The consumer market for minivans includes some of the statistically safest drivers to the Ontario insurance industry. Parents with small children generally fit a low risk category. They are drivers likely over 25 years old with established driving records and claims histories. Women are generally less likely to have accidents than men, and likely have more minivan driving duties with the kids in tow. The popularity of the minivan assures a good supply of parts, lowering repair costs. These factors combine to make auto insurance affordable for the minivan style in general, as well as the motorists who drive them.
Why Are Minivans Cheaper to Insure?
The insurance industry is all about risk. The simple equation that drives the business is that high risk equals high premiums and, conversely, low risk equals low premiums. Calculating risk accurately across a wide spectrum is the basis of any insurer’s success. When it comes to identifying “safe bets,” insurers look at a wide range of factors. Everything from where a driver lives to the kilometers driven contribute to the auto insurance policy premium.
Consider a sports car in comparison with a minivan. The performance of a sporty vehicle invites a motorist to drive in a more aggressive way. Driving a sports car is more fun. The minivan is functional. It’s far more likely that a minivan is used as a point A to point B vehicle. The large volume and practical styling don’t present the same appeal the sporty vehicle does. A purchase decision for a minivan probably doesn’t include turbocharged engines and racing stripes.
Conventional is affordable in insurance terms, while sex appeal is expensive. Minivans represent stability. Generally, these are owned by those at a conservative point in their lives. To an insurance company, that says low risk.
The lack of visual appeal has another risk-reducing offshoot. Minivans don’t catch the eye of car thieves. According to the Insurance Bureau of Canada, minivans are not among the top 10 stolen vehicles in Canada. The low likelihood of theft also reduces risk and helps keep costs down.
Affordable Minivan Models for Insurance
With the vehicle class affordable to insure as a general rule, there are factors that contribute to low insurance costs within the group. Quality and price of vehicles overall generally sets repair and replacement costs. Cheaper vehicles may be simpler to fix and affordable to replace. Popularity of a particular minivan may keep parts prices down, as a large number of vehicles on the road demands more parts for both accident and routine maintenance repairs. Consider these points when looking at the five most affordable minivans in Ontario for 2016:
- Kia Sedona
- Dodge Grand Caravan
- Kia Rondo
- Honda Odyssey
- Chrysler Town and Country
Personal Impact on Minivan Insurance Rates
You may find that your rates on minivan insurance varies from the list. The type of vehicle is only one factor in the formula used to calculate insurance premiums. In Ontario, every insurer has their own method of calculating prices.
To find your best rate, use Ratelab’s car insurance calculator to check your auto insurance needs against the prices of over 50 car insurers in the province. Enter your postal code below to get started.