more expensive to replace.
Even though this list includes several luxury brands, the Toyota Sequoia and Dodge Charger are the only vehicles with a starting MSRP above the current average for new cars, according to Kelley Blue Book (KBB).[1] But each has seen average annual premiums drop between $509 and $917 year over year, according to Compare.com data.
Drivers looking to buy a new vehicle should consider comparing insurance costs. Doing so could uncover unexpected savings.
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1. Hyundai IONIQ 5
Year-over-year rate change: -19% (-$704)
Average annual full-coverage premium: $2,990
2026 Hyundai IONIQ 5 starting MSRP: $35,000
Vehicle type: Compact electric SUV
For drivers interested in an EV, it’s a great time to get a Hyundai IONIQ 5. The automaker sharply lowered its starting MSRP for the 2026 model year to $35,000 — an almost $8,000 drop from the previous model year’s starting price. Its average insurance premiums have also dropped year over year to $2,990, an annual savings of $704, according to Compare.com data.
The IONIQ 5’s lower MSRP may contribute to its lower premiums, since insurers consider how much it costs to replace a vehicle when setting rates. Its U.S. production may also have helped reduce its exposure to cost pressures like import tariffs.[2] Plus, it’s an Insurance Institute for Highway Safety (IIHS) Top Safety Pick+ (the organization’s highest rating), which indicates a lower claims risk and can help lower premiums.
2. Nissan LEAF
Year-over-year rate change: -18% (-$687)
Average annual full-coverage premium: $3,096
2026 Nissan LEAF starting MSRP: $29,990
Vehicle type: Small electric crossover SUV
Nissan completely redesigned the all-electric LEAF for the 2026 model year, turning the compact hatchback into a small crossover. But the change didn’t affect the cost much. The LEAF is still among the most affordable EVs on the market. It has a range of up to 303 miles (a 43% increase from the previous model year), putting it in competition with Tesla’s Model 3 and Model Y.
At $3,096 per year for full coverage, its insurance costs are right around the national average for new cars. The average LEAF premium dropped $687 since last year, according to Compare.com data. That makes the newly designed, higher-range LEAF an even more attractive option for buyers comparing vehicles and deciding what’s right for them.
3. Dodge Charger
Year-over-year rate change: -18% (-$917)
Average annual full-coverage premium: $4,146
2026 Dodge Charger starting MSRP: $49,995
Vehicle type: Coupe/sedan (electric variant available)
The Dodge Charger, a classic muscle car, isn’t the most affordable vehicle on this list to buy or insure. The Charger’s above-average premiums reflect its powerful engines and EV version — the Charger Daytona, which adds $10,000 to the MSRP. The 2026 Charger has four trims available, and its Daytona Scat Pack trim boosts output to 670 horsepower.
But falling premiums could inspire drivers already interested in owning this classic high-performance muscle car to take the next step. Average insurance rates for the Charger fell by $917 year over year, according to Compare.com data.
4. Subaru Impreza
Year-over-year rate change: -18% (-$509)
Average annual full-coverage premium: $2,392
2026 Subaru Impreza starting MSRP: $26,595
Vehicle type: Compact hatchback
The Subaru Impreza has been around for more than 30 years, and it remains a popular, consumer-friendly vehicle for good reason. Though it’s one of Subaru’s smaller models, it features the automaker’s standard all-wheel drive and focus on safety technology, plus the flexible cargo space of a hatchback.
Subaru dropped the base trim for the 2026 model year, making the Impreza Sport the new base, but its insurance costs remain affordable. Average annual insurance costs for the Impreza dropped by $509 year over year, falling below the national average cost of insuring a new vehicle, according to Compare.com data.
5. Toyota Sequoia
Year-over-year rate change: -17% (-$561)
Average annual full-coverage premium: $2,714
2026 Toyota Sequoia starting MSRP: $65,725
Vehicle type: Large hybrid SUV
The Toyota Sequoia is the most expensive vehicle on this list, but its average annual insurance premium is below the national average, according to Compare.com data. Its average insurance rate dropped $561 year over year, so even though it’s an expensive vehicle, its premiums won’t add too much to ownership costs.
Its moderate rates likely reflect a more mature, safety-focused driver profile: The Sequoia is a family-oriented, three-row vehicle that seats up to eight people. It also benefits from a lower-than-average loss history in past model years, according to the Highway Loss Data Institute (HLDI).
6. Lexus UX
Year-over-year rate change: -17% (-$616)
Average annual full-coverage premium: $3,040
2026 Lexus UX starting MSRP: $38,850
Vehicle type: Small luxury hybrid SUV
With declining insurance premiums and a starting price under $40,000, the Lexus UX is an affordable option for drivers wanting the quality — but not the typical cost — of a luxury vehicle. The UX gets an excellent 43 mpg and comes equipped with advanced safety technology, including pedestrian detection and automatic high beams, earning it top safety scores from the National Highway Traffic Safety Administration (NHTSA).
Its small size may reduce claims severity relative to larger models, and past model years have an average or better loss history, according to the HLDI. It saw its premiums drop by $616 year over year to an annual average of $3,040, according to Compare.com data.
7. Toyota Highlander
Year-over-year rate change: -17% (-$522)
Average annual full-coverage premium: $2,606
2026 Toyota Highlander starting MSRP: $46,270
Vehicle type: Midsize SUV (hybrid powertrain available)
Like the Sequoia, the Toyota Highlander is a family-oriented, three-row SUV, though its starting price is almost $20,000 lower. Though its hybrid trims cost a bit more than base trim levels, it’s still a more affordable option for eco-conscious drivers who need an all-wheel-drive vehicle that seats up to eight people.
Its premiums don’t add too much to running ownership costs, either. The average annual rate for a new Highlander dropped $522 year over year to $2,606, below the national average, according to Compare.com data. Its advanced driver-assistance technology may contribute to its lower premiums. The Highlander has top safety ratings from the NHTSA and the IIHS.
8. Subaru WRX
Year-over-year rate change: -16% (-$561)
Average annual full-coverage premium: $2,845
2026 Subaru WRX starting MSRP: $32,495
Vehicle type: Compact sport sedan
The sporty Subaru WRX combines performance with practicality, coming standard with a manual transmission and all-wheel drive. And despite its performance-oriented design, its insurance premiums are just below the national average and dropped by $561 year over year, according to Compare.com data.
Its premiums may benefit from reduced replacement costs, since Subaru reintroduced a lower-priced base trim for the 2026 model year. It also has top safety ratings from the NHTSA and the IIHS, likely demonstrating a lower probability of costly claims.
9. Audi A3
Year-over-year rate change: -16% (-$725)
Average annual full-coverage premium: $3,700
2026 Audi A3 starting MSRP: $40,100
Vehicle type: Subcompact luxury sedan
The Audi A3 is the automaker’s entry-level sedan, but its MSRP and insurance premiums still reflect its luxury status. Audi redesigned the A3 for the 2022 model year, so the $725 year-over-year rate decrease may reflect insurers’ access to several years of claims history.
The A3 has good safety ratings from the IIHS, reflecting its strong crash test results. Past model years also have an average or better loss history. The 2022–2024 comprehensive claims rate for the A3 is 27% lower than average, according to the HLDI.
10. BMW 2 Series
Year-over-year rate change: -15% (-$579)
Average annual full-coverage premium: $3,255
2026 BMW 2 Series starting MSRP: $42,200
Vehicle type: Coupe/sedan
The BMW 2 Series is the brand’s smallest vehicle, so it quite literally won’t be a fit for everyone.[3] But the sleek, nimble car comes in two body styles, multiple drivetrain options, and a range of powertrains, including the automaker’s high-performance M models with up to 473 horsepower. It also comes standard with several safety technologies, including lane-keeping assistance and forward-collision mitigation.
Drivers with a new 2 Series pay more than the national average for car insurance, but the model’s average premiums dropped by $579 year over year to $3,255, according to Compare.com data.
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