For Canadian drivers, insurance is one of the biggest hidden costs of owning a vehicle. Premiums can vary wildly depending on your age, location, driving record, and the type of car you own. Pick the wrong vehicle and you could be stuck paying thousands more each year. Pick the right one, and your monthly bill could be surprisingly low. Insurance companies look at theft data, accident statistics, repair costs, and the type of driver who typically owns each model. Cars that are inexpensive, practical, and easy to fix almost always come out at the bottom of the insurance scale. Here are twelve cars that are consistently among the cheapest to insure in Canada.
Honda Fit
The Honda Fit is one of the most budget friendly cars to insure because it ticks all the right boxes for insurers. It is not a performance car, it has excellent safety scores, and when repairs are needed, parts are easy to source. It is also not high on the list of stolen cars, which is a major factor in Canadian insurance costs. Drivers of the Fit are often older or family oriented, which statistically reduces risky driving behaviour. For city commuters in Toronto or Vancouver, the Fit is one of the few cars that keeps premiums under control in high cost regions.
Toyota Corolla
The Toyota Corolla is practically a legend in Canada, not just for reliability but for affordability in every sense—including insurance. Because it is one of the most common cars on Canadian roads, insurers have decades of data showing low risk ownership. It is easy to repair, and parts are available everywhere from Newfoundland to British Columbia. Its reputation as a safe, sensible car means drivers are typically low risk in the eyes of insurance companies. For Canadians who want peace of mind, the Corolla is one of the cheapest cars to keep insured year after year.
Hyundai Elantra
The Hyundai Elantra is one of Canada’s best selling sedans, and its popularity is matched by low insurance costs. Insurance companies appreciate that it has solid safety ratings and affordable repair bills. Since it isn’t a car tied to performance or speed, it doesn’t attract aggressive drivers, which keeps accident statistics low. Even in higher cost provinces like Ontario, Elantra premiums are among the lowest of any sedan, making it a top choice for families and students alike.
Mazda 3
The Mazda 3 has long been praised for combining fun driving dynamics with everyday practicality. Insurers also appreciate that it is relatively inexpensive to repair, widely available, and not a hot target for thieves. Early models had rust problems in Canada’s salt heavy winters, but that issue doesn’t drive up insurance premiums, because repairs are cheap and claims are straightforward. Compared to rivals like the Civic, which suffers from high theft rates, the Mazda 3 is cheaper to insure for most Canadian drivers.
Toyota Yaris
The Toyota Yaris is small, simple, and incredibly cheap to run. It’s also one of the most affordable cars to insure in Canada. It is rarely stolen, and with its modest engine and lightweight design, it is not seen as a performance risk by insurers. Its reputation for bulletproof reliability means claim costs are low. For younger drivers or retirees looking for the cheapest possible car to cover, the Yaris often delivers some of the lowest quotes on the market.
Kia Rio
The Kia Rio is another entry level car that shines when it comes to insurance rates. It is inexpensive to buy and cheap to fix, which are exactly the traits insurers want to see. Because it is not flashy or fast, it tends to attract practical buyers rather than thrill seekers, which reduces risk on paper. Canadian buyers who choose the Rio often find that their premiums are hundreds lower each year compared to slightly more popular rivals.
Nissan Versa
The Nissan Versa has built its reputation as one of the most affordable cars sold in Canada. Unsurprisingly, it is also one of the cheapest to insure. Its low theft rate, simple mechanicals, and reputation for being a sensible commuter car all work in its favour. Since it is often bought by older or first time drivers who are more cautious, accident statistics remain low, further keeping premiums down. For Canadians on a tight budget, the Versa is one of the safest bets.
Chevrolet Spark
The Chevrolet Spark is one of the smallest cars on the market, and that simplicity helps make it one of the cheapest to insure. Its low purchase price means claim payouts are limited, and its lack of power means it is rarely associated with risky driving. Because it is not commonly stolen and repairs are straightforward, insurers rank it among the lowest premium cars in Canada. For city dwellers looking for cheap transportation, the Spark is about as affordable as it gets.
Volkswagen Golf
The Volkswagen Golf is one of the rare European cars that doesn’t come with punishing insurance premiums. Its strong safety scores, reasonable repair costs, and wide availability of parts in Canada keep rates lower than expected. Unlike German luxury sedans, the Golf is seen as a sensible, everyday car rather than a performance risk. For Canadians who want a car with some European feel without paying insurance penalties, the Golf strikes the right balance.
Subaru Impreza
The Subaru Impreza is a standout because it is one of the few all wheel drive vehicles that is still cheap to insure. In most cases, AWD vehicles come with higher premiums, but the Impreza’s reputation as a safe, practical, family friendly car offsets that. Canadian insurers see it as low risk, even in provinces like Alberta and Manitoba where AWD is in high demand for snow and ice. Its excellent crash test ratings also keep claims lower, making it one of the most affordable AWD choices in the country.
Mitsubishi Mirage
The Mitsubishi Mirage may not win awards for performance, but it certainly wins when it comes to insurance savings. Its tiny three cylinder engine, simple design, and budget price mean insurers see it as one of the lowest risk cars on the road. It is not stolen often, and when it is damaged, repair costs are minimal. For Canadians who want rock bottom monthly bills, the Mirage is a clear winner despite its modest driving experience.
Ford Focus (Older Models)
Though discontinued, the Ford Focus remains a popular used car in Canada, and older models are among the cheapest to insure. Because they are inexpensive, claims are low, and parts are easy to find. Insurance companies also note that Focus owners tend to be practical commuters rather than thrill seekers, which helps lower premiums. For students or first time buyers, an older Focus is one of the most insurance friendly options available.
Why These Cars Stay Cheap to Insure
The Canadian insurance industry works on risk. Cars that are easy to repair, inexpensive to replace, rarely stolen, and statistically safer to drive always come out ahead. That’s why simple, reliable, and practical models dominate this list. While flashy cars like Civics or Chargers get hammered with theft and performance risk premiums, these twelve cars stay cheap year after year. For Canadians looking to stretch every dollar, picking one of these models could save hundreds—or even thousands—over the course of ownership.
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