What Are the Cheapest Cars to Insure in Ontario, Canada?

If you’ve ever experienced sticker shock while reviewing your Ontario car insurance premiums, you’re not alone. One of the most frequently asked questions I get is, “What are the cheapest cars to insure in Ontario?”

The truth is, the make and model of your vehicle can significantly impact your premium. Insurance companies use historical claim data, repair costs, safety ratings, and theft frequency to determine how much it costs to insure a particular vehicle. So if you’re looking to buy a car that won’t break the bank when it comes to coverage, this guide is for you.

Why Car Model Matters for Insurance in Ontario

Your driving record, age, location, and coverage preferences all influence your insurance rates. However, your vehicle’s model can either increase or decrease your costs, sometimes by over $100 per month.

Cars that are cheaper to repair, less likely to be stolen, and come with advanced safety features typically cost less to insure.

From my years of experience, I’ve noticed a consistent pattern: compact sedans, hatchbacks, and crossover SUVs tend to be among the most affordable vehicles to insure in Ontario.

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Cheapest Cars to Insure in Ontario (2025 Estimates)

Here’s a comparison of some of the cheapest vehicles to insure in Ontario, based on quotes from multiple insurance providers in 2025:

These numbers are based on a 35-year-old male driver with a clean record, living in the GTA, opting for standard coverage.

How a Client Saved Over $600 Per Year

I’ll never forget Sarah, a 29-year-old teacher from Mississauga, who approached me last year. She was driving a 2017 BMW 3-Series and paying over $2,400 annually for car insurance. Her driving record was clean, and her credit score was excellent. The high premium was primarily due to the vehicle’s luxury classification, expensive parts, and higher likelihood of theft.

After a consultation, I recommended she switch to a 2021 Honda Civic. With the new car, her annual premium dropped to just $1,450. She not only saved over $950 yearly but also reported better fuel efficiency and lower maintenance costs.

Her story is just one example, but it reflects what I’ve seen over and over again. Choosing the right vehicle is one of the easiest ways to cut car insurance costs in Ontario.

Factors That Make a Car Cheaper to Insure in Ontario

Insurance providers evaluate several data points when calculating your car insurance premium. Some of these include:

1. Cost of Repairs

If your vehicle is inexpensive to repair or replace, insurers will generally quote a lower premium. This is often why economy cars and base trims tend to cost less to insure.

2. Safety Features

Vehicles with advanced safety tech such as automatic emergency braking, adaptive cruise control, and blind spot monitoring are less likely to be involved in severe accidents. This reduces claim costs, resulting in lower premiums.

3. Theft Rates

Cars that are often stolen tend to have higher insurance premiums. Luckily, many of the cheapest cars to insure — like the Toyota Corolla or Mazda3 — have low theft rates in Ontario.

4. Claims History

Cars that have a history of more frequent or expensive claims are flagged by insurers. They calculate your premium based on trends from similar policyholders across the province.

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What Makes Ontario Car Insurance So Expensive?

Ontario, particularly cities like Toronto, Brampton, and Mississauga, is known for having some of the highest car insurance premiums in the country. In fact, Brampton often ranks as the city with the highest car insurance rates in Canada.

Some of the reasons include:

• Dense traffic and a higher likelihood of collisions
• Higher number of fraudulent claims
• Expensive repair shops and parts in urban areas

For this reason, residents in Ontario must be strategic in choosing a car that minimizes insurance costs.

Top Tips for Choosing a Car With Low Insurance Rates

After helping countless clients in Ontario, I’ve learned that choosing a car is not just about aesthetics or brand loyalty. If you’re aiming to lower your annual insurance premium, consider this:

• Opt for vehicles with strong safety ratings (check IIHS and Transport Canada crash test results).
• Avoid luxury cars and sports models, which often have higher repair costs and theft rates.
• Stick to mainstream brands like Toyota, Honda, Hyundai, or Mazda.
• Consider hybrid or electric models with proven safety performance, but check if parts are expensive.

One client saved even more by combining these factors with usage-based insurance (UBI). His safe driving record earned him an extra 20% discount through telematics tracking.

Which Car Brands Tend to Be Cheapest to Insure in Ontario?

Here are the brands I consistently see offering low insurance premiums for most of their models:

• Toyota – Consistently reliable with low theft and repair costs
• Honda – Especially the Civic and Accord, thanks to excellent safety scores
• Mazda – Affordable, durable, and tech-equipped
• Hyundai – Elantra and Tucson are popular for cost-conscious drivers
• Subaru – Impreza and Forester rank well for both AWD performance and insurance affordability

Is Buying a Used Car a Good Way to Save on Insurance?

It can be, but with a caveat. Older vehicles may lack modern safety features, which could increase the premium. Also, some used cars may fall into higher-risk categories if they’ve been associated with more claims historically. However, if you find a used car with a solid reliability record and decent safety features, you could save on both purchase price and insurance.

Always request an insurance quote before buying a vehicle, even if it seems like a good deal.

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Final Thoughts from a Broker Who Has Seen It All

If you’re shopping for the cheapest cars to insure in Ontario, don’t base your decision solely on looks or performance. Insurance is a major cost factor that affects your vehicle’s true affordability.

From my decade of experience, I’ve seen people overpay by hundreds simply because they didn’t know their vehicle choice affected insurance so much. On the flip side, I’ve helped others save big just by switching to more insurance-friendly vehicles.

If you live in Ontario and are serious about saving money on car insurance, remember this: The right car can save you more on premiums than any discount ever will.