You may have your sights set on a particular vehicle to buy, but have you considered the costs to insure it? Car insurance is something that every driver must have in order to lawfully operate a vehicle on Canadian roads, but some insurance policies are a lot more expensive than others.
Before you go out and buy your next vehicle, consider how much it will cost you to take out an auto insurance policy on it. Not only should you budget for the price tag of the car, but you should also do the same with insurance premiums.
Let’s take a look at some of the best and worst vehicles to insure in Canada.
Key Points
- Insurance premiums add to the overall cost of your vehicle, so it’s important to check out current rates on various models before choosing a vehicle to purchase.
- Currency, the best cars to insure due to lower rates on average include the Hyundai Kona, Mazda CX-30, Honda HR-V.
- Several factors impact the cost of car insurance in addition to the vehicle make and model, including your location, age, gender, and driving record.
Factors Insurers Consider When Determining Your Premium
There are several factors that impact the cost of a car insurance policy in Canada, including the following:
- Your age
- Your gender
- Your driving record
- Your location
- Your claim history
- The vehicle type
- Mileage
For instance, younger drivers with a history of driving offenses will be charged much higher premiums than an older, more experienced driver with a clean driving record. It all comes down to risk. If an insurance provider believes you will be a higher risk to them, they’ll charge you more for your policy.
What Makes A Car Expensive To Insure?
As mentioned, the type of car you choose to drive will also impact your car insurance rates. And some cars are considered higher risk than others.
More specifically, auto insurance providers will assess the following factors in terms of vehicles to insure:
Overall Safety Rating
A vehicle with a poor safety rating also means that the likelihood of serious injuries to drivers and passengers in the event of a collision is higher. That means medical or personal injury claims will be more expensive, which will translate into higher premiums costs.
Repair Costs
Certain types of cars cost more to repair, especially higher-end vehicles that command much higher prices for parts.
Theft Rates
Vehicles that are more frequently targeted by thieves cost more to cover. In 2024, over 57,000 vehicles were stolen in Canada. That’s a big number. As of the latest data available, the Honda CR-V, Dodge RAM 1500 Series, and Ford F150 rounded up the top 3 most stolen vehicles in Canada.
As you can see, the vehicle make and model play a role in the rate of theft, which can play a role in your insurance costs.
Learn more: Most Stolen Cars In Canada
Type Of Vehicle
The vehicle make and model also come into play when insurance providers determine the cost of insurance premiums. Generally speaking, the following types of vehicles are more expensive to insure:
- Sports cars – These cars are built for speed, which is a common factor in collisions. Plus, drivers of sports cars tend to be younger and more susceptible to accidents, which means higher insurance rates.
- High-end luxury cars – These types of vehicles are more expensive to insure because of the higher costs associated with repairing them. Parts are much more expensive for luxury cars, so insurers will charge higher premiums to offset these additional costs.
- Electric vehicles – The higher price tag and cost to repair electric models means higher premiums.
Trim Level
Additional features on a car can increase insurance rates. High-tech safety equipment, for instance, will be more expensive to repair, and powerful engines may place you at a higher risk for speeding.
So, an expensive vehicle that is stolen more often and is the target of higher rates of theft will be more expensive to insure because the risk level for the insurance provider is higher. The same can be said for repair costs: a vehicle model that is very expensive to repair when damaged will cost your insurance provider more in compensation. As such, premiums will be higher to offset these higher costs.
Best Cars To Insure In Canada
Currently, the best cars to insure in Canada are as follows:
| Vehicle Make and Model | MSRP |
| Hyundai Kona | $26,449 |
| Mazda CX-30 | $28,950 |
| Honda HR-V | $29,960 |
| Subaru Ascent | $45,995 |
| Tesla Model Y | $69,990 |
Worst Cars To Insure In Canada
Among the worst vehicles to insure in Canada are the following:
| Vehicle Make and Model | MSRP |
| Mercedes AMG S65 | $280,400 |
| Dodge Viper GTS | $145,995 |
| Mercedes AMG S63 | $208,650 |
| Maserati Quattroporte GTS | $137,500 |
| Mercedes S550 | $147,500 |
How To Get The Lowest Rate For Car Insurance
A car insurance policy is a requirement to drive on the roads in Canada, but there are ways to keep costs to a minimum. Besides choosing a vehicle that’s cheaper to insure based on the list above, consider the following:
Research And Compare Auto Insurance Policy Rates
Using an independent insurance broker or an online insurance aggregator can help you comparison shop to find the lowest price for a car insurance policy. Loan comparison websites, for instance, will populate a list of insurance companies and policies based on the criteria you input, so you can quickly and easily scan all your options to choose the lowest rate available.
Keep Your Credit Score In Check
Your credit score not only plays a role in your ability to secure a mortgage or get approved for a credit card, but it can also play a role in your vehicle insurance rate. Depending on where you live, some insurance providers will consider your credit score when establishing a premium.
Maintain A Clean Driving Record
If you have a history of driving offences, your premiums will be higher. That’s because your risk level will be higher in the eyes of your insurance provider. To keep costs low, do your best to maintain a clean driving record that’s void of tickets and other driving offences.
Learn more: How To Get Your Driving Record In Ontario
Bottom Line
Before you buy a car, consider the cost to insure it. While you may be able to afford the price tag of the vehicle itself, a very expensive insurance policy can quickly make the vehicle too expensive for your budget to comfortably handle. Consider the make and model of the car you intend to buy, and look into the average cost to insure it before you commit to a purchase.
