Cars With Lowest Insurance Rates

15 minute read Published on Aug 3, 2022 | Last updated Sep 16, 2022 by BrokerLink Communications

Wondering about car insurance cost & which are the cheapest cars to insure? Lear about the determine factors here.

For many Canadians, budget is one of the most important factors when it comes to buying a car. When you are shopping for car insurance, you also want to know you are getting the best deal.

Luckily, BrokerLink is here to ensure you find the right car and the right car insurance policy. As auto insurance experts, we can provide you with unbiased advice on the vehicles that offer the best rates. Continue reading to learn more about the cars with the lowest insurance rates, as well as some tips on choosing a car that’s inexpensive to insure.

Why the type of car you buy matters

To find a car with a low insurance rate, it’s crucial to understand how vehicle types influence insurance premiums. As you may know, insurance companies in Canada consider several factors when calculating insurance rates.

A driver’s age, gender, marital status, claims history, and location are just a few of the factors. Another factor is the type of car, specifically the make, model, and year of your vehicle. The type of car you drive helps to determine your risk level, which directly relates to your premium.

Higher risk usually translates to higher premiums. When an insurance provider considers the type of vehicle you drive, it evaluates the vehicle’s overall safety ratings, potential repair or replacement costs, and relevant data, like claims and theft rates for the specific make and model.

First, the car model matters because it determines the value of your car. Each model has distinct trim levels or features, body styles (sedan vs. coupe vs. hatchback vs. SUV), and finishes. Of course, vehicle add-ons can also be purchased, such as four-wheel drive or larger engines, which can also impact the cost of auto insurance.

For example, the 2020 Chevrolet Equinox is available in four unique models: the L, the LS, the LT, and the Premier. Each comes with a different set of features, which affect its value. Furthermore, the year the car was made is also important because vehicle designs, even among the same models, can change significantly.

Generally speaking, newer, more expensive cars (e.g. luxury sports cars) cost more to insure than their inexpensive counterparts. This is because such cars are at a greater risk of theft, and if stolen or damaged in an accident, they cost more to replace or repair. A way to reduce the costs is if your car has a high safety rating or is equipped with anti-theft devices or other safety features, such as security systems.

Further, drivers of cars with low safety ratings or a high insurance claims rate, whether for accidents, theft, or something else, can also expect to pay more for auto insurance. A poor vehicle safety rating means the driver and passengers are more likely to sustain serious injuries in the event of a collision, which usually results in more expensive insurance claims. If your car has an average or above-average safety rating and is older, used, and budget-friendly, you can expect to pay a lower premium.

How to determine the make, model, and year of a vehicle

The easiest way to determine the make, model, and year of your vehicle is to look for a set of logos, badges, or emblems located on the exterior of the car. The model of the car is usually printed somewhere on the vehicle in bold letters.

However, if you cannot determine the vehicle’s make or model by looking at it, try to locate a copy of your vehicle registration certificate or your owner’s manual. You can also find this information by obtaining the vehicle identification number.

Determining a car’s make and model using the vehicle identification number

You may determine the make and model of any vehicle by searching the vehicle identification number (VIN). The VIN is a 17-character code featuring a combination of numbers and letters. Each type of car has a unique VIN, which can be found on the interior driver’s side door or dashboard (though sometimes they might be found under the hood or on the tire).

All cars since 1981 have been assigned a 17-character VIN. Once you’ve found the VIN, you can search it up and find useful information including the car’s make, model, and year, as well as the country of assembly (and even the factory where it was manufactured), equipment specifications, recall records, warranty claims, past thefts and possibly, accident records. Simply search VIN tracking tools online (of which there are many), enter the VIN, and see what comes up!

What is the cheapest type of car to insure?

While auto insurance rates depend on a number of factors beyond vehicle type, data suggests that the cheapest types of vehicles to insure are minivans and SUVs. Oppositely, large sedans are among the most expensive types of cars to insure.

What car make is the cheapest to insure?

Again, car make is only one factor insurance companies in Canada use to calculate insurance premiums. However, research has indicated that certain auto brands tend to have cheaper car insurance than others. For example, auto insurance rates for Honda, Mazda, and Volkswagen vehicles tend to be less inexpensive than those for Lexus or Tesla vehicles. Lexus and Tesla are both considered luxury car brands compared to Honda or Mazda, which are more affordable. Therefore, these findings are in line with the insurance industry’s rule of thumb that the more expensive the car, the more expensive the auto insurance.

What are the cheapest models of cars to insure?

As mentioned, models with fewer trims, impressive safety ratings, and cheaper price tags tend to be less expensive to insure than luxury vehicles. Thus, it’s no surprise that some of the cheapest car models to insure are the Honda HR-V, Subaru Forester, Jeep Wrangler, Hyundai Kona, Volkswagen Tiguan, and Mazda CX-5. Each of these models typically falls well below the average annual cost of insurance among vehicles in Canada.

Five tips for choosing a car with a low insurance rate

If affordable insurance is a priority, follow the tips below to increase your odds of finding a vehicle with a low insurance rate:

1. Avoid ultra-luxury vehicles

Due to their high value, luxury vehicles are typically the most expensive cars to insure. Examples of luxury cars include those by automakers BMW, Bentley, Tesla, Lexus, and Mercedes Benz. Studies have shown that drivers of luxury car brands may pay up to $1,000 more each year on insurance premiums compared to drivers of budget vehicles.

2. Don’t purchase the latest model

The newer the car, the more expensive it will be to insure. Therefore, if you are debating which vehicle model to buy, consider a model that is a year or two old compared to the one that just came out that year.

3. Choose a sensible vehicle over a sports car

Sports cars are known for their high price tags. Beyond the cost of buying the car, they tend to cost more to insure as well. This is because they are built for speed, right down to their high-performance engines. This makes drivers of sports cars, such as Maseratis and Lamborghinis, more likely to get into collisions, which affects their insurance rates.

4. Consider a hybrid or electric vehicle

To save money on car insurance, consider purchasing an eco-friendly vehicle, like a hybrid or electric vehicle (EV). Many insurance companies across Canada now offer discounts or incentives to drivers of eco-friendly vehicles. For example, you can save up to 10% on your car insurance if you drive a hybrid or electric vehicle. That said, though EVs are becoming more mainstream, some still come at a high price tag. Before you decide on a new Tesla, consider researching some of the more affordable EVs out there. For example, affordable automakers like Hyundai, Volkswagen, Nissan, and Mazda have all started expanding their hybrid and electric vehicle fleets, with several options being far cheaper than anything sold by Tesla or other luxury auto brands.

5. Research car models with high theft rates

One final tip for finding a car with a low insurance rate is to research which car models have high theft rates. Insurance companies ask for the make, model, and year of your vehicle to determine your risk level. Part of this involves the likelihood that the vehicle will be stolen. Statistics indicate that certain vehicles are more popular among thieves than others. If you buy a car with a high theft rate, even if it’s considered to be safe and affordable, your auto insurance rate may go up. In Canada, some of the vehicles most frequently targeted by thieves include the Honda Civic, Honda CR-V, Toyota Highlander, Chevrolet Silverado, Ford F-150, F-250, F-350, and F-450, Toyota Corolla, and Honda Accord.

Other factors impacting car insurance rates

Finding a car known for having a low insurance rate is only half the battle when it comes to saving money on auto insurance. Insurance providers take into account a wide range of factors when calculating insurance premiums. Therefore, vehicle type is just one of many factors that influence how much a driver pays for car insurance in Canada. If you want to keep car insurance rates low, it’s important to understand how the other factors come into play. Keep reading for a full list of factors impacting car insurance rates, beyond vehicle make, model, and year.

Driving history

Driving history is the most important factor used to determine car insurance premiums, even above vehicle type. Driving history combines a person’s driving experience with their driving record. Having more driving experience is usually a plus, as it is a lack of driving experience that raises the insurance rates for young drivers. That said, having ample driving experience will only work to your advantage if you also have a clean driving record. A clean driving record can be achieved if you drive safely and responsibly, obeying the rules of the road at all times. However, if you frequently speed, drive recklessly, or drive under the influence of drugs or alcohol, your driving record is likely to be poor. Drivers with records with infractions, speeding tickets, collisions, and DUIs typically pay a higher rate for auto insurance. But if you have a clean record, insurance companies may reward you with a lower premium.

Age

Age is another factor that can significantly affect your car insurance rate. From an insurance company’s perspective, there is a direct correlation between age and risk level. They believe that the younger a driver is, the less driving experience they have, and the greater their odds of getting into an accident. This is why drivers under the age of 25 often have the highest car insurance rates in Canada. Conversely, another age group impacted is seniors over the age of 60, who often pay higher rates for car insurance throughout Canada.

Local laws

Local laws are another factor that can influence the cost of car insurance. Car insurance is regulated provincially in Canada, which means each Canadian province and territory sets its own rules on car insurance. These rules relate to the types of coverage that are mandatory, as well as the coverage limits. The more comprehensive the coverage and the higher the coverage limit, the more expensive your insurance will be. For example, Ontario and Alberta require that all drivers carry a minimum of $200,000 in third party liability coverage at all times, compared to the $500,000 in third party liability coverage that Nova Scotia drivers are required to carry.

Location

Location is another factor that can affect your car insurance premium in Canada. When calculating your auto insurance rate, an insurance provider will ask for your address. They may also ask for the addresses or regions in which you typically drive your car, especially if you drive it to work each day. This is because where you drive your vehicle also indicates your risk level. Drivers who live in populous metropolitan areas, like Toronto, Vancouver, or Calgary, are more likely to get into accidents because there is more traffic on the road. In contrast, drivers who live in rural parts of the province with less traffic are considered less likely to get into accidents and may receive a reduced rate accordingly. Further, if you live or work in a part of the country prone to climate related incidents, such as floods or wildfires, your insurance premium may also go up.

How frequently you drive your vehicle

The amount of time you spend on the road is another factor affecting car insurance costs in Canada. Spending an above-average amount of time driving (e.g. if you drive for your work) usually translates to higher premiums than if you spend a below-average amount of time behind the wheel (e.g. driving a few days a week). In addition, if you frequently drive your vehicle at night or on major highways, your insurance rate can also go up. This is because driving more frequently or under more dangerous circumstances increases your odds of getting into an accident. In contrast, driving only a few days each week decreases your chances of being involved in a collision, and you may be rewarded with a lower insurance premium.

Marital status

Finally, a driver’s marital status is one last factor that affects car insurance rates beyond vehicle type. Research suggests that married people are more responsible and financially stable, which insurance companies may take into consideration when calculating auto insurance premiums.

Please note that insurance companies are responsible for determining insurance rates in Canada. Insurance brokerages like BrokerLink have no say in your insurance premium. That said, BrokerLink can help you find the best coverage at the most competitive rate. We can highlight discounts you didn’t know you were eligible for and shop around on your behalf. We can also offer our unbiased advice and opinion on the best vehicle to buy if you are looking to pay less for car insurance. To speak with a qualified insurance advisor today, contact BrokerLink.

How working with an insurance broker can help you find a car with a low insurance rate

On your quest to find a car with a low insurance rate, working with an insurance broker is one of the wisest decisions you can make. When you enlist the help of a BrokerLink broker, you’ll have an auto insurance expert at your fingertips, working to find a policy that meets your budget. Keep reading to learn more about the benefits of working with an insurance broker, including how they can help you find cheap car insurance.

Brokers work independently

Insurance brokers do not work for insurance companies. Quite the opposite - they work independently! Therefore, since BrokerLink does not work for an insurance provider, we can put our customers’ needs above all else. Our expert insurance advisors take a customer-first approach to car insurance. Your needs take centre stage, with your advisor taking the time to understand your unique lifestyle and budget. Since we work independently of the insurance companies, you can always rely on us to offer unbiased, objective advice on the best policy for you and your family.

Brokers do the work for you

Another reason to work with an insurance broker is that they do the work for you.When you get in touch with BrokerLink, you will be assigned a dedicated insurance advisor who will make you their top priority. Your BrokerLink advisor will work to obtain quotes, compare coverage options, and unlock discounts on your behalf. We will get in touch with multiple policy options for you to choose from. It’s that easy!

BrokerLink brokers are car insurance experts

BrokerLink has been in business since 1991, which means we have over 30 years of experience matching Canadian drivers with affordable car insurance policies. We are eager to share our resources and expertise with our customers to help them find auto insurance at low rates.

How do I purchase auto insurance at a low rate?

Shopping for auto insurance is made easier thanks to BrokerLink. Follow the simple steps below and you’ll find a car insurance policy at an affordable rate in no time:

1. Contact an insurance broker

The first step to finding car insurance is to contact an experienced insurance broker from BrokerLink. Start by telling us a little bit about yourself and the type of car you drive, and we will provide you with an accurate and complimentary quote.

2. We shop around for you

After providing you with a free car insurance quote, one of BrokerLink’s insurance advisors will contact the top insurance companies in Canada to determine which one has the most comprehensive car insurance coverage at the most competitive rate.

3. You get a great rate

The final step to finding car insurance at a low rate involves your BrokerLink insurance advisor presenting you with multiple options to choose from, each of which will suit your needs and budget. They will explain each policy so that you can make an informed decision and purchase the policy that’s right for you.

Get in touch to learn more about cars insurance

We can advise you on which cars have the lowest insurance rates and let you in on some of the insurance industry’s secrets on finding cheap car insurance.

BrokerLink can be reached by phone, email, or in person at any of our locations across Canada. No matter how you contact us, our advisors will be pleased to help you find a policy that meets your budget.

We also invite you to take advantage of our free auto insurance quotes available to all drivers. Request your free quote over the phone, in person, or using our online quote tool. All you need to do is answer a few basic questions about yourself and your vehicle to receive an accurate and competitive quote in no time. Plus, if you have yet to purchase a new vehicle and are wondering how it will impact your insurance rate, you can even use our free tool to receive a car insurance estimate for each type of car you’re considering buying.

Get started today by contacting BrokerLink. We can’t wait to hear from you!

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FAQs

What is the cheapest car to insure?

Typically, the less expensive a car is, the less it will cost to insure. That said, if you purchase lots of add-ons or custom trims with the car, the value of the car will go up and so will your insurance. However, the make and model of the vehicle you buy are not the only factors used to determine auto insurance premiums and other factors, such as your age, driving record, claims history, marital status, gender, location, annual mileage will also be considered.

Is it cheaper to insure a used car than a new car?

While there is no guarantee, used cars tend to be cheaper to insure than new cars. Therefore, choosing a used car, especially a budget-friendly one, will likely cost you less to insure than buying a new vehicle. That said, the cost of insurance is not the only factor to consider when buying a used car. For example, even though insuring a used car may be cheaper, it may not be as fuel-efficient or come with warranties, which could mean paying more money down the line.

What is the best car insurance for a low rate?

There is no one insurance provider in Canada that is known for providing low insurance rates. So many factors come into play when calculating insurance rates and insurers are constantly underwriting behind the scenes.

For more FAQs, visit the BrokerLink FAQs page.