When buying a new vehicle, you shouldn’t consider its MSRP alone. All too often, people eagerly buy new cars because they have very affordable price tags. Later, they discover that their affordable vehicles come along with unexpectedly high insurance premiums. You don’t have to buy the latest luxury car to end up with uncomfortably high insurance premiums. Before you get more than you bargained for, you should familiarize yourself with the 10 cars that cost the most to insure in Canada. You don’t necessarily have to rule them out, but you should be prepared to pay more to maintain insurance on them.
How are Insurance Rates Calculated?
As you probably already know, your driving record, age and other personal factors play significant roles in the amount that you’ll pay for auto insurance. However, the vehicle that you drive has a major impact as well. In general, sportier, more expensive cars are more expensive to insure. Things like theft and safety come into play as well. Before delving into the 10 most expensive cars in insurance in Canada, you should learn a little more about the things that affect the price to insure a specific vehicle:
Safety – Cars that are built with safety in mind are less risky from an insurance standpoint. If a car performs well in crash tests, it is less likely to be severely damaged or totaled. Similarly, the odds of drivers or passengers incurring serious injuries are a lot lower. That is music to insurance companies’ ears, so they usually offer lower premiums on cars that are safer. As you shop for a new vehicle, pay attention to safety. Check to see whether it has fared well in crash tests or not. Find out what kinds of safety ratings it has. In addition to keeping you and your family safer, this information will give you a clue about how much it will cost to insure the vehicle.
Cost – It’s pretty clear why the cost of a car affects its insurance premiums. The more expensive a vehicle is, the more expensive it will be to repair or replace. When an insurance company provides coverage, it needs to plan for the worst-case scenario. If your vehicle is very expensive, your insurance company could end up with a very expensive claim. To mitigate that risk, the insurance company will charge higher premiums.
Theft– If a car is popular with thieves, it is going to be riskier to insure. Insurance companies keep track of vehicle theft statistics and use them while calculating premiums. Before you invest your hard-earned money into a new vehicle, you should investigate its likelihood of being stolen. If your car shows up near the top of the most-stolen vehicles in Canada, you might want to consider buying a different model. In addition to worrying about it being stolen all the time, you will have to contend with higher insurance premiums. Your insurance company will have to protect itself in the event of a theft, so it will charge higher rates.
The 10 Most Expensive Cars to Insure in Canada
The following 10 cars were the most expensive ones to insure in Canada in 2010, which is the most recent year for which this data is available. The data has been collected by the Insurance Bureau of Canada, and it does not include high-end luxury vehicles.
- Toyota Highlander
- Toyota RAV4
- Acura MDx
- Toyota Tundra
- Honda Odyssey
- Toyota Camry
- Dodge Ram 1500
- GMC/Chevrolet Sierra 2500/Silverado
- Chevrolet Camaro
- Hyundai Genesis
If your heart is already set on one of the above vehicles, don’t worry. There’s still a lot you can do to get lower car insurance rates. You don’t necessarily have to completely avoid the most expensive cars to insure in Canada. If your top priority is spending as little as possible to own a car though, you should probably look around for different options.
Ways to Get Lower Car Insurance Rates in Canada
Whether you’re interested in one of the 10 most expensive cars to insure in Canada or not, you’d probably like to spend as little on auto insurance as possible. There are several simple ways to spend less on coverage. Put these tips to use to get the best rates possible, no matter which vehicle you choose to buy.
Pay Annually or Biannually – While it’s typical to have a payment plan that allows you to pay for your insurance premium on a monthly basis, processing fees are usually involved. Auto insurance policies are generally renewed every six to 12 months. By paying for the entire premium at one time, you should be able to save a decent amount of money.
Get Higher Deductibles – If you’re not worried about paying a little more money out of pocket in the event of an accident, you could increase your deductibles to reduce your premium. Just remember that you have to be prepared to pay your deductible if you need to file a claim. Make sure that the deductible is something you can live with and can easily afford.
Inquire about Discounts – Insurance companies don’t always advertise them, but there are often many discounts that can be used to lower insurance premiums. They are often highlighted for new customers, but existing customers may be completely unaware of them. Give your insurance agent a call and ask for a complete list of available discounts. Whether you get a discount for having additional policies with the company, or if you get one for have routine maintenance performed in a timely manner, every little bit adds up over time.
Drop Collision Coverage – Depending on the value of your car, it may be worth it to drop collision coverage on it. Basically, if you have an older car that is worth right around the amount of your deductible, it’s pretty much pointless to keep paying for collision coverage. Make sure that you have accurate information about the value of your car before making this decision.
Get a Driver Training Discount – If you’ve recently become a licensed driver, you may be able to lower your premium by successfully completing a driver’s training course. If you’ve been driving for several years, maintaining a safe record is the best way to keep your premiums down.
Don’t Drive Your Car to Work – If you use your car to commute to work, it will cost you extra. Whether you switch to bicycling to work instead, or if you carpool with others or take public transportation, it will save you money on gas and reduce your insurance premiums.
Know Your Options – If it’s been awhile since you shopped around for car insurance, you might want to do so. Collect quotes from several different insurance companies. If one of them offers you a rate that is significantly lower than the amount that you’re currently paying, let your existing provider know. Your existing insurance company may be willing to match that price. It certainly doesn’t hurt to try. There are also services that allow you to compare quotes from multiple insurers. Some popular Canadian comparison services include: Kanetix.ca, InsuranceHotline.com, GetInsuranceQuotes.ca, and ComparaSave.com.
If you want to drive a car in Canada, you need to have car insurance. However, you don’t have to pay an arm and a leg. If possible, avoid the most expensive cars to insure in Canada and put the preceding tips to use.