Are diesel cars cheaper to insure?
6 minute read Published on Feb 16, 2025 by BrokerLink Communications
If you're in the market for a new car, you may be stuck between a diesel or petrol car. Beyond the purchase price, you'll also need to compare ongoing costs like maintenance, replacement parts, and auto insurance.
Now, you may be wondering whether it's cheaper to insure diesel or gasoline vehicles. If this is something that's been on your mind, you've luckily come to the right place. Before you make your purchase, stick around to learn more about petrol vs diesel vehicles.
What is a diesel car?
A diesel car uses a different engine system than a traditional petrol car. In diesel engines, air is compressed. When the compressed air generates enough heat, the vehicle is then able to light the fuel and start the engine. In general, diesel vehicles are more fuel-efficient and better for long-distance driving, given their better fuel consumption ratings. Some of the best pickup trucks and jeeps in Canada come with the option of diesel or petrol engines.
What are petrol cars?
In contrast, petrol engines operate on spark plugs. This spark plug system lights the gasoline, which then propels the vehicle forward as you press on the gas pedal. In general, petrol cars are more affordable upfront than diesel cars. While they can have optimal fuel efficiency ratings, they do not have as good of mileage as diesel fuel cars.
Is a petrol or diesel car better?
So, which one is better, petrol vs. diesel? It really ultimately comes down to your driving habits and budget. Diesel is used for long-distance trips and activities that require more torque, like towing cargo and other cars. However, you can expect these vehicles to cost more upfront than petrol ones. Additionally, diesel cars tend to have a high cost for maintenance and replacement parts, including fuel.
On the other hand, purchasing a petrol-fueled car is great for everyday driving when you need to get to and from work. Additionally, if you live in a colder climate, choose petrol fuel as opposed to diesel fuel, given that diesel can gel in very cold temperatures.
Further, it also comes down to the model of the car you're looking at. The best thing you can do is compare vehicle models and price points while keeping your unique needs and driving habits in mind. It may also benefit you to test drive a couple of cars and speak with a dealership for more information about the specific models you're looking at.
What are the pros of owning diesel vehicles?
If you're looking for long-term reliable trucks and cars, choosing a diesel engine may be your best bet. Diesel engines are built to be durable, making them good for long-distance driving. While purchasing new diesel cars will cost more upfront, these vehicles depreciate slower than their petrol counterparts, which means you'll likely be able to sell your diesel vehicle for a good price later down the line. Now, in terms of car emissions, newer diesel cars produce less carbon emissions. Additionally, because of their good fuel economy, diesel engines are more fuel efficient, making them get good gas mileage. If you've ever run out of gas before, switching to diesel cars may be a good option.
Are diesel cars cheaper to maintain than petrol cars?
Generally speaking, diesel vehicles cost less to maintain over time than petrol vehicles. That being said, while they don't need as much frequent upkeep as petrol cars, diesel cars tend to have more expensive maintenance fees. For example, diesel models in need of an oil change can cost up to three times as much compared to oil changes for a petrol engine. Further, fuel costs for petrol cars are generally cheaper to fill than diesel vehicles in Canada. Further, when it comes to replacement parts, you may end up paying more for your diesel car than for a petrol car.
Will insurance cost the same for petrol and diesel cars?
So, when it comes to diesel and petrol cars, which ones are cheaper to insure? Given that diesel cars have higher repair and replacement costs and parts than electric cars and petrol vehicles, you may end up paying more for your insurance coverage at the end of the day. That said, while insurance providers look at what types of fuel your vehicle uses, they'll also look at other factors as well, making it difficult to determine outright whether or not you'll pay more or less for coverage.
Therefore, it makes sense for you to compare costs when looking for insurance to ensure you're able to get an affordable rate that doesn't compromise on the level of coverage you receive.
How are insurance premiums calculated?
When renewing car insurance, an insurance provider will look at whether you drive petrol cars, diesel cars, electric vehicles, or hybrid vehicles, among other factors, to determine your insurance costs. While each insurance has its own pricing structure and parameters, as a general rule of thumb, most use the following factors in their calculation:
Make and model of vehicle
Beyond the type of engine your vehicle has, your insurance company will also look at the make and model of the vehicle you have as well. Luxury vehicles and those with higher repair and replacement costs tend to have a higher cost than standard vehicles with lower cost.
Age and driving experience
Your age and driving experience also play a major role in what you'll pay for coverage. Drivers who are under 25 often pay more than those over 25 with clean driving records, given that they are often seen as lower risks to insure. However, if you are over the age of 25 and a brand new driver, you may still pay inexperienced driver rates.
Where you live
If you live in a big city with more traffic and higher crime rates, you could be deemed more of a risk to cover than someone living in a rural, quiet area. This is because more thefts and car accidents tend to occur in busier areas, making you more likely to file an insurance claim.
Types of car insurance you choose
As we mentioned, only some auto policies are mandatory. Should you choose to purchase multiple auto insurance policies that are optional, you will need to pay an extra cost for the additional protection.
The insurance providers you partner with
If you live in a province or territory with a private insurance system, drivers will have the option of shopping around for their coverage. There's a chance no two companies provide you with the same rate for insurance. As such, shopping around for your insurance can help you secure a more affordable rate.
Whether you qualify for discounts
The truth is, there are several car insurance discounts available for drivers. Whether it be for installing security features on your vehicle, having a clean driving record, or being a member of a professional association, there are several ways you can save money on your coverage. Make sure to ask your insurance agent or broker whether you qualify for any!
Insurance history
And, of course, the more infractions and claims you have on your driving history, the more of a risk you'll be to insure, which translates into more expensive premiums than drivers who have a clean driving record.
Protect your petrol and diesel cars with quality auto coverage
Regardless of whether you drive a diesel or petrol car, having a comprehensive insurance plan is legally mandated for all motorists if they intend to operate a motor vehicle on public roads in Canada. While some types of auto insurance are required, others are optional if you want to have additional protection while behind the wheel, including the following:
- Third-party liability insurance
- Accident benefits coverage
- Uninsured automobile insurance
- Comprehensive car coverage
- Accident forgiveness insurance
- Collision car coverage
Questions about car insurance? Contact BrokerLink today!
Whether you have questions about diesel or petrol cars or are looking for cheaper car insurance, BrokerLink has got you covered. With years of experience, our brokers have access to some of Canada's top insurance companies and policies, making them able to customize your coverage based on your needs.
As a leading brokerage in Canada, BrokerLink has locations across the country. If we're in your neighbourhood, don't hesitate to come into one of our locations and work with a broker one-on-one. You can also contact us over the phone during business hours if you're not close by! Alternatively, you can get free, competitive car insurance quotes using our online quote tool right on your device at any time!