Choosing the right vehicle can significantly impact your car insurance costs in Ontario. While many factors affect your premium, the car you drive is one of the most important. This guide explains what makes certain vehicles cheaper to insure and which categories tend to have the lowest insurance costs.
What Makes a Car Cheap to Insure?
Insurance companies consider several vehicle-specific factors when calculating your premium:
Safety Ratings
Vehicles with high safety ratings from organizations like the Insurance Institute for Highway Safety (IIHS) and Transport Canada tend to have lower insurance costs. Safer vehicles:
- Reduce the severity of injuries in accidents
- Have advanced safety features like automatic emergency braking
- Perform well in crash tests
- Include driver assistance technologies
Theft Rates
Some vehicles are targeted by thieves more than others. Cars with low theft rates cost less to insure for comprehensive coverage. The Insurance Bureau of Canada publishes annual lists of the most stolen vehicles, and cars not appearing on this list typically have lower comprehensive premiums.
Repair Costs
When an insurer pays a claim, repair costs directly affect their expenses. Vehicles that are cheaper to insure typically have:
- Readily available parts
- Standard components rather than specialized or imported parts
- Simpler repair procedures
- Lower labour costs for repairs
Claims History
Insurance companies track claims data by vehicle make and model. Vehicles with fewer claims overall, or lower average claim amounts, tend to have lower premiums.
Vehicle Categories That Are Generally Cheaper to Insure
Compact Cars
Compact cars often have lower insurance costs because they typically:
- Have lower purchase prices, meaning lower replacement costs
- Use common, affordable parts
- Have good fuel efficiency (indicating less aggressive driving)
- Include standard safety features
Popular compact cars from Honda, Toyota, Mazda, and Hyundai consistently rank among the cheapest to insure in Ontario.
Minivans
Minivans are often among the cheapest vehicles to insure, which may surprise some drivers. This is because:
- They are typically driven by families who drive more carefully
- They have excellent safety ratings
- They are rarely involved in aggressive driving incidents
- They have low theft rates
Mid-Size Sedans
Family-oriented mid-size sedans from major manufacturers tend to have reasonable insurance costs. These vehicles balance practicality with affordability for both purchase price and insurance.
Small SUVs and Crossovers
Smaller SUVs and crossovers, particularly those based on car platforms, often have competitive insurance rates. They combine the practicality drivers want with the moderate insurance costs of their sedan counterparts.
Factors Beyond Vehicle Type
While the vehicle you choose matters, remember that other factors also significantly affect your premium:
- Your driving record: A clean record is more important than the car you drive
- Your location: Where you live in Ontario affects your rate significantly
- Your age and experience: New drivers pay more regardless of vehicle
- How you use the vehicle: Commuting vs. pleasure use
- Annual kilometres: Less driving typically means lower premiums
Tips for Choosing an Affordable-to-Insure Vehicle
Get Insurance Quotes Before Buying
Before purchasing any vehicle, get insurance quotes for the specific make, model, and year you are considering. The difference between vehicles can be substantial.
Consider the Total Cost of Ownership
A vehicle with a low purchase price but high insurance costs may not be the best deal. Factor insurance into your budget when comparing vehicles.
Research Safety Ratings
Look up safety ratings on the IIHS and Transport Canada websites. Vehicles with top safety picks often have lower insurance costs.
Check Theft Statistics
Review the Insurance Bureau of Canada's list of most stolen vehicles. Avoiding vehicles on this list can lower your comprehensive coverage costs.
Look at Trim Levels
Base trim levels with standard engines often cost less to insure than high-performance or luxury trims of the same model.
Common Misconceptions
"Older Cars Are Always Cheaper to Insure"
Not necessarily. While older cars have lower replacement values (reducing collision and comprehensive costs), they may lack modern safety features that qualify for discounts. The overall cost depends on many factors.
"The Colour of My Car Affects Insurance"
This is a myth. Car colour has no impact on insurance rates in Ontario. Your premium is based on make, model, year, and other factors, but never colour.
Find Your Rate
The best way to know exactly what you'll pay to insure any vehicle is to get quotes based on your specific situation. Your individual factors combined with the vehicle's characteristics determine your final premium.
Ready to see what you'll pay? Get your free car insurance quote and compare rates for different vehicles you're considering.