Cars with the lowest insurance rates

Many Canadians underestimate just how much their vehicle model plays a role in their car insurance rates, which is why choosing the right vehicle can help you save anywhere between hundreds and thousands of dollars in costs. Car insurance premiums vary significantly based on the province you live in, as well as individual factors such as your vehicle's safety features, driving frequency, age, and other relevant factors. For example, Canada Drives reports that drivers in British Columbia pay some of the highest annual insurance rates in Canada, at over $1,800 or more a year. In contrast, those in Alberta pay on average $1,300 annually.

Ultimately, understanding which vehicles render the cheapest insurance premiums can help you make smart financial decisions, especially if you're insuring a vehicle for the first time. In this guide, we'll take you through the cheapest vehicles to insure in Canada, how different factors affect your rates, and practical tips you can use to make your coverage more affordable. Stick around for more insight.

Factors that influence car insurance premiums

How car insurance companies work is by generating a risk profile on each customer to determine their auto insurance rates using various factors. The higher the risk you are, the more expensive your insurance costs will be. Common factors insurance providers consider when calculating these profiles include:

1. Vehicle type

Vehicles with favourable safety features like the Toyota Camry or Honda Civic typically yield lower insurance premiums, given their ability to reduce the risk of severe injuries in car accidents.

2. Theft rates

According to the Insurance Bureau of Canada, the cost of claims for vehicle theft in Canada reached a record high of $1.5 billion in 2023. The fact of the matter is that some vehicle types are more susceptible to auto theft than others. For example, luxury cars, sports cars, and those with poor security features are often targets of auto crimes. Because of this, insurance companies will look at auto theft rates for your specific vehicle model to determine the likelihood of you having to file a claim in the future, which will impact your insurance premiums.

3. Vehicle repair costs

Expensive cars, like luxury vehicles, tend to have higher repair costs, given their need for specific car parts, which cost more to purchase. Because of the increase in costs, it will cost your insurance company more money to fund your insurance claim if you need to file one. In return, your insurance provider will increase your insurance premiums to balance out these costs.

For example, vehicles like BMWs and Audis are known to have high repair costs compared to standard family cars like Toyota models or Kia models, which often offer more affordable premiums.

4. Driving record

Your driving record is one of the most important factors used to determine car insurance premiums. Driving history combines a person’s driving experience with their driving record. More years behind the wheel can work in your favour to reduce insurance prices, provided you have a good driving record with no traffic violations, whereas younger drivers tend to pay more, given their lack of experience on the road.

5. Where you live

Drivers who live in populous metropolitan areas, such as Toronto, Vancouver, or Calgary, are more likely to be involved in accidents because there is more traffic on the roads. In contrast, drivers who live in rural areas of the province with less traffic are considered less likely to be involved in accidents and may receive a reduced rate accordingly. Furthermore, if you reside or work in an area prone to climate-related incidents, such as floods or wildfires, your insurance premium may also increase.

6. Claims history per vehicle model

Statistically speaking, some vehicle models are involved in more accidents than others. Vehicles with more insurance claims tend to yield more expensive insurance costs than models with low claims histories. The Insurance Bureau of Canada releases a comprehensive report each year, known as "How Cars Measure Up," which showcases which vehicle models have high insurance claims and which ones don't.

According to their 2024 report, Audi, Acura, BMW, Cadillac, Land Rover, and Infiniti had some of the highest claims filed across various models, while Mazda, Honda, Ford, and Toyota had some of the lowest. To determine where your car model ranks, please refer to the full report here.

Top 10 vehicles with the lowest insurance rates

If you're in the market for a new vehicle, knowing which types of vehicles have the lowest insurance rates can help you make a more informed decision when it comes to your finances. Here's a list of the 10 cheapest cars to insure in Canada as of 2025:

1. Mitsubishi Mirage (sedan) – approximately $1,534 annually

The Mitsubishi Mirage is a compact, budget-friendly sedan that is ideal for those who commute daily, given its low repair costs and excellent fuel economy. With standard safety features and an average safety rating, the Mirage is one of the cheapest cars to insure in Canada as of 2025, sitting at around $1,534 per year.

2. Toyota Corolla (sedan) – approximately $1,624–$2,399 annually

The Toyota Corolla has long been a household staple for those looking for a reliable vehicle. The Toyota Corolla has low theft rates, affordable replacement parts, and a 5-star safety rating from the NHTSA, making it a smart choice for cost-conscious drivers. Average insurance costs for this vehicle range between $1,624 and $2,399 per year.

3. Honda Civic (sedan) – approximately $1,645–$2,288 annually

The Honda Civic is Canada’s long-time favourite when it comes to compact cars. It is easy to repair, widely available across the country, and known for being highly fuel-efficient. Civics also come with a 5-star safety rating, making it a great family car choice. Average annual costs for insurance range from $1,645 to $2,288, depending on which province you live in.

4. Subaru Impreza (sedan/wagon) – approximately $2,120 annually

With all-wheel drive, high safety ratings, and loyal Subaru customers, the Impreza remains one of the cheaper AWD sedan models to insure in Canada. Car owners can anticipate paying approximately $2,210 a year for auto insurance.

5. Ford Escape (SUV) – approximately $1,853 annually

Named one of the cheapest SUVs to insure in Canada in 2025, the Ford Escape offers strong crash-test results, a 5-star safety rating, and reliable performance. For those looking for an SUV with relatively affordable repairs and maintenance, the Ford Escape is one of the cheapest cars you'll find. Because of this, you can anticipate cheap car insurance rates at around $1,853 annually.

6. Hyundai Kona (SUV) – approximately $2,543 annually

This compact SUV is a popular choice for those commuting within the city due to its maneuverability, advanced safety technology, and low theft risk. These features help it stay on the lower end of insurance costs, which will run you approximately $2,543 a year.

7. Mazda CX‑5 (SUV) – approximately $1,877–$2,698 annually

The Mazda CX‑5 is another one of the cheapest midsize SUVs to insure in Canada as of 2025. Featuring driver assist technology, an upscale driving experience, and a great safety rating, this SUV is great for families and everyday commuters looking for excellent fuel economy. Insurance for this vehicle type will range between $1,877 and $2,698 annually.

8. Toyota RAV4 (SUV) – approximately $2,372 annually

With standard Toyota Safety Sense features and a history of outstanding crash test scores, the RAV4 continues to rank among Canada’s most affordable SUVs in terms of insurance rates and safety. This compact SUV crossover is fuel-efficient, reliable, and sleek in its design. Auto insurance for the RAV4 will cost you around $2,372 per year.

9. Chevrolet Silverado 1500 (Truck) – approximately $2,331 annually

The Chevrolet Silverado 1500 is a full-size pickup, and surprisingly, cheaper to insure than you may think. This truck is known for its crash durability, relatively low theft risk, and widespread part availability, making it one of the cheapest cars to insure in Canada. Auto insurance for this truck will run you approximately $2,331 a year.

10. Ford Maverick (Truck) – approximately $2,118 annually

One of the few compact pickups on the market today, the Ford Maverick has an excellent towing capacity and off-road capabilities. It features numerous safety features and good fuel economy. In terms of insurance, you can anticipate paying approximately $2,118 annually.

Cheapest cars to insure and why

As we mentioned, vehicle type plays a role in how much your insurance will cost you. Here’s a quick breakdown of how different car categories typically compare:

Sedans

Sedans are usually the cheapest to insure for several reasons. They tend to be lower in cost, have smaller engines, and are often equipped with enhanced safety features, which are all factors that will lower your overall risk profile as a driver. Popular sedans like the Toyota Corolla and Honda Civic have low theft rates and are inexpensive to repair, making them ideal for those who want affordable insurance rates.

SUVs

SUVs offer great safety ratings and are some of the most family-friendly vehicles on the market today. Compact and midsize SUVs, such as the Ford Escape and Mazda CX-5, often have lower premiums compared to luxury brands and full-size models. However, repair costs can be slightly higher than those of sedans, given the more complex features.

Pick-up trucks

Trucks can vary in insurance price. Smaller pickups like the Ford Maverick are more affordable to insure than larger models, given their lower repair costs and theft rates, while models like the Ford F-150 tend to be more expensive to insure.

Minivans

Minivans are also some of the cheapest cars to insure in Canada. They're often equipped with numerous safety features and have high safety ratings, which insurers see as a positive. Models like the Honda Odyssey or Kia Sedona have some of the lowest premiums.

Electric vehicles (EVs)

Electric Vehicles (EVs) tend to be more costly to insure, especially luxury brands and sports cars, due to their expensive battery systems and repair parts. More standard models may yield cheaper premiums, but they can vary.

Insurance costs for new vs. used cars

New cars generally cost more to insure than used cars, by as much as 30%. Why? Newer cars have a higher replacement cost and include advanced technology, which will raise repair costs. In contrast, used cars, especially ones with high depreciation rates, will lead to lower premiums, given that they have a lower market value and possibly a lower theft rate.

Here's an example comparison table using a 2024 and 2010 Honda Civic. Remember, car insurance in Ontario for new and used cars will look different than other provinces.

Tips to lower your car insurance costs

While it's impossible to negotiate car insurance rates, there are ways you can find cheap car insurance coverage, regardless of the type of vehicle you drive. Here's what you need to do:

Shop around and compare quotes

If you live in a province like Alberta, Ontario, Newfoundland and Labrador, New Brunswick, or Nova Scotia, who operate under a private insurance system, one of the best things you can do is shop around and compare quotes. Most insurance companies have different underwriting processes, which means they may price your insurance differently from one another.

By comparing at least two to three quotes, you'll be able to determine whether a better offer is available elsewhere. Remember, however, that the cheapest insurance premiums aren't always the best. Choose one that balances cost-effectiveness without compromising your level of coverage.

Increase your deductible amount

A deductible is the amount of money you agree to pay to your insurance company when filing a claim before your coverage kicks in to cover any of the remaining costs. Deductibles range from $300 to $1000. Opting for a higher deductible technically means you're agreeing to take on more of a financial burden in the event you need to file a claim in the future. By doing so, your insurance provider may lower your premiums slightly.

Ask about available discounts

Most insurance companies have discounts available that can significantly lower your auto insurance rates. While savings will vary between providers, some of the most common discounts available include:

• Winter tire installation: While mandatory winter tire installations are mandatory in some parts of British Columbia and in Alberta, doing so regardless of the season not only improves your safety in the wintertime, but it can also help you save up to 10% on your premiums.
• Anti-theft devices: Installing anti-theft devices like dash cameras, steering wheel locks, and other preventative measures on your vehicle can cut your insurance costs by up to 15%.
• Maintaining a clean driving record: Maintaining a clean driving record with no at-fault accidents or traffic violations is one of the best ways to save on your coverage and can provide you with a fantastic discount on your rates.
• Taking a driving course: For new drivers, taking an accredited driving course can help you lower your auto insurance rates.
• Multi-car insurance policy: If there is more than one vehicle in your household, you may benefit from insuring them under one car insurance policy. Doing so can help you save up to 15% on your premiums.
• Loyal customer: Have you been a customer with the same insurer for more than a couple of years? You may qualify for a loyalty discount with your provider.

Note that this isn't a complete discount list. Make sure to ask your provider or broker whether there are other savings you qualify for.

Pay your insurance premiums upfront

Most insurers add a 3 to 5% surcharge to customer accounts that pay monthly. Why? Because it costs them money to process each of your payments. Therefore, if you want to avoid these added fees, consider paying for your insurance upfront.

Bundle your home and auto insurance policies

If you have more than one insurance policy already, like home insurance or business insurance, you may want to consider bundling your plans with your car coverage at the same provider. Doing so can help you save up to 15% on each policy, which means a lot more money in your pocket at the end of the day.

Common myths about auto insurance rates

Despite there being a lot of auto insurance information available online, myths about coverage and rates often steer Canadians in the wrong direction. Let's clear the air and clarify some of the most common misconceptions that Canadians have when it comes to insurance rates below:

Myth 1: "Red cars are more expensive to insure."

This is one of the oldest myths in the insurance industry that couldn't be further from the truth. Whether you drive a red, black, yellow, blue, white, grey, or other colour vehicle, we can promise you that your insurance company is not factoring it into your insurance rates. The only exception to this rule is if your vehicle has a car wrap on it, given that this is technically considered a modification, which may increase your rates slightly. Regardless, insurance providers are looking at your driving record, vehicle type and model, safety features, claims history, and location when determining your rates.

Myth 2: "Men always pay more than women."

It's true that young male drivers under the age of 25 pay higher rates than female drivers under 25, given that accident statistics show they are more at risk on the road. But gender isn't the only factor insurance providers are looking at. They also look at age, driving experience, claims history, how much you drive, and more. If you only get your licence at 26, you may still have to pay higher rates due to being an inexperienced driver.

Therefore, a male in his 30s with a clean driving record and no claims on his file may pay less than a female driver in her 30s with numerous accidents and traffic violations.

Myth 3: "Older cars are some of the cheapest cars to insure."

Sometimes, yes, but not always. While older vehicles may be worth less, some can still be expensive to repair or may be more likely to be a target of vehicle theft. For example, some older sedans like the Honda Civic are still on Canada’s most stolen vehicle list, which can drive up your premium.

Myth 4: "Basic coverage limits are enough to protect me.'

While legal coverage minimums exist in provinces, opting for bare minimum coverage isn't always the best choice, which is why most drivers choose higher limits and full coverage options to ensure they are sufficiently protected. With higher attorney fees, increased repair costs, and replacement costs, choosing comprehensive coverage is essential to protecting your financial interests if a collision or loss occurs.

Get affordable car insurance with BrokerLink

Understanding how car insurance rates are influenced by different factors, including your car type, can help you keep more money in your pocket at the end of the day. At BrokerLink, we help Canadians secure affordable car insurance. With access to numerous policies from some of Canada's top providers, our brokers can shop around on your behalf, compare quotes, and unlock discounts. Coverage types we can help you secure include:

• Third-party liability car insurance
• Accident benefits coverage
• Direct compensation - property damage (DCPD)
• Uninsured automobile insurance
• Collision insurance
• Comprehensive insurance
• Accident forgiveness

Looking to save as much as possible when shopping for car insurance? Get a free quote using our online quote tool or contact a broker from BrokerLink today for more information on how you can save!