For anyone who has a freshly minted driver's license and is ready to hit the road with the other 243 million drivers in the U.S., there's one "gotcha" that's hard to predict. Insurance companies tend to reward experience that comes as you age and stick younger drivers with a higher premium, mostly because they don't often know how to handle a dangerous situation.
Imagine entering an intersection in the family minivan. You look to your left, then to your right, and finally start to edge forward. Suddenly, you see a car making a left turn and heading right toward you. Whether you slam on the brakes or try to get away by swerving and accelerating has nothing to do with how well you did on your driving permit test, but is the result of road experience.
Insurance companies know all about this dynamic, but the good news is that young drivers can choose a specific make and model that's rated as a safer vehicle to drive for everyone, comes with extra technology to help you avoid accidents, or has a low price, making the replacement costs a little cheaper. Our ranking starts with the most expensive (bust still cheap) car to insure on the list, before working its way up to the cheapest option.
The Subaru Crosstrek has a sleek and angular design, almost sporty looking while not being exactly fast, which makes it a good option for young adults looking for low insurance costs. The five-star NHTSA overall safety rating is the critical spec to think about here. There's a reason Subaru runs so many commercials about safety, showing accidents with the cars in a wreck but where the driver survived. It also runs a lot of ads about dogs, which is unrelated, but funny.
Technology also helps. The Crosstrek uses EyeSight for lane-keeping and adaptive cruise control to make sure you stay a safe distance behind the car in front of you. Another spec that drives down the insurance costs? The Crosstrek is not exactly a speed demon, so no burn-outs or lap racing for this one. The 0 to 60 mph rating is only 8.2 seconds, which is enough to help a teen merge into traffic but won't encourage spirited driving.
As for replacement cost, the new car price was around $23,000, which helps with the insurance rates, since expensive cars have higher rates. Used car prices depend greatly on the trim level and mileage, but you can find them for as low as $10,000. The insurance rate runs about $125 a month, a reasonable amount compared to vehicles that will come with higher premiums, such as sports cars or electric vehicles.
Grandma might drive one, but at least it has four wheels and a place to stash your mountain bike, right? The Dodge Grand Caravan was discontinued in 2021, so we evaluated the 2020 model; A highly-rated car, even if it does cost a little more to insure than smaller, cheaper vehicles like the Fiat 500X.
The Grand Caravan is a top pick for safety, scoring a five star NHTSA rating, meaning that young drivers can expect a lower premium per month. Technology on the 2020 model is good but not great, lacking some extras like driver alert systems, but coming with a standard rearview camera and blind-spot monitoring. Engine performance is not something a young adult will be bragging about to their friends. While there isn't a definitive 0 to 60 mph test for the 2020 model, it was rated as one of the slowest minivans around. No turbocharged engine here, either, so drag racing is out of the question.
A new Dodge Grand Caravan cost about $29,000, which also makes it more expensive to insure than other vehicles on this list. However, you can find a used Grand Caravan for as low as $8,000 used. That all equates to a reasonable monthly insurance rate of $124 per month, a hair less than the Crosstrek but high enough to place the Grand Caravan far from the first spot.
Another Subaru on the list that is worth considering for young adults is the Subaru Forester. The boxy, no-frills design might give you pause, but the insurance premium is quite reasonable. One reason for the low rates is the five-star safety rating from the NHTSA. This, along with safety technology like EyeSight lane monitoring and adaptive cruise control, drives down rates.
The Forester is not a sporty vehicle by any means, but you should still find out if the model you're considering has a turbocharged engine. Most model years do not have a turbo, as this feature was suspended in 2019, but it was reintroduced in the 2025 model year. A turbo is a flag for insurance companies because it makes the car a bit more dangerous to drive. The 0 to 60 mph rating for a 2019 model is a modest 8.5 seconds, and the other non-turbo models shouldn't be far, making them cheaper to insure.
The replacement cost for a Forester is based on the price of a new car, or around $26,000. This is a vehicle that holds its resale value well, which impacts insurance costs. A used 2021 Subaru Forester starts at about $18,000, so if the vehicle is totaled, it will cost more to replace. Insurance rates for the Subaru Forester hover around $124 per month: not bad, but not quite comparable to the cheapest cars on this list.
You could make the case that the Mazda CX-3 is one of the best cars for new drivers. It's also one of the most striking vehicle on this list, with a sleek and sporty look, even if the reality of driving one is a little less thrilling. In this case, though, that's what earns the CX-3 a five-star safety rating by the NHTSA. That's because this vehicle does not have the performance specs that would get it flagged by insurance companies.
The 0 to 60 mph rating for the Mazda CX-3 is 8.1 seconds, thanks to the smaller engine size with only 148 horsepower and lack of a turbocharger. Replacement costs are also low on the CX-3. A new one will set you back about $22,000, and you can find them used for about$14,000. When it all adds up, the great safety rating, not-overly-impressive performance, and low replacement costs make this a cheap car to insure.
The insurance cost per month is about $124. The potential savings might appeal to everyone regardless of age, but younger drivers in particular will appreciate the low rate.
For the price conscious, the Ford Escape is a good buy if you want low insurance costs. Like with other models, it's important to make sure you avoid the turbocharged version. Ford started offering turbocharged versions of the Escape in the 2013 model year.
The five-star safety rating is the most significant spec to know, since it drives down the overall insurance cost per month. Ford was ahead of the game with the 2021 model as far as safety tech goes, going beyond basic blindspot monitoring with pre-collision assistance for the brakes. Insurance companies like to see as much safety tech as possible, so this is a good thing.
Performance is just fine (the 0 to 60 mph rating is 8.4 seconds), but keep in mind you want something a bit pokey for young drivers. As for total replacement cost, the 2021 model costs around $27,000, which is in line with other models on this list. For that model year, a used Ford Escape costs around $17,000. Because of these factors, the insurance rate per month is only $123.
There are a lot of Subarus on this list beside the Outback — and for good reasons. The Subaru brand is rated high for safety, and the Outback is no different. The only reason why it's more expensive to insure than other vehicles on this list is that it tends to cost more than those vehicles at all trim levels. That's important because rates are often related to replacement costs.
Still, the five-star rating helps make the insurance less expensive. Tech includes the EyeSight safety system, which keeps an eye on lane markings for you. As far as performance goes, the Outback is not designed for fast acceleration like the Subaru WRX, with a 0 to 60 mph rating of 8.5 seconds. And then there's replacement costs: A brand new 2021 model cost about $28,000, which is higher than most other vehicles on this list, though you can find them used for as low as $15,000.
The final tally is an impressively low insurance rate of $123 per month.
While the Jeep Compass has the same monthly insurance rate as the Subaru Outback, it is still a better pick for low-cost insurance; If it's ever totaled, it costs less to replace. As far as safety ratings go, the Compass clocks in at four-stars, which is the lowest on this list. Safety tech is about the same as the Outback, with blindspot monitoring, lane departure warning, and active braking assistance.
It's the performance that makes the Compass a good pick for low insurance costs. The Compass is rated at 9.3 seconds going from 0 to 60 mph, the worst rating on our list. That's not everyone's idea of a great car, but it does drive down costs.
Another factor is the cost of replacement. Priced right around $25,000, the Compass is one of the cheaper cars on our list, which makes it less expensive to insure. The depreciation is also high, since you can find them for as low as $15,000 used. It means if the car is totaled, the insurance company won't have to pay as much for replacement.
All of this leads to a low $123 per month of insurance — a steal for young drivers.
You might be surprised to see this fun and tiny compact as our top pick, but the insurance premium is surprisingly low — in fact, it's the lowest monthly premium of any vehicle. While young drivers might prefer the Fiat 500 Abarth with a turbocharged engine (which was discontinued after 2019), the slightly larger 500X is still a blast to drive.
First, a word about the safety rating. The NHTSA did not test the 2021 version, but previous models were top safety picks overall. Tech features that are meant to help you stay safe on the road, including blindspot monitoring and both forward and rear collision warnings, are present. Shield your eyes if you are an Abarth fan, but the Fiat 500X rating for 0 to 60 mph is pokey, at only 8.9 seconds; about the same as the Grand Caravan. That's great for lowering insurance prices, but the 500X is still low to the ground and fun to fling around corners.
A new Fiat 500X in 2021 comes in at just $26,000, so the replacement cost is low. Used models can run as low as $12,000, depending on the mileage and trim. In the end, all this makes for an incredibly low monthly insurance premium of just $117 per month, the lowest we've found. For young drivers who want to save on insurance, this is the one to get.
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Our ranking uses a specific methodology that evaluates each vehicle based on safety rating, performance, estimated insurance premium and replacement cost. We looked at 2021 models across the board because young drivers are unlikely to drive a brand-new car. The insurance premium data came from TheZebra.com, which provided a spreadsheet of 2021 monthly premium costs.
The safety rating data comes from the IIHS. For performance data, we evaluated whether the vehicle has a turbocharged engine and the 0 to 60 mph rating, since those are factors that insurance usually includes. Replacement costs involved evaluating the price of a new model and how much they sell for used.
