Thinking of upgrading to a 2024 Dodge Ram? Prepare to pay 408% more for comprehensive insurance

For the past few years now, rampant auto theft has cast a larger and larger shadow over neighbourhoods and parking lots across Canada. According to Équité Association, a car is stolen every five minutes in Canada – in 2023 alone, 70,000 were stolen, as reported from country-wide police data.

But as common as it is, thieves typically target a certain type of car – usually new, high-end, typically larger models. Unfortunately, these are also the same cars that consumers gravitate towards.

So, if you’re in the market for a Honda CR-V, Dodge Ram or Lexus RX, how much more will you pay for insurance?

The simple answer? A lot.

In comparing new models with those of six years ago, RATESDOTCA found that insurance premiums for the most stolen vehicles are up to 60% higher for 2024 models compared to 2018 models. This increase is driven largely by comprehensive coverage.

So, if you are planning to buy a new car, expect to pay more than if you went with an older model.

Factor in the high cost of insurance if you want to buy one of these cars

When you're thinking about buying a car, knowing how much you’ll pay for insurance is important.

While it’s true that the more expensive a car is, the more it costs to insure, insurance premiums also depend on factors like how often that type of car gets stolen, how much repairs cost, and the car’s safety features.

It also heavily depends on the driver themselves – how many claims they’ve filed, how long they’ve been driving, where they live, and where the car is parked overnight.

But there’s another factor that can significantly increase a car’s insurance premium – its likelihood of being stolen.

Owners of cars that routinely appear on most-stolen lists now pay thousands of dollars more a year to insure their cars, compared to people who own other models.

And depending on where you live in Canada, those stolen vehicles boil down to the same handful of cars.

In 2023, the cost of insurance claims for replacing stolen vehicles in Canada reached a record-breaking$1.5 billion, according to data released by Insurance Bureau of Canada (IBC)

Those costs are then passed down to insurance customers through rate hikes, surcharges, and higher premiums for vehicles more likely to be stolen.

Mark Whinton, a mechanic and auto forensic investigator, says that because most stolen vehicles are 2020 models or newer, there’s a compelling case to be made for purchasing a used car over a new one.

“Your [used] car won’t be stolen,” he says.

It costs 60% more to insure a new Dodge Ram than a used one

Using a hypothetical driver profile*, RATESDOTCA compared insurance premiums for the 2024 versions of the most stolen vehicles in Ontario with their 2018 counterparts.

When comparing a 2018 model Toyota Highlanders with a 2024 model, the more recent car cost 46% more to insure.

Those increases are driven largely by comprehensive insurance, the optional piece of insurance that protects your car from damage outside of your control – think hailstorms, or fallen trees, or thefts.

For example, the price to insure a 2018 Dodge Ram costs the hypothetical driver $3,326 a year to insure, with $406 going towards the comprehensive portion of their insurance.

If that same driver were to purchase a 2024 Dodge Ram, they would be looking at an annual insurance premium of $5,351, with $2,063 going towards comprehensive coverage.

The overall insurance premium for the more recent model was 61% more expensive than the 2018 model, while the comprehensive portion of their insurance premium was – are you ready for it? — 408% more expensive.

While the Dodge Ram is a fairly extreme example, the pattern still holds across all the most stolen vehicles in Ontario. When comparing recent models of these cars with their predecessors of just handful of years ago, the comprehensive portion of their insurance increases at a much higher rate than the overall insurance premium.

Of course, you could theoretically save a lot of money simply by not having comprehensive insurance. But since these cars are often targeted by thieves, comprehensive insurance is a no-brainer. After all, paying a few thousand dollars more per year in insurance is better than having to buy a whole new car if your current one gets stolen.

Read more: Ontario car insurance rates jump 12% in just over a year

Meanwhile, cars that aren't usually stolen saw smaller changes in their insurance costs. The Honda Civic only went up by 5%, which is pretty small compared to others. The Volkswagen Jetta saw barely any increase at all, while the Mazda CX-5's premiums rose by just 11%.

In addition to higher comprehensive insurance costs, owners of the cars on the most stolen list may be subject to an additional high-theft surcharge.

The theft surcharge is an extra fee added to car insurance for current models of highly stolen cars.

“Some people might want to consider an older vehicle that would not be subject to some of the high theft surcharges,” says David Mayer, director of insurance of RATESDOTCA.

He says companies are surcharging Canadians buying commonly stole vehicles anywhere from $300 to $500.

Read more: Most common insurance claims in Canada

Location, location, location matters for car insurance, too

Where you live changes how much you pay for comprehensive coverage, too. We compared premiums for two models of Dodge Rams across different towns and cities in Ontario and found that if you live in Sudbury, you were paying 101% more insurance (575% more going to comprehensive coverage) to own a newer model.

If you live in Hamilton, however, your insurance premium would only increase by 66% (with comprehensive coverage increasing by 131%) if you opt for the latest model.

Below, we've compared the insurance premium differences across different Ontario cities for both the Dodge Ram (a commonly stolen car) and the Volkswagon Jetta (a less stolen car).

What a difference six years makes

Of course, even a 2018 version of a car, even if it’s the same model, is still a fundamentally different car.

In some peoples’ estimation, an older car may be no worse than a new car, or sometimes even better.

“You couldn't do better than to buy a used car for every reason I can think of,” says Whinton, who’s solidly pro-used car. “Most millionaires buy used cars. They buy for value. They don't necessarily buy for prestige. And that's a big factor in today's automotive a purchase decisions — when you buy a car, it's for prestige.”

In terms of life cycle, buying used also doesn’t necessarily make a huge difference, he adds.

“Now, these cars last, and the testimony to that is the average age of our vehicle fleet in Canada is 10 to 12 years old,” says Whinton.

However, others see things differently. Jodi Lai, the editor-in-chief of AutoTrader says that eight or even six-year-old cars are “like an eternity in car years.”

“New cars have become a lot more connected, efficient and safer than ever,” she says. These cars feature techy new updates like Bluetooth for hands-free calls and music, as well as backup sensors and cameras to help drivers see behind them.

Also, “cars are more fuel efficient now compared to eight years ago,” says Lai.

She mentioned that some features that were popular six years ago are starting to fade away, getting swapped out for newer tech.

“(These days) every single car comes with a USB port,” says Lai. “Like CD players used to still be available eight years ago or an auxiliary jack where you could plug in your iPhone or iPod or something like that and play music, but you don't really see that anymore because all the connectivity is wireless these days.”

“I think if you're saving money on insurance with an older car, you might be missing out on a lot of the added comfort and convenience features that a newer car might offer,” says Lai.

Are older cars harder to hack?

However, new gadgets and gizmos are not without their own risks, argues Whinton. He believes that used cars are safer in the sense that they don’t get easily hacked like newer models.

For example, in June, PBS News reported that "thousands of car dealers across North America have been forced to revert to pen and paper" after a software company was hit by several cyberattacks.

CDK Global, the company affected, provides software for about 15,000 car dealerships in the U.S. and Canada to manage their computer systems.

“You can't do that with older cars,” says Whinton.

However, it’s an issue that’s continually being looked at by car manufacturers.

In fact, while new cars with advanced features make it more appealing for a thief to go after, Lai argues some older cars might also be easier to steal because they don't have all the advanced safety features that modern cars do.

For example, a lot of modern cars, like the Honda CR-V, have features like integrated dashcams in them. If these dashcams detect any suspicious activity, it will then record.

“I think a lot of thieves see that as a theft deterrent because that means they're going to get caught,” Lai says.

Modern cars also have GPS tracking on them, which makes it easier for law enforcement to locate and catch thieves.

What’s the market like for used and new cars?

Whether you’re looking at a new car or used, it’s a good time to buy a car.

Three or four years ago, the industry was still coping with supply chain shortages (particularly with microchips, which are critical components in modern cars) and rising inflation.

The shortage lasted about three to four years and had a big impact on both new and used car markets during that time.

However, as of a few months ago, car inventories have steadily recovered.

According to AutoTrader’s June Price Index, the price of new cars has largely stabilized, with the average car costing $66,807 (down from a peak of $67,817 in September 2023). Meanwhile, the used car market in Canada has seen a slight decline in demand since the third quarter of last year, partly due to increased availability of new cars.

The current price of a used car is $36,342, down 8.3% from the previous year – the most notable decreases have been felt in the luxury market, where prices have declined 10.4% year over year.

That means that for people looking for specific luxury models, like some of the cars on the most stolen list, used cars are a good choice. Especially if you consider the ongoing costs of insurance.

Read next: Tips for buying a used car

New, used, whatever – Just buy the car you really want

However, whether the decision to go with a new vehicle or a used one ultimately comes down to finding the right balance between features and costs. Do you want the latest model with all the cool technology, or are you okay with an older car that's easier on your budget?

“It all really depends on what the consumer values and what their use case for the vehicle is and know how much they're willing to spend for Insurance,” says RATESDOTCA’s David Mayer.

Again, many of the cars that thieves want are higher end models also desired by consumers – many of whom don’t see a problem paying for the privilege.

“If you're willing to spend $175,000 on a vehicle, a $500 surcharge might not be as consequential as if you're spending $30,000 on the vehicle, for example,” he says.

Meanwhile, insurance prices can be mitigated somewhat – Mayer says that most companies will waive the surcharge if the person purchasing the vehicle is willing to pay for an anti-theft device like getting a tag system or a driving wheel lock.

Also, new cars often come with the latest safety features and technology, making them appealing if you’re looking for a smooth and safe drive. They may even bring down the cost of insurance somewhat.

You can also compare rates online to make sure that you’re always getting the best deal on car insurance, no matter what vehicle you opt for.

Lastly, if you’re worried about the potential cost of insurance on your next car, there’s a simple solution for that.

“The other option is avoiding these vehicles that are getting surcharged by insurance companies,” says Mayer.

Imagine that!

Read next: Auto insurance outlook for 2024