The cost of buying a car goes well beyond the sticker price. Even if you’ve found the make and model you want at a reasonable price, you also need to factor in the cost of mandatory insurance on the vehicle. Different cars come with different premiums, so finding the cheapest cars to insure in Ontario can be a little labour-intensive. Luckily, plenty of excellent cars are available with very reasonable average insurance quotes, so we’ve compiled a list of Ontario’s cheapest cars to insure.
Cheapest Cars to Insure: At a Glance
The cheapest cars to insure in Ontario in 2026 are typically the Subaru Forester, Honda Civic, Toyota Corolla, Volkswagen Tiguan, and Mitsubishi Eclipse Cross. Vehicles with strong safety ratings, low theft risk, and lower repair costs usually have the lowest premiums.
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6 Factors Affecting the Price of Car Insurance
Everyone loves a deal. But there are times when cheap and cheerful isn’t your best strategy, especially when researching car insurance. While lowering your overall expenses when buying a new or used vehicle is optimal, cheap car insurance can sometimes mean that you do not have adequate coverage, or there are many exceptions to what is covered. Taking this into account, insurance premiums are based on several factors:
- Age and experience behind the wheel
- Type and cost of vehicle
- Usage of the vehicle
- Safety ratings of the vehicle and claims history
- Estimated repair or replacement costs of the vehicle (cost of parts and labour)
- Probability of theft
1. Age and experience behind the wheel
Car insurance can be costly. Two main factors affecting your car insurance rates are your driving history and data from other drivers in your province. For instance, accidents are more common among young drivers; the same risk applies to seniors. Considering these factors, car insurance rates will often be higher for these age groups. The possibility of error is higher and may affect rates.
- Insurance history: Your rates will be lower as you build your insurance history and show that you pay your premiums on time and have good driving habits.
- Telematics car insurance is a newer form of car insurance. It literally puts the power of the best car insurance rates in your hands. Telematics (or Usage-Based Insurance, i.e., UBI) has combined leading-edge wireless communications and global positioning system (GPS) tracking technology to collect and analyze data from moving motor vehicles.
This amazing technology can help you save money on your auto insurance premiums while providing helpful, personalized feedback to make you an even safer driver. Not all Ontario insurers offer UBI, so please speak with an isure broker today to find the insurer with the best Telematics program for you.
2. Type of vehicle and its cost
Every insurer groups car models into categories based on their respective risks. You’ll find sports cars with more significant engines in the higher, more expensive categories, while smaller vehicles with good safety features will fall into the more affordable category.
- Size matters: Heavier vehicles offer more protection than smaller ones so that insurance companies will save the cheapest rates for midsize and large cars. These cars feature durable frames and provide greater protection after a collision. Ultimately, midsize and large-frame vehicles will keep you and your passengers safer than the lighter frames of smaller cars, translating into premium savings for you.
- Customizing: Making modifications to your car can raise your insurance premium. A modification is any change that alters your vehicle from the manufacturer’s standard specifications and is usually either performance-related or cosmetic. Customized plates don’t affect performance, but installing a turbo or supercharger will definitely affect your rates. The cheapest cars to insure don’t have cosmetic upgrades or upgraded stereo systems.
3. Usage of the vehicle
Whether you keep your car parked in your driveway or use a parking garage, how often and how far you drive, and what you use your vehicle for will all affect your car insurance rates.
- Substance over style: Insurance companies consider mid-range SUVs and minivans family cars and, therefore, are more likely to have sensible, cautious drivers. What you drive, where you drive, why you drive, and how you use your vehicle all play a role in determining rates. Insurers use statistical data to predict whether people who drive these vehicles are safety-conscious and drive cautiously. Therefore, driver behaviour will result in a lower risk of collisions and claims, affecting the premiums offered.
- Mileage: If you frequently drive, i.e., have a lengthy commute to work, you are at greater risk of being in an accident. So, those who drive a lot will naturally pay more for their insurance.
When looking for the cheapest-to-insure cars, doing your research and having a clear idea of the type of car you need (as opposed to the vehicle you want) can make all the difference in your savings.
4. Safety ratings of the vehicle and claims history
Vehicles equipped with the most safety features, best crash ratings, and best theft deterrents are the cheapest to insure in Canada, though they may cost more upfront. When purchasing a new or second-hand car, look for one that checks as many of these boxes as possible.
How do insurance companies know which cars are the safest?
The Insurance Institute for Highway Safety (IIHS) tests cars to assess safety levels and identify new technologies that can help prevent crashes or reduce their severity. They also make recommendations to the public to help car buyers stay informed of the safest makes and models.
- Safety first: Car manufacturers improve the safety of their vehicles each year due to advances in engineering and technology. Safety ratings are based on how well the car protects you and your passengers.
- Crash protection: This includes features like airbags, crumple zones, frame design, and rollover resistance.
- Crash avoidance: Technologies that help prevent accidents, such as Forward Collision Warning, Rearview Camera, Automatic Emergency Braking, Lane Departure Warning, Blind Spot Detection, and Adaptive Cruise Control.
- Age matters: Insurers also consider the car’s age when assessing its safety. Newer cars have the most safety features. Still, they also cost the most money to repair and replace. Each insurance company will determine the likelihood of you needing to make a claim and how much that claim is likely to cost before giving you an auto insurance quote.
Cars that have better claims histories in terms of damage costs also catch a break when it comes to car insurance rates. Choosing a car with a high safety rating will reduce your chances of being in an accident and help reduce the amount you pay for insurance.
5. Estimated repair or replacement costs of the vehicle
Buying a car with a large, powerful engine and expensive extras may cost more to replace or repair than a car built for safety and reliability. Cheap cars are typically assigned lower rates because they’re less costly to repair. So, when choosing a car, if cheap car insurance is a priority for you, consider the built-in safety features and the average repair cost when selecting your vehicle.
6. Probability of theft
Car theft is a serious problem for insurers and consumers when buying and insuring vehicles. According to the IBC, a car is stolen every seven minutes in Canada. Insurers consider two key factors when setting car premiums: the vehicle’s safety rating and the likelihood of theft.
Improving your car’s engine performance can increase its speed. But adding new alloy wheels could make your car more attractive to thieves. Both are also likely to push up your insurance costs. Improving your car’s security by installing an anti-theft alarm system could save you money on your monthly premium payments. That’s an upgrade that helps save you money!
What Are the Cheapest Cars to Insure in Ontario in 2026?
In 2026, the cheapest cars to insure in Ontario tend to be compact sedans and small- to midsize SUVs with strong safety ratings, low repair costs, and a lower likelihood of theft. Vehicles like the Honda Civic, Toyota Corolla, Subaru Forester, and Volkswagen Tiguan consistently rank among the most affordable to insure.
Cheapest Sedans to Insure in Ontario
These sedans remain some of the most affordable to insure due to their reliability, safety features, and lower repair costs:
- Toyota Corolla: A leader in affordability and low claims costs ($1,689/year, $141/month)
- Honda Civic: Consistently one of the cheapest cars to insure in Ontario ($1,553/year, $129/month)
- Mazda3: Combines strong safety ratings with reasonable repair costs ($1,900–$2,000/year)
- Hyundai Elantra: Affordable, efficient, and increasingly equipped with advanced safety tech ($2,000+/year, though depending on driver profile
- Kia Forte: A budget-friendly sedan with good safety features ($2,100+/year depending on usage)
Cheapest SUVs to Insure in Ontario
- Subaru Forester: $1,424/year ($119/month)
- Volkswagen Tiguan: $1,537/year ($128/month)
- Mitsubishi Eclipse Cross: $1,500/year ($125/month)
- Mazda CX-3: Taking over from the Mazda CX-5 last year, it runs approximately at $1,602/year ($133/month)
- Honda CR-V: Once again, this model makes the list at $1,900–$2,400/year depending on driver profile
- Hyundai Venue: $1,900/year range
Mid-Size SUV
Mid-size SUVs are larger than compact SUVs and often offer more cargo space, stronger safety performance, and optional third-row seating. Many still maintain reasonable insurance costs, especially non-luxury models.
- Subaru Outback: $1,800–$2,100/year
- One of the most affordable true mid-size SUVs, with excellent safety ratings
- Honda Passport: $2,000–$2,500/year
- Larger than a CR-V, with strong reliability and safety
- Nissan Murano: $2,100–$2,600/year
- Comfortable, lower-performance SUV (helps keep insurance down)
- Chevrolet Blazer: $2,200–$2,700/year
- Mid-size styling with moderate insurance costs
- Volkswagen Atlas Cross Sport: $2,200–$2,800/year
- Spacious 2-row mid-size SUV option
Hybrid and fuel-efficient options
- Ford Maverick (Hybrid): $1,800–$2,200/year (varies widely)
- Kia Niro (Hybrid/Electric): $1,900+/year
- Hyundai Elantra Hybrid: $2,000/year range
Trucks and other affordable options
Pickup trucks can be a cost-effective option for insurance. Although they are larger vehicles, many are equipped with advanced safety features. They are often driven in lower-risk ways, helping to keep premiums relatively affordable compared to other vehicle types.
- Ford Ranger: $1,565/year ($130/month)
- Ford Transit: $1,248/year ($104/month)
- Subaru Crosstrek: $1,900/year range
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Key trends for 2026
If you want to save money on insurance in 2026, keep these trends in mind:
- Compact SUVs are now the sweet spot for affordability and safety
- Sedans like the Civic and Corolla remain reliable, low-cost choices
- Vehicles with advanced safety features often qualify for lower premiums
- Cars that are expensive to repair or commonly stolen cost more to insure
Cheapest Cars to Insure in Ontario: Final Thoughts
The vehicle you choose has a significant impact on how much you’ll pay for insurance. Everything from engine size and safety features to theft rates and repair costs plays a role. Shopping around and researching your options can save you hundreds of dollars annually, and isure can help.
There’s no one-size-fits-all approach, but we will do the legwork for you to help you find affordable coverage that fits your needs. There’s also no substitute for safe, defensive driving. Even the safest vehicle can’t offset risky behaviour behind the wheel. Maintaining a clean driving record remains one of the best ways to keep your insurance costs low.
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