Curious about what the most expensive cars to insure in Ontario are? BrokerLink breaks down the top five most expensive cars to insure in Ontario right now and outlines the factors impacting the cost of car insurance in Canada.
What makes a car more expensive to insure?
Insurance companies in Canada consider many factors when calculating insurance rates. One of these factors is the type of vehicle you drive. Namely, the make, model, and year of your vehicle. In fact, the make, model, and year of the car you drive can have a significant impact on how much you pay for car insurance.
Specifically, an insurance company will use your vehicle type to assess risk. They will consider the car’s safety rating, the cost and value of the car (which directly correlates to the cost of repairing or replacing it), and the claims and theft rates for the vehicle.
Ultimately, expensive cars tend to cost more to insure because replacing or repairing them would be costlier for the insurance company. This is especially true if you purchased additional features or a higher trim level. Furthermore, the most expensive cars tend to come from overseas, have much larger engines, and may only have small distribution. In addition, expensive cars may be at higher risk of theft, which is another reason insurance might be more expensive. Lastly, some expensive cars like ultra-luxury sports cars may have lower safety ratings (which implies occupants would be less safe and more likely to sustain injuries in the event of a motor vehicle crash), which can also make auto insurance cost more.
Other factors impacting car insurance rates
Beyond the make, model, and year of the vehicle, insurers will take into account many other factors when calculating insurance premiums. So although buying an expensive car can result in more expensive car insurance, it won’t be the only factor that determines your rate. We outline a list of other important factors that influence car insurance rates in Canada below:
Driving history
Driving history is one of the most important factors used to determine car insurance premiums, even more important than vehicle type. Driving history is one’s driving experience and their driving record. More driving experience can put you at an advantage. It’s a lack of driving experience that causes insurance rates for young drivers under 25 to be so high. However, ample experience will only positively influence your insurance rate if it’s coupled with a clean driving record. A clean driving record can be achieved if you drive safely and responsibly, obeying the rules of the road at all times. However, if you frequently speed or drive recklessly your driving record is likely to be poor, filled with traffic tickets, accidents, and other infractions. Those with poor driving records often pay more for auto insurance and may even have their policies cancelled. Therefore, driving history is a major factor when it comes to determining auto insurance rates.
Age
Age is another factor that can have a major impact on your car insurance rate. From an insurance company’s perspective, age and risk level go hand in hand. They believe that the younger a driver is, the less driving experience they have, and the higher their odds of getting into a collision. This is why new drivers and drivers under the age of 25 often have the highest car insurance rates in Canada. On the opposite end of the spectrum, seniors of a certain age may also pay more for car insurance.
Local laws
Local laws can also affect how much you pay to insure your expensive car. Auto insurance is provincially regulated in Canada, which means each Canadian province and territory sets its own car insurance rules and requirements. These rules outline the mandatory coverage types and limits. The more comprehensive the coverage and the higher the coverage limit, the more expensive your insurance will be. For example, Ontario and Alberta require all drivers to carry a minimum of $200,000 in third party liability coverage at all times. In contrast, Nova Scotia requires drivers to carry $500,000 in third party liability coverage.
Location
Location will also influence your car insurance premium in Canada. When calculating your auto insurance rate, an insurance provider will ask where you live and where you frequently drive your car. This is because where you drive and park your vehicle helps them assess your overall risk level. Drivers who live in populous metropolitan areas, like Toronto, Vancouver, or Calgary, are viewed as more likely to get into accidents because there is more traffic on the road. Conversely, drivers who live in rural parts of the country with less traffic are seen as less likely to get into accidents and may benefit from cheaper insurance rates. Furthermore, if you live or work in a part of the country prone to climate related incidents, such as floods or wildfires, or in an area with a high crime rate or rate of claims, your insurance premium may also be impacted.
How frequently you drive your vehicle
The amount of time you spend on the road is another factor affecting auto insurance rates in Canada. If you spend an above-average amount of time driving, such as if you drive for your work, you may pay more for insurance compared to if you spend a below-average amount of time, such as only driving a few days each week. Further, if you frequently drive in riskier circumstances, such as at night or on major highways, your odds of getting into an accident are higher and so your insurance rate may go up.
Marital status
Last but not least, a driver’s marital status is another factor that may impact car insurance rates. Research suggests that married people are more responsible and financially stable, which insurance companies may take into account when calculating car insurance premiums.
Please note that insurance brokerages like BrokerLink have no say in your insurance premium. Premiums are set by insurance companies directly. That said, BrokerLink can help you shop around to find the best coverage, answer any questions you may have, and even help you file a claim or modify an existing policy. Our insurance advisors are also available to offer their unbiased advice on the best policy for you, your family, and your vehicle. Get in touch with BrokerLink to learn more.
A list of the top five most expensive cars to insure in Ontario
Now that you understand why expensive cars typically cost more to insure, let’s dive into our list of the top five most expensive cars to insure in Ontario right now:
1. Maserati Quattroporte
The Maserati Quattroporte frequently tops the list of the most expensive cars to insure in the world. This vehicle comes with a 3.0 L V6 engine or 3.8 L V8 engine that produces between 345 and 580 horsepower (drivers can accelerate from 0 to 60 miles per hour in only four seconds). With the Maserati Quattroporte costing between $96,000 and $143,000 depending on customizations, it won’t come as a shock that the insurance is also expensive, averaging roughly $5,100 each year.
2. Maserati Quattroporte Modena Q4
The Maserati Quattroporte Modena Q4 is the second most expensive car to insure in Ontario. This vehicle features three trim levels, GT, Modena, and Trofeo, offering horsepower of 345, 424, and 572, respectively. No matter which model you choose, you will benefit from heated front and rear seats, ventilated front seats, adaptive cruise control, surround-view camera, heated steering wheel, forward collision warning, autonomous emergency braking, and more. The Maserati Quattroporte Modena Q4 starts at $126,000, with car insurance hovering around $5,000.
3. BMW M8 Competition Gran Coupe
The BMW M8 Competition Gran Coupe is number three on our list of the most expensive cars to insure in Ontario. It features a 4.4 L V8 engineer, 617 horsepower, track-ready cooling systems, and a dual oil pan designed to maintain oil pressure during intense manoeuvres. The base price starts at $144,000 and car insurance costs an average of $4,200 annually.
4. Porsche Panamera Turbo S E-Hybrid Executive
The Porsche Panamera Turbo S E-Hybrid Executive is a turbo hatchback hybrid known for its highway fuel efficiency and twin turbo gas/electric V8 engine. The luxury vehicle also features brake assist, electronic stability control, night vision, traction control, and lane departure warning. Like the BMW M8 Competitive Gran Coupe, the Porsche Panamera Turbo S E-Hybrid Executive typically costs $4,200 in car insurance.
5. Audi RS E-tron GT
The fifth most expensive car to insure is the Audi RS E-tron GT. This premium car boasts 637 horsepower, 612 pound-feet of torque, impressive fuel efficiency, and a fuel range of 232 miles on the battery alone. Plus, charging the battery takes as little as ten hours. Insurance for the Audi RS E-tron GT is typically around $4,100.
Tips to save money on expensive car insurance
If finding affordable insurance is your top priority, follow the tips below to reduce how much you pay for car insurance:
1. Avoid ultra-luxury vehicles
Owing to their high value, ultra-luxury vehicles are typically the most expensive cars to insure. If you are interested in a vehicle from a luxury automaker like Mercedes Benz, Maserati, BMW, or Tesla, consider one of their less expensive models
2. Don’t purchase the newest model
Newer cars tend to cost more to insure than older vehicles, so if you want to buy an expensive car, consider last year’s model. The difference in performance may be minimal but the difference in insurance costs could be significant.
3. Opt for a sensible vehicle over a sports car
Most luxury vehicles come with expensive car insurance but insuring a luxury sports car can be especially costly. Since sports cars are built for speed, they often feature high-performance engines, which insurance companies view as more likely to be involved in accidents. This is what causes car insurance for sports cars to be so high.
4. Consider a hybrid or electric vehicle
Buying an eco-friendly vehicle, like a hybrid or electric vehicle (EV), is one way to save money on car insurance - even if it’s expensive. This is because many insurance companies now offer discounts to policyholders with electric and hybrid vehicles. Discounts vary between providers but may be as high as 10%.
5. Research models with high theft rates
Before buying an expensive car, research the theft rates of the vehicles you are considering. Insurance companies ask for the make, model, and year of your vehicle so that they can look up relevant data, such as theft rates. The greater likelihood that a vehicle will be stolen, the more the insurance will cost. Data reveals that certain vehicles are targeted by thieves, so if you buy a car with a high theft rate (even if it’s considered safe and affordable) your car insurance rate can go up.
6. Choose a vehicle with a high safety rating and state-of-the-art safety features
Safety rating and features are two important factors an insurance company will assess when determining your car insurance rate. Therefore, if you want to buy an expensive car, choose one with a safety rating or one that features advanced safety technology. You may also wish to install your own anti-theft device or security system, which can further decrease insurance costs.
Get a free insurance quote from BrokerLink now
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