Pay Less for a Nicer Car? Ask Your Insurance Broker

If you’re in the market for a new or used vehicle, your search will usually come down to a handful of very similar choices: The 2015 BMW 3 Series, or the 2016? The brand new 2019 Jeep Cherokee Sport with the base package, or the 4×4? Usually the older vehicle, or the one with fewer features, will have a lower sticker price.

Even if your primary consideration is cost, there are a number of cases where a more expensive vehicle may cost you significantly less in terms of your insurance. Before you pull the trigger on a deal, talk to your insurance broker. He/she can give you an instant quote on all of the vehicles you are considering, and you may find that the newer vehicle, or the one with upgrades, may cost you less overall, or the costs may be comparable.

Your Total Costs of Vehicle Ownership

The sticker price is not the total price of your car. When buying or leasing a vehicle, the number that matters is the total cost of ownership, which includes your monthly payment, plus fuel, maintenance and insurance costs. If you’ve been shopping already, you have a sense about the monthly payments, and you can figure out your fuel costs based on the fuel efficiency rating for the car (xx litres/100km). Maintenance costs are harder to predict.

In terms of insurance costs, consider the following:

So, if you are at the dealership and considering upgrading from the base model, your insurance savings could offset some or all of your additional monthly payment. Or even if you’re considering completely different vehicles, it’s worthwhile to get a quote:

The moral of the story is that you may be able to afford a nicer car than you think. Call Mitch before you buy your next car. Sometimes a sweet ride can also be a sweet deal.

Which Cars are Cheaper to Insure?

Your insurance premiums are determined in part by the value of your car, but also by the likelihood that you will make a claim. There are certain features that make a car less likely to get in an accident, others that protect passengers when there is an accident, and there are features that make a car less likely to be stolen. Generally, the following features will get you cheaper auto insurance premiums:

• Anti-lock brakes (ABS)
• Four wheel drive (4WD or AWD)
• Air bags
• Collision warning systems
• Anti-theft system
• Alarm
• Winter tires

* The above premiums are for a sample Ontario driver. Actual premiums will vary.

Mitch Team

The articles you'll find on the Mitch blog are all the result of a team effort, contributed to by one or more of our RIBO licensed insurance brokers and/or other Ontario insurance experts. Contributors to our blog include:

• Adam Mitchell (RIBO) - President and CEO of Mitch Insurance Brokers
• Nick Kidd (RIBO) - Chief innovation officer at Mitch, & director of business insurance
• Alex Gemmiti (BSc, CIP, RIBO) - Service team lead at Mitch Insurance
• Jesica Ryzynski (RIBO) - Insurance broker, claims specialist, and account manager at Mitch Insurance

Learn more about the Mitch Team

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