The rise of SUVs in Canada has been a gradual but steady incline over the past two decades. It seemed to reach its climax in 2014 when the sale of SUVs topped that of its steady counterpart, the sedan for the first time in motorcar history. Twenty years ago, seeing a sports utility on the road was something memorable but it has long since become commonplace. The future of sedans has become unclear to some companies like General Motors and Ford who are reducing the manufacturing of four-door vehicles in favor of the bigger and arguably more efficient SUVs which seem to be in such high demand.
With the escalation in production and distribution reaching peaks, insurance has struggled to accommodate the influx of these stylish beasts on the road. The question now becomes, which is cheaper to insure; the trusty sedan or the powerhouse SUV? Again, going back to the nineties when the Ford Explorer was an eye-catching machine, this would not be up for debate. Anyone would agree that SUVs are more expensive to insure and by a great deal.
However, things have changed substantially since then and the answer may surprise you. There is no simple black or white response to this as there are many variables involved in this process and in the coming segment, I am going to help you untangle the mishmash of information available on this subject. If you ask almost anyone, the short reply is that SUVs are costlier to insure than sedans but that is not necessarily true and let’s talk about why.
The Insurance Companies
Most of us have had the pleasure of dealing with insurance companies in the past and as we all know, they adhere to strict guidelines to create a formula which in turn becomes our premium. The basics still apply whether you are insuring your car or crossover.
What are they?
-How is your driving record?
If you have previous tickets, accidents, DUIs, or demerit points, your rate will be painful no matter what you drive.
-Where do you live?
This is an important variable because if you’re living in a high crime neighborhood, your car is apt to be stolen or vandalized and it will affect your rate.
-How old are you?
Older drivers are deemed more experienced and therefore have lower premiums.
Assuming all is copasetic, they turn to the vehicle itself.
Things the Companies Consider are:
-The history of the automobile.
• Has the car been in any accidents? If so, this will affect your rate for the worse.
• How many kilometers are on the vehicle? Obviously, the less wear on the car, the lower the chances of it breaking down and/or causing an accident
-The safety rating
• Does your vehicle offer crash protection and/or crash avoidance? Many SUVs are being built with safety features like these to protect the occupants. Airbags, rearview cameras, forward collision warnings, and automatic emergency braking are just a few of the newer perks which can come standard with your SUV while sedans can have them installed
-The make/model of the vehicle
• Here is where things become tricky; high-end cars are more expensive to insure because they are costlier to replace or repair
• How much horsepower does your vehicle have? The higher the horsepower, the higher your premium
• How likely is your car to be stolen? According to the Bureau of
Canada, which releases a list of top ten taken vehicles every year, 2017 was a bad year for trucks but sedans and SUVs were slightly luckier. Below is a list of what they recorded.
- 2015 Lexus GX460 4-door AWD SUV
- 2007 Ford F-350 Super Duty 4WD Pickup
- 2006 Ford F-350 Super Duty 4WD Pickup
- 2005 Ford F-350 Super Duty 4WD Pickup
- 2001 Ford F-350 Super Duty 4WD Pickup
- 2003 Ford F-350 Super Duty 4WD Pickup
- 2004 Ford F-350 Super Duty 4WD Pickup
- 2016 Toyota 4Runner 4-door 4WD SUV
- 2002 Ford F-350 Super Duty 4WD Pickup
- 2006 Ford F-250 Super Duty 4WD Pickup
If your vehicle is on this list, it will cost you more to insure.
So, let us pretend that you have all things equal.
You and your twin live next door to one another in the same style home on the same side of the street with precisely the same driving record and history.
You spend the exact same amount of money on a brand-new vehicle, one of you with a four-door sedan, one of you, an SUV.
Who is going to get the better deal now?
Believe it or not, there is still more to consider.
The size of your vehicle makes a huge difference.
On one hand, the bigger the body, the more protected you and your passengers will be with more steel between you and impact.
However, the larger the vehicle, the more damage it will cause to a smaller one in the event of an accident and this is yet another thing that insurance companies consider when they are assessing the risk.
Therefore, SUVs often carry a higher premium but so can a larger sedan.
So how can you make an informed decision and save yourself the most money without going mad in the process?
• Ensure your driving record is up to par
• Investigate the insurance rates in your area
• Get a complete history of the vehicle you are purchasing. Make sure it
has not been involved in any major accidents
• Know your horsepower and engine
• Shop around for rates – every insurance company is different and will assess their risk with a formula known only to them
In closing, I have provided a list of the cheapest sedans and SUVs to insure in Canada.
I hope this helps you find peace of mind in your insurance endeavors!
1. Volkswagen Jetta
2. Volkswagen Golf
3. Toyota Camry
4. Hyundai Accent
5. Chevrolet Cruze
6. Mazda Mazda3
7. Hyundai Elantra
8. Honda Civic
9. Toyota Corolla
10. Ford Fusion
1. Hyundai Santa Fe Sport
2. Dodge Journey
3. Jeep Wrangler
4. Ford Escape
5. Mazda CX-5
6. Jeep Cherokee
7. Nissan Rogue
8. Chevrolet Equinox
9. Honda CR-V
10. Toyota RAV4