If your car is painted red, you’ll pay more for your insurance – right?
Actually, that is a myth. What matters more when it comes to the car itself and how your insurance rates are calculated is the make, model, safety rating, and likelihood of theft.
Besides the car itself, there are numerous factors impacting our rates. We can delve deeper into those as well. When you are purchasing a new vehicle, you may want to keep your budget in mind. Part of that comes with choosing a car that is cheaper to insure.
Which cars are the most expensive to insure in Ontario? In this blog, we answer that question and more.
List of the Most Expensive Cars to Insure in 2021
As of 2020, here is a list – in no particular order – of some of the most expensive vehicles to insure in the province of Ontario:
- Toyota Camry
- Porsche Cayenne
- Acura TLX
- Ford F-250 Super Duty
- Acura MDX
- Acura RDX BMW X5
- Toyota FJ Cruiser
- Honda Civic
But why are these cars so expensive to insure? Well…
What Makes a Car Expensive to Insure?
The list of the most expensive vehicles to insure will change by year, but it can be similar. Typically, a more expensive vehicle to insure will usually have luxurious tech added in, big, fuel-gobbling engines (or batteries beneath the hood) and may have a high appeal to potential thieves.
As a general rule of thumb, high-end cars tend to have higher premiums. Common factors include:
- Size. While it is assumed that larger cars might have less maneuverability and thus a much higher risk of accident, this is not true. On the flipside, statistics have indicated that smaller vehicles are often driven much faster, and typically by younger drivers who do not need the extra space or kids or other dependents. As a result, they are involved in more accidents and often more expensive to insure.
- Flashy tech. Increasing insurance rates are heavily attributed to the evolution of more advanced technology, which costs more to repair or replace in the event of an accident. The increased costs that come with possibly foreign brands will be reflected in your premiums.
- Large motors. The “horsepower” of your vehicle can directly impact how much you will pay for your insurance. The more horsepower, the much more likely the driver is to go at higher speeds and risk an accident. Similar makes and models may have a variety of engine sizes, too, so it is a factor that should not go without notice.
- Theft-ability. The “flashier” a vehicle, the more likely it is to be stolen and therefore insurance rates will be higher. Common targets change year by year but there are plenty of lists available online to see which vehicles have the highest risk of being stolen. Some third of comprehensive auto insurance premiums will actually pay out for theft claims! Because vehicles that are stolen are usually sold for parts, it depends on the vehicle’s desirability and its current demand.
- Safety rating. Cars with higher safety ratings are cheaper to insure. Safety ratings are calculated based on fold factor, airbags, and cushion zones. For example, a minivan is likely to have a much higher safety rate than a sportscar.
What Factors Make for Expensive Auto Insurance – Not Including the Car Itself?
A couple of factors impacting your rates will not even take into account the actual vehicle. Those include:
- Your age. Younger drivers have less experience and therefore are more likely to get into accidents. They are also statistically riskier, and men might take on more risks than women.
- Your driving history. Have a lot of past accidents and traffic violations? You will likely pay much more than if you had no claims or tickets.
- Your commute. If you drive a lot, your time on the road increases your exposure to possible risks and thus will be reflected in your insurance premiums.
Where you live in Ontario may play a role?
Besides, the actual vehicle that you drive, wherein Ontario you live (or where you drive for the most part) is a huge contributor. As an example, folks who live in Toronto may pay more for their rates than if you were looking for auto insurance in Whitby.
This is also true of where within your city that you live. For example, those living in urban areas are more at risk of accidents and may pay more than folks who live in rural regions or in the suburbs.
If you want to save on your auto insurance when you are shopping around for a new car, take into account what makes a car expensive to insure.
There are also ways you can reduce your rates, like opting for a higher deductible, shopping around for quotes, and only choosing as much coverage as you need for your situation. A broker can help if you are stuck.