Top 10 Cars that will help lower your Ontario insurance rate | Blog

Top 10 Cars that will help lower your Ontario insurance rate

By Staff Writer | July 30, 2018

As you start shopping around for the best insurance rate for you, you may notice that there is a large amount of variability in the prices you may be asked to pay. This is often due to a different emphasis being placed on each variable in the calculation and is exactly why you should be shopping around for the best rate for you. Just because your friend got a great rate with one insurance company, doesn't mean that that insurer will give you the lowest possible rate as well.

While primary things that will impact your insurance premiums is your driving record, whether you are a young driver, or how many insurance claims you have made in the past, there is a set of secondary issues which you can control and that can lower the amount you pay significantly.

In your effort to get the lowest possible rates, you want to optimize yourself for each variable. Gender or age cannot be changed, but you can make sure that you have a car that commands lower insurance rates.

Why Do Car Models Impact Insurance Rates? 

When insurance companies are trying to determine your rate, they are attempting to project the amount of risk that will result in having you and your car on the road. Just as some people are worse drivers than others, some cars are more dangerous than others. Based on the statistics available regarding past car crashes, insurers can figure out which cars are more likely to get in accidents or be stolen.

That is how the estimated number of claims for a certain type of car is estimated, but the repair cost is also a significant factor here. If you have a cheaper, slower car, the insurers know they will have a lower projected payout for each accident that car gets in. While cheapest cars will have cheap car insurance, it is also beneficial if you can add an anti-theft device or similar additions that would easy auto insurance companies.

Ontario is Different

You might not realize this, but Ontario has the highest auto insurance rates in all of Canada, withan average insurance premium that is 45% more than that of Alberta. In a jurisdiction where insurance is a compulsory service, there is no way to get around this massive increase in the price of mobility. 

Actuarial tables may indicate a certain group is riskier and charge them more in Ontario. Some other provinces subsidize this difference, but this is not so in Ontario. Additionally, the higher population density of Toronto and lower quality of roads, in general, can do a lot to increase the rates these drivers pay. No matter where you stand on the public versus private insurance debate, it is hard to deny that private insurance creates much higher rates within Ontario.

The Cars You Must Avoid

Before we discuss specific models of cars that will help you reduce the amount you spend on insurance, it would help to understand which groups of cars are going to have the highest insurance rates. 

High-end sports cars have both a high number of claims (people driving them are more likely to crash) and a high cost of repair (these cars are high-end). Luxury cars tend to have a high cost to repair, and larger vehicles such as SUVs cause more damage to other cars, which also results in a higher cost of repair. Finally, there are some cars that are specifically targeted by thieves due to security inefficiencies, and these too must be insured.

10 Best Cars for Lowering Your Rate

As the car market is always developing, there are constant changes, and even the places on the list below would shuffle from time to time, but it is used to get you a general idea on how your choice should be made. Some categories of cars, such are SUV hybrids have a generally lower rate than others, but in general, lower end family cars are cheaper to insure. The insurance company will appreciate your sensible choice of vehicle as something you use as a tool and less as a status symbol.

1. Honda CR-V

While this crossover SUV has been on the market for 21 years right now, it has received regular facelifts, with the last one being in 2017. It is the best choice for people who have a larger family but also want to be modern, and enjoy current technologies. It is very safe, very manoeuvrable, and doesn’t waste any gas, which is very important for a machine this size.

2. Subaru Outback

This slick model has been quite popular worldwide since its upgrade in 2015. Because of its 4-wheel drive, it can move easily through narrow streets, making it good for city driving and parking in tight spots, which is very important for the car of this size. Due to its height and design, the Outback gives the driver a good overview of the road, making the drive very safe. This safety is the reason why this Subaru has such low insurance rates.

3. Ford Escape

While this is a relatively older car model, and it may lack several features you would expect to see in some more modern cars, it more than compensates for the quality of build and overall safety. It can be a slightly bigger spender gas wise, but it doesn't come with a lower cost and a much lower insurance rate.

4. Nissan Rogue

The Nissan Rogue has received a facelift in 2017 and a major update in 2018, that has brought this crossover SUV (CUV) on the top of most list or cars made for large families and even larger groups of friends. It is easy to manoeuvre and doesn’t use too much gas, but with 7 seats in total you might be inclined to find some more friends, or make more children perhaps, as to fill out this massive, beautiful machine.

5. Chevrolet Equinox

Although made in Ingersoll, Ontario, this car would be what our southern neighbours call ‘'True Americana''. With its large motor that brings up to 252 horsepower with more torque than the previous model, this SUV just eats up miles on the highway. The long commute is where it shines, as it has a lot of room inside, and all the amenities imaginable with the 2018 update.

6. Jeep Wrangler

While not something you would expect on this list, due to the fact that Jeep has a specific type of people buying it, usually people who respect cars, respect the road, and usually go where there isn't that much traffic, to begin with. The Wrangler has not seen many accidents on the road and thus has a very low insurance rate, as the insurance companies expect that you will keep your Jeep nice, clean, and probably far away from other people.

7. Ford F-150

It is impossible to drive far without seeing at least a few Ford F-Series. This type of truck has been on the market for over 50 years and has proven to be safe, reliable, and very useful. With the 2015 model having less weight, which means less gas consumption, and more amenities, it is no wonder that more than 150,000 units have been sold throughout Canada in 2017 alone.

8. Honda Accord

There were many cars that wore that mantle of Honda Accord, and this is the 10th generation of the vehicle to hit the streets in 2018. This innovative 4-door sedan is truly beautiful to look at and it comes with a set of security features that make this piece of machinery both easy to drive, and cheap to insure.

9. Toyota Camry

The new wide-body models of the Camry are very easy on the eyes, but as this is still a very sensible purchase of a mid-sized sedan, your insurance company will appreciate you not opting for a smaller and faster vehicle. Obviously, the insurance rate for the XV70 will be somewhat more than for some of the older models, due to the price of the car itself, but it will still be under similar looking cars that have been dubbed as ‘’sport’’ models.

10. Volkswagen Jetta

If you want to tell the world, your friends, your bank, and your insurance company: ‘’I am an adult now’’, there is no better way to do that than with a Jetta. This vehicle can only be described as ‘’a good car’’, as it is neither flashy nor too large, but has all the features of an Audi or a BMW, as the MK6 is made from mostly the same parts. It is a reliable car, and a very good choice, that will keep you safe and mobile, while keeping your insurance rates low.

Making the Right Decision

With the average rate in Ontario being as high as $1,458, it is highly recommended you take all the steps you can to lower your rate. The easiest thing you can do is find a car, such as one of the ten outlined above, that will lower your rate.

Avoiding sports cars and luxury items is the first step, but by choosing a car with a lower average insurance rate, you can save a significant amount of money too!