Buying your first car as a student is exciting. But before you hand over cash or sign a loan, there's one critical step most students skip: checking how much it will cost to insure.
The wrong car can double or triple your insurance premium — sometimes costing more per month than your car payment. Here's exactly what to check before you buy, so you don't get stuck with an unaffordable policy.
1. Run an Insurance Quote BEFORE You Buy
This is the single most important step. Before you sign anything:
Get the VIN (Vehicle Identification Number) from the seller.
Go to 2–3 insurance company websites (Geico, Progressive, State Farm, etc.).
Enter the VIN and your information to get a real quote.
Compare the monthly premium to your budget before buying the car.
Real example: A 2010 Honda Civic might cost $120/month to insure for a student. A 2010 BMW 3-series? $240/month. Same age, same driver — the car makes all the difference.
2. Which Cars Are Cheapest for Students to Insure?
Insurers rate cars based on repair costs, theft rates, safety ratings, and claim history. Here's what to look for:
| Best Choices (Low Insurance Cost) | Avoid (High Insurance Cost) |
|---|---|
| Honda Civic (2015+) | BMW 3-series, any year |
| Toyota Corolla / Camry | Any sports car (Mustang, Camaro) |
| Mazda3 (base trim) | Electric vehicles (Tesla, Rivian)* |
| Subaru Impreza / Crosstrek | Luxury brands (Mercedes, Audi, Lexus) |
| Hyundai Elantra (2018+) | Trucks and large SUVs (F-150, Tahoe) |
* EVs can be expensive to insure due to high repair costs, though some insurers offer EV discounts — always quote first.
3. Check the Car's Safety Ratings (IIHS & NHTSA)
Cars with high safety ratings are cheaper to insure because they result in fewer and less severe injury claims.
Check IIHS Top Safety Pick list for the model year you're considering.
Look for cars with automatic emergency braking (AEB) and electronic stability control — many insurers offer discounts for these features.
Avoid cars with poor side-impact or small-overlap crash ratings — they can be 15–30% more expensive to insure.
4. Avoid Cars That Are Frequently Stolen
Some cars are stolen far more often than others. If you buy one of these, your comprehensive insurance (theft coverage) will be expensive.
Most Stolen Cars in the U.S. (2024 data):
Honda Civic (older models, 2000–2015)
Honda Accord (older models)
Ford F-150 (any year)
Chevrolet Silverado
Toyota Camry
Tip: If you buy an older Civic or Accord, install a kill switch or GPS tracker — some insurers will give you a discount for anti-theft devices.
5. Check the Title: Salvage, Rebuilt, or Clean?
The car's title status dramatically affects insurance availability and cost:
| Title Type | Can You Insure It? | Notes |
|---|---|---|
| Clean | Yes, standard rates | Best choice |
| Rebuilt/Salvage | Sometimes (fewer insurers) | Geico, Progressive may insure; rates may be higher |
| Lemon | Rarely | Most insurers will deny coverage |
| Junk | No | Not road-legal |
Always run a CARFAX report before buying. It shows title history, accident history, and whether the car was declared a total loss.
6. Year, Make, Model: How They Affect Your Rate
Newer cars (2020+): More expensive to insure (higher value, expensive parts), but may have safety features that lower rates.
Older cars (2005–2014): Cheaper to insure for liability, but may lack modern safety features.
Luxury brands: Even 10-year-old BMW and Mercedes cost more to insure than a new Toyota — parts and repair costs are higher.
Japanese brands (Honda, Toyota, Nissan): Generally cheapest to insure across all model years.
7. Does the Car Have an Active Recall?
Before buying, check NHTSA recalls using the VIN. A car with an unfixed safety recall:
May be unsafe to drive
Could be denied comprehensive/collision coverage by some insurers
Will have lower resale value
Ask the seller for proof that all recall repairs have been completed.
8. Manual vs. Automatic Transmission
In the U.S., cars with manual transmissions are statistically involved in fewer accidents (they require more focused driving). Some insurers offer a small discount for manual transmission vehicles, though this is becoming rare as fewer manual cars are sold.
That said, don't buy a manual just for insurance savings — the discount is usually small (2–5%).
9. Check If the Car Was Previously Insured as a Rideshare Vehicle
If the car was previously used for Uber/Lyft, it may have been driven 50,000+ miles per year in stop-and-go traffic. This causes:
Excessive wear on engine, transmission, brakes
Higher risk of mechanical failure
Potential difficulty insuring (some insurers ask if the car was previously used commercially)
Ask the seller about the car's previous use. If it was a rideshare vehicle, consider passing unless the price is exceptionally low.
10. Get the Car Added to Your Insurance BEFORE You Drive It Home
This is a mistake that can cost you everything. Never drive a newly purchased car without insurance.
If you already have a policy: Most insurers give you 7–30 days to add a new car (check your policy). Call before driving it home to confirm.
If you don't have a policy yet: Buy insurance before picking up the car. You can often bind coverage the same day over the phone.
If buying from a dealer: They won't let you drive off the lot without proof of insurance anyway.
If buying from a private seller: You're on your own — make sure you're covered before getting behind the wheel.
11. Don't Forget: Registration, Title Transfer, and State Requirements
After buying, you typically have 10–30 days (depending on your state) to:
Transfer the title to your name
Register the car in your name
Get new license plates (or transfer existing ones)
Show proof of insurance to the DMV
If you don't complete these steps, you could be driving an unregistered car — which means no insurance coverage if you get into an accident.
12. Quick Reference: Used Car Insurance Checklist
| Step | When to Do It |
|---|---|
| Get insurance quote using VIN | Before buying |
| Check IIHS safety ratings | Before buying |
| Run CARFAX report | Before buying |
| Check for open recalls (NHTSA) | Before buying |
| Verify title is clean (not salvage) | Before buying |
| Add car to your insurance policy | Before driving it home |
| Transfer title and register car | Within 10–30 days of purchase |
Final Thoughts
Buying a car is a big financial decision, and insurance is a major part of the true cost of ownership. A car that seems cheap to buy can turn out to be expensive to insure — and a car that costs a bit more upfront can save you thousands in insurance over 3–4 years.
The golden rule: Never buy a car without first getting an insurance quote using its VIN. It takes 10 minutes and could save you hundreds per year.
About the Author
Written by Sarah Mitchell, founder of Student Car Insurance Guide. Sarah spent 8 years as a licensed insurance agent helping young drivers and their families find affordable coverage. Every guide on this site is fact-checked against current state regulations and real quote data from major insurers.
Have a question about this topic? Email our editorial team at 1404555604w@gmail.com.