What is the most affordable vehicle to insure? This is a question we are frequently asked. Unfortunately, there is not a simple answer. All insurance companies carry different rates and many different factors are taken into consideration. Clients often assume that the value of the vehicle and driving record are the primary factors. Although this does contribute to your rates, other factors such as cost of repairs, territory and safety of the vehicle are considered.
We have provided an explanation of how rates are determined and a sample of quotes for various vehicles below.
In Ontario, you are required to carry the statutory accident benefits on your auto insurance policy. Accident benefits include, but are not limited to, income replacement, and medical and rehabilitation expenses. This coverage is provided for qualifying auto related injuries. Ultimately, the safer your vehicle is, the lower the cost of accident benefits coverage will be.
The area you live in will also affect your premiums. This is often referred to as “postal code rating.” The cost of repairs, claims frequency (related to volume of traffic) and average claims payout will vary from one city to another. The safety of your community will contribute to the overall rating of your vehicle.
Driving experience is another important factor. The more driving experience you have without at fault claims and convictions (e.g. speeding tickets), the better your rate will be. Keeping a clean driving record will allow you to qualify for the best rates.
The sample quotes below are based on vehicles with a $2,000,000 liability limit, a $500 deductible applied to all perils coverage, and drivers with a clean driving record from Uxbridge Ontario.
As you can see, while some factors remain consistent, the larger and safer vehicles tend to generate a lower annual premium. Auto insurance premiums are different for everyone. When shopping for your next vehicle, contact your broker to help you find the most competitive premium. You broker will be able to compare the rates for your top vehicle choices, and help you determine what one will generate the lowest cost.