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Cheapest Cars to Insure in Canada (2026)

Updated

The vehicle you insure is one of the main factors in the premium. Insurers rate each make, model and model year on its Canadian claims history, so two cars at the same price can cost very different amounts to insure. This page explains how Canada’s vehicle rating system works, what the public claims data shows, and how to check a model before you buy. Our other guides are in the car insurance hub.

How vehicle rating works in Canada

Most Canadian insurers price the vehicle using the Canadian Loss Experience Automobile Rating (CLEAR) system, run by the Insurance Bureau of Canada (IBC). CLEAR uses industry data on claim frequency, claim cost and the likelihood that a vehicle will be stolen to place each vehicle in higher or lower rate groups. The data is adjusted to remove the effect of non-vehicle factors such as territory, driving record and vehicle use, and the rate groups are set separately for collision, direct compensation for property damage (DCPD), comprehensive and accident benefits coverage, so the same vehicle can rate well for one coverage and poorly for another.

What CLEAR reflectsHow it affects the rate group
Claim frequencyVehicles involved in more claims rate higher
Claim costVehicles that cost more to repair or replace rate higher
TheftVehicles more likely to be stolen rate higher for comprehensive
Loss-prevention featuresDriver-assistance systems, anti-lock brakes, airbags, side-impact reinforcement and anti-theft devices can lower claims and the rate group

CLEAR is only one factor: where you live, your driving record and the coverage you choose also set the premium.

What the claims data shows

IBC publishes claims data by model for consumers as How Cars Measure Up. Each model and model year gets an index for each coverage, where 100 is the average; 122 means 22% above average and 87 means 13% below. The 2026 edition covers models with at least 1,500 vehicles insured from 2020 to 2025. A few 2021 models show how differently vehicles can rate:

2021 modelCollision indexComprehensive indexTheft frequency index
Chevrolet Spark 5-door96.670.876.6
Toyota Corolla 4-door154.189.493.5
Honda Civic 4-door159.4137.1255.4
Toyota RAV4 4-door 2WD88.0110.6263.7
Honda CR-V 4-door AWD91.7401.7284.2
Lexus RX350 4-door AWD146.41,535.9239.6
Ford Mustang 2-door374.3178.9459.9

Source: IBC, How Cars Measure Up, 2026 edition. 100 = average; lower is better.

Three patterns stand out:

  • A low price does not mean low claims. The Toyota Corolla and Honda Civic, both inexpensive compact cars, have collision indexes well above average, while the Toyota RAV4 and Honda CR-V SUVs are below average for collision.
  • Theft drives comprehensive. The Honda CR-V AWD and Lexus RX350 have far higher comprehensive indexes than their collision indexes, because both are frequent theft targets.
  • Performance cars cost more to repair. The Ford Mustang has a collision index several times the average.

The Honda CR-V and Lexus RX also led Équité Association’s 2024 national ranking of most-stolen vehicles by model generation, which is covered on the Toronto car insurance page.

Before you buy

Look up the exact model and model year in IBC’s How Cars Measure Up tool, then ask an insurer for a quote on that model and trim before buying; that is the only way to see what it will cost you. The other levers, from deductibles to bundling, are covered in our guide to lowering a car insurance premium.

New vs used

FactorNewer carOlder car
Collision and comprehensivePay up to a higher actual cash value, so cost morePay up to a lower actual cash value
Liability and accident benefitsNot based on the vehicle’s valueNot based on the vehicle’s value
Dropping collision or comprehensiveUsually required by the lender if financed or leasedAn option once the premium is high relative to what a claim could pay
Safety featuresMore likely to have driver-assistance systems that CLEAR can rewardFewer loss-prevention features

How to compare the premium with the most a claim could pay is covered in collision vs comprehensive insurance.

Sources

The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.