Five Cheapest Cars to Insure in 2021
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Buying a car in 2021 can be expensive for many reasons. The cost of warranties, car insurance and other expenses can add up quickly. It’s important to know that each car has different insurance premiums, but learning about each of them can be very time-consuming. Finding a car with a low insurance premium is a great way to save money when buying a car. So in this article, we’re going to explain what insurance premiums are based off and save you time and list the top five cheapest vehicles to insure in 2021.
What factors affect insurance premiums?
When insurers are considering insurance premiums on cars, they look at many factors.
Driving record: Parking tickets, suspended licenses and speeding tickets all play a negative role in affecting your insurance rate. It’s important you keep a clean record on the road if you want to keep your insurance costs at a minimum. According to the Insurance Bureau of Canada, it can take up to six years for your driving infractions to be wiped clean in the eyes of insurers.
Where you live: Living in busy urban areas often means having to pay more for insurance as the chances of being involved in an accident or theft are increased. Some cities have more insurance claims than others and this reflects the cost of insurance premiums for those cities.
The CLEAR System: When assessing insurance premiums, all Canadian insurers use what’s called the Canadian Loss Experience Automobile Rating (CLEAR). The CLEAR assesses the probability of that vehicle being involved in an insurance claim. The CLEAR uses data for each make, model and that specific year’s model to calculate the likelihood of that vehicle needing an insurance claim. So it’s important you find a car with a lower claim risk to ensure you get a lower insurance premium.
Telematics: Telematics is a device that’s installed in your car that monitors and records your driving activities. For example, if you often accelerate quickly, you’ll likely be charged an increase premium because insurers will see you as being a higher risk driver. On the other hand, if you accelerate at a normal pace and don’t speed excessively, you could see your insurance premium lower.
How much you use the car: The amount of mileage you put on the car annually will affect your insurance premium. The less you drive, the less you’ll pay on insurance. So if you have the option to walk, bike or bus to get around where you live, do it! It could save you money on both car insurance and car maintenance.
Who else is driving: Having a secondary driver can be a big factor in your insurance premium, especially if the secondary driver is an 18-year-old male. If your secondary driver is considered a high-risk driver your insurance premium will undoubtedly increase.
Top 5 Cars to Insure
This list is based on the top five vehicles to insure on average in the last five years.
Chevy Cruze
The Chevy Cruze is a great mid-sized car that can compete with any other mid-sized cars on the market in every facet. It can comfortably fit five people and has plenty of room in the trunk. The Cruze has been a staple in the Chevrolet lineup for just under a decade and consistently receives great reliability ratings.
Nissan Sentra
The Sentra is another great option for a mid-sized vehicle. It has excellent safety ratings and is great in terms of fuel economy. If you’re looking for a reliable car to drive around the city without costing you a fortune in insurance, the Nissan Sentra is a great option.
Honda Odyssey
The Honda Odyssey is a great option for anyone looking for a spacious van for the family. It’s known for its powerful acceleration and excellent handling. It’s continually near the top of Forbes annual article on the cheapest cars to insure.
Jeep Wrangler
The Jeep Wrangler is one of Jeep’s most sold vehicles. While having a beautiful aesthetic as well as great winter driving capabilities, it’s a great vehicle for anyone looking to not pay a fortune in insurance.
Toyota Prius
If you’re looking for a vehicle that’s environmentally friendly and has low insurance premiums, look no further than the Toyota Prius! With a decent amount of space for passengers and high safety ratings, this car is in the rankings year over year for the cheapest insurance premiums!
Car Loans Canada Can Help You!
If you’re considering buying a car, let Car Loans Canada help make the process easier. Check out the lender’s rates across Canada on our rates page. Once you have a better idea of what you qualify for, plug your numbers into our car loan calculator to see your estimated monthly payments! To get pre-approved, simply fill out this two-minute application!
