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HomeCar Insurance ResourcesList of small cars with cheap insurance in Canada

Here’s a list of some small cars that have been known for affordable insurance in the past:

  1. Honda Fit: Known for its reliability and low repair costs.
  2. Toyota Yaris: Another reliable choice with good safety ratings.
  3. Hyundai Accent: An economical option with a reputation for affordable repairs.
  4. Kia Rio: Comes with a range of safety features and has a good reliability record.
  5. Chevrolet Spark: A small car with good fuel efficiency and safety features.
  6. Mazda2: Offers a blend of safety and reliability.
  7. Ford Fiesta: While it’s a small car, it’s built with several safety features that can lead to lower insurance costs.
  8. Nissan Micra: One of the most affordable cars on the market, which often translates to lower insurance costs.
  9. Mitsubishi Mirage: Known for its low purchase price and affordable maintenance.
  10. Volkswagen Golf: While slightly pricier than some other options, its safety features and reliability can result in affordable insurance premiums.

Here are some examples of small cars with cheap insurance in Canada, along with estimated annual and monthly insurance costs for different provinces and cities:

  1. Honda Civic:
  • Ontario: Annual insurance cost of $1,600, monthly cost of $133.33 (Toronto)
  • Alberta: Annual insurance cost of $1,200, monthly cost of $100.00 (Calgary)
  • Quebec: Annual insurance cost of $800, monthly cost of $66.67 (Montreal)
  • Nova Scotia: Annual insurance cost of $1,000, monthly cost of $83.33 (Halifax)
  1. Toyota Corolla:
  • Ontario: Annual insurance cost of $1,550, monthly cost of $129.17 (Ottawa)
  • Alberta: Annual insurance cost of $1,100, monthly cost of $91.67 (Edmonton)
  • Quebec: Annual insurance cost of $750, monthly cost of $62.50 (Quebec City)
  • Nova Scotia: Annual insurance cost of $900, monthly cost of $75.00 (Dartmouth)
  1. Hyundai Elantra:
  • Ontario: Annual insurance cost of $1,500, monthly cost of $125.00 (Mississauga)
  • Alberta: Annual insurance cost of $1,050, monthly cost of $87.50 (Red Deer)
  • Quebec: Annual insurance cost of $700, monthly cost of $58.33 (Laval)
  • Nova Scotia: Annual insurance cost of $850, monthly cost of $70.83 (Sydney)
  1. Mazda3:
  • Ontario: Annual insurance cost of $1,650, monthly cost of $137.50 (Hamilton)
  • Alberta: Annual insurance cost of $1,150, monthly cost of $95.83 (Lethbridge)
  • Quebec: Annual insurance cost of $800, monthly cost of $66.67 (Gatineau)
  • Nova Scotia: Annual insurance cost of $950, monthly cost of $79.17 (Halifax)
  1. Kia Forte:
  • Ontario: Annual insurance cost of $1,700, monthly cost of $141.67 (London)
  • Alberta: Annual insurance cost of $1,200, monthly cost of $100.00 (Calgary)
  • Quebec: Annual insurance cost of $850, monthly cost of $70.83 (Sherbrooke)
  • Nova Scotia: Annual insurance cost of $1,000, monthly cost of $83.33 (Halifax)

Please note that these are estimated costs based on a sample driver profile and are subject to change based on a variety of individual factors. It’s recommended to contact multiple insurance providers and compare quotes to find the best rates for your specific situation.

Are small cars always cheaper to insure than larger vehicles?

While it’s a common assumption that small cars are cheaper to insure than larger vehicles, that’s not always the case, especially when we consider the insurance market in Ontario or elsewhere. Here are some reasons why:

  1. Safety Ratings: Larger vehicles, such as SUVs and trucks, often perform better in crash tests due to their size and weight. They might cause more damage to other vehicles in an accident, but their occupants are often better protected. Insurance companies consider this when determining rates.
  2. Repair Costs: Although smaller cars might be less expensive initially, they can sometimes be more costly to repair, especially if they’re equipped with advanced technology and features.
  3. Vehicle Usage: Larger vehicles, especially luxury SUVs or trucks, might be driven less frequently or for shorter distances than a commuter car, leading to potentially fewer claims.
  4. Theft Rate: Some small cars are more attractive to thieves because of their parts’ resale value or the car’s overall popularity.
  5. Driver Demographics: Smaller cars might be popular among younger drivers, who statistically have more accidents and therefore higher insurance claims. In contrast, larger vehicles like minivans might be driven by older drivers or families who tend to drive more cautiously.
  6. Vehicle Purpose: Commercial vehicles or trucks, even if larger, might have higher insurance rates due to the nature of their usage.
  7. Coverage Choices: Owners of more expensive or luxury larger vehicles might opt for more comprehensive coverage, driving up their premium.

That said, it’s also true that many small cars do have cheaper insurance rates in Ontario, primarily because they’re less expensive to replace. However, the size of the vehicle is just one factor among many that determine insurance rates.

Do small cars have higher or lower rates of accidents and claims?

The relationship between vehicle size and accident rates is complex, and a definitive answer can vary based on the region, driving environment, and specific conditions under consideration. However, there are some general observations that can be made:

  1. Visibility: Smaller cars might be less visible on the road, especially in the blind spots of larger vehicles like trucks and SUVs. This could increase the risk of collisions in some scenarios.
  2. Stability: Larger vehicles, especially those with a higher center of gravity like SUVs, are more susceptible to rollover accidents. Smaller cars, on the other hand, typically have a lower center of gravity, making them less prone to rollovers.
  3. Occupant Safety: In collisions between a small car and a larger vehicle, the small car is generally at a disadvantage. This means that while a small car might not necessarily be involved in accidents more frequently, when they are, the consequences for their occupants can be more severe.
  4. Driver Behavior: It’s essential to consider the typical behavior of drivers based on the vehicle they’re driving. For example, sports cars, which are often small, might be driven more aggressively, leading to a higher risk of accidents. In contrast, a family minivan driver might tend to be more cautious.
  5. Urban vs. Rural: In dense urban environments, smaller cars might have an advantage due to their maneuverability and ease of parking, which could reduce low-speed accidents. On the other hand, larger vehicles might fare better in rural areas where roads are wider, and there’s less congestion.
  6. Claims Severity vs. Frequency: Even if smaller cars don’t have a higher frequency of accidents, the severity of claims when they’re involved in an accident might be more significant, especially if they collide with a larger vehicle. This could impact insurance claims data.

Studies have shown mixed results. Some suggest that smaller cars have higher claim frequencies, while others indicate that larger vehicles, due to their potential for causing more significant damage in an accident, might have higher claim costs.

Can I get discounts on car insurance for driving a small car?

Whether or not you receive a discount on car insurance for driving a small car largely depends on the insurance provider and the region or country in which you are insuring the vehicle. Here are some considerations:

  1. Vehicle Value: Since smaller cars often have a lower initial purchase price compared to larger or luxury vehicles, the cost to repair or replace them might be less. This can translate to lower comprehensive and collision coverage premiums.
  2. Safety Equipment: If your small car is equipped with advanced safety features, such as anti-lock brakes, electronic stability control, or advanced airbag systems, you might qualify for safety equipment discounts.
  3. Claims History: Insurance companies often base premiums on the historical claim rates of specific vehicle models. If a particular small car model has fewer claims or less costly claims, it could lead to lower premiums.
  4. Fuel Efficiency: Some insurance companies offer discounts for environmentally-friendly vehicles, which many small cars can be, especially if they are hybrid or electric.
  5. Mileage: If you drive less because you use your small car primarily for short commutes or city driving, you might qualify for a low-mileage discount.
  6. Defensive Driving: While not specific to small cars, many insurance providers offer discounts if you complete a defensive driving course, which can be beneficial for any driver but might be especially attractive for small car drivers concerned about safety.
  7. Telematics Programs: Some insurance providers have programs where they monitor your driving habits through a device or app. Safe driving can lead to discounts, and if you drive your small car safely, you might benefit.

Are small cars more fuel-efficient than larger vehicles?

In general, small cars tend to be more fuel-efficient than larger vehicles, but there are several factors at play:

  1. Weight: One of the most significant factors affecting fuel efficiency is the vehicle’s weight. Smaller cars typically weigh less than larger vehicles, and as a result, their engines don’t have to work as hard to move them. This translates to better fuel efficiency.
  2. Aerodynamics: Larger vehicles, especially SUVs and trucks, often have a less aerodynamic shape, which can increase wind resistance and reduce fuel efficiency, especially at highway speeds.
  3. Engine Size: Small cars often come with smaller, less powerful engines which consume less fuel. Larger vehicles typically require bigger engines with more power to move their additional weight, which can consume more fuel.
  4. Type of Driving: In stop-and-go city driving, the difference in fuel efficiency between small cars and larger vehicles can be more pronounced. On highways, the gap might be less noticeable, especially if comparing a small car to a larger but aerodynamically designed vehicle.
  5. Technology: Advances in technology have led to improvements in fuel efficiency across all vehicle sizes. Some larger vehicles, such as hybrid SUVs, can achieve surprisingly good fuel efficiency due to technological innovations. Similarly, turbocharging allows smaller engines to provide more power when needed and consume less fuel when power demands are low.
  6. Tires and Wheels: Larger vehicles often come with bigger and sometimes wider tires, which can create more rolling resistance and reduce fuel efficiency.
  7. Transmission: Modern transmissions, especially continuously variable transmissions (CVTs) and automatic transmissions with more gears, can optimize engine performance for better fuel efficiency. This technology is present in both small and large vehicles, but its impact can be more pronounced in smaller cars.

While small cars generally tend to be more fuel-efficient, it’s essential to note that there are many fuel-efficient larger vehicles on the market, especially with the rise of hybrids, plug-in hybrids, and electric vehicles.

Can I get car insurance for a small car if I am a young driver

small car women

Yes, you can get car insurance for a small car even if you are a young driver. However, there are some things to keep in mind:

  1. Higher Premiums for Young Drivers: Young drivers, especially those under 25, are typically seen as higher-risk by insurance companies due to their lack of driving experience. As a result, premiums for young drivers are generally higher than for older, more experienced drivers.
  2. Vehicle Type Impact on Premium: While small cars might be perceived as more affordable to insure, the model’s safety ratings, theft rates, and repair costs can influence the premium. Ensure you choose a model with good safety ratings and features, which might help in reducing the premium.
  3. Discount Opportunities: Even as a young driver, there are potential discounts to explore:
    • Good Student Discount: Some insurance companies offer discounts for students who maintain a certain grade point average.
    • Defensive Driving Course: Completing a recognized defensive driving course can lead to discounts.
    • Telematics Programs: Some insurers offer programs where they monitor your driving habits. Demonstrating safe driving can lead to reduced premiums.
    • Bundling: If you or your family has other insurance policies (like home or renters insurance) with the same company, bundling them might offer a discount.
  4. Deductible: Opting for a higher deductible (the amount you pay out-of-pocket before insurance covers the rest) can reduce your premium. However, make sure the deductible is an amount you can afford to pay if needed.
  5. Limited Coverage: If you’re driving an older small car that’s not worth much, consider if comprehensive and collision coverages are necessary. In some cases, the cost of the coverage might be more than the car’s value.
  6. Shop Around: Insurance premiums can vary significantly between providers. It’s a good idea to get quotes from multiple companies to find the best rate and coverage for your situation.
  7. Add to a Family Policy: If your parents have an existing car insurance policy, it might be cheaper to add yourself and your vehicle to their policy rather than getting a separate one.


  1. Which small cars typically have the lowest insurance rates in Canada?
    • Popular small cars known for lower insurance premiums in Canada include the Honda Fit, Toyota Yaris, Hyundai Accent, Kia Rio, Chevrolet Spark, Mazda2, Ford Fiesta, Nissan Micra, Mitsubishi Mirage, and Volkswagen Golf. However, rates can vary based on the specific model year and individual driver profiles.
  2. How do insurance companies determine premiums for small cars?
    • Premiums are determined based on factors like the car’s safety ratings, repair costs, theft frequency, driver’s age, driving record, and location, among other considerations.
  3. Are small cars always cheaper to insure than larger vehicles in Canada?
    • Not necessarily. While small cars often have a lower purchase price (affecting comprehensive and collision coverage costs), factors like safety ratings, repair costs, and the car’s popularity (which might influence theft rates) can also affect insurance costs.
  4. Can young drivers get cheaper insurance rates with small cars?
    • Young drivers typically face higher premiums due to their limited driving experience. While choosing a small car with good safety ratings and features might help reduce premiums, the age and experience of the driver are still significant factors.
  5. Do small cars have higher accident rates, affecting insurance costs?
    • The relationship between car size and accident rates is complex. While smaller cars might be less visible on the road, they often have a lower center of gravity, reducing rollover risks. Insurance premiums are influenced by both the frequency and severity of claims associated with specific car models.
  6. How can I reduce my insurance premium while driving a small car?
    • Consider safety features when choosing a car, maintain a clean driving record, inquire about discounts (e.g., good student, defensive driving course, bundling), opt for a higher deductible (if affordable for you), and shop around to compare rates from different providers.
  7. Are electric or hybrid small cars cheaper to insure?
    • Electric and hybrid vehicles may have different insurance costs due to their unique repair requirements and replacement part costs. However, some insurers might offer discounts for eco-friendly vehicles. It’s essential to get quotes and compare.
  8. Does the region in Canada where I live affect my insurance premium for small cars?
    • Yes. Provinces have different insurance regulations, and even within provinces, urban areas might have different rates than rural areas due to factors like traffic density and theft rates.
  9. If small cars are more fuel-efficient, does that affect insurance costs?
    • While fuel efficiency can save you money on fuel, it doesn’t directly impact insurance premiums. However, some insurance providers may offer discounts for eco-friendly vehicles, including fuel-efficient models.
  10. How often should I shop around for better insurance rates for my small car?
  • It’s a good practice to check rates annually or whenever there’s a significant change in your situation, like moving to a new location or adding a new driver to the policy.
  1. Does the color of my small car affect insurance rates?
  • Contrary to popular belief, the color of your car typically doesn’t affect insurance rates. However, factors like the car’s make, model, safety features, and engine size play a more significant role in determining premiums.
  1. Can I get a discount if I install additional safety or anti-theft devices in my small car?
  • Many insurance companies offer discounts for cars equipped with advanced safety features or anti-theft devices. Always inform your insurer about any additional installations to see if they qualify for discounts.
  1. Is it cheaper to insure a new small car or an older model?
  • Newer cars tend to be more expensive to insure because they have a higher replacement cost. However, they often come equipped with modern safety features that can qualify for discounts. Older cars might be cheaper to insure because of their lower value, but they might lack some of the advanced safety features of newer models.
  1. How does a no-claims bonus affect insurance premiums for small cars?
  • A no-claims bonus or discount is offered by many insurance companies as a reward for not making any claims over a specified period. This can lead to significant reductions in your premium over time, regardless of the car’s size.
  1. If I use my small car for work or business purposes, will it affect my insurance rates?
  • Yes. Using your car for business purposes can lead to higher premiums due to increased risk from more frequent driving or carrying valuable items. It’s crucial to inform your insurance provider about the primary use of your vehicle to ensure adequate coverage.
  1. How does my credit score affect insurance premiums for small cars in Canada?
  • Unlike some other countries, in most Canadian provinces, insurers cannot use credit scores to determine auto insurance premiums. However, always check with your specific province’s regulations and your insurance provider for clarity.
  1. If I customize or modify my small car, how does it impact my insurance?
  • Modifications can affect your insurance premiums, especially if they increase the car’s value or performance. Always inform your insurer about any modifications to ensure proper coverage and to understand any potential premium changes.
  1. Are there specific insurance providers in Canada known for offering cheaper rates for small cars?
  • Insurance premiums can vary significantly between providers. It’s advisable to shop around and obtain quotes from multiple insurers to find the best rate for your small car.
  1. Can I opt for usage-based insurance for my small car to get lower rates?
  • Yes, some insurance providers offer usage-based insurance policies where premiums are determined by driving behavior, monitored using telematics devices or apps. Safe driving habits can lead to reduced rates.
  1. If I buy a used small car, will it affect my insurance rates?
  • Buying a used car can often result in lower insurance premiums because of the car’s reduced value. However, consider the car’s age, condition, safety features, and accident history when determining potential insurance costs.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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