Black Bmw M3 Coupe on Road

January 29, 2019

Pay Less for a Nicer Car? Ask Your Insurance Broker

1 min read


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:

Vehicle Monthly insurance premium*
2016 Hyundai Sonata 2.0T $180
2016 Hyundai Sonata Hybrid Limited $165
Savings $15
2019 Toyota Camry LE $182
2019 Toyota Camry XSE $177
Savings $5
2018 Chevy Silverado LT Reg Cab 4WD $165
2018 Chevy Silverado LTZ Crew Cab 4WD $154
Savings $11

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:

Vehicle Monthly insurance premium*
Base 2017 Honda Civic EX 2WD $178
Fully Loaded 2017 Honda CRV Touring AWD $145
Savings $33

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.

Looking for car insurance?

Speak with a Mitch Insurance broker today to get a quote on Ontario auto insurance. Learn more >

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