Considering buying one of Canada’s cheapest new cars? You might be surprised to discover that lower-priced vehicles don’t necessarily get you the cheapest insurance premiums.
For budget-conscious Canadians looking for an affordable mode of transportation, we think it’s important to keep in mind the total cost of vehicle ownership, not just the price you pay for the car. One element of that is how much a car costs to insure. So we decided to run insurance quotes for Canada’s cheapest new vehicles.
Lower premiums for affordable vehicles?
For the purposes of getting insurance quotes, we chose the base model for each vehicle on the list, with sticker prices between $14,000 and $26,000. The insurance premiums below come from our online auto insurance quoter, and are based on a number of factors including coverage levels, annual kilometres driven, etc. Although they represent fairly standard quotes that we might give to our customers, the only way to get the exact premium for your unique circumstances is to enter your own info in the online quoter or give us a call.
Who are the drivers?
We created imaginary drivers with different ages, genders, postal codes, driving and insurance records.
1. Sandy, 35, single female, Etobicoke
Sandy has a clean driving record and lives in Etobicoke, which is the west-most part of Toronto. She would pay between $1,600 and $2,300 per year to insure the cars on the list, but you’ll notice the premiums don’t necessarily rank in the same order as the vehicle price.
2. Sandy in Scarborough
In a city as big and diverse as Toronto, premiums can vary substantially between neighbourhoods. So we’ve shown the prices Sandy would pay for auto insurance if she moved to Scarborough. On average, it’s $755 more per year than she’d pay in Etobicoke.
3. Ahmed, 55, married male, Ottawa
Ahmed has a couple of minor tickets on his record. He would pay between $900 and $1,200 a year to insure Canada’s cheapest new vehicles.
4. Kenyon, 20, single male, London
Kenyon is attending university in London, and living in the north end of the city. His parents want to buy him an affordable car to get around in. Kenyon has a clean record and has taken an approved driver training course. If his parents choose one of the cars on the list, he’ll be paying between $3,500 and $5,400 a year for insurance.
5. Fatima, 22, single female, Oshawa
Fatima has one speeding ticket on her record. If she decided to buy one of Canada’s most affordable vehicles, she would pay between $3,100 and $4,000 a year for insurance.
6. Hazel, 45, divorced female, Leamington
In 2022, Hazel got in an accident and was also convicted of speeding and impaired driving. If she decided to buy one of Canada’s most affordable vehicles, she would pay between $6,200 and $9,200 a year for insurance.
The quotes
The average rates shown below are for the drivers in this exercise, not the province.
| Vehicle price ranka | Vehicle | Sandy | Sandy (Scarb) | Ahmed | Kenyon | Fatima | Hazel | Avg rate |
|---|---|---|---|---|---|---|---|---|
| 1 ($14,298) | Mitsubishi Mirage | $2,242 | $2,918 | $1,167 | $4,401 | $3,709 | $7,754 | $3,699 |
| 2 ($17,445) | Kia Rio | $2,120 | $2,987 | $1,046 | $4,817 | $4,008 | $7,536 | $3,752 |
| 3 ($18,298) | Nissan Versa | $1,961 | $2,644 | $951 | $3,751 | $3,259 | $6,692 | $3,210 |
| 4 ($20,395) | Kia Forte | $2,304 | $3,117 | $1,195 | $5,400 | $4,448 | $9,205 | $4,278 |
| 5 ($20,998) | Nissan Kicks | $1,848 | $2,621 | $919 | $4,331 | $3,473 | $6,916 | $3,351 |
| 6 ($21,900) | Mazda3 | $2,131 | $2,926 | $1,093 | $4,706 | $3,733 | $7,658 | $3,708 |
| 7 ($22,595) | Kia Soul | $1,884 | $2,782 | $1,015 | $4,503 | $3,700 | $8,033 | $3,655 |
| 8 ($22,953) | Hyundai Elantra | $2,175 | $2,981 | $1,114 | $5,224 | $4,195 | $8,648 | $4,056 |
| 9 ($23,303) | Hyundai Venue | $1,759 | $2,431 | $884 | $3,565 | $2,966 | $6,544 | $3,025 |
| 10 ($23,695) | Kia Seltos | $1,819 | $2,531 | $902 | $3,616 | $3,107 | $7,048 | $3,171 |
| 11 ($24,995) | Subaru Crosstrek | $1,665 | $2,242 | $895 | $3,773 | $3,160 | $6,251 | $2,998 |
| 12 ($25,804) | Toyota Corolla | $1,935 | $2,714 | $974 | $4,261 | $3,608 | $7,359 | $3,475 |
| Avg rate | $1,987 | $2,742 | $,1013 | $4,362 | $3,614 | $7,470 | $3,532 | |
| aManufacturer’s suggested retail price (MSRP) of vehicles from blog.clutch.ca; Insurance rates: Mitch auto insurance quoter | ||||||||
But what are the cheapest vehicles to insure?
When you consider that there are 18 versions of the 2023 Toyota Corolla and 29 versions of the 2023 Ford F-150, and that each model year of the same car could potentially produce a different insurance premium, there are literally thousands of prices you could get.
When you consider that there are 18 versions of the 2023 Toyota Corolla and 29 versions of the 2023 Ford F-150, and that each model year of the same car could potentially produce a different insurance premium, there are literally thousands of prices you could get.
- Sandy, 35, from Etobicoke, would pay $2,304 a year to insure a Kia Forte, but only $1,895 for a Ram 1500.
- In Scarborough, Sandy would pay $3,117 for the Forte, and $2,622 for the Ram.
- Ahmed, 55, from Ottawa, would pay $1,114 a year for the Hyundai Elantra, but only $961 annually to insure a Chevy Silverado 1500.
- Kenyon, 20, living in London, would pay $4,706 a year to insure a Mazda3, but would save $522 on his premiums ($4,184) if he got a GMC Sierra 1500.
- Fatima, 22, from Oshawa, would pay $3,709 a year in premiums for a Mitsubishi Mirage, and $3,087 for a Ford F-150.
- Hazel, 45, from Leamington, would pay $9,205 a year to insure a Kia Forte, but could cut that cost to $6,454 if she opted for a Nissan Frontier.
We don’t try to push anyone to buy one car over another. And the fact is that the base price for all four pickups is well over $40,000, so it’s unlikely that someone looking at a Mitsubishi Mirage would also be considering a Ram 1500. We just want to show how premiums can vary dramatically based on the car you drive, and the price of the vehicle is not the reason.
Is there any way to pay less?
The premiums quoted above don’t include any discounts except a winter tire one. Because Kenyon has been driving for more than three years, the fact that he has completed driver training does not lower his premium. However, our imaginary drivers could potentially save on their auto insurance with the following discounts:
- Buying home or tenants insurance from the same company (10-15%)
- Insuring another car on the same policy (10%)
- Because Kenyon is a student, he could save up to 10% for getting good grades
- Paying the full annual premium up front
Also, most insurers offer a telematics program where the driver installs a device in their car or an app on their phone that tracks their driving behaviour. Just signing up can get you a 10% discount, and if you drive safely, you could save up to 25% on your premiums. But be careful because if you don’t drive safely on these programs, the insurance company can now surcharge you up to 10% above your base premium.
There are so many factors used to determine auto insurance premiums. The best advice we can give you is to speak with an insurance broker for a quote. Give us a call for a free, no obligation quote today.
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