How Much to Insure Canada’s Cheapest Cars?

Cheapest cars to insure

If you are considering buying a vehicle on Auto Trader’s list of Canada’s cheapest vehicles, you should know that the lowest-cost vehicles don’t necessarily get you the lowest insurance premiums. Here’s what it would cost 4 Ontario drivers to insure the cars on the list.

With the pandemic leading to tough economic times for lots of Ontarians, if you’re in the market for a new vehicle, you may be considering some lower-cost options. Last year, Auto Trader published a very helpful list of the Top 11 Cheapest Cars in Canada in 2020. In order to help you better understand the total cost of vehicle ownership, we thought we’d see just how much those vehicles would cost to insure.

Affordable Premiums for Affordable Vehicles?

The insurance quotes below come from Mitchell & Whale’s auto insurance quoting system, and are based on a number of assumptions regarding coverage levels, annual kilometres driven etc. Although they represent fairly standard quotes that we might give to our customers, the only way to get the exact premium for your exact circumstances is to give us a call.

For the purposes of getting insurance quotes, we chose the base model for each vehicle on the list, with sticker prices between $10,000 and $18,000

Sandy, 35, Toronto, clean driving record

Sandy, 35, Toronto

Sandy is a 35-year-old single female, with a clean driving record. She lives off St. Clair Ave. West in Toronto. She would pay between $1,600 and $2,100 per year to insure the cars on the list, but you’ll notice the premiums don’t necessarily rank in the same order as the vehicle price.

35-year-old single female, clean record, St. Clair W., Toronto
Vehicle Price Rank* 2020 Cheapest Vehicles Premium
1 ($9,998) Chevy Spark LS 5DR $1,619
7 ($17,099) Hyundai Venue Essential 4DR 2WD $1,655
4 ($14,949) Hyundai Accent Essential 5DR $1,672
2 ($10,488) 2019 Nissan Micra S 4DR Hatchback (Discontinued in 2020) $1,723
5 ($15,495) Kia Rio EX 5DR $1,742
10 ($18,045) Mazda 3 Sport GX 5DR $1,834
11 ($18,000) Kia Rio EX 4DR $1,886
6 ($16,790) Toyota Yaris LE 4DR Hatchback $1,911
3 ($12,298) Mitsubishi Mirage ES 5DR $1,966
8 ($17,149) Hyundai Elantra Essential 4DR $2,011
9 ($17,695) Kia Forte EX 4DR $2,065

*Cost from lowest ($10K) to highest ($18K), based on Auto Trader’s Top 11 Cheapest Cars in Canada in 2020.


Then Sandy Moved to Scarborough…

In a city as big and diverse as Toronto, you also need to know that premiums can vary substantially from neighbourhood to neighbourhood. So here are the premiums Sandy would pay if she moved to Scarborough.

35-year-old single female, clean record, Scarborough
Vehicle Price Rank* 2020 Cheapest Vehicles Premium
1 ($9,998) Chevy Spark LS 5DR $2,107
2 ($10,488) 2019 Nissan Micra S 4DR Hatchback (Discontinued in 2020) $2,147
4 ($14,949) Hyundai Accent Essential 5DR $2,149
7 ($17,099) Hyundai Venue Essential 4DR 2WD $2,200
5 ($15,495) Kia Rio EX 5DR $2,345
6 ($16,790) Toyota Yaris LE 4DR Hatchback $2,385
3 ($12,298) Mitsubishi Mirage ES 5DR $1,886
10 ($18,045) Mazda 3 Sport GX 5DR $2,407
11 ($18,000) Kia Rio EX 4DR $2,428
8 ($17,149) Hyundai Elantra Essential 4DR $2,497
9 ($17,695) Kia Forte EX 4DR $2,545

*Cost from lowest ($10K) to highest ($18K), based on Auto Trader’s Top 11 Cheapest Cars in Canada in 2020.


Ahmed, 55, Ottawa, minor tickets

Ahmed, 55, Ottawa

Ahmed is male, 55 years old, and married. He lives in Gloucester, which is part of the City of Ottawa. He has a couple of minor tickets on his record. He would pay between $900 and $1,200 a year to insure Canada’s cheapest vehicles.

55-year-old married male, 2 minor tickets, Ottawa
Vehicle Price Rank* 2020 Cheapest Vehicles Premium
1 ($9,998) Chevy Spark LS 5DR $952
7 ($17,099) Hyundai Venue Essential 4DR 2WD $958
4 ($14,949) Hyundai Accent Essential 5DR $965
2 ($10,488) 2019 Nissan Micra S 4DR Hatchback (Discontinued in 2020) $980
5 ($15,495) Kia Rio EX 5DR $1,010
10 ($18,045) Mazda 3 Sport GX 5DR $1,054
11 ($18,000) Kia Rio EX 4DR $1,060
6 ($16,790) Toyota Yaris LE 4DR Hatchback $1,087
3 ($12,298) Mitsubishi Mirage ES 5DR $1,153
8 ($17,149) Hyundai Elantra Essential 4DR $1,163
9 ($17,695) Kia Forte EX 4DR $1,199

*Cost from lowest ($10K) to highest ($18K), based on Auto Trader’s Top 11 Cheapest Cars in Canada in 2020.


Kenyon, 20, London Ontario, clean driving record

Kenyon, 20, London

Kenyon is a 20-year-old single male who is attending university in London, and living in the north end of the city. His parents want to buy him an affordable car to get around in. Kenyon has a clean record and has taken an approved driver training course. If his parents choose one of the cars on the list, he’ll be paying between $3,500 and $4,500 a year for insurance.

20-year-old single male with driver training, clean record, London
Vehicle Price Rank* 2020 Cheapest Vehicles Premium
1 ($9,998) Chevy Spark LS 5DR $3,523
7 ($17,099) Hyundai Venue Essential 4DR 2WD $3,659
4 ($14,949) Hyundai Accent Essential 5DR $3,671
5 ($15,495) Kia Rio EX 5DR $3,874
2 ($10,488) 2019 Nissan Micra S 4DR Hatchback (Discontinued in 2020) $3,884
10 ($18,045) Mazda 3 Sport GX 5DR $4,016
11 ($18,000) Kia Rio EX 4DR $4,087
6 ($16,790) Toyota Yaris LE 4DR Hatchback $4,160
9 ($17,695) Kia Forte EX 4DR $4,346
8 ($17,149) Hyundai Elantra Essential 4DR $4,418
3 ($12,298) Mitsubishi Mirage ES 5DR $4,424

*Cost from lowest ($10K) to highest ($18K), based on Auto Trader’s Top 11 Cheapest Cars in Canada in 2020.


Fatima, 22, Oshawa, one speeding ticket

Fatima, 22, Oshawa

Fatima is 22 years old and female. She’s single and lives in Oshawa, Ontario. She has one speeding ticket on her record. If she decided to buy one of Canada’s most affordable vehicles, she would pay between $3,100 and $4,000 a year for insurance.

22-year-old single female, no driver training, 1 minor ticket, Oshawa
Vehicle Price Rank* 2020 Cheapest Vehicles Premium
1 ($9,998) Chevy Spark LS 5DR $3,121
4 ($14,949) Hyundai Accent Essential 5DR $3,177
2 ($10,488) 2019 Nissan Micra S 4DR Hatchback (Discontinued in 2020) $3,195
7 ($17,099) Hyundai Venue Essential 4DR 2WD $3,228
5 ($15,495) Kia Rio EX 5DR $3,479
10 ($18,045) Mazda 3 Sport GX 5DR $3,566
6 ($16,790) Toyota Yaris LE 4DR Hatchback $3,573
11 ($18,000) Kia Rio EX 4DR 3,573
3 ($12,298) Mitsubishi Mirage ES 5DR $3,678
8 ($17,149) Hyundai Elantra Essential 4DR $3,832
9 ($17,695) Kia Forte EX 4DR $3,911

*Cost from lowest ($10K) to highest ($18K), based on Auto Trader’s Top 11 Cheapest Cars in Canada in 2020.


But What Are The Cheapest Cars to Insure?

When you consider that there are 8 different versions of the 2020 Toyota Corolla and 31 different versions of the 2020 Ford F-150, and that each model year of the same car could potentially produce a different insurance quote, there are literally thousands of different cars that you could insure in Ontario. You probably don’t have the time to review quotes for each one. Pickup truck and save money on insurance What we do know from giving hundreds of auto insurance quotes every day is that pickup trucks generally tend to produce lower rates across most types of drivers and in most territories. So for example:

  • Sandy, 35, from Toronto, who would pay $1,619 a year to insure a Chevy Spark, would pay $1,478 a year to insure a Dodge Ram 1500 (SLT, Regular Cab, 2 Wheel Drive)
  • In Scarborough, Sandy would pay $2,107 for the Spark, and $1,953 for the Dodge Ram
  • Ahmed, 55, from Ottawa, would pay $921 a year for the Hyundai Accent, but would only pay $874 annually to insure a Chevy Silverado 1500 (WT, Regular Cab, 2 Wheel Drive)
  • Kenyon, 20, living in London, would pay $4,016 a year to insure a Mazda3 Sport, but would save $620 a year on his premiums ($3,396) if he got a GMC Sierra 1500 (Regular Cab, 2 Wheel Drive)
  • Fatima, 22, from Oshawa, would pay $3,195 a year in premiums for a Nissan Micra, and $2,999 for a Ford F-150 (XL, Regular Cab, 2 Wheel Drive)

We don’t try to push anyone to buy one car over another. And the fact is that the base price for all 4 pickups is well over $30,000, so it’s unlikely that someone looking at a Chevy Spark would also be considering a Dodge Ram. We just want to illustrate that premiums can vary dramatically based on the car you drive, and the price of the vehicle is not the reason.

Is There Any Way to Pay Less?

The premiums quoted above don’t include any discounts. Because Kenyon has been driving for more than 3 years, the fact that he has completed driver training does not lower his premium. However, our band of imaginary friends could potentially save on their auto insurance with the following discounts:

  • Winter tire discount (5%)
  • Buying home or tenants insurance from the same company, aka multiline discount (10-15%)
  • Insuring another car on the same policy (10%)
  • Because Kenyon is a student, he could save up to 10% for getting good grades
  • Paying the full annual premium up front

Also, most insurers offer a telematics program, whereby the driver installs a device in their car or an app on their phone that tracks their driving behaviour. Just signing up can get you a 10% discount, and if you drive safely, you could save up to 25% on your premiums. But careful, if you don’t drive safely on these programs, the insurance company can now surcharge you up to 10% above your base premium. You can also increase your deductible, but if you already have trouble affording insurance, then the last thing you need is to be stuck with a $2,500 bill after an accident. There are so many factors to consider to arrive at a premium, the best advice we can give you is, call us for quote.

Have us shop the market for your auto insurance in Ontario

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Contact a Mitchell & Whale broker to get a quote on Ontario auto insurance: Speak with a broker today: 1-800-731-2228


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