What Are The Cheapest Cars To Insure?

Apr 27, 2016

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?

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

What are the cheapest cars to insure for 2015?

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.


Cheapest Cars To Insure Lists For 2016 & 2015

We’ve included the 2016 10 Cheapest Cars To Insure and the 2015 10 Cheapest Cars To Insure as reported in Forbes Online Magazine. SUVs, crossovers and mini vans top the lists as the cheapest to insure with the with the Honda Odyssey LX and Jeep Wrangler Sport 4WD topping the lists in 2016 and 2015 respectively.

What are the cheapest cars to insure for 2016?

2016 Cheapest Car To Insure

  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 Car To Insure

  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.


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 to insure for 2015?

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 :

  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.


Here Are Some Other Helpful Insurance Articles

The Total Cost To Own And Drive A New Car
Top 10 Car Insurance Savings Tips
Cheap Car Insurance Toronto
How Are Ontario Car Insurance Rates Determined?
Why Does Car Insurance Cost More In Ontario And Greater Toronto Area?

<< Car Costs In Canada – The Total Costs To Own And Drive Guide
Important Changes To Ontario Car Insurance In June 2016 >>


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