Cheapest Cars to Insure in Ontario

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What are the cheapest cars to insure in Ontario?

When purchasing a car, it’s always recommended to consider insurance rates before completing the sale. Sometimes, when you find the make and model you want at a good value, you should consider the average cost of car insurance for that model too. 

You will find that certain vehicles are cheaper to insure than others. This can be due to several factors such as sticker price, estimated repair or replacement costs, safety ratings, claims history, and more.

Below we have listed the top 10 cheapest cars to insure in Ontario: 

    1. Volkswagen Golf
    2. Kia Soul
    3. Volkswagen Jetta
    4. Toyota Camry
    5. Honda Accord
    6. Hyundai Elantra
    7. Kia Forte
    8. Mazda 3
    9. Toyota Corolla
    10. Honda Civic

Volkswagen Golf

When driving a Volkswagen Golf, you can expect to have the perfect combination of style and reliability. The vehicle’s peppy engine makes it enjoyable to drive and its spacious interior and range of standard features make it a practical vehicle for everyday driving. With a variety of safety features including forward collision warning, automatic emergency braking, pedestrian monitoring, blind spot monitoring, and more, the latest 2020 Golf has earned a 5 star overall safety rating from the National Highway Traffic Safety Administration. It earned five stars in the side crash test and four stars in the frontal crash and rollover tests. The safety of the vehicle contributes to lower car insurance costs.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$1,943.09
$906.46
$1,499.66

Estimated Total Annual Driving Costs $8,046.05 per year*

* Cost is representative of owning/ leasing a 2020 Volkswagen Golf Comfortline 5D Hbk for 5 years in Ontario.

Kia Soul

With the low price point of the Kia Soul, this vehicle offers a lot more than you would expect. You get a roomy cabin and cargo area, high quality interior, available turbocharged engine, a standout reliability rating, and more. The 2019 Kia Soul received a 5 star overall safety rating from The National Highway Traffic Safety Administration with five out of five stars in frontal and side crash tests and four stars in rollover crash tests. This car also received a 4.5/5 reliability rating from J.D. Power and The Insurance Institute for Highway Safety named the Soul a Top Safety Pick.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,034.99
$1,277.51
$1,573.53

Estimated Total Annual Driving Costs $8,326.97 per year*

* Cost is representative of owning/ leasing a 2020 Kia Soul EX 5D Hatchback for 5 years in Ontario.

Volkswagen Jetta

Available as a sedan, the Volkswagen Jetta is a reliable car with solid mileage and handling. Its comfortable and roomy interior makes it a great vehicle for lengthy commutes. The vehicle’s overall safety rating of 5/5 stars from The National Highway Traffic Safety Administration is what helps keep the cost of car insurance to a minimum. Some of the safety features available in the Jetta include a rearview camera, lane departure warning, lane keep assist, forward collision warning,and automatic emergency braking. There are many more safety features that help keep car insurance rates for the Jetta low.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,440.18
$832.88
$1,376.21

Estimated Total Annual Driving Costs $8,035.65 per year*

* Cost is representative of owning/ leasing a 2020 Volkswagen Jetta Comfortline 4D Sedan 1.4 TSI 6sp for 5 years in Ontario.

Toyota Camry

If you’re looking for an affordable yet stylish sedan with all the best features, the Toyota Camry is a great choice. With exceptional handling, comfortable seating, a peppy engine, and innovative technology, you get alot for your money with this mid sized vehicle. On top of these features, the 2020 Toyota Camry was given a 5/5 overall safety rating in three performed crash tests.The vehicle also received the highest rating of Good from The Insurance Institute for Highway Safety in 6/6 crash test categories. Insurance companies look at these ratings when determining the cost of your car insurance.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,093.46
$1,215.88
$1,453.11

Estimated Total Annual Driving Costs $8,734.55 per year*

* Cost is representative of owning/ leasing a 2020 Toyota Camry LE 4D Sedan for 5 years in Ontario.

Honda Accord

If you’re looking for an everyday car, there really isn’t a need that the Honda Accord doesn’t meet. With a roomy cabin, great handling, sporty looks, good fuel economy and more, the Accord does is all. The wide range of safety features that come standard with this vehicle as part of the Honda Sensing Suite helped the Accord achieve a 5/5 overall safety rating from The National Highway Traffic Safety Administration. Just some of these features include forward collision warning, automatic emergency braking, adaptive cruise control, lane keep assist, and lane departure warning.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,172.49
$1,074.73
$1,420.73

Estimated Total Annual Driving Costs $9,449.17 per year*

* Cost is representative of owning/ leasing a 2020 Honda Accord EX-L 4D Sedan for 5 years in Ontario.

Hyundai Elantra

If you’re looking for a basic sedan or hatchback, the Hyundai Elantra is for you. With an attractive interior, a range of innovative tech, ample cargo space, and a great reliability rating, the Elantra is a good choice. In fact, the Insurance Institute for Highway Safety named the 2018 Elantra as one of the safest cars on the road. The combination of the vehicle’s front crash prevention and specific headlights help keep car insurance costs for the Elantra to a minimum.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,271.23
$1,093.34
$1,530.02

Estimated Total Annual Driving Costs $7,929.36 per year*

* Cost is representative of owning/ leasing a 2020 Hyundai Elantra Essential 4D Sedan 6sp for 5 years in Ontario.

Kia Forte

Not only is the Kia Forte amongst the cheapest cars when it comes to car insurance but it also is among one of the most affordable compact cars on the market. But don’t let its low price fool you – the Forte has no shortage of attractive features. With an abundance of standard features, a good amount of trunk space, solid fuel economy and more, the Kia Forte delivers everything you need when it comes to a standard sedan. It also has a spacious and upscale cabin that makes the vehicle enjoyable to spend your time on the road in.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,513.65
$1,044.30
$1,376.21

Estimated Total Annual Driving Costs $8,420.76 per year*

* Cost is representative of owning/ leasing a 2020 Kia Forte EX 4D Sedan for 5 years in Ontario.

Mazda 3

When comparing affordable compact cars, the Mazda 3 shines through. The Mazda 3 is historically more sophisticated than the comparable Honda Civic or Toyota Corolla. Available as a hatchback or sedan, the Mazda3 becomes better and better every year. The latest 2020 model received a 5 star safety rating from the National Highway Traffic Safety Administration and was also named a top safety pick by the Insurance Institute for Highway Safety. This can be attributed to the range of driver-assisted technology that comes standard with the vehicle, including automated emergency braking and automatic high-beam headlights.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,062.40
$929.13
$1,617.04

Estimated Total Annual Driving Costs $8,676.61 per year*

* Cost is representative of owning/ leasing a 2020 Mazda Mazda3 GS 4D Sedan AWD for 5 years in Ontario.

Toyota Corolla

The Toyota Corolla, Toyota’s most compact sedan, is an affordable vehicle that still provides a range of valuable features. The Corolla has an amazing reliability rating and is also known for its great fuel economy. When you purchase a Corolla, you know what you’re going to get: A safe yet stylish compact car that will get you to and from with ease. When purchasing a Corolla you will have the choice of hatchback or sedan. Whether choosing the L, LE, SE, XLE, or XSE, the Corolla is a great choice for savvy buyers. The Corolla has earned top safety ratings from the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,333.17
$1,071.18
$1,396.44

Estimated Total Annual Driving Costs $7,534.14 per year*

* Cost is representative of owning/ leasing a 2020 Toyota Corolla L 4D Sedan 6sp for 5 years in Ontario.

Honda Civic

The Honda Civic is a great choice of vehicle and is known to be one of the most reliable cars when it comes to driving a sedan. The Civic is also available as a coupe or hatchback. Whichever trim you choose, the Honda Civic offers more versatility than most compact cars. When you drive a Civic, you can expect to have a smooth yet sporty ride with good fuel economy and innovative tech features. The Civic has also received a 5 star overall safety rating from the National Highway Traffic Safety Administration and boasts a variety of safety features including forward collision warning, automatic emergency braking, adaptive cruise control, lane keep assist, and lane departure warning.

Insurance Costs Maintenance Costs Fuel Cost per Year (Gas)
$2,091.21
$1,104.96
$1,398.47

Estimated Total Annual Driving Costs $8,229.79 per year*

* Cost is representative of owning/ leasing a 2020 Honda Civic EX 4D Sedan for 5 years in Ontario.

How do you get cheap car insurance?

Car insurance is mandatory for all drivers in Canada. While everyone is required to purchase a policy, this doesn’t mean that it has to break the bank. There are many ways in which you can save on your car insurance. Take our following tips to get the cheapest possible car insurance. It’s always recommended that you shop around and compare quotes from different providers in order to find the cheapest rate that also caters to your coverage needs.

It is very common for car insurance providers to offer your cheaper insurance if you bundle your home and car insurance policies. Further, if you live in a household with multiple drivers, you can save even more money by including them all on the same policy.

Most, if not all insurance providers will offer drivers a lower premium for increasing their deductible. Your deductible is the amount that you will have to when you need to make a claim. Before increasing your deductible, it’s important to consider the amount you will be comfortable having to pay out of pocket in the event that you need to make a claim.

An easy way to save money on car insurance is to purchase the minimum coverage required. Before deciding on this option, be sure to remember that the minimum coverage requirements in Ontario only provide a thin layer of protection. Should you be involved in an accident or have your car stolen, you may end up with a major expense that you need to pay for out of pocket.

There are many discounts available for drivers to take advantage of. Regardless of the insurance company, you should always ask them about their discounts if they are clearly stated. A majority of  insurance providers will offer discounts to drivers who lower their risk by installing winter tires or an anti-theft device, belong to a corporation, the military, or a college or university.

How are insurance rates calculated?

When it comes to car insurance in Ontario, there are several factors beyond your province of residence that will impact your premium. Being such a complex product, car insurance policies will always vary between drivers and insurance companies. No two policies will be the exact same and not one single insurer will offer the lowest rates. The premiums you receive will always depend on the combination of the insurance provider and your unique driving profile.

Insurance companies see younger drivers as a high risk as they are just starting to learn the rules of the road. As a result, younger drivers can expect to receive  higher premiums, regardless of their driving record. As you gain experience, usually after 6-10 years of driving, your premium should decrease as long as you keep a clean record

Insurance companies will always look at your driving record when calculating your premium as this is a major determinant in a driver’s risk level. Insurance companies favour drivers with a clean record and will offer them lower rates compared to a driver who has been involved in several at-fault accidents or has received a number of traffic convictions.

The type of car you drive will play a role in determining your premium. This is largely based on the cost it will take to repair or replace the vehicle. For example, if the model of your car is known to target thieves, you will likely receive a higher premium. Similarly, if your car is expensive to replace, your premium will also be higher than if you were to drive a cheaper car.

Ontario car insurance rates will be impacted by how much time you spend driving your car everyday. For example, a driver who has a long commute and spends hours going to and from work everyday will have a higher premium than a driver who only uses their car to do errands around the neighbourhood such as going to the grocery store or to pick their kids up from school.

While your car insurance in Ontario will vary based on province and city, your postal code also helps determine your rates. Postal codes are considered because certain areas are more prone to theft or have intersections with a higher than average occurrence of accidents.

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