Which vehicles are cheapest to insure by fuel type in Canada in 2026?

Fuel economy and purchase price often drive vehicle‑buying decisions, but insurance premiums can significantly affect the true cost of ownership.

Diesel vehicles are the cheapest to insure in Canada among the models analyzed, while electric vehicles are the most expensive. Rates.ca quoter data shows diesel pickup trucks carry the lowest annual premiums, gasoline vehicles fall in the middle, and electric vehicles have the highest insurance costs—largely due to higher repair expenses and specialized components.

That cost gap reflects how insurers assess risk. While fuel type plays a role, auto insurance pricing is driven by factors such as vehicle size, repair complexity, theft risk, and how specific models are classified.

We used the Rates.ca Insurance Quoter to analyze lowest‑priced auto insurance policies for the most commonly registered and top‑selling 2025 vehicle models in Canada from each fuel type. Our results are based on industry sales data from DesRosiers Automotive Consultants and vehicle registration patterns published by Statistics Canada.

The lowest‑price policies represent the most affordable way to fully insure each vehicle, including collision and comprehensive coverage with $1,000 deductibles and $1 million in third‑party liability.

Which diesel, gasoline, or EV models have the cheapest auto insurance?

Here’s the breakdown:

Why are diesel vehicles cheaper to insure?

Diesel vehicles make up a small and highly concentrated segment of the Canadian market. According to Statistics Canada, diesel registrations typically totaled fewer than 25,000 vehicles per quarter through 2025, representing only a small fraction of overall vehicle sales. Nearly all diesel vehicles sold in Canada are pickup trucks, rather than passenger cars.

“Heavy‑duty diesel trucks are usually older, owner‑maintained, and insured with higher deductibles,” says Monique Marcotte, insurance broker with MacDougall Insurance in Sudbury. “That can sometimes keep premiums lower, even though the vehicles themselves are larger.”

Still, because diesel vehicles sit outside the mainstream, premiums tend to rise quickly as coverage levels increase, especially for newer or higher‑value models.

Read next: Should you pay your insurance premium annually or monthly?

Gasoline vehicles – mid‑range insurance premiums

Despite ongoing electrification efforts, gasoline vehicles continue to dominate Canada’s vehicle market.

Statistics Canada data shows that gasoline‑powered vehicles accounted for the clear majority of new vehicle registrations—about 67% of all new vehicles in October 2024 (296,408 out of 443,402 registrations)—and roughly two‑thirds of the market in every quarter of 2024 and 2025.

That scale gives insurers the deepest pool of claims and repair data to draw from when pricing risk.

Learn more: How much does it cost to own a car in Canada?

Why do electric vehicles cost more to insure?

Electric vehicles tend to cost more to insure because they are more expensive to repair and require specialized servicing. According to Statistics Canada, battery‑electric vehicles (BEVs) typically registered between 26,000 and 30,000 units per quarter through most of 2025, remaining a smaller and more specialized segment than gasoline vehicles.

Within the EV market, sales are concentrated in compact SUVs and crossovers that rely on certified repair facilities and high‑cost components. Under collision and comprehensive coverage, insurers face higher loss costs for vehicles with high‑voltage batteries, integrated sensor systems, and limited parts availability.

Those repair‑related expenses widen premium differences compared with gasoline and diesel vehicles, even when drivers and coverage levels are the same.

Read more: Survey: 30% of Canadians interested in EVs, but cost remains a barrier in 2026 

Are EV insurance costs a concern for Canadians?

In day‑to‑day practice, many Canadian drivers still find gas‑powered cars cheaper and more predictable to insure than electric vehicles. A 2026 Rates.ca‑commissioned survey found that insurance costs remain a concern for Canadians considering an EV, even as overall interest grows.

Gas vehicles benefit from established repair networks and long‑standing claims data, which helps keep insurance pricing more stable. Until EV repair and insurance costs narrow that gap, gas‑powered cars are likely to remain the easier option for drivers focused on keeping premiums low.

Which factors affect your car insurance premium

There are several factors insurance providers use to determine auto insurance rates, including the driver’s age, driving history, postal code, and previous claims history. Insurers also pay close attention to how likely a vehicle is to be stolen, or require expensive repairs, based on where it’s parked and the make and model of the car itself.

“A luxury vehicle with luxury parts would be more expensive than a base model, like a Honda Civic,” says Marcotte. “Also, how popular the vehicle is – the more vehicles on the road, the more vehicles in accidents, the more data insurance companies have.”

That translates into slightly higher premiums for cars that aren’t as common.

“We’ll see a lot more fluctuation for a Ford 150 or a Dodge Ram than a Chevrolet Impala,” she says.

Read more: Toronto pays far more for auto insurance than other Ontario cities

Which car should you buy? The one you want

Despite the differences in premiums, the make and model of a car are just one indicator of its insurance premium.

“The advice that I give to my clients when their hearts are dead set on a vehicle is: Buy the vehicle that you want,” says Marcotte. “You might see your insurance go up, but we can move companies at renewal or apply additional discounts. I would hate for someone not to get a vehicle that they want, just because their insurance might go up a bit.”

But what if you’re not dead set on a particular vehicle?

For a parent purchasing a vehicle for their child, she says, “depending on their budget, a larger sedan is usually a bit friendlier on insurance.” 

The X Factor: Your insurance company

Beyond the make and model, driver history, location, and parking conditions of the car, there’s another hidden X factor to determining your rate. That’s your insurance company. No insurance company is the same when it comes to setting their rates.

“Insurance rates are governed by Ontario, but every insurance company gets to file their own rules that get approved,” says Marcotte.

She points to insurance companies that appeal to younger drivers by offering first year discounts and Good Student discounts. But a young driver who approaches another insurance company focused on an older demographic of more established drivers with a home and multiple vehicles, their rate might be doubled.

“We work with about 15 different companies,” she says. “The prices are always different across the board, but they’re all [based on] the same information.”

One way to ensure that you are getting the lowest auto insurance rate for your vehicle and coverage requirements is to compare rates from multiple insurance providers.