What Are The Cheapest Cars To Insure In Ontario?
Wednesday, 1 January 2020
If you’re looking at buying a new or used car, there are many costs that you need to consider including mandatory insurance on the vehicle. One of the ways you can save on car insurance is to choose to purchase one of the cheapest cars to insure. In this article we are going to investigate the factors that impact the cost of vehicle insurance focusing on which are the best cars to purchase for a cheaper insurance. However, it is important to note that there are many factors that insurance companies use to calculate your car insurance rates, not just the vehicle itself.
What Factors Determine your Car Insurance Rates?
As a driver, your personal information including your age, how many years you have been driving and your location all impact your insurance rates. For example, if you are a driver in Ontario, especially the Greater Toronto Area, you are living in one of the most expensive places to insure in Canada! Other factors that impact your insurance rates are the following:
- Driving Record: If you have tickets or at-fault accidents this can make you higher risk to insure and will increase your car insurance rate.
- Mileage: If you frequently drive such as having a lengthy commute to work, the more risk you have from being in accident so those who drive a lot will pay more for their insurance.
- Insurance History: As you build your insurance history, show that you pay your premiums on time and have good driving habits, the lower your rates will be.
- Your Vehicle: we will elaborate on this further throughout this blog but in general cars that are safer, have a low theft risk and are lower to repair typically have lower auto insurance rates
What Factors Determine the Cheapest Cars to Insure?
Insurance companies look at different factors to determine the insurance ratings for specific makes and models of cars. Here are the car related factors that determine the cheapest cars to insure:
1) Type of Car
Different types of car often reflect the life stage, lifestyle and vehicle usage of the owner. Based on statistics, insurance companies can predict the risk levels of people that drive certain types of vehicles. For example, a minivan or crossover is more likely driven by a married person with children. It is used to transport children, so Insurance companies have identified these as being lower risk than other types of vehicles as the driver is typically concerned with safety and drive with caution.
2) Safety Ratings
One of the most important factors an insurance company looks at when identifying the cheapest cars to insure, is the safety rating. Cars with higher safety ratings have the cheaper insurance rates. Each year car manufacturers increase safety of vehicles due to advances in engineering and technology. The Safety ratings are based on:
In the event of a crash, how well does the car protect the driver and passengers? Things like airbags, crumple zones, frame design and resistance to rollover all play a role in crash protection.
Several new technologies have been created to help prevent accidents. These include:
- Forward Collision Warning
- Rearview Camera
- Automatic Emergency Braking
- Lane Departure Warning
- Adaptive Cruise Control
- Blind Spot Detection
Choosing a car with a high safety rating will not only reduce your chances of being in an accident but will help reduce the amount you pay for insurance.
3) Repair or Replacement Costs
Cars with higher repair costs will cost more for insurance. This is because if the car is damaged or needs to be replaced, it will be higher cost to the insurance company to replace. Cars will lower replacement or repair costs will therefore be cheaper to insure.
Is a new car more expensive to insure than an old car? When looking at whether an older car and the price to insure compared to a newer car, all other factors considered a used car will be less expensive than its new counterpart because it would be worth less and so cost less to replace. However, this only works for like for like. You must also take into considerations the safety ratings of the vehicle which tend to have more of an impact on the insurance price.
4) Likelihood of Theft
Car theft is a risk and serious problem for insurance companies. Did you know that a car is stolen every 7 minutes in Canada! Certain cars have a higher rate of theft than others so if you drive a higher risk vehicle, your insurance premiums will be higher. If your vehicle has a theft alarm device, this can reduce insurance premiums.
Which Model of Car Has the Cheapest Insurance?
The cheapest cars to insure typically changes every year. This is because new vehicles become available, the insurers will adjust how they determine insurance rates. One of the cars that is consistently rated one of the cars with the cheapest insurance is the Honda Odyssey. This is followed closely by Jeep Wrangler, and the Honda CR-V. For smaller cars, the Toyota Prius, Chevrolet Cruze, and Nissan Versa have the cheapest auto insurance rates.
For 2019, here are the cheapest cars to insure in Ontario :
- Chevrolet Spark LS
- Nissan Micra S
- Toyota Yaris 4DR
- Honda Fit DX 5DR
- Mitsubishi Mirage ES
- Kia Rio EX 4DR
- Nissan Versa Note S
- Hyundai Accent E 4DR
- Ford Fiesta S 4DR
- Nissan Sentra 1.8 S
In 2018, these were the cheapest cars to insure in Ontario :
- Toyota Prius C Hybrid Automatic 2WD
- Chevrolet Cruze LS Automatic 2WD
- KIA Sedona L Automatic AWD
- Nissan Versa Note S CVT 2WD
- Ford Focus Electric Automatic 2WD
- Hyundai Elantra LE Automatic 2WD
- Chevrolet Cruze Hatchback Automatic 2WD
- Toyota Tundra Reg Cab Automatic 2WD
- GMC Canyon SL Crew Cab Automatic 2WD
- Jeep Wrangler
- Ford Escape S 2WD
Tips to Save Money on your Car Insurance
Before you buy a new car. here are some tips to consider to help reduce your insurance rates:
- Choose vehicles that have been identified and being lower to insure
- Ask for help from a BIG insurance broker. We can shop rates on your behalf!
- Check the cars safety ratings. A higher rating will cost less to insure.
- Choose a hybrid or electric car. You may qualify for a green discount from an insurance company – ask your insurance broker!
- Install an alarm system or anti-theft device to your vehicle.
- Install winter tires for the winter months and many insurance companies will give you a discount.
Billyard Insurance Group has you covered for auto insurance. You don’t have the time to call every insurance company or visit every website in Ontario. We do the work for you and shop your renewal with our network of insurance companies. Contact us today for a free quote!