Auto insurance Recent Posts

“When I learned that mail notifications were being phased out, I anticipated that we would start seeing more people forgetting to renew their license, and more auto insurance non-renewal notices because of that,” said Cassie Gilroy, Retention Manager at Mitch Insurance Brokers.  

“I never expected it to be in these numbers.”

Insurers pull motor vehicle reports for their policyholders from the Ministry of Transportation that include information about the date you were licensed, your license status and any driving convictions you may have.

How often these reports are pulled varies by company. Some examine them annually, while other insurers may do this less frequently.

“It feels as though we’re seeing companies pulling motor vehicle reports for more drivers on renewal now,” said Gilroy. “That might be a result of them finding claims where drivers have expired licenses, or it could be from other trends they are seeing on their end.”

In addition to the 30% of non-renewal notices we’re receiving for people not remembering to get a new license, our brokerage is also getting requests from different insurers for updated licences in advance of a customer’s renewal date to give them the chance to avoid this process.

“Some insurance companies are reaching out to say, ‘We’ve noticed that this client has an expired license. Please provide us with a copy of their new license to avoid the non-renewal,'” said Gilroy. “So that 30% figure is actually a low number.”

First off, don’t panic. In most instances, getting your license reinstated is an easy, straightforward process. In fact, if it’s been expired for less than 12 months, you can renew it online. If it’s been longer than that, you’ll need to visit a DriveTest or ServiceOntario centre. It costs $90 to renew a driver’s license for five years.  
 
The most important thing to do is get your new license as soon as possible and not let the issue linger. Driving with an expired license is illegal, and if you’re stopped by the police the fine is $325.  
 
Once you’ve got your new license, send a copy of it to your broker or insurance company and the policy non-renewal will be cancelled. Getting this resolved as quickly as you can will ensure there are no issues with your insurance coverage or your policy renewal. 

If the Ministry of Transportation reinstates your license with no conditions, your insurance won’t be impacted. If you need to start the graduated licensing system again because your license has been expired for too long, you’ll lose your driving history and will be considered a new driver in the eyes of your insurance company. This will affect your premiums. 

If you’ve received a non-renewal notice, providing proof of your new license to your broker or insurer right away will make the policy renewal process much easier and less stressful. And the quicker you can get this sorted, the more time you’ll have if there are issues with your renewal or you’d like to have a broker try to find you a better price for your insurance.

Waiting to renew your license could limit your options for acquiring other coverage before your current policy expires and you’re no longer insured.

“We are finding that people’s lives are busy, and they’re updating their license at the last minute,” said Gilroy. “This means that when they finally receive their renewal, they are left with no time to shop or check what other choices they have.

“We’re doing everything we can on our end to help people get ahead of the issue so that they don’t find themselves in a situation where they are unhappy with their renewal but don’t have the time to do anything about it.”

Making sure your license is valid will save you a headache if you’re ever pulled over, get in an accident or when your insurance policy is up for renewal. Why not take a minute and check the expiry date on your license right now and encourage all other drivers in your household to do the same.

If you haven’t yet, we also recommend signing up to receive free electronic renewal reminders from Service Ontario about your driver’s license by email, text or phone. You can also register to get notifications for your health card and license plate too.

And if you have any questions about your how your driver’s license impacts your insurance coverage and policy renewal, give us a call. Our team of insurance brokers are always happy to help.

Reviewed by Lisa McLachlin, Personal Lines Account Manager at Mitch Insurance.

Traffic convictions and tickets aren’t just things you pay for once and then forget about. Speeding tickets, moving violations, and other driving infractions can affect your premiums. Let’s explore some examples of just how much a distracted driving conviction can impact your premiums.

For the following data table, let’s assume the individual in question is a 30-year-old female living in Whitby, Ontario (L1N) and drives a 2021 Volkswagen Jetta that was purchased new. Driver A is claims-free with no convictions, whereas Driver B is claims-free but has a distracted driving charge on their record.

With the conviction, some insurers (like SGI, Aviva Traders, Pembridge, etc.) won’t offer coverage at all. Having a distracted driving conviction can qualify you for non-standard auto insurance (otherwise known as high-risk auto insurance), which is offered by several of Mitch’s partners, like Echelon, Jevco, Pafco, Economical, Coachman, and Facility. 

Depending on the severity of the infraction, the incident can remain on your driving record and negatively impact your rates for 3-6 years. Considering that some criminal offences can cause your rates to double (or more), just think of the thousands of dollars you could end up paying over the course of those 3-6 years. Is sending that text really worth it? 

To gauge how much your premiums will go up, or how long they’ll be affected by your ticket, it’s important to know what category of ticket your incident falls into. From an insurer’s point of view, traffic offences and tickets will fall into one of three categories. 

The best way to avoid the rate spike from a distracted driving conviction is to, well, avoid driving distracted. Here’s some tips:

If you have been convicted of distracted driving or a similar offence and need to purchase high-risk auto insurance, reach out to Mitch today. Our team of insurance brokers will be happy to help you find coverage at the best possible price.

Thanks to Alex Gemmiti (BSc, CIP, RIBO), Mitch’s service team manager, for reviewing this post, and to Natalie Mullins (RIBO), Mitch personal insurance advisor, for running the quotes.

Car insurance is so nuanced nowadays that it’s difficult to know which insurer is right for you. Every company boasts the “cheapest rates,” but price is just one thing to consider when it comes to choosing a provider. Ontario has about 8.7 million motor vehicles that are registered, according to StatCan, with Ontario and Quebec accounting for more than half of vehicle registrations in Canada. That all said, there’s a lot of auto insurers in Ontario, making for a more difficult time in choosing the best one.

Here’s a total breakdown of the best auto insurers in Ontario, including what different types of auto insurers exist, how they rank by price, coverage options, and more.

In Ontario, there are more than 80 auto insurers. Each has something different to offer, and some may only provide niche auto insurance such as for classic cars, Right-hand drive vehicles, or high-risk drivers.

How do you gauge how good an insurance company is? Every company is different, but often what makes an insurer “the best” is how well they:

There’s no real place that does a total comparison between different insurers, so we’ve done our best to create one. Please keep in mind that we’re only able to get pricing information for the insurance companies that we work with.

Because auto insurance premiums are based on many different factors that are unique to you, there is no one “best” auto insurer in Ontario for everyone. Even if your next-door neighbour, Brad, tells you he’s with the best auto insurance company, that doesn’t mean that same insurer will be who is best for you. Brad could have gotten a great price on his insurance because of his driving experience, the value and age of his vehicle, the distance of his daily commute, and many other factors that are unique to him.

The table above should give you an idea of how different ages and genders with the exact same vehicle and rough annual mileage can produce entirely different price points depending on the individual insurer.  

An insurance broker’s job is to find you affordable coverage, yes, but they will do so by helping you save money, like finding you key auto insurance discounts. At the same time, they help you find the best coverage fit. There are more ways to rank auto insurance companies than simply by price. Here’s a few other things to keep in mind:

Ratings and online reviews are a good way to see what kind of service an insurance company might offer. Of course, reviews are not solely what you should go off. This is why: 

What you want to weigh is how much an insurance company might argue with you over what is covered in the event of a claim and how easy they are to get a hold of. Reviews may indicate the kind of bad experience customers have had, so pay attention to any patterns that you might notice. 

J.D. Power curates a customer satisfaction survey each year for auto insurance companies. Rankings may only be a general guideline, but they’re good to check out for common trends. Note, however, the following limitations: 

Something else worth looking at/considering is the volume of premiums different insurers take in. 
When insurance companies are smaller, their pools of funds to payout claims are smaller. There’s the risk, then, that a smaller insurance company may not have the funds to pay out all its claims. Larger insurance companies have their risks spread out more evenly, so even a major storm that has the potential to affect thousands of people at once may still be payable. In Canada, insurers must meet certain minimum standards for financial stability, and many will purchase reinsurance to protect themselves against major events, so oftentimes it can be a better idea to get your insurance through a larger provider. This isn’t always an exact science, however, as some smaller insurers can be just as great (if not greater) at meeting your insurance needs than the big guys! 

Insurers specialize in different types of risk, and we’ve included this in the chart above to show which companies are open for business in your specific category (whether that’s normal, business, motorcycle, specialty, and so on). 

Most Ontario drivers are insured in what is known as the regular market, which means companies that offer insurance to low or medium-risk drivers who have standard vehicles without modifications, that aren’t right-hand drive or used for business purposes. 

To be in the standard market, you shouldn’t have more than three tickets or at-fault accidents on your record. Tickets can stay on your record for three years, and accidents up to six. Even if you’ve only had one serious traffic-related conviction like a DUI or distracted driving, you could be placed in the high-risk market. 

High-risk auto insurance companies provide coverage for drivers whose risk profile may be uninsurable by most standard market insurers because of multiple tickets or at-fault accidents, a serious driving conviction (DUI, street racing, driving with a suspended license) or being cancelled for non-payment.  
 

Motorcycles in Ontario can be pricey to insure because accidents often involve more severe injuries, and even the potential for long-term disability. Motorcycle insurance tends to be seen as riskier, even for experienced drivers. 

It becomes even more difficult to obtain insurance if you are under the age of 25 or have had less than five years of riding experience. Facility Association, in this case, could be your only option.  

Only a few companies specialize in distributing insurance for “non-standard” vehicles. These include right-hand drive, classic or collector cars, and vehicles with significant modifications to them.  

Using your personal vehicle to travel to and from meetings or take calls doesn’t constitute as business use so you can easily use your personal policy for this. You’ll want to always keep your insurance broker informed, but they probably won’t suggest an additional commercial auto policy. 

However, if you drive a company vehicle or have a car with business branding on it and use it to transport goods, haul tools, or deliver passengers, you will need commercial insurance. 

Using your own vehicle to drive for Uber, Lyft or other ridesharing companies, and transport either passengers or food, means that most insurers won’t want to cover you and you’ll need to acquire a policy through a separate rideshare insurance provider. Unfortunately, yes, ridesharing vehicle insurance is more expensive than personal car insurance. Don’t feel tempted to neglect telling your insurance provider about your business as that’s driving without insurance. 

With over 40 farm mutuals operating in Ontario, there’s quite a few options for farmers. However, some of these mutuals only operate in their immediate geographic area. 

As well as farm mutuals, many of the business insurers mentioned above will also cover farm vehicles as part of a larger commercial insurance policy for your agri-business or farm. 

Choosing an auto insurance company that is right for you can be tough, so why not call Mitch? We are partners with some of Canada’s top providers. Not only can we help you find a company that fits the bill, but we can also help you find more affordable coverage, find you discounts, and more.  

The GTA is an attractive place to live, but many people are dissatisfied with its high auto insurance rates. One of the main reasons for this is the use of postal code data to price auto insurance based on region statistics. 

“Postal code discrimination” is what many are calling it. When pricing your auto insurance, companies will look at a lot of factors, such as your age, gender, driving record, and the vehicle you drive, but also where you live. Why? Well, it all boils down to the number of claims and the frequency of payouts in the area that you live. If you’re a good driver who’s never made a claim in your life, this can work against you, and you’ll pay a lot more for your insurance just by residing in the GTA. 

According to the Financial Services Regulatory Authority (FSRA), the average auto insurance premium in the GTA in October 2022 was $2,245/year. The GTA is Canada’s most populous metropolitan region, meaning a lot of vehicles are on the road, which equals more accidents and more claims.

Let’s compare Brampton (in the GTA) and Cornwall (in Eastern Ontario) in 2021:

As you can see, despite there being a similar number of claims made the insured claim cost per vehicle in Brampton is nearly double that of Cornwall. By the same token, drivers in Cornwall are paying less than half in annual premiums than drivers in Brampton. 

Postal-code dependent or territory-biased insurance rating systems can negatively affect good, experienced drivers who otherwise don’t make many claims (if any at all) and have a clean record.  

Even the best drivers in the GTA might have premiums like that of younger, inexperienced drivers living in provinces with lower rates on average due to the inflated auto insurance rates that drivers in Toronto and the GTA tend to see.   

Initially introduced by NDP MPP Gurratan Singh in 2018, Bill 44 aimed to end auto insurance discrimination in the GTA. This bill, if it were passed, would have brought down the prices of auto insurance for thousands of households. It would have prevented insurance companies from charging GTA residents higher rates than drivers in other cities solely based on where they live, and insurers caught using “discriminatory underwriting systems” would face penalties as detailed by the Insurance Act in the province of Ontario.

In November 2018, the bill was defeated 35-24. A second bill later emerged, taking issue with the lack of consumer choice in automobile insurance by attempting to prohibit insurers from using factors primarily based on a person’s postal code/telephone area code. Bill 42, Ending Discrimination in Automobile Insurance Act, 2019, passed both its first and second readings, however, it was terminated when the provincial parliament was prorogued in September of 2021.

A rationale proposed by the insurance industry for using postal codes to calculate insurance rates, rather than Bill 44’s proposed “entire territory/area of coverage” perspective of the GTA, was that anyone who lives in a small town would statistically be less likely to be involved in an accident, and therefore should pay less. For those that it works in favour for, postal-code priced insurance is a good thing – yet only small town or rural families benefit from it.

As it stands, removing postal codes as a pricing factor for auto insurance can help drivers in expensive areas like Brampton or Toronto, but it may do little or nothing for those in lower-risk areas – or, oppositely, even hike their rates, since risk will be spread out more evenly.

It depends on who you are and where you live. Doing away with the postal code system is an extremely popular notion, but it’s most beneficial to those who live in areas with higher auto insurance prices. Eliminating the postal code system altogether wouldn’t automatically drop car insurance premiums. It would just offset the costs and equalize them across drivers in Ontario, increasing the rates of those in smaller, less populated areas. Ontario as a province would still face the same average rates. 

Another option for combating the postal code system, is opting in to usage-based insurance (UBI). UBI can offer an individualized discount to offset premiums that are inflated by the statistically high claim rates of where you live. If you’re a good driver, you can save as much as 25% in some cases. However, UBI programs can also surcharge you for bad driving behaviours as well.   

The Insurance Bureau of Canada (IBC) has long since accepted that the current way insurance is priced in Ontario needs an adjustment, although the reform the organization is pushing for seems to be more in the way of following another province’s lead: Alberta. 

In 2020, Alberta’s regulator changed its auto insurance pricing rules. This has allowed for a more accurate rating for policyholders, while enabling insurers to have more flexibility in competing for customers’ business.  

Both Bill 103 and Bill 12 emerged in 2022, aiming to prevent discrimination for vehicle insurance rates in the GTA. The IBC has cautioned that, yes, change is certainly needed, but the bills being proposed may not achieve what is necessary to reduce costs (and would present the issues mentioned above with smaller towns at a lower risk seeing increased rates).  

While it’s safe to say that the FSRA and the Ontario government currently recognize the need for change, it’s difficult to say what form it will take.  

Thanks to Alex Gemmiti (BSc, CIP, RIBO), Mitch’s service team manager, for reviewing this post

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.

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 quoter or give us a call.  

 We created imaginary drivers with different ages, genders, postal codes, driving and insurance records.  

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.

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.

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. 

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. 

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.  

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 average rates shown below are for the drivers in this exercise, not the province.

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.  

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. 

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: 

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.   

To provide drivers with additional flexibility, the Financial Services Regulatory Authority of Ontario (FSRA) released an announcement regarding changes being made to the standard Ontario auto insurance policy, introducing OPCF 49, a form which would allow drivers to opt out of a once-mandatory coverage: direct compensation-property damage (DC-PD). Although this option, available beginning January 1, 2024, gives people more reign over customizing their coverage, dropping DC-PD could leave drivers exposed.

DC-PD is designed to compensate drivers directly if their car is damaged in a collision with at least one other vehicle. It’s part of Ontario’s no-fault auto insurance system.

With the upcoming changes, DC-PD will still be available to purchase from auto insurance carriers but drivers may elect to sign OPCF 49, which will allow them to opt out of DC-PD coverage. Policyholders can sign OPCF 49 at any point in the policy term upon January 1, no matter what stage of policy term they are currently in. The same applies for if the policyholder wishes to change their mind and wants to reinstate DC-PD (or DC-PD and all perils/collision) on their vehicle.

DC-PD coverage works if the following conditions are met:

If these conditions are not met, then you may still have coverage so long as you have collision insurance. Collision insurance is optional, however. Should the accident involve an underinsured or uninsured driver, then you may be eligible for compensation under another mandatory coverage known as uninsured automobile coverage.

If you are partly at-fault or entirely not at-fault in an accident, and all the above conditions are met, then DC-PD will cover the following:

Under Ontario’s Automobile Policy section 6.2, DC-PD offers coverage for the items listed above, but each will be subject to depreciation. You won’t receive more to repair or replace your items or vehicle beyond their actual cash value.

People might choose to opt out of DC-PD coverage to reduce their premium which can be an incentive for some drivers. The cost of DC-PD coverage can vary depending on the driver. Let’s look at a few different examples for a 36-year-old single male with a clean driving record who has been licensed for 15+ years and lives in Whitby, Ontario.

Here’s the same figures if the same individual had one at-fault accident and one minor conviction:

With this all in mind, why wouldn’t it make sense to drop DC-PD for better savings?

Here are costs you would not be reimbursed for following any damages or losses to your vehicle in the event of an accident (without DC-PD or collision coverage):

Now, take into consideration the value of those vehicles in comparison with their DC-PD coverage cost. Without DC-PD (or collision) you would be responsible for paying to repair or replace your car entirely out-of-pocket. Sure, you’d save a few hundred to a few thousand dollars a year, but that wouldn’t be nearly enough to offset the cost to replace your vehicle.

If your car is leased or financed, you may not be able to opt out of DC-PD coverage without consulting with your leasing company or the dealership. If something happened, you would end up being held personally responsible for the losses or damages to the vehicle.

Choosing to opt out of DC-PD doesn’t inherently save you money. In fact, dropping it may end up costing people more than they would have paid for their DC-PD coverage if they get into an accident. As good a driver as you are, you can’t always predict others’ driving behaviour. For lower-income drivers, choosing to opt out of DC-PD to save money might make sense, but it can result in more severe consequences if something happens.

The same way a financing company or dealership could require you to carry additional coverage options, like collision and comprehensive, they could also require you to carry DC-PD. Failing to keep your leased or financed car sufficiently insured could result in the leaser or dealership repossessing your car.

If you own an older vehicle that costs more to insure than it is worth, then it may make sense to drop DC-PD once it becomes optional. It might seem controversial to drop insurance coverage that offers protection when someone else hits you, but odds are your older vehicle would be written off regardless. Plus, the payout you would receive would be minimal and the cost savings from signing OPCF 49 might cancel that amount out.

If you aren’t sure, then your best bet is to talk to an auto insurance broker. Insurance can be confusing, and with regulations changing it can be tempting to hop on board. Our team of brokers can walk you through the pros and cons based on your personal circumstances. They’re also happy to discuss other ways to save on insurance without cutting coverages. Give us a call today.

It’s no secret that Canadians have a soft spot for pickup trucks.

Four of the five best-selling vehicles in the country – the Ford F-Series, Ram, GMC Sierra and Chevy Silverado – are pickups. These four trucks account for nearly 20% of new automobile sales in Canada.

Thinking about getting a new pickup and curious how much insurance will be? To help you decide which ride is best for you, we ran quotes for Canada’s top-10 selling trucks for the first quarter of 2023. Here’s what we found.

To help with getting quotes, we created seven fictional drivers with various ages, genders and driving records who live in different parts of the province.

Each of the drivers received their license at 16, no multi-discounts were applied, and all of the vehicles have winter tires. Coverage specifics are:

The vehicles quoted have MSRPs between $36,000 and $54,000. We list the MSRP because it can make a difference in terms of premiums for physical damage (collision and comprehensive).

In general, pickup trucks are the most affordable vehicles in Canada for insurance premiums. While the common belief is that their size and height offer better passenger protection, insurance companies base their rates on historical claims data. This data generally favours pickups over cars, vans and SUVs.

The fact that the shortest and lightest trucks on our top 10 list (Nissan Frontier and Ford F-150) produce the best premiums seems to contradict the theory that taller, heavier vehicles are safer for the passengers inside them.

The last time we compared premiums for Canada’s top-selling pickups was in 2020. Since then, the Ford Ranger dropped out of the top 10 in terms of sales, and was replaced by the Nissan Frontier. Of the trucks that were on the list in 2020, the Chevy Colorado didn’t take the crown this time, but still had some of the best premiums of the bunch. The GMC Canyon, on the other hand, went from second to second-to-last.

The Ford F-Series, which has been the best-selling vehicle in Canada for years, does not technically appear on the Q1 list because Ford Canada no longer reports sales monthly. Based on Driving.ca’s estimates however, it’s still at the top of the sales heap, and did much better in terms of premiums this time around, rising to second from seventh in 2020.

It’s impossible to know how much insurance will cost just by looking at a particular vehicle and its specs. We do our best to give you guidelines, but if you’re at the dealership and torn between a few different models, give us a call. In five minutes, our team of insurance brokers can provide you with accurate quotes on any vehicle you’re considering, and help you make a well-informed purchase.

Driving.ca posts an annual list of the year’s top selling vehicles. The rides on 2022’s list made up one third of all the automobiles sold in Canada last year. These models are very popular, and in fact, you might be looking into buying one right now. If you are considering one of these beauties, you might want to know how much it would cost to insure it. So we decided to run some quotes for you.

Here’s our list of Canada’s top 10 selling vehicles in 2023, ranked from lowest insurance rate to highest. (The number in parentheses is the spread in premiums between that vehicle and the GMC Sierra):

We used our auto insurance quoter to run insurance quotes for each of the vehicles on the list, and ranked their premiums from cheapest to most expensive. The quotes below represent the best rates that we were able to get for the statutory minimum accident benefits, $1 million liability, collision and comprehensive coverage for the most basic models of these vehicles. To give a good sense of how premiums can vary based on your age, gender, relationship status, location and driving history, we ran quotes for each of the vehicles using seven different driver profiles, including two that would be considered high-risk.

Here are the drivers we used for the quote comparison. They are not real people, but the quotes reflect what someone of the same age, gender and relationship status, with the same postal code and driving history, would pay for auto insurance:

¹Some insurance companies have begun providing specific rates for gender X and non-binary drivers. For those that only have male and female rates, they run the quote as a male, then as a female, and the customer gets the lower of the two rates.

What we found was that the GMC Sierra will get you the best premiums on average, followed closely by the other three pickup trucks on the list (Ram Pickup, Ford F-Series and Chevy Silverado). The SUVs (Hyundai Kona, Honda CR-V and Toyota RAV4) were somewhat pricier to insure, and the cars (Hyundai Elantra, Toyota Corolla, Honda Civic) had the highest average premiums. The Honda Civic came in last, with an average premium 59% higher than the Sierra.

A few other tidbits:

The last time we compared premiums for Canada’s top 10 selling vehicles was in 2018. At that time, we only compared quotes for two drivers. The 2022 top 10 list is largely made up of the same vehicles as 2018’s, with the only new entry being the Hyundai Kona, which replaces the Ford Escape.

The results of the premium comparison were quite different in 2018, with the Honda CR-V leading the way with the lowest average premium and the Ram Pickup finishing second-to-last. The other striking difference between that comparison and this one is that this time around, the driver profile didn’t seem to affect the rankings. In 2018, the two driver profiles we used seemed to have a big effect on the vehicle rankings, whereas this time around, the Civic finished last for all the driver profiles and one of the four pickup trucks finished first.

Whatever vehicle you choose in the end, you’ll need insurance. Why not call Mitch before you buy, and get a quote on any vehicles you’re considering, so you have a better idea about the total cost of ownership. Talk to one of our auto insurance brokers today. We can get your new vehicle on the road in no time.

Canadians love their pickup trucks. In 2022, pickups made up almost a quarter of Canadian motor vehicle sales, and the Ford F-Series has been the top selling vehicle in the country every year since 2009. But for budget-minded Canadians, pickup trucks can be pricey to buy. Thankfully they are very affordable to insure.

Based on Driving.ca’s breakdown of the cheapest pickup trucks for 2023, here’s our ranking of the most affordable pickups in terms of auto insurance premiums:

To determine which trucks on the list had the best premiums, we ran quotes for each of them using our online auto insurance quoter. To eliminate rating factors unrelated to the vehicles themselves, we got quotes for five different drivers. They vary in age, gender, relationship status and postal code. Some have cleaner driving records while others have some tickets and/or at-fault accidents.

In order to see how insurance rates for pickup trucks compare with other popular vehicles, we also ran quotes with the same drivers for the Toyota RAV4 and Honda Civic.

Here are the drivers we used to determine our rankings:

All of the quotes are based on the following assumptions:

Not as much as you might think. The most expensive trucks on the list are the heavy-duty trucks, most of which had the lowest premiums of all. The biggest influence on premiums is how likely passengers are to be injured, not the value of the vehicle. All of the trucks on the list come in a number of different configurations or “trims”. For example, the F-150 XL starts around $46,000, and the F-150 King Ranch starts around $90,000. The Ford F-150 King Ranch is 92% more expensive than the F-150 XL, but premiums for the King Ranch are only 26% higher.

Using payment calculators on the automakers’ websites, we estimated monthly payments on all of the midsize trucks and the GMC Sierra 2500. All of the monthly payments below are based on an 84-month term and a $5,000 trade in.

The difference in the monthly payment from the Colorado to the Sierra 2500 is $423 a month, and you would only save $48 a month on your premiums, so clearly insurance costs won’t be a deciding factor in moving up to a bigger truck. But if you’re trying to choose between a Toyota Tacoma and a GMC Canyon (both midsize trucks), the $20 monthly savings in insurance will offset the extra $34 a month you’ll pay to finance the Canyon. And if you’re the type of driver that likes to keep your truck long after it’s paid for, you’ll continue to save on premiums.

When you’re shopping for a new truck, it’s a good idea to consider the total cost of ownership. That includes monthly payments, fuel, maintenance, and of course insurance. Before you buy or lease that new truck, even if you’re sitting at the dealership, give us a call for a quick, no-obligation quote on whichever vehicles you’re considering. Our insurance brokers will make sure you have all the information you need to make the best decision.

Feature photo by Universal