When buying a car, most people imagine getting the keys, leaving the lot, and cruising down the highway. Rarely do drivers see themselves at home looking for auto insurance and then paying for it. While that may not have the same level of excitement, auto insurance is amongst the most important parts of the car-owning experience.
Legally, you must have insurance to drive on the road. Canadian drivers are mandated by law to carry auto insurance to protect themselves and others. However, motorists in the country are paying over the odds, with premium costs soaring in many provinces.
Finding affordable auto insurance is essential for many drivers. While there are a variety of actions consumers can take to reduce their premium, a good place to start is by buying a vehicle that is affordable to insure.
Rising Premiums in Canada
Canadians often pay a significant amount for auto insurance, depending on where they live. Nationwide, car insurance premiums have been rising and coverage costs have become notably high in some provinces. Data from the Insurance Bureau of Canada (IBC) highlights the cost of average car insurance rates in Canada:
- British Columbia: $1,832
- Ontario: $1,505
- Alberta: $1,316
- Saskatchewan: $1,325
- Newfoundland and Labrador: $1,168
- Manitoba: $1,080
- Nova Scotia: $891
- New Brunswick: $867
- Prince Edward Island: $816
- Quebec: $717
IBC source: GISA and MSA data for private insurers (as of December 31, 2018), SGI Annual Report (2018), MPI Annual Report (2017), Société de l’assurance automobile du Québec (SAAQ), and ICBC Service Plan (2019).
Finding affordable car insurance may be a sore point with many drivers, since they feel they are paying too much for coverage. It’s up to provincial regulators to determine auto insurance rates, with each addressing issues driving up premium costs. That said, the rising frequency of claims and costs to repair vehicles is a major factor in increasing rates across Canada.
Cheapest Cars to Insure
Consumers may take several steps to maximize their chance of obtaining the lowest premium possible, but a good start is buying a vehicle that is affordable to insure. However, is this a message Canadians are getting? Are drivers purchasing vehicles that are affordable to insure?
The answer is yes, with some caveats. InsuranceHotline.com compiled a list of Canada’s best-selling cars and how they compare in terms of average auto insurance prices. It seems Canadians are not always choosing the car that will get them the lowest premium.
Canada’s Best-Selling Cars
- Honda Civic
- Toyota Corolla
- Hyundai Elantra
- Mazda 3
- Volkswagen Golf
- Volkswagen Jetta
- Kia Forte
- Toyota Camry
- Kia Soul
- Honda Accord
These are the vehicles that are popular with consumers across Canada, but which has the most affordable insurance rate? While it would be nice if it were the Honda Civic, it’s actually the Volkswagen Golf that is the most affordable car to insure from this list.
Cheapest to Insure
- Volkswagen Golf
- Kia Soul
- Volkswagen Jetta
- Toyota Camry
- Honda Accord
- Hyundai Elantra
- Kia Forte
- Mazda 3
- Toyota Corolla
- Honda Civic
Of course, motorists use more factors than insurance cost when purchasing a car. Budget, safety, and desirability all play a major role in the buying process. The information above shows Canadians are willing to compromise and pay more for insurance if it means buying a specific vehicle. It’s worth pointing out this is not a one-off scenario, the Honda Civic has been Canada’s best-selling car for the last 22 years.
What Else Can You Do to Reduce Auto Insurance Rates?
Buying a car that has lower average insurance rates is a decent start, but don’t worry if you chose a Honda Civic over a Volkswagen Golf. There are still steps you can take to reduce your premium as much as possible.
Talking to your insurance company is a good place to start. Your insurer or broker will be able to give you professional advice on the steps you can take to lower your premium. Insurance companies base the cost of insuring your vehicle on a set of criteria, such as where you live, how often you drive, where the car is stored, your claims history, and driving record.
If you want the cheapest rate possible, here are some things you can to do help your chances:
- Install an alarm on your vehicle
- Don’t include high-risk drivers on your policy
- Bundle your auto insurance with home insurance
- Reduce your driving activity if possible
- Shop around for insurance rates
And finally, even if you take all these steps you may not get affordable rates if you don’t know they are out there. The best way to get an overview of the amount you should pay for coverage is to shop for quotes. By using an online comparison site, you can compare rates across insurance companies based on the specifics of the policy you need.
