In the market for a new vehicle? An important part of purchasing a new vehicle is being able to afford all of the costs associated with ownerships. This includes the payment (if it’s financed), the maintenance costs, the repair costs, the operating costs, and of course, the cost to register and insure the vehicle. Having a firm grasp of the expected expenses will set you up for success when purchasing a vehicle. Today, we wanted to breakdown the factors that go into a car insurance premium and how to find a vehicle with insurance you can afford.
What Goes Into My Car Insurance Premium?
There are multiple factors that go into a car insurance premium, which include but are not limited to:
- Driving history
- Insurance history
- Credit history
- Coverage and deductibles
- Location and commute distance
- Vehicle value and repair cost
Each insurance company will have different risk factors and different rating systems. A full guide about what goes into a car insurance premium is available here.
That being said, choosing a car with inexpensive insurance also depends on the type of coverage you’re placing on your vehicle. If you’re only placing basic liability coverage on your vehicle, the insurance premium has very little to do with the type of vehicle you own and more do with your driving, insurance, and credit history. If you’re placing basic liability coverage on your vehicle, you could drive a Rolls Royce Phantom or a Toyota Camry and the liability coverage wouldn’t be heavily impacted.
Where the vehicle itself does play a part in your insurance premiums is collision and comprehensive coverage. Collision coverage will be more expensive for vehicles with expensive parts and high repair costs. Comprehensive coverage will be more expensive for high theft vehicles.
Which vehicles are stolen the most in Alberta?
A Canadian not-for-profit organization by the name of équité releases a report of the most commonly stolen vehicles every year. Here are Alberta’s highest theft vehicles for 2021.
- 1997-2007 Ford F350 (220 thefts)
- 2009-2018 Ram 1500 (165 thefts)
- 199-2006 Chevrolet/GMC 2500 (164 thefts)
- 2009-2014 Ford F150 (104 thefts)
- 1999-2006 Chevrolet 1500 (103 thefts)
- 2015-2020 Ford F150 (97 thefts)
- 1997-2007 Ford F250 (84 thefts)
- 2007-2013 Chevrolet/GMC 1500 (79 thefts)
- 2019-2021 Ram 1500 (66 thefts)
- 2009-2020 Dodge Journey (64 thefts)
Unsurprisingly, the most stolen vehicles in Alberta were mostly pickup trucks given their popularity in the province. The list above indicates the vehicles most commonly stolen, however the rate at which they are stolen has a greater impact on your insurance. More information on this below.
Which vehicles are the most stolen in Canada?
The most stolen vehicles in all of Canada are different from that of Alberta and here they are.
- 2016-2021 Honda CR-V (4,117 thefts)
- 2016-2021 Lexus RX Series (2,202 thefts)
- 2015-2020 Ford F150 (1,182 thefts)
- 2016-2021 Honda Civic (768 thefts)
- 2013-2019 Toyota Highlander (748 thefts)
- 2011-2018 Ram 1500 (509 thefts)
- 1999-2006 Chevrolet/GMC 1500 (410 thefts)
- 2018-2021 Honda Accord (372 thefts)
- 20112020 Jeep Grand Cherokee (346 thefts)
- 2013-2018 Toyota Rav4 (334 thefts)
Which vehicles were stolen at the highest rate in Alberta?
The vehicles listed above accounted for the most instances of theft in 2021. The vehicles that were stolen at the greatest percentage is a much different statistic.
- 1997-2007 Ford F350 (3.85% of insured vehicles stolen)
- 1997-2007 Ford F250 (2.85% of insured vehicles stolen)
- 199-2006 Chevrolet/GMC 2500 (1.18% of insured vehicles stolen)
Which vehicles were stolen at the highest rate in Canada?
The vehicles listed above accounted for the most instances of theft in 2021. These are the top four vehicles that were stolen at the highest rate.
- 2016-2021 Lexus RX Series (6.4% of insured vehicles stolen)
- 2016-2021 Honda CR-V (1.7% of insured vehicles stolen)
- 2018-2021 Honda Accord (1.3 of insured vehicles stolen)
- 2013-2019 Toyota Highlander (1.3% of insured vehicles stolen)
Which vehicles have the highest repair cost after a collision?
There are very few statistics openly available on the repair costs of different vehicles. Instead we have looked at the average cost to repair each brand of vehicle. This included the cost for parts, materials, and labour.
- BMW
- Mercedes
- Cadillac
- Volvo
- Audi
- Saturn
- Mercury
- Pontiac
- Chrysler
- Dodge
Unsurprisingly, the high value luxury brands carried the highest repair costs. Brands like Saturn, Mercury, and Pontiac likely crack the list because they are no longer manufactured and parts can difficult and/or expensive to acquire.
Vehicles with high labour costs or scarce labour can also become more expensive to repair after an accident. German engineered vehicles are notorious for complicated designs and high labour costs to repair. This can also include vehicles with limited repair facilities or certified technicians. Tesla’s are often difficult to repair due to their limited supply of technicians making the repair costs considerably higher.
How to buy a car with cheap car insurance
In order to get the buy a car with the best insurance rates follow the following three steps
- Assess your needs
- Research your options
- Quote with your insurance company
Assess your needs
Before you make your any decisions, it’s important to have a clear understanding of what you’re looking for your vehicle to do, and how much you’re willing to spend on that vehicle. Some of your search criteria might include:
- Number of seats in the vehicle
- Towing capacity of the vehicle
- Drivetrain (4WD, AWD, FWD, or RWD)
- Transmission type (automatic, CVT, or manual)
- Mechanical condition
- Features (GPS, backup camera, etc)
- Safety rating
- Etc.
Once you have an idea of the type of what you’re looking for your vehicle to contain, you should then assess how much you’re willing to spend on your vehicle on a monthly basis. This may include:
- Estimated fuel/charging costs
- Maintenance costs (repairs)
- Finance costs
- Insurance costs
Once you’ve assessed your needs and how much you can afford to spend on your vehicle, you can then move on to searching for your favorite vehicle.
Research
When researching vehicles, you’ll want to find a few vehicle options that will work for you given your needs. Identify the fuel efficiency and maintenance costs for the vehicles you’re considering. Identify if the vehicle you’re considering is a high theft or high repair cost vehicle, this may sway your decision on whether or not you’d like to purchase it.
If you’ve found a vehicle that you’re interested in purchasing and it meets your needs, you can then move on to the final step.
Quote the vehicle with your insurance company
Before you make a purchase decision on a new vehicle, you should call your insurance agent or broker to quote the insurance on the vehicle. Note that any financed vehicle will require collision and comprehensive insurance on it. By quoting with your insurance company, you can identify the coverage available to you, the cost of that coverage, and make an informed purchase decision.
Insurance companies have incredible amounts of data available to them to help them assess risks. They will have an idea of how much repairs will cost and the likelihood of a total loss.
Conclusion
When you're looking to purchasing a vehicle, it's paramount that you know how much money you're committing to every month. If you're looking to purchase a vehicle with cheap car insurance, it will come down to more factors than just the vehicle that you'll be driving. Your insurance and driving history are the two greatest indicators that impact your car insurance premium. If you have a clear driving and insurance record, your choice of vehicle can impact your premiums for collision and comprehensive coverage.
By doing your research and talking to your insurance broker before you purchase a vehicle, you can find the right vehicle for you with insurance rates you can afford. If you're looking for a quote on car insurance, we can help.
