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Buying a car? Your guide to the cheapest cars to insure in Ontario.
When it comes to buying a car in Canada, many factors influence the price of your vehicle – but these costs don’t just stop once you drive it off a lot.
Perhaps more complicated than calculating the cost a new or used car (already a doozy on its own) is pricing the insurance to keep it fully protected.
One of the most influential factors that affects your car insurance rate is the vehicle you drive. Two of the main things insurance providers take into consideration when it comes to your vehicle are its safety rating and the likelihood of it getting stolen.
Every vehicle model is given a Canadian Loss Experience Rating (CLEAR). This rating takes into account to these and other factors, such as claims costs, which all help determine your auto insurance premium.
As you shop for your next – or your first - vehicle, it’s important to keep safety and security in mind. However, it’s also useful to begin your search with well-known, budget-friendly models that suit your lifestyle.
We’ve partnered with AutoTrader.ca to compile a list of the most commonly searched cars in Canada, broken down by type and whether they’re new or used, as well as how expensive they are to insure.
Hoping to save money on your next car purchase on, and off, the lot? Look no further.
By now, anyone who’s been planning to trade up knows that these past few years have been rocky for the auto industry. To briefly recap, pandemic-related supply chain disruptions and a major microchip shortage led to far fewer cars being manufactured – according to Baris Akyurek, vice president of Insights and Intelligence at Auto Trader, an estimated 1.5 million fewer new cars were sold between the years 2020 and 2023.
“Those 1.5 million cars will never exist in the market,” he says. “And when there’s fewer new cars sold, down the line, it impacts the used car availability.”
As a result of the deeply reduced number of cars on the market, not only did prices skyrocket for new cars, but consumers increasingly looked to the used car market for models they couldn’t find new. And with more demand came higher prices for used cars.
Between March of 2022 to March 2023, the average price of a financed used vehicle was just over $39,000, an increase of about 5% from the previous year; meanwhile new cars shot up 17.4% year over year to $61,821.
But now, in the second quarter of 2024, the car market has begun to rebound in a big way.
Inventory levels of new cars are getting closer to pre-pandemic levels, and prices are starting to level out – as of June 2024, the price of an average new car was $66,907, an increase of only 0.8% from the previous year.
And changes in the new car market inevitably influence the used market.
“Prices are the manifestation of what happens in the market,” says Akyurek, “And looking at the June data, what we are seeing is that prices for used vehicles are down by 8.3% on a year over year basis.”
That means that the average price of a used car stands at $36,342, with further reductions expected.
These are the most searched used cars on AutoTrader.ca. The premiums shown are for 2020 models for all used cars.
| Rank | Vehicle | Lowest annual premium |
|---|---|---|
| 1. | Honda Civic | $3,751 |
| 2. | Ford Mustang | $3,130 |
| 3. | Toyota Corolla | $3,299 |
If you cast your eyes around any highway, you’re likely to notice that SUVs reign supreme on today’s roads rather than smaller cars, like sedans. According to Akyurek, the trend towards large vehicles has been building over the past 10 to 15 years, and SUVs now make up 85% of the overall market share.
Here are the most searched used SUVs, and what you can expect to pay to insure them:
| Rank | Vehicle | Lowest annual premium |
|---|---|---|
| 1. | Toyota Rav4 | $2,723 |
| 2. | Honda CR-V | $3,206 |
| 3. | BMW X5 | $3,639 |
Typically, the most sought-after cars tend to be the cheaper ones – especially over the past few years, as households have walked the gauntlet between high inflation and high interest rates.
Unsurprisingly, the auto industry has seen a shift in demand from luxury vehicles to more affordable mainstream models, such that luxury car prices are declining at a faster rate than other models.
However, just because the sticker price is lower than expected on a luxury vehicle, it doesn’t mean the insurance premium will be. Nicer cars come with harder to source and repair parts, and higher theft rates, which impact your insurance.
The exception, however, is the classic Corvette. Despite being a traditionally harder-to-insure sports car, the American-made Corvette, with its relatively affordable sale price, and popularity among older, more experienced drivers, actually costs less to insure than any other car on this list.
| Rank | Vehicle | Lowest annual premium |
|---|---|---|
| 1. | Porsche 911 | $6,216 |
| 2. | BMW 3-Series | $3,950 |
| 3. | Chevrolet Corvette | $2,512 |
| 4. | Mercedes-Benz C-Class | $3,681 |
| 5. | Mercedes-Benz E-Class | $4,124 |
Trucks have been swept along with the growing appetite for large cars. The top-searched vehicle on AutoTrader.ca is the Ford F-150, a trend that has persisted since the end of 2022. Moreover, larger, heavier vehicles offer more protection in a collision than smaller ones, which is why some insurance companies may offer cheaper rates for pickup trucks and SUVs.
These vehicles tend to have very durable frames and are unlikely to collapse in on themselves following a collision, ultimately keeping the occupants safer than the lighter frames used on compact cars.
Read more: Truck versus SUV: which is right for you?
| Rank | Vehicle | Lowest annual premium |
|---|---|---|
| 1. | Ford F-150 | $2,657 |
| 2. | Toyota Tacoma | $2,844 |
| 3. | Toyota Tundra | $2,885 |
Aside from the make and model of your car, insurance companies also consider the age of the car when assessing its safety. Newer cars have more safety features, but that also makes them more expensive to repair and replace. That’s why different model years of the same car (say, the hugely popular Hyundai Elantra) may yield slightly different insurance premiums.
Each insurance company will assess the likelihood of you making a claim, and how much it is likely to cost, before giving you a quote for car insurance.
We looked up the top ten most searched vehicles on the RATESDOTCA auto insurance quoter and their corresponding insurance premiums.
| Rank | Vehicle | Lowest annual premium |
|---|---|---|
| 1. | 2023 Tesla Model Y | $4,072 |
| 2. | 2023 Tesla Model 3 | $3,531 |
| 3. | 2023 Hyundai Elantra | $3,194 |
| 4. | 2020 Hyundai Elantra | $3,298 |
| 5. | 2020 Toyota Corolla | $3,341 |
| 6. | 2023 Toyota Rav4 | $2,723 |
| 7. | 2022 Hyundai Elantra | $3,278 |
| 8. | 2024 Honda Civic | $3,844 |
| 9. | 2020 Honda Civic | $3,751 |
| 10. | 2024 Hyundai Elantra | $3,259 |
Topping the list were two Teslas: the Model Y and the Model 3. They were also the most expensive to insure. While these aren’t the brand’s highest-end models, they do come with a higher price tag than other entry-level EVs.
However, what you pay in added insurance costs, you get back in fuel savings.
Plus, because of some lingering concerns over charging infrastructure and the sticker price of EVs, demand has come down slightly for EVs, which has impacted prices.
According to AutoTrader.ca’s data, new EV prices are down by nearly 15% on a year-over-year basis and used EV prices are down by a similar rate.
Learn more about insurance pricing for EVs and compare rates here.
While vehicle popularity may say something about the car’s performance, and purchase price is important to factor into your budget, choosing a vehicle with an affordable car insurance rate always makes sense in the long run.
Like the cost of gas, which continues to increase, your car insurance premium is an ongoing expense that must be sustainable.
Many of the choices you make when purchasing a vehicle can help save you money on your auto insurance premium. Whether your priority is finding a popular model, an affordable vehicle, or a specific body style and size, consider the risk factors of each option as well as the insurance costs.
But don’t forget that your premium comprises several other factors, including your driving record, insurance history, age, and postal code.
Ultimately, when it comes to cheap auto insurance, there is no substitute for safe, defensive driving. A bad driver in a safe car is still an insurance risk. For the very best deals on car insurance, stick to the rules of the road, maintain a clean driving record, and compare quotes on RATESDOTCA.
We used the following parameters to find out the lowest premium available for each vehicle model (base trim used unless otherwise specified) in Ontario:
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