by Chris Chase
Car insurance is there to protect you if you make a mistake that damages another person’s vehicle or property or, in a worst-case scenario, injures someone. It also helps shield you from liability if you’re involved in a crash with someone who is driving without insurance. Even though it’s illegal to drive without it, it’s easy to forget about car insurance and how much it adds to your vehicle’s operating costs.
If you’re shopping for a used car on a tight budget, it’s important to choose a vehicle that is as inexpensive to insure as possible. To help you find the thriftiest vehicle that meets your needs, LowestRates.ca has compiled a list of the 10 cheapest vehicles to insure in 2021.
What factors affect car insurance costs?
Among the major factors in determining insurance rates are the driver’s age, gender and driving record. LowestRates.ca corrected for those variances by basing this list on a hypothetical driver aged 30 to 49 who has a clean record and drives between 15,000 to 25,000 km per year.
The vehicle itself is also a factor. All the cars and trucks on this list are (or were) big sellers, making it easy for insurers to gauge how likely a given vehicle is to be involved in at-fault collisions. It also helps paint a clearer picture of what it costs to buy and replace damaged parts.
Finally, the cars and trucks listed here are probably reported stolen less frequently than the national average. With that in mind, if reducing insurance costs are a priority for you, you might want to avoid the models Ontario car thieves stole the most last year. (https://www.blog.ontariocars.ca/most-stolen-vehicles/)
There are also regional factors to consider. For example, car insurance tends to cost more in major cities – where there can be a higher risk of collisions and theft – than in small towns and rural areas.
Finally, LowestRates.ca says its insurance estimates are based on quotes provided through its website between December 1, 2019, and November 30, 2020. Because LowestRates.ca surveyed premiums across Canada, an Ontario-specific list of the cheapest vehicles to insure might look a bit different. Still, we think this is a good starting point if you’re in the market for inexpensive transportation.
2009 Dodge Journey SXT FWD – 43.29% cheaper than average
This was the first model year for the Dodge Journey compact crossover. It was intended to replace the short-wheelbase versions of Dodge’s Caravan minivan – which went away the year before – and stuck around to capitalize on the popularity of crossovers and SUVs.
In SXT FWD trim, the 2009 Dodge Journey came with either a 2.4L four-cylinder engine (173 hp/166 lb-ft of torque) or a 3.5L V6 (235 hp/232 lb-ft) and a four-speed automatic transmission.
That four-speed transmission, called UltraDrive, is likely a factor in the Journey’s low cost: Dodge began making it in the late 1980s and made few changes afterward, which helped keep production costs down.
2011 Ford F-150 XLT SuperCrew 4WD – 35.78% cheaper than average
The Ford F-150 makes its first of two appearances on this list as a 2011 model. That year, XLT was the lowest trim available with the four-door SuperCrew body style. Engine options were a 3.5L turbocharged V6 (365 hp/420 lb-ft), a 5.0L V8 (360 hp/380 lb-ft) and a 6.2L V8 (411 hp/434 lb-ft). A six-speed automatic transmission was included with all three. LowestRates.ca says a 4WD model is the cheapest to insure.
Ford sells tens of thousands of F-150s in Canada every year, so the wide availability of replacement parts probably helps keep insurance costs low.
- 2010 Toyota Matrix – 32.9% cheaper than average
From 2003 through 2014, the Matrix was Toyota’s entry in the compact hatchback category. Redesigned in 2009, the Matrix shares its underpinnings with the ultra-popular Corolla compact sedan. LowestRates.ca doesn’t list a trim designation, which leads us to believe they’re referring to the car’s base FWD trim level, not the uplevel XR, XRS and AWD variants.
In 2010, the base Toyota Matrix used a 1.8L four-cylinder engine with 132 hp and 128 lb-ft of torque. A five-speed manual transmission was standard, and a four-speed automatic was the option.
Though the Matrix didn’t sell quite as well as its Corolla sibling, it benefits from mechanical components that were produced in large numbers and shared with vehicles sold around the world.
- 2011 Chevrolet Cruze LT Turbo – 28.83% cheaper than average
In 2011, the Chevrolet Cruze replaced the Cobalt as the brand’s compact sedan model. LowestRates.ca singles out the LT Turbo trim, which was positioned in the middle of the model’s range, striking a balance between a low price and creature comforts. Power is from a 1.4L turbocharged four-cylinder engine with 138 hp and 148 lb-ft of torque and a six-speed automatic transmission.
The first-generation Cruze was named a Top Safety Pick by the Insurance Institute for highway Safety (IIHS) for its strong performance in crash tests, which contributes to its affordable insurance rates.
- 2015 Volkswagen Golf four-door TDI – 27.89% cheaper than average
Like the Chevrolet Cruze listed above, the 2015 VW Golf marked the introduction of an all-new design. Volkswagen offered its TDI diesel engine across the Golf lineup, including the entry-level Trendline trim. The TDI generates 150 hp and 236 lb-ft of torque. In 2015, it could be matched with either a six-speed manual transmission or a six-speed dual-clutch automatic.
While the dual-clutch gearbox is a smooth piece of engineering, its high-tech nature makes it expensive to replace if it’s damaged in a crash. Our presumption is the lowest Golf insurance rates would go to models with the manual transmission.
- 2006 Toyota Corolla CE – 25.94% cheaper than average
In 2006, the Toyota Corolla was in the middle of its ninth generation, which was introduced in 2003. It’s mechanically similar to the Matrix that made the number three spot on this list. Power is from a 1.8L engine (126 hp/122 lb-ft) and a choice of five-speed manual or four-speed automatic transmissions.
We’re not sure what’s behind the Corolla being more expensive to insure than the Matrix. We’d presume this car would be less likely to be involved in crashes, given its popularity with laid-back drivers. In any event, the Corolla’s age means it will be less expensive to buy than the newer Matrix, which should offset the difference in insurance costs.
- 2019 Dodge Grand Caravan GT – 25.89% cheaper than average
This is the first of three appearances the Dodge Grand Caravan makes on this list, so don’t expect a lot of variety from here on out. In 2019, the Grand Caravan was a 12-year-old design that had undergone relatively minor changes since its 2008 introduction. The 2019 model has a 3.6L V6 (283 hp/260 lb-ft) and a six-speed automatic transmission.
These vans were produced in large numbers, so replacement parts should be plentiful and inexpensive. In the case of a stolen vehicle, low resale values on the used marketplace make it inexpensive to replace a missing van.
The GT trim’s inclusion here is a bit of a surprise, as it’s the priciest, best-equipped version of this van. We’d have thought its various extras would boost insurance premiums compared to lesser trims.
- 2013 Ford F-150 XLT SuperCrew 4WD – 24.68% cheaper than average
The 2013 Ford F-150 is an updated version of the 2011 model in the number two position in LowestRates.ca’s list. Its changes included refreshed front-end styling and a new version of the MyFord Touch infotainment system.
Powertrain options are mostly the same as the 2011 model, but by this point Ford had added a 3.7L V6 (302 hp/278 lb-ft) as an entry-level engine for the XLT SuperCrew.
This version of the F-150 being less affordable to insure could be down to statistical differences in collision or theft rates. It could also be the result of higher costs for replacing the 2013 model’s restyled front bumper and grille.
- 2011 Dodge Grand Caravan SE – 19.54% cheaper than average
- 2008 Dodge Grand Caravan SE – 19.4% cheaper than average
In the 9th and 10th spots on LowestRates.ca’s list are two more versions of the Dodge Grand Caravan minivan. The 2011 model that placed 9th was an updated version of the 10th-place 2008.
In 2008, an all-new Grand Caravan arrived with a base SE trim that offered 3.3L and 3.8L V6 engines (175-197 hp/205-230 lb-ft) and a four-speed transmission. The 2011 model introduced the 3.6L engine and six-speed transmission also found in the 2019 model in the number seven position on this list. In 2008 and 2011, the SE trim was the Grand Caravan’s entry point. As with the 2019 model, replacing damaged parts or the entire vehicle is relatively inexpensive and helps keep insurance costs down.
FAQs
The 10 Cheapest Cars To Insure in Canada in 2021? ›
Older vehicles often have fewer sensors and less modern features that are less expensive to replace which can help the insurance rates to be cheaper. Keep in mind however, that newer vehicles often have better safety ratings which help reduce the personal injury portion of the policy.
Which car will have the cheapest insurance? ›- Cheapest minivan: Dodge Grand Caravan.
- Cheapest SUV: Toyota Highlander.
- Cheapest Pickup: Toyota Tacoma.
- Cheapest Sedan: Nissan Versa.
- Cheapest Coupe: Toyota Prius.
- Cheapest Crossover: Subaru Forester.
- Chevrolet Cruze.
- Volkswagen Golf.
- Toyota Camry.
- Kia Forte.
- Nissan Sentra.
- Volkswagen Jetta.
- Dodge Caravan.
- Kia Sorrento.
Older vehicles often have fewer sensors and less modern features that are less expensive to replace which can help the insurance rates to be cheaper. Keep in mind however, that newer vehicles often have better safety ratings which help reduce the personal injury portion of the policy.
Is it cheaper to buy a car in Canada or USA? ›Car Prices Are Generally Higher In Canada
The reasons behind this vary. However, the main reason is that more vehicles are manufactured in the US and then imported to Canada by the manufacturers. This automatically increases the price.
Honda Civic car insurance is higher than the average cost for all Honda models. The average annual premium is $2,378, based on customer quote data collected from 2022 (January 1 to October 31) for Ontario drivers with a G licence, clean record and for standard coverage.
Are older cars cheaper to insure? ›Are older cars cheaper to insure? Yes, most older cars are cheaper to insure, especially in terms of comprehensive and collision insurance. Cars lose value as they age, so the potential insurance payouts after an accident drop as well. This is not the case with many classic or collector cars.
Are Toyotas expensive to insure? ›Insuring a Toyota costs an average of $1,226 annually. This premium is lower than average compared to other makes and models. MoneyGeek broke down auto insurance costs for major Toyota models by model year and driver age to help drivers find the best option for them.
What is basic car insurance in Ontario? ›Third-party liability coverage is your basic level of car insurance coverage. It is mandatory all across Canada. Liability protects drivers from legal responsibility in the event that they cause property damage or bodily injury to a third party.
Where are the highest car insurance rates in Canada? ›Car insurance in Ontario is generally more expensive than in other Canadian provinces, except British Columbia. Ontario residents typically pay more for car insurance than other Canadians despite statistically safe roads with low accident rates due to several factors, including severe weather and insurance fraud.
Are SUVs cheaper to insure than cars Ontario? ›
SUVs are the least expensive to insure compared to most sedans, trucks, and sports cars. They are an affordable option because of their safety features and reliability. The cost for SUV insurance depends on many factors such as the make, model, year, safety rating as well as your driving record, age, and more.
What age does car insurance go down Canada? ›In terms of age, you can expect to start seeing lower costs once you turn 25. This is particularly the case if you started driving when you were 16. Insurers also tend to drop premiums again once you turn 40 and 50. That is if you have a clean driving record.
How much does the average Canadian spend on car insurance? ›Recent industry data shows that Canadian drivers pay an average of $1,300 to $1,800 in car insurance premiums annually. The amount you pay, however, can be significantly higher or lower, depending on where you live.
Why are used cars more expensive than New Canada? ›A combination of supply chain issues, material shortages and changing demand have resulted in rising prices and long waits for Canadians hoping to purchase a new or used vehicle.
What is Canada's number one car? ›1. Ford F-Series: 114,729, down 1 percent. Ford's full-size pickup truck market share dropped by a point (to 37.3 percent) in 2022, but the F-Series still easily held on as Canada's top truck for a 57th consecutive year.
What is the most purchased car in Canada? ›1. Ford F-Series: Unchallenged as Canada's top seller since 2009, even restricted availability couldn't put the brakes on the popularity of the F-Series, with 30,328 units sold.
What is the #1 car brand in Canada? ›1. Best Canadian Car brand – Ford: 232,709 units sold, down 1 per cent. Although potential year-over-year growth was stymied by a fourth-quarter slowdown, Ford Motor Company's namesake company still managed to gain heaps of market share in 2022 while outselling its nearest rival by more than 57,000 units.
How much tax do I pay on a car from USA to Canada? ›You will pay a 5% tax on the value of the car. You can immediately pay the GST to Customs Agents in Canada when moving it across the border. Note: You will also pay this tax on any new or use vehicle purchased within Canada.
Is it worth moving car from US to Canada? ›Should you import a car from the U.S.? Financially, the answer is very often – no. The expense and work required to import a vehicle is substantial. However, if you are making a purchase of a vintage car or another vehicle with sentimental value, then keep reading.
What is the cheapest state to buy a car in Canada? ›Cheapest provinces to buy a car in Canada
The cheapest place to buy a car in Canada is in the Atlantic region, according to the AutoTrader December 2022 Price Index. The 2022 data reveals that the average price of a new car in the region is $53,900, with used cars selling for an average of $44,935.
What makes a car insurance cheaper in Ontario? ›
Your driving history
Ontario car insurance rates are strongly related to an individual's driving history. Cars driven by experienced drivers with a positive driving record will always pay less than those who are less experienced or who have a checkered driving history.
Canadian Pricing
There are four trim levels of Civic Sedan — LX ($26,835), EX ($29,150), Sport ($30,250) and Touring ($33,350).
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Insuring two cars costs more than insuring a single vehicle but there are options — such as multi-vehicle discounts, usage-based policies, and specialty car insurance — that can help reduce the cost.
Why is insurance so high on old cars? ›Consider repair and replacement costs: Older vehicles can cost more to insure because they can be more expensive to repair due to hard-to-find parts. Consider how much you'll need to spend to make repairs to your older car.
Are newer cars cheaper or more expensive to insure? ›You may have heard newer cars cost more to insure. However, the cost of car insurance depends on many factors, including the make and model of the vehicle you're insuring and your driving record. These factors may influence the cost of insuring a new car.
Are Subarus expensive to insure? ›The average annual cost of insuring various Subaru models is below, from the cheapest to the most expensive: Subaru Forester: $1,064 per year. Subaru Outback: $1,121 per year. Subaru Impreza: $1,232 per year.
Is a Toyota RAV4 expensive to insure? ›Insuring a Toyota RAV4, regardless of its model year, is inexpensive compared to most other makes and models. It costs an average of $1,181 per year to insure a Toyota RAV4, which is $247 less per year than the national average.
Is it cheaper to insure a car or SUV? ›So, while SUVs generally are more expensive to insure than sedans, you may find that premiums will vary from model to model, depending on how the vehicle rates on these (and, potentially, other) factors. Therefore, it may be prudent to seek out an SUV that performs well on crash tests, and is less likely to be stolen.
Can you keep a car without insurance in Ontario? ›Keeping a vehicle without auto insurance
It is not against the law in Ontario to have a vehicle you are not currently driving without having auto insurance.
Is it mandatory to have car insurance in Canada? ›
You must have car insurance if you own a car or other vehicle. Car insurance may protect you from: having to pay to repair your car or other vehicle if it's damaged or in an accident. liability claims if you're held responsible for an accident causing damage to another person's vehicle or injury to other people
Do you need insurance to drive in Canada? ›It is illegal to drive without car insurance in Canada. If you own a car, you must get insurance coverage. If you regularly drive a car that belongs to a relative or friend, you should make sure you're listed on their car insurance plan.
How can I pay less for car insurance in Canada? ›- Know what coverage you need – don't pay for coverage you don't need. ...
- Consider a policy with higher deductibles. ...
- Ask about discounts. ...
- Check out defensive driving courses. ...
- Verify how you are using your vehicle. ...
- Build a good driving history free of accidents and convictions.
Most auto insurance companies will insure your Canadian car in the U.S. for up to 6 months, but some providers may provide coverage for longer or shorter periods, so be sure to check your insurer's time limits and restrictions for how long you can have your car outside Canada.
How much is car insurance in BC per month? ›What's the average price of car insurance in B.C.? According to the Insurance Corporation of British Columbia (ICBC), the province's average car insurance premium was $1,199 annually, or $99 per month, in the 2021/2022 fiscal year.
Is car insurance more expensive in Ontario or Alberta? ›A ranking of the provinces based on their median annual auto insurance premiums, from highest to lowest, is as follows: Alberta - $3,151. Nova Scotia - $2,491. Ontario - $2,299.
Is it better to have a car or SUV? ›While cars offer speed, maneuverability, and more luxury options, SUVs have the benefit of more cargo space and family-friendly seating. Cars also tend to get better gas mileage, but if you're looking for off-roading, you'll probably want an SUV.
Are sedans cheaper to insure? ›Sedans are among the least expensive cars to insure, with cheaper average rates than those of SUVs and luxury cars.
Does car insurance go down after 50? ›Auto insurance generally gets more affordable as drivers get older and gain more driving experience. The average 50-year-old pays $2,698 per year, or $225 per month, for car insurance.
How much is health insurance in Canada per month? ›On average, private healthcare premiums for a household in Canada cost around C$4,000 per year. That equates to about C$333 per month. The average family in Canada will pay C$7,374 per year for public health insurance, according to the Fraser Institute – or C$615 per month – and that payment isn't optional.
How much is the car insurance in Toronto? ›
Toronto is one of the most expensive cities for car insurance in Ontario with premium costs being about 138% higher than the provincial average. The average cost of car insurance in Toronto in 2022 is about $2000 per year or $170 per month.
Is owning a car expensive in Canada? ›Across Canada, the total cost of ownership for a car is approximately $1,077 per month when you include all your car payments, gas, maintenance, and auto insurance costs. Experts recommend that your car expenses should not exceed 15% to 20% of your monthly take-home pay.
What is the average monthly car payment in Canada? ›That depends on a number of factors. Many Canadians will pay between $400 and $800 per month for their car loans. Your average car payment in Canada will be determined by factors such as your car price, repayment term and interest rate.
How much should I pay for a car Canada? ›The 10% to 15% rule gives you a general guideline to estimate how much car you can afford based on your salary. The rule states that the total operating cost of a car should fall between 10% and 15% of your annual income.
Will car prices drop in 2023 in Canada? ›There is good news on the horizon in 2023, however. J.P. Morgan estimates that prices for both new and used vehicles are set to decrease as supply chain issues abate and inflation is poised to keep easing.
Should I buy a car now or wait until 2023? ›Americans planning to shop for a new car in 2023 might find slightly better prices than during the past two years, though auto industry analysts say it is likely better to wait until the fall. Since mid-2021, car buyers have been frustrated by rising prices, skimpy selection and long waits for deliveries.
How often does the average Canadian buy a new car? ›New vehicle buyers in Canada on average are keeping their vehicles 6.4 years and driving them 116,797 km before trading them in on a new model, though the time and distance differ significantly by type of car.
What is the cheap price of car in Canada? ›- Most Affordable Car: Mitsubishi Mirage.
- Most Affordable Crossover: Hyundai Venue.
- Most Affordable SUV: Chevrolet Equinox.
- Most Affordable Midsize Pickup: Ford Ranger.
- Most Affordable Full-size Pickup: Ram 1500 Classic.
- Most Affordable Minivan: Kia Carnival.
Cheapest provinces to buy a car in Canada
The cheapest place to buy a car in Canada is in the Atlantic region, according to the AutoTrader December 2022 Price Index. The 2022 data reveals that the average price of a new car in the region is $53,900, with used cars selling for an average of $44,935.
Hence, Mitsubishi Mirage is the cheapest car around. It comes powered by a 1.2-litre 3-cylinder engine that makes 78 hp and 74 lb-ft of peak power and torque. It is mated to a 5-speed manual transmission. It has a price tag of $15,498 CAD.
Is it cheap to own a car in Canada? ›
Across Canada, the total cost of ownership for a car is approximately $1,077 per month when you include all your car payments, gas, maintenance, and auto insurance costs. Experts recommend that your car expenses should not exceed 15% to 20% of your monthly take-home pay.
How much is a normal car in Canada? ›The average MSRP for a new car in Canada is just over $45,000. However, this number will differ based on the type of car you're interested in. For example, a luxury vehicle will typically have a higher MSRP compared to a more standard model.
How much should I spend on a car Canada? ›Ideally, your car payments should be no more than 10% to 15% of your annual income based on this budgeting strategy. For instance, if you earn $50,000 per year, your car payments shouldn't exceed $5,000 to $7,500 per year. This means your monthly budget for car payments would range between $416 to $625.
Can a U.S. citizen buy a car in Canada? ›It is totally legal for a foreigner to purchase a vehicle in Canada, even as a tourist. Getting car insurance is another matter. Some provinces let you drive with a foreign driver's license for three months, and other provinces for a year.
Can non resident buy car in Canada? ›It is completely legal for a foreigner to purchase a vehicle in Canada, even if on a tourist visa. What is this? For the most part the only thing you will need is a valid international drivers license, some money and somewhere you can put down as a local address.
Is it worth buying second hand car in Canada? ›A used car can offer better value with lower monthly payments and lower insurance rates. Buying used can also help you avoid many of the additional fees attached to new cars, like freight and extra taxes (depending where you live).
What time of the year are cars cheapest in Canada? ›Towards the end of the year
While dealers are eager to meet their yearly sales quotas, you'll enjoy special deals and offers at this time of year. We recommend visiting the dealership during the last two weeks of December, but these sales could begin as early as the fall and continue throughout the winter.
The benefits of waiting to buy a used car
Many vehicle sellers offer better deals over the winter for two main reasons. Because spring and summer are busier months in terms of overall vehicle sales, private sellers and dealers are well-advised to offer cost-savings in the off-season to help keep their inventory moving.
You can bring your vehicle into Canada temporarily as a visitor or temporary resident. Your vehicle doesn't have to meet Canadian standards and must be only for your own use. You can also bring your vehicle for personal use while you're in Canada on a work permit or student visa.
What is the average car payment per month in Canada? ›How much is the average car payment in Canada? The average Canadian paid between $400 to $800 per month for their car payment — a monthly cost that does not reflect the increased cost of borrowing due to rising interest rates in the latter half of 2022.
How much does it cost to buy a used car in Canada? ›
The average price of a used car in Canada is more than $35,000 and rising – a whopping nearly 50 per cent increase over a year's time, according to the Canadian Black Book. Young said lower-income Canadians who need a vehicle are feeling it.