New Subarus are typically the least expensive to insure.Credit: Justin Sullivan / Getty ImagesKEY TAKEAWAYSThe Subaru Outback is the cheapest new car to insure, with an average annual premium of less than $2,000.Luxury cars like the BMW M4 cost far more to insure because they cost more to buy, repair, and maintain.Subaru models dominate the list of cheapest new cars to insure, partly because of their strong safety ratings and low claim rates.Subarus are known for their ski racks and all-wheel drive — they also dominate the list of the cheapest new cars to insure.The Subaru Outback tops Compare.com's ranking of 2025 and 2026 models, with an average full-coverage premium of about $1,970 a year, according to the insurance comparison site's quote data. The Forester, Crosstrek, and Ascent fill the next three spots, and all four run at least $650 a year below the average premium for a new car.Why This MattersSevere weather has pushed insurance premiums higher nationwide, with some states seeing bigger spikes than others. Shoppers in those states may need to weigh insurance costs more when choosing a new car.AdvertisementAdvertisementA new BMW M4, the most expensive new car to insure at almost $6,400 a year, costs more than three times as much to cover as the Outback. Luxury cars generally cost more to insure because they're pricier to repair or replace after major accidents.The starting manufacturer's suggested retail price for a 2026 BMW M4 is $83,550, according to Kelley Blue Book, compared with a Subaru Outback at $36,445.BMWs also cost their owners about $16,000 in maintenance and repairs over 10 years, according to CarEdge, an online automotive pricing research site. Subarus cost less than half that: about $7,300 over the same period.Subaru's loss history matters. For the 2022 through 2024 model years, the Outback's collision losses ran 37% less than the average, while the M4's were 210% worse, according to Compare.com.AdvertisementAdvertisementSafety also matters for cheaper insurance premiums. The National Highway Traffic Safety Administration rates the Ascent, Crosstrek, Forester, and Outback five out of five stars.Three Ford models were among the cheapest to ensure: the Maverick, the Bronco Sport, and the Transit van, which Compare.com left out of its ranking because it is a cargo vehicle. The Maverick and Bronco Sport both start well below the average price for a new vehicle in July, $49,855, according to Kelley Blue Book.Other factors, such as weather and theft rates where you live, also affect what you pay. There, Subarus do pretty well, too, with none among the 10 most stolen vehicles ranked by the National Insurance Crime Bureau, and neither does any other model on the cheapest-to-insure list.Read the original article on Investopedia