The 10 cheapest used cars to insure in Canada

Why are Canadians looking for cars that are cheap to insure?

Life in Canada is getting more expensive. In the spring of 2024, 45% of Canadians reported that rising prices were making it challenging to cover daily expenses. Two years earlier, this number was only 33%. It’s clear our economy has shifted, and with inflation still putting pressure on essentials like groceries, rent, and transportation, many Canadians are focused on making smarter financial decisions, especially when it comes to finding affordable car insurance for their vehicles.

Also read: How to check insurance before buying a car

Tariffs are another factor contributing to why Canadians are searching for cars that are cheap to insure. As of spring 2025, the U.S. introduced new auto tariffs, raising concerns that vehicle prices could spike. While the full impact hasn’t yet been felt, many buyers rushed to lock in purchases early, leading to a 7.9% year-over-year increase in car sales in Canada.

With the rising costs of fuel, repairs, maintenance, and insurance, every cost-saving measure helps. Comparing car insurance quotes when you’re in the market to buy can help you find your lowest rate. 

Also read: Car buying guide: How to buy a car in Canada

Is car insurance cheaper for new or used cars?

Not sure whether to buy a new or used car? Used vehicles are usually cheaper to insure than brand-new ones. Here’s why:

• Lower replacement value = smaller claims
• Fewer high-tech parts = cheaper repairs
• Depreciation has already happened

Just keep in mind: if you're buying a much older used vehicle, some insurers may adjust your rate based on safety concerns or the availability of parts.

What makes a used car one of the cheapest to insure?

Providers consider several key factors when calculating auto insurance rates, including:

• Safety features: Cars with backup cameras, lane assist, and automatic braking tend to result in fewer claims, which means there’s less risk and, therefore, lower insurance premiums. 
• Repair costs: Simpler cars with widely available parts are generally less expensive to repair, which means the cost of a claim will be lower for insurers to cover, making premiums more affordable. 
• Theft rates: Some models are targeted more often, which drives up premiums compared to typically older models that are less likely to be stolen.
• Collision data: Cars frequently involved in crashes are riskier to insure. Your location can also influence this, depending on whether or not you live in an area with high-risk drivers. 

All these factors are baked into the auto insurance quote you get, which is why the car you choose plays a role in determining how much you’ll pay in insurance premiums. 

The 10 cheapest used cars to insure in Canada

So, which used cars will give you the most savings on insurance? We crunched the numbers to find out. Using the AutoTrader Q1 2025 Price Index Report, we pulled the 10 most sold used vehicles in Canada and ranked them by average insurance cost.

The quotes below are based on a used 2022 model car, insured in Toronto by a 35-year-old male with a clean driving record, who drives 15,000 km per year and parks in a private driveway. The policy includes $1,000 deductibles for both collision and comprehensive coverage and does not opt for telematics or bundling discounts.

Insights about the cheapest used cars to insure in Canada

#1. Ford F-150: Canada's best-selling vehicle is also the cheapest to insure used. Despite its size, the F-150's reputation for durability and strong safety features helps keep premiums low. It also sees fewer high-cost claims compared to other trucks.

#2. GMC Sierra 1500: Another full-size truck with a surprisingly low insurance bill, this is a top pick for drivers who need hauling power without high premiums.

#3. Nissan Rogue: Compact SUVs like the Rogue are popular for good reason: solid safety scores, affordable repairs, and relatively low theft rates.

#4. Toyota Corolla: Not only is the Corolla one of Canada’s best-selling cars, but it’s long been recognized as one of the most popular vehicles in the world. Corollas are reliable, easy to fix, and not often involved in costly accidents.

#5. Toyota RAV-4: The RAV-4 is the top-selling SUV in Canada. While newer RAV4s pack in high-tech safety, repair costs can bump up the premiums.

#6. Ford Escape: A midsize SUV with decent insurance rates and plenty of family-friendly features. It does come with slightly higher premiums than the Rogue and RAV-4, but it’s still a good deal.

#7. Honda CR-V: The CR-V has been on the scene since 1997. It’s safe and dependable, but sometimes more expensive to repair than its competitors. A slightly higher premium reflects that.

#8. RAM 1500: Great for towing, but higher premiums reflect higher repair costs and more claim activity.

#9. Hyundai Elantra: Affordable up front, but slightly higher premiums suggest insurers are cautious, possibly due to theft risk or repair frequency.

#10. Honda Civic Sedan: The Civic is everywhere, which may be part of the problem. It's consistently one of Canada’s most stolen vehicles, which pushes up the cost of insurance.

The bottom line

Whether you're driving a pickup truck or a compact car, insurance costs for used cars can add up fast. However, if you choose a model known for its safety, reliability, and fewer claims, you could save hundreds of dollars a year.

And remember, the only way to know you're getting the best deal is to compare car insurance quotes online. On Ratehub.ca, you can compare affordable car insurance quotes from Canada's top providers in minutes, helping you find the right coverage for your used car at the best price. 

Also read: 

• How to check insurance before buying a car
• How much car can I afford?
• How to save on car insurance in Canada