The costs of car ownership can add up quickly. From your monthly car payment to fuel prices, repairs, and insurance, keeping your costs low is important if you want to stay on top of your budget.
On average, Canadians pay between $1,300 and $1,800 per year in car insurance, according to Insurance Business Magazine. This number has continued to rise.
What Determines Car Insurance Rates?
Aside from the amount of insurance coverage you purchase, your auto insurance rates are primarily determined by the following factors:
- Driver age and experience: Drivers over age 25 typically have lower accident rates and get cheaper insurance rates. The number of years you’ve had your driver’s license can also affect your rates.
- Driving record: Drivers with a clean driving record (no tickets/accidents) get better rates than those with traffic violations or an accident history.
- Location: If you live near a busy city where accidents occur daily, your rates may be higher than those living in a rural area.
- Vehicle type: Vehicles with a higher statistical likelihood of being involved in accidents, theft, or traffic violations may have higher premium costs.
- Vehicle usage: Commercial vehicles (i.e., rideshare driving or a company van) may incur additional insurance costs due to extra daily usage and risk.
These Are Some Of The Cheapest Cars To Insure In Ontario
Generally speaking, the cheapest vehicles to insure are small, used sedans that have smaller engines, basic safety features (such as blindspot monitors), four doors, and aren’t brightly coloured.
Even with one of these cars, though, your insurance costs could still be higher than you’d like based on some of the factors above.
Still, even high-risk drivers can lower their insurance premiums by switching to a “lower-risk” vehicle. With that in mind, here are some of the cheapest cars to insure in Ontario.
1. Mazda 3
- Car type: Compact sedan
While the manufacturer doesn’t have as large of a market share as its Japanese counterparts, Toyota and Honda, Mazda has the same reputation for producing incredibly reliable vehicles – often at a lower price.
The Mazda 3 is a compact sedan that easily competes with the Toyota Corolla, Honda Civic, and Nissan Sentra. It features a small but powerful 2.5-litre “Skyactiv” engine that’s often reported to last well beyond 200,000 miles, handles smoothly, and also has decent trunk space.
2. Honda Civic
- Car type: Compact sedan
The Honda Civic has been in production since 1972 and has developed a reputation for being one of the market’s most affordable, reliable economy cars. Parts are readily available, even for older models, making them very cheap and easy to repair (contributing to lower insurance premiums).
While the Type-R sports Civics can be more costly to insure, the standard two and four-door Honda Civics typically come with lower-than-average insurance rates.
3. Kia Forte
- Car type: Compact sedan
South Korea-based Kia has developed a good reputation for itself over the past decade. The Kia Forte, launched in 2008, stands as a testament to the manufacturer’s commitment to producing cost-effective, dependable commuter vehicles.
With easily accessible parts, maintenance is typically cheap and straightforward, leading to more favourable insurance rates. While higher-tier trims like the GT might fetch steeper insurance costs, the base and intermediate Kia Forte variants typically boast below-average insurance premiums.
4. Nissan Sentra
- Car type: Compact sedan
While Nissans don’t traditionally have the same reliability ratings as Japanese manufacturers like Toyota, Honda, and Mazda, they’re often more hassle-free than American-manufactured economy cars and used models tend to be inexpensive.
The Sentra is the smallest sedan Nissan produces, making it one of the cheapest models to insure. The Altima and Maxima are slightly larger sedans, which may come with slightly higher premiums.
5. Volkswagon Jetta
- Car type: Compact sedan
Hailing from German auto manufacturer Volkswagon, the Jetta has been produced since 1979, epitomizing Volkswagen’s blend of German engineering and everyday practicality.
It’s known for its comfortable cabin, precise handling, and good fuel economy.
While there are some more expensive models (such as the sportier turbocharged models), the base trim Jettas are generally affordable and cheap to insure.
6. Toyota Corolla
- Car type: Compact sedan
The Toyota Corolla recently surpassed the Honda Civic as Canada’s top-selling new sedan, selling over 33,000 new units in 2022. Like its competitor, the Corolla is known for being very reliable, is loaded with safety features, and is relatively cheap to repair.
While the older-model Corollas are usually cheap to insure, some of the newer models may be more costly due to the additional technology and luxury trim options that Toyota has been incorporating to differentiate its vehicles from competitors.
7. Toyota Camry
- Car type: Full-sized sedan
The Toyota Camry is widely regarded as one of the most reliable cars ever made. It’s a step up from the Corolla, offering more comfortable seats, more legroom, and a larger trunk. All of these features make the Camry a better choice for families, rideshare driving, or long road trips.
As with the Corolla, the newer Camry’s tend to be expensive to insure due to enhanced tech add-ons. However, any model made before 2016 tends to be very affordable to insure.
8. Mitsubishi Mirage
- Car type: Compact hatchback
The Mitsubishi Mirage is a compact, efficient vehicle suitable for city dwellers and budget-conscious drivers. As a hatchback, there’s less trunk space than other sedans. However, the upside is that it’s very easy to parallel park in the city.
Its modest engine size, combined with safety features, means that it’s typically a low-risk vehicle in the eyes of insurance companies.
The Mirage has had limited safety recalls over its production history, and parts/repairs are affordable – factors that also contribute to cheap insurance costs.
9. Kia Sorrento
- Car type: Mid-size SUV
Most of the cars I’ve mentioned so far are small sedans and hatchbacks. However, if you’re looking for an affordable SUV to insure, the Kia Sorrento is worth checking out.
It has a compact 2.5-litre four-cylinder engine that has enough power to get around town but won’t go fast enough to get you in trouble. Plus, as a Kia, it’s generally known for being a cheap, reliable, low-risk vehicle to insure.
Another good reason to consider the Sorrento is that many models have great safety features like blindspot monitoring, adaptive cruise control, and reverse cameras. These additional safety features can further lower your insurance premiums.
10. Hyundai Elantra
- Car type: Compact sedan
Hyundai Elantras are often compared to Honda Accords in terms of overall reliability. These small sedans have a sleek aerodynamic design and compact engines, offering great fuel economy.
They’re usually cheap to repair and have high safety ratings, which can keep your insurance premiums low.
The Cheapest Car Isn’t Always The Cheapest To Insure
The value of your car plays a big role in the cost of your insurance premiums. For example, a brand-new luxury car worth $80,000+ is going to be far more expensive to insure than an economy car with a price tag of $25,000.
This is an extreme example, though.
A car’s cost often isn’t the biggest determinant of your insurance rates. Some of the key vehicle-related factors that can affect your rates include:
- The car’s colour
- Two-door vs four-door car
- Accident statistics for that model
- Theft statistics for that model
For example, you could compare an older-model red Ford Mustang worth $10,000 to a newer-model silver Honda Civic worth $7,000. The Mustang would likely be more expensive because it’s a red sports car often associated with speeding and irresponsible driving.
Another interesting factor that often comes into play when determining insurance costs is the theft rate.
Cars with a high likelihood of being stolen may come with a higher insurance premium since insurers are often required to pay the value of the car if it’s stolen.
One example of this is the Honda CR-V. CTV News recently reported that this was Ontario’s most commonly stolen vehicle. Even though the vehicle is a basic economy SUV that would seem cheap to insure, insurers may charge a higher premium due to the higher likelihood of it being stolen.
Tip To Find The Cheapest Insurance Company
You will almost always get the highest price if you call auto insurance companies directly or work with local insurance agents. Instead, I recommend using an insurance aggregator.
These platforms act as a type of “middleman,” generating competitive quotes from multiple insurance companies so you can compare them side by side and pick the best deal.
- Related Reading: Find the cheapest life insurance policy with Policy Advisor
What Are The Cheapest Cars To Insure In Ontario?
Since auto insurance rates depend on more than just the type of car, it’s difficult to say which is the cheapest car to insure in Ontario. However, a good rule of thumb is to choose an economy car or sedan with a small engine, good safety features, and a low price tag.
If you want to avoid high insurance rates, stay away from sports cars, luxury cars, and brightly-coloured vehicles, as these tend to be expensive to repair and have a higher risk of insurance claims, making them higher-risk vehicles.
Keep on reading to see a comprehensive breakdown of all the costs associated with car ownership in Canada next!
