2025 Vehicle Depreciation Rankings: The Cars That Keep Their Value—and Keep Your Insurance Quotes Lower

Why Depreciation and Insurance Are Two Sides of the Same Coin

When most buyers evaluate a vehicle purchase, they focus on the transaction: the sale price, the financing rate, and perhaps the fuel economy. What receives far less attention is the relationship between a vehicle's long-term residual value and the cost of insuring it across its ownership lifecycle.

These two variables are more intertwined than they might initially appear. Insurers set comprehensive and collision premiums in part based on replacement cost—the amount it would take to repair or replace a vehicle following a covered loss. A car that depreciates slowly maintains a higher replacement cost for longer, which can influence premium levels. At the same time, vehicles with strong resale value often carry better parts availability, lower labor costs for repairs, and a more predictable claims history, all of which factor into how insurers price coverage.

In 2025, with vehicle prices remaining elevated following years of supply chain disruption and persistent inflation in the auto sector, understanding these dynamics has become essential for buyers seeking to optimize total cost of ownership.

The 2025 Depreciation Landscape: What the Data Shows

Industry analysts at iSeeCars and Kelley Blue Book release annual depreciation studies that track how much vehicles lose in value over one-, three-, and five-year periods. The 2025 data reveals several clear patterns.

Trucks and SUVs continue to lead residual value retention. Full-size pickup trucks from domestic manufacturers—particularly the Ford F-150, Chevrolet Silverado, and Ram 1500—consistently rank among the lowest-depreciating vehicles in the American market. After three years of ownership, these models typically retain between 60 and 68 percent of their original value, compared to a broad market average closer to 50 percent.

Japanese brands dominate the passenger car segment. Among sedans and crossovers, Toyota and Honda models—especially the Toyota Tacoma, Toyota 4Runner, and Honda CR-V—have long held the top positions in residual value rankings. The Tacoma, in particular, has in some years retained over 70 percent of its value at the three-year mark, a figure that rivals luxury SUVs costing twice as much.

Luxury electric vehicles face steeper depreciation curves. While the broader EV segment has shown improvement, certain luxury electric models—particularly first-generation vehicles from brands navigating rapid technology cycles—have experienced depreciation rates exceeding 40 percent in the first year alone. Buyers attracted to the technology premium of these vehicles should factor this into their total cost calculations.

Domestic luxury brands face ongoing headwinds. Models from Lincoln and Cadillac, while significantly improved in quality, continue to depreciate more rapidly than their European and Japanese counterparts. A vehicle that loses value quickly may carry lower comprehensive premiums in later years, but it also generates less return at trade-in or sale—a trade-off that affects the overall financial picture.

How Residual Value Affects Your Insurance Quotes

When you request auto insurance quotes through a comparison platform, the vehicle identification number (VIN) you provide triggers a lookup of that model's current market value, repair cost index, and historical claims frequency. These inputs directly shape the collision and comprehensive portions of your premium.

Vehicles with higher residual values tend to carry higher collision and comprehensive premiums in the early years of ownership, because the insurer's exposure—the amount it would need to pay in a total loss—is greater. However, this dynamic shifts as depreciation progresses. A vehicle that holds its value well will maintain a more stable premium trajectory, while a rapidly depreciating model may see premiums fall sharply but also deliver less financial protection in the event of a significant loss.

For buyers who finance their purchase, this relationship has additional implications. Lenders typically require comprehensive and collision coverage for the duration of a loan. A vehicle with slow depreciation stays above water on the loan balance more quickly, reducing the window during which gap insurance—coverage for the difference between the vehicle's market value and the remaining loan balance—is financially necessary.

Category-by-Category Breakdown for 2025

Full-Size Pickup Trucks

The strongest performers in residual value. Insurance quotes for these vehicles reflect higher replacement costs but also benefit from widely available parts and established repair networks. Buyers in this category should compare quotes carefully, as premium variance between carriers for trucks can be substantial—sometimes exceeding $400 annually for equivalent coverage.

Compact and Midsize SUVs

Models like the Toyota RAV4, Subaru Forester, and Honda CR-V occupy a favorable middle ground: moderate purchase prices, above-average residual values, and insurance quotes that tend to be competitive due to strong safety ratings and predictable repair costs. This segment offers some of the most favorable total cost of ownership profiles in the current market.

Midsize Sedans

The Toyota Camry and Honda Accord continue to demonstrate resilience in this segment. Their combination of reliability, parts availability, and consistent demand in the used market supports solid residual values. Insurance premiums for these models are generally moderate, making them reliable choices for cost-conscious buyers.

Electric Vehicles (Non-Luxury)

Models such as the Tesla Model 3, Chevrolet Equinox EV, and Hyundai Ioniq 6 have shown improving depreciation profiles as the market matures and charging infrastructure expands. Insurance quotes for EVs remain somewhat higher on average due to elevated repair costs and specialized parts, but the gap with comparable internal combustion vehicles is narrowing.

Luxury Vehicles

The depreciation penalty in the luxury segment is real and significant. A vehicle that costs $65,000 new but retains only 45 percent of its value after three years has effectively cost its owner $35,750 in depreciation alone—before accounting for insurance, maintenance, or financing. Buyers in this segment should request insurance quotes early in the shopping process, as premiums for luxury models can vary dramatically between carriers.

Using a Comparison Platform to Model Total Ownership Cost

One of the most practical applications of a vehicle quote comparison platform is the ability to evaluate insurance costs across multiple vehicle candidates simultaneously. Before committing to a purchase, a buyer can request quotes for two or three finalists using the same coverage parameters and compare not only the vehicles' purchase prices and depreciation projections but also their five-year insurance cost estimates.

This approach transforms the buying decision from a single-variable transaction into a comprehensive financial analysis. A vehicle that costs $3,000 less at purchase but generates $600 more per year in insurance premiums over a five-year ownership period represents a net disadvantage—one that would be invisible without side-by-side quote data.

At List of Car Quotes, we encourage buyers to treat insurance quote comparison as an integral step in the vehicle selection process, not an afterthought. The market rewards informed decisions, and in 2025, the tools to make those decisions are more accessible than ever.