Honda is stepping up its game for 2011 with the addition of a new, lower-priced model in the Honda Insight line, which went on sale yesterday. “The range of Insight models for 2011 now starts with a new value-oriented base model, simply designated as ‘Insight,’” says Honda. “As before, the well-equipped ‘Insight LX’ continues to be available, yet with additional features, along with the top-of-the-line ‘Insight EX’.” The new Insight will have a MSRP of $18,950, approximately $850 less than the Insight LX.

While the lower price may make the Insight more accessible to budget-conscious consumers, not everyone is convinced that the saving will result in increased sales. “Analyst Ivan Drury isn’t sure a down-priced Insight will add much volume to the line,” writes Edmunds. “Instead, he said, the new, lower-priced model should help Honda retain sales that otherwise might have gone to less-expensive conventionally powered economy cars from rivals.”

That may be right on. The Insight is reasonably priced for a hybrid, but doesn’t offer the best fuel economy. As Cars.com points out, “the 2011 Honda Insight is rated at 40/43/41 mpg city/highway/combined, which is 9 mpg less than the Prius’ combined city/highway mileage of 50 mpg, but with $4,600 now separating the two models, the Insight might be a more attractive purchase for some.”

In the market for a new car? Check out the U.S. News rankings of this year’s best cars as well as this month’s best car deals. Also, be sure to check us out on Twitter.

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