The cheapest cars to insure in Canada

By: Vanessa Page on April 29, 2016

Let’s go shopping! If you’re reading this article, chances are it’s time for you to buy a new car. Unfortunately, there are hundreds of factors to consider before signing your name. Not only do you have to check safety rating and gas mileage, but you have to find an affordable car.

A huge affordability factor comes from the cost of insurance. In Canada, like in most countries, the type of car you drive can significantly affect your insurance rates. By examining the Insurance Bureau of Canada’s data, we can determine which cars are the cheapest to insure in Canada.

Unpopular cars

The reality of car insurance is that the hotter the car, the more expensive it is to insure. This is why unpopular, or “grandma” cars are so much cheaper to insure in Canada. Not only is there the causation factor where older, more conservative drivers are more like to own these vehicles, but given their lack of appeal, these vehicles are also less likely to be stolen. Other unpopular cars that are cheap to insure in Canada include vehicles that fall into the minivan category and trucks with low-engine power. The drivers of these vehicles, families, are less likely to be involved in collisions or at-fault accidents due to their conservative driving.

Older Cars

It can be argued that the cheapest cars to insure in Canada are the ones that are no longer being made. The data provided by the Insurance Bureau of Canada includes vehicles built back to 2001. Simply by buying an older vehicle, even the most powerful trucks or popular cars become well below average to insure.

There is no concrete time at which a vehicle moves from costly to insure to inexpensive to insure. A good rule of thumb though, is to look for a car at least five years old or, better still, one that has been discontinued. Repair bills will likely be higher but the insurance savings could make up for it.

Examples of cheap cars to insure in Canada

The same cars keep popping up as the cheapest to insure in Canada – Jettas, Camrys and Elantras. These vehicles though, are part of a larger trend – compact, four-door vehicles owned by conservative or family drivers. A young, single man is statistically more likely to get involved in an accident, but much less likely to own a Corolla.

The same applies for older cars -- vehicles like Astros and Cavaliers are among the cars which are cheapest to insure in Canada, yet are seldom considered since they’re rarely seen, much less purchased, in 2016.

When shopping for a car, keep in mind its potential insurance cost. Use online and offline resources to help you find a quote before finalizing the sale. With huge differences in monthly insurance costs between vehicles, the cost savings between a two-door coupe and a four-door sedan, could be well worth the time spent comparing quotes.