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5 Toyota Models That Won’t Cost You a Fortune to Insure

In a recent analysis of insurance rates for 2020 and 2021, Toyota proves it can build affordable cars. Five models appear on a recent NerdWallet list of the cheapest cars to insure. So if you have your eye on one of these Toyota vehicles, you won't be disappointed.

When it comes to car buying, there’s more to it than calculating the MSRP. Consumers know they also must consider interest on auto loans, fuel costs, and insurance rates. And in many of these categories, Toyota dominates as a top value.

In a recent analysis of insurance rates for 2020 and 2021, Toyota proves it builds affordable cars. Five models appear on a recent NerdWallet list of the cheapest cars to insure. So if you have your eye on one of these Toyota vehicles, you won’t be disappointed.

Which vehicles make NerdWallet’s list of the cheapest to insure?

NerdWallet, a personal finance company covering consumer products and services, recently compiled a list of the most affordable and cheapest cars to insure. NerdWallet often suggests tips that help people improve their credit scores, find ideal credit cards, and secure low-interest loans. In this latest compilation, the nerds did all the heavy data lifting to show the vehicles with the lowest insurance costs.

There are 25 vehicles in the running. And if you’re in the market, these models are worth a look. Based on the national yearly average cost of insurance — $1,427 — the Subaru Outback and the Jeep Wrangler come out on top. Other models with low insurance costs are the Honda CR-V, Ford Escape, Chevy Equinox, and a slew of Toyota models.

Toyota makes 5 models with low insurance costs

In some circles, Toyota and Honda tend to be the most competitive brands when it comes to insurance rates. Car Insurance Comparison found that average Toyota monthly insurance premiums are $118, while Honda rates average around $115.

On NerdWallet’s list, five Toyota vehicles are among the most affordable to insure. They are the Tacoma, RAV4, Camry, Corolla, and Highlander.

Insurance rates among Toyota models

You might assume vehicles with lower purchase prices are also the cheapest to insure. But that isn’t always the case, especially because several other factors contribute to insurance risk assessments. The NerdWallet team assembled the monthly premiums for each Toyota, along with the percentage of each vehicle’s MSRP. 

For example, the Tacoma averages $1,527 to insure annually, 6.09 percent of its $25,050 MSRP. The RAV4 costs about $1,555 a year to insure, 5.99 percent of its $25,950 sticker price. The Corolla costs about 8.58 percent of its purchase price to insure, with rates around $1,701 per year. The Camry’s average annual premium comes in at $1,704, or 6.98 percent. And the Highlander will set you back around $1,773 yearly, a mere 4.82 percent of the sticker.

What drives car insurance rates anyway?

Insurance companies tend to set pricing according to a few key risk factors. Accident occurrences, theft rates, and average repair costs usually factor into the equation.

For instance, sports cars have some of the highest insurance rates because of their speed and a higher percentage of accidents. Value Penguin suggests small pickups and minivans tend to be the least expensive because of their owners’ more conservative driving habits. Based on these criteria, the Toyota models tend to perform better than others, with practicality, better safety equipment, and lower-than-average incident expenses.

Cost of ownership matters when it’s time to buy a new vehicle. And car insurance rates can certainly be expensive. Check out some Toyota models. With a great reputation for value, the automaker proves it can deliver dependable vehicles that won’t cost a fortune to insure.