What Are The Cheapest Cars To Insure?

Aug 31, 2018

If you’re starting on your car purchasing journey, this might be a good time to include research on the cost of insuring your dream car. Researching the cheapest car insurance rates is a great way to rein in your car expenses – especially if you’ve taken out a car loan. This article will help you to understand how your choice of car will influence the insurance rates you’ll pay.


How Are Car Insurance Rates Calculated?

What are the cheapest cars to insure?

Before we get into the which cars are the cheapest to insure it’s important to understand that there are many factors used to calculate a driver’s car insurance rates. Things like where you live, how much you drive and how good of a driver you are also impact how insurance companies calculate your overall car insurance rates.

If you are a driver in Ontario, especially the Greater Toronto Area you probably already know this as rates there are the most expensive in Canada.

These factors include :

  • Driver’s Personal Information : Things like age, years licensed and where you live can have a big impact on rates.
  • Driving Record : Having a clean driving record with no tickets or at-fault accidents will ensure you get the cheapest rates.
  • Driving Habits : The more you drive the more chance you have of being in an accident so those who drive a lot will pay more for their insurance.
  • Insurance History : As you build your insurance history and pay your premiums on time your rates will get cheaper.
  • Type Of Car Driven : Cars that are safe, not easy to steal and less expensive to repair have lower rates.

Learn more about how car insurance rates are determined.


Some Cars Are Cheaper To Insure Than Others

Certain types of cars, models and makes are cheaper to insure than others. Insurance companies track all the costs involved in insurance claims and can link the types of costs back to specific car models.

Here are the car related factors that impact how cheap a car is to insure :

  • Type Of Car : What is the car designed for? Is it a performance or family car?
  • Claims Costs : How expensive it to repair or replace the car?
  • Theft : Is the car more likely to get stolen?
  • Safety : Does the car have a high safety rating?

We’ll get into this in more detail later in the article.


What Is The Cheapest Car To Insure?

The cheapest car to insure will change over time. As new vehicle models become available and as insurers adjust how they determine insurance rates, the cost to insure some vehicles will go up or down.

The cheapest car to insure will also depend on you – your driving history, age, number of insurance claims. So, even though a particular vehicle may be considered the cheapest to insure, it may not necessarily be cheap for you to insure. Always shop around and compare car insurance quotes to get the cheapest rates.


Which Car Has The Cheapest Insurance?

Based on the annual lists of the top 10 cheapest cars to insure, the Honda Odyssey is consistently ranked as the least expensive to insure, followed closely by Jeep Wrangler, and the Honda CR-V. In terms of cars, smaller vehicles such as the Toyota Prius, Chevy Cruze, and Nissan Versa tend to have the cheapest auto insurance rates.


Top 10 Cheapest Cars To Insure

We’ve included the Top 10 lists of the cheapest car to insure for the last three years as reported. SUVs, crossovers and mini vans top the lists as the cheapest to insure with the Honda Odyssey and Jeep Wrangler Sport 4WD topping the lists.


2018 Cheapest Cars To Insure in Ontario

According to leasecosts.ca, here are the cheapest 2018 model cars to insurance in Ontario :

  1. Toyota Prius C Hybrid Automatic 2WD
  2. Chevrolet Cruze LS Automatic 2WD
  3. KIA Sedona L Automatic AWD
  4. Nissan Versa Note S CVT 2WD
  5. Ford Focus Electric Automatic 2WD
  6. Hyundai Elantra LE Automatic 2WD
  7. Chevrolet Cruze Hatchback Automatic 2WD
  8. Toyota Tundra Reg Cab Automatic 2WD
  9. GMC Canyon SL Crew Cab Automatic 2WD
  10. Jeep Wrangler


2017 Cheapest Cars To Insure

Cheapest cars to insure in 2017

According to Forbes Online Magazine, here are the cheapest cars to insure in 2017 :

  1. Honda Odyssey
  2. Jeep Renegade Sport 2WD
  3. Jeep Wrangler Black Bear 4WD
  4. Honda CR-V
  5. Jeep Compass 2WD
  6. Subaru Outback 2.5L AWD
  7. Jeep Cherokee Sport 2WD
  8. Buick Encore 2WD
  9. Jeep Patriot Sport 2WD
  10. Subaru Forrester 2.5i AWD


2016 Cheapest Cars To Insure

According to Forbes Online Magazine, here are the cheapest cars to insure in 2016 :

  1. Honda Odyssey LX
  2. Honda CR-V LX
  3. Dodge Grand Caravan
  4. Jeep Patriot Sport 2WD
  5. Jeep Wrangler Sport
  6. Jeep Compass Sport 2WD
  7. Ford Escape S 2WD
  8. Buick Encore Sport Tour
  9. Jeep Cherokee Base 2WD
  10. Nissan Frontier King Cab


2015 Cheapest Cars To Insure

According to Forbes Online Magazine, here are the cheapest cars to insure in 2015 :

Cheapest cars to insure in Ontario

  1. Jeep Wrangler Sport 4WD
  2. Jeep Patriot Sport 2WD
  3. Honda CR-V LX AWD
  4. Dodge Grand Caravan SE Plus
  5. Honda Odyssey LX
  6. Jeep Compass Sport 2WD
  7. Subaru Outback 2.5i AWD
  8. Ford Edge SE 2WD
  9. Smart Fortwo Pure Coupe
  10. Ford Escape S 2WD


SUVs, Crossovers And Minivans Are Generally The Cheapest To Insure

SUVs, crossovers and minivans are “more politely piloted than sports or high-performance luxury cars” according to Forbes’ blogger, Jim Gorzelany. These types of cars are designed for to be families where safety is a top priority.

Also, their drivers are generally more experienced and cautious. Almost all of the cars on these lists fall into this family car category.

Both the Jeep Wrangler Sport 4WD (a SUV) and the Honda Odyssey LX (a minivan) have 5-star safety ratings. This is the highest rating a vehicle can receive from the National Highway Traffic Safety Administration which is an important factor that makes them cheaper to insure.


Cheapest Used Cars To Insure

What Used Cars Are The Cheapest To Insure?

Used cars are generally cheaper to insure than new vehicles as long as they aren't too old. So, if you are looking to save on insurance costs, consider used. According to autobytel.com, here are some of the cheapest used cars to insure :

  • Buick Lucerne
  • Buick LaCrosse
  • Toyota Camry
  • Volvo V70
  • Toyota Avalon
  • Mercury Grand Marquis
  • Volvo S80
  • Mini Cooper
  • Volkswagen Beetle
  • Chevrolet Impala

What Are The Cheapest Used Cars To Insure For Teenagers?

Teenagers, new drivers, and young drivers have the highest auto insurance rates. One way to help lower costs is to drive a vehicle that is cheap to insure.

This often means driving a small to mid-sized car with a good safety rating and affordable replacement parts. It also means getting quotes for vehicles that are commonly featured on the cheapest car to insure list.

Use the lists above and compare car insurance quotes to find the cheapest insurance for young drivers.

What Is The Cheapest SUV To Insure?

SUVs are extremely popular. They are also known for being affordable to insure. Here are some of the cheapest SUVs to insure :

  • Honda CR-V
  • Jeep Wrangler
  • Hyundai Santa Fe Sport
  • Dodge Journey
  • Jeep Cherokee
  • Ford Escape
  • Mazda CX-5
  • Nissan Rogue
  • Chevrolet Equinox
  • Toyota RAV4


What Are The Cheapest Trucks To Insure?

Trucks are popular in Canada. Here are some of the cheapest pickup trucks to insure :

  • Chevrolet Colorado
  • Toyota Tundra
  • Chevrolet Silverado
  • Nissan Titan
  • Nissan Frontier
  • Toyota Tacoma
  • GMC Canyon
  • Ford F-Series
  • GMC Sierra
  • Ram Pickup


Cheapest Sports Cars To Insure

10 Cheapest Sports Cars To Insure

Sports cars generally cost more to insure compared to other vehicles. Insurance can get expensive. If you want to drive a sports car and still get cheaper insurance rates, consider a vehicle from this list of cheapest sports cars to insure from autobytel.com :

  1. 2017 Mazda MX-5 Miata
  2. 2017 BMW Z4 Roadster
  3. 2018 Corvette Stingray
  4. 2017 Subaru BRZ
  5. 2017 Porche Boxter
  6. 2018 Audi TT
  7. 2018 Chevrolet Camero SS
  8. 2017 Ford Mustang GT
  9. 2018 Subaru WRX STI
  10. 2018 Nissan 370Z


Cars With Less Claims Costs Have Cheaper Insurance Rates

Penny Gusner, an expert on car insurance at insure.com summarized the key factor of cheaper rates by saying, “Insurance rates are all about claims – how many and how big. Cars that are cheapest to insure typically are easy to repair OR have fewer claims OR both.”

In general, the more a car costs the more expensive it will be to repair (or replace). The majority of the cheapest cars to insure are reasonably priced with mid-trim levels which helps keep claims costs lower.


What Car Related Factors Contribute To Cheaper Insurance Rates?

There are many car related factors insurance companies use to determine insurance ratings for specific makes and models.

1) Type Of Car Driven

The type of car that people choose to drive often reflects their lifestyle, life stage and what they use the vehicle for. A vehicle such as a minivan or crossover is more likely driven by a married person with children and it is used for transporting children.

Insurance companies predict, based on the statistics that they keep, that people who drive a certain type of vehicle are concerned with safety and drive with caution. This driver behaviour usually results in lower risk of collisions or claims.

2) Higher Safety Ratings

What are the cheapest cars and trucks to insure?

A car’s safety rating impacts the insurance rates for the car. Higher safety ratings translate into cheaper insurance rates. Cars are becoming safer every year with advances in engineering and technology. Safety ratings are based on :

1. Crash Protection : How well does a car protect the people in it in the event of a crash? This where things like airbags, crumple zones and frame design make a car safer. A car’s resistance to rollover is important also.

2. Crash Avoidance : New technologies that can help prevent a crash or reduce its severity make a car safer. These include :

  • Forward Collision Warning
  • Lane Departure Warning
  • Rearview Video Systems
  • Automatic Emergency Braking

Choosing a car with a solid safety rating will help reduce your premiums. For more information on cars and their ratings, you can visit the website for the National Highway Traffic Safety Administration (NHTSA) or safercar.org.

3) Lower Repair Or Replacement Costs

If you purchase a vehicle that has high repair costs (such as the Porsche Cayenne) you will pay higher insurance premiums. Not only are repair costs higher but so are the costs to replace the car if it’s damaged too much to be fixed or if the repair costs exceed the value of the car.

4) Less Likelihood Of Theft

Did you know that in Canada, a car is stolen every 7 minutes ? Car theft is a serious problem and risk for insurance companies. Insurance companies have to transfer some of this cost to the consumer. If you drive a car with a low rate of theft, you will save on your insurance premiums. Adding a theft alarm device can further reduce insurance premiums.


See How Other Cars Measure Up For Insurance Claims And Ratings

The Insurance Bureau of Canada provides a yearly edition of “How Cars Measure Up” for insurance claims for almost 3000 vehicles. You can download or view this table (in Excel or Pdf) to rate your make, model and year of car to see how it compares to other vehicles.

The report shows the amount paid out in claims per year, per model. A green rating means that your car ranked favourably (lower than average claim costs). If your car insurance claims are in the ‘green’ zone, you can probably save money on your premiums because claims costs were lower.


Insurance Savings Tips To Consider Before Buying A New Car

Here are some tips to consider before you buy a new car to help keep your rates as cheap as possible :

Least expensive vehicles to insure

  1. Get A Quote Or Advice : Do your research on insurance costs for the car that you want to buy. Get an online quote or get some advice from your insurance broker.
  2. Check The Safety Rating For The Car : See how safe the car is before you buy. Car with 5 star ratings will cost less to inure.
  3. Review The IBC’s Claims History Report : Use the Insurance Bureau’s “How Cars Measure Up” Report to compare paid out claims on the car you are thinking of buying.
  4. Save With Hybrids Or Electric Cars :Did you know that green vehicles qualify for discounts of 10% or more from many insurance companies? Ask your broker.
  5. Alarm System : Install an aftermarket theft alarm (anti-theft device) to make your car more difficult to steal and could save you 15%.
  6. Winter Tires : Winter tires are safer and most insurance companies will give you a 5% discount if you use them.

Learn some more tips to save on car insurance.


Driving A Minivan, SUV Or Crossover Will Get You The Cheapest Insurance Rates

If you’re looking for a vehicle that can give you the cheapest insurance rates, you will want to look into SUVs, minivans and crossovers. By far these cars rate best on several factors that make them inexpensive to insure. These vehicles are less expensive to repair, less likely to be stolen, have fewer claims reported and excellent safety ratings.

At the same time, they are generally driven by a segment of the population who have low risk profiles for accidents and claims. If you’re thinking of buying a car that is cheap to insure, look into vehicles in this category.


Common Questions About The Cheapest Cars To Insure

What Are The Cheapest Family Cars To Insure?

The cheapest family cars to insure are mid-sized cars, minivans, or SUVs. These types of vehicles tend to have strong safety ratings, security features, and are affordable to repair.

Which Car Has The Cheapest Insurance?

Smaller cars tend to be more affordable to insure. One vehicle that is known for having the cheapest insurance is the Chevrolet Cruze, as well as the Toyota Prius.

Cheapest Cars To Insure For 18 Year Olds

The cheapest cars to insure for an 18 year old are small to mid-sized vehicles. Ideally, teen drivers will get added onto their parent’s insurance policy as an occasionally driver to get the cheapest rates.

What Vehicle Has The Cheapest Insurance?

When you consider all makes and models and types of vehicles, The Honda Odyssey is commonly regarded as the cheapest vehicle to insure. It is regular on the cheapest to insure list.

What Are The Cheapest Cars To Insure For New First Time Drivers?

First time drivers face some of the most expensive car insurance rates. To get cheaper rates, first time driver should considered a used vehicle. Used vehicles are cheaper to insure. A used Honda CR-V, Toyota Camry, or Buick Lucerne is known for being some of the cheapest cars to insure for new drivers.


Here Are Some Other Helpful Insurance Articles

Car Accident Reporting And What Do After You've Been In An Accident
A Guide to the Ontario Graduated Driver's Licensing System
The Total Cost To Own And Drive A New Car
Top 45 Car Insurance Savings Tips
Cheap Car Insurance Toronto
How Are Ontario Car Insurance Rates Determined?

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