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URLhttps://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html
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Meta TitleFuel Efficiency | What Makes A Vehicle Fuel Efficient?
Meta DescriptionNavigate the world of fuel-efficient vehicles with our comprehensive guide. Learn how to optimize mileage and minimize carbon footprint using smart driving tips and hybrid options.
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What is considered a fuel-efficient vehicle? Fuel efficiency, or fuel economy, refers to the distance a vehicle can travel on an amount of fuel. Vehicles listed as having a fuel efficiency of less than 6L/100 km are considered fuel-efficient. The 100 km is how many litres of fuel the car needs to travel 100 km. The lower the number of litres stated, the better the vehicle’s fuel economy is. Depending on how many kilometres you drive per year , purchasing a car with low fuel economy can be top of mind. There are many options for the best fuel-efficient vehicles in Canada ; from cars, trucks, and SUVs, you can lower your monthly gas costs and meet your driving needs and dreams. How to calculate fuel economy The best way to determine if your vehicle is fuel-efficient is to compare the fuel economy number versus the cost of gas and the car. Calculating fuel costs for cars of different engine sizes can be determined by calculating their average fuel efficiency in kilometres per litre (km/L). With an assumed yearly mileage of 15,000 km, we can use average fuel efficiency to make informed decisions about fuel expenses. Here is an example: 4L Car: Fuel efficiency: 10 km/L Total litres of fuel consumed per year: 15,000 km / 10 km/L = 1500 litres Cost of fuel per year: 1500 litres * $1.45/L = $2175 5L Car: Fuel efficiency: 8 km/L Total litres of fuel consumed per year: 15,000 km / 8 km/L = 1875 litres Cost of fuel per year: 1875 litres * $1.45/L = $2718.75 6L Car: Fuel efficiency: 6 km/L Total litres of fuel consumed per year: 15,000 km / 6 km/L = 2500 litres Cost of fuel per year: 2500 litres * $1.45/L = $3625 Assuming a fuel price of $1.45/L and given fuel efficiencies and mileage, the annual fuel costs for cars with engine capacities 4L, 5L, and 6L would be $2175, $2718.75, and $3625, respectively. How to improve fuel efficiency You may have a vehicle with low usage per kilometre, but you should drive in fuel-efficient ways and maintain your vehicle to achieve the best efficiency. With the vehicle you have now, you can drive more fuel-efficiently with these techniques: Accelerate gently: When you accelerate hard, you use more fuel. Ease onto the accelerator pedal gently when changing lanes or increasing speed. Avoid high speeds and maintain speed: Studies show that you can increase fuel usage by 20% when your speed increases and lowers. Anticipate traffic: Keep a safe distance between the vehicle in front of you and be mindful of pedestrians so you can slow down and keep a steady speed. Coast before braking: Observe how traffic is behaving in front of you and if there are any lights. Cruising before braking conserves fuel because it allows you to slow down gradually, rather than using your brakes immediately, which preserves your forward momentum. When you are not driving, there are tips you can follow to improve the fuel economy, such as: Check tire pressure monthly: You can find your vehicle’s correct tire pressure on the tire place card located on the driver’s door or the doorpost. Avoid idling your vehicle: On average, vehicles waste over one cup of fuel every ten minutes. Extra weight: Remove unnecessary weight such as sports equipment, salt or sand, and take the roof or bike racks off. Use air conditioning in moderation: It can increase fuel consumption by 20%. Open the windows when possible, use the flow-through or re-circulate ventilation system. Fuel display: Drivers consume 15% less fuel by seeing the feedback from a fuel consumption display – if your vehicle has one, use it. 5 Tips for buying a fuel-efficient vehicle Shopping smart can help you save money on fuel. If you’re ready to buy the best fuel-efficient vehicle or looking for a hybrid car . Here are five tips for buying a fuel-efficient vehicle. Buy less horsepower: The bigger the engine, the greater the horsepower, and the more fuel it will consume. The smaller the engine, the more cost affordable. Choose a small vehicle: Generally speaking, the smaller a vehicle, the less fuel it will consume. Narrowing down the smallest version of the vehicle will help you save money in the showroom and on the road. Simplify drivetrain: Front-wheel drive is often more fuel-efficient compared to all-wheel and four-wheel drive. Avoid unnecessary add-ons: Turbocharged engines, permanent roof racks, and remote starters are a few of the ways fuel may be wasted from aerodynamic drag or idling your vehicle. Ask for fuel-efficient features: Aluminum wheels, removable roof racks, cruise control, trip computer and tachometers are some great options to track fuel usage or limit the use. What is an EnerGuide label? You can locate a car's fuel economy on the EnerGuide label. If you're not familiar with the EnerGuide label, it's typically affixed to the vehicle and displays fuel consumption ratings for both city and highway driving. Additionally, it offers an estimate of the vehicle's yearly fuel cost. Here's an example: Vehicle technology and fuel: The text and related icon identify the type of fuel used by the vehicle. Fuel consumption: This is a prominent combined fuel consumption rating and separate city and highway fuel consumption ratings in L/100 km. The combined rating reflects a 55% city and 45% highway driving ratio. Fuel economy: Here, the combined rating is expressed in miles per imperial gallon (mi/gal). Annual fuel cost: This is an estimate based on the combined fuel consumption rating, 20,000 km driven, and the fuel price indicated. Vehicle class range: This shows the best and worst combined fuel consumption ratings of vehicles in the same class. CO2 and smog ratings: Here are the vehicle’s tailpipe emissions of CO2 and smog-forming pollutants rated on a scale from 1 (worst) to 10 (best). The CO2 emissions, in grams per kilometre driven, are shown on the CO2 bar. QR code: The quick-response code links smartphone users to the fuel consumption ratings search tool. Are hybrid cars more fuel-efficient? Hybrid cars have become popular because they improve fuel efficiency and reduce emissions. These vehicles use a combination of an internal combustion engine, an electric motor, and a battery pack to optimize power delivery and minimize fuel consumption, especially during stop-and-go driving conditions. Although hybrid cars usually provide better fuel efficiency when compared to traditional gasoline-powered vehicles, the actual performance of a hybrid car can be influenced by several factors, including driving habits, vehicle size, and the level of technological advancement. Variables such as driving style, terrain, and weather conditions all play a significant role in determining the effectiveness of hybrid systems in conserving fuel. If you’re ready to ditch fuel entirely, take a look at the best electric vehicles or electric trucks in Canada . Why is my car losing fuel efficiency? If you notice your car is losing fuel efficiency, there are a few reasons why it may be happening. It may be due to poor driving habits (heavy braking and accelerating) or mechanical issues. Here is a list of potential problems and solutions to improve fuel usage. Tire pressure: Whether you have all-seasons or winter tires, having properly inflated tires will make your drive safer and improve fuel economy. Fuel system: If you have a dirty or old fuel filter or injector, it can impact the flow of fuel to the engine. Exhaust system: The oxygen sensor, the catalytic converter, an exhaust pipe leak, muffler or some other emissions issue all play a crucial role in fuel economy. Spark plugs: If spark plugs are not working properly, it can lower fuel efficiency. Oil: The type of motor oil you use can impact mileage. Ensure you have regular oil changes and use a high-grade oil that is specifically designed for your vehicle. Driving habits: Idling, fast acceleration, and aggressive driving can all increase how much fuel you use per drive. Fuel efficiency FAQs Can I save money on insurance with a fuel-efficient car? Although you can save money on your fuel expenses, purchasing a fuel-efficient car will not impact your car insurance quotes . Insurance costs are reflected in various aspects, including your driving habits and vehicle safety features . Are motorcycles more fuel-efficient than cars? Motorcycles can be more fuel-efficient compared to vehicles. An experiment by MythBusters found that models made in the 2000s used 28% less fuel than cars. If you’re making the switch over to two wheels, don’t forget to update your motorcycle insurance Lower your driving costs with a fuel-efficient vehicle Maximizing fuel efficiency is a wise financial decision and an important step towards reducing our environmental impact and promoting sustainability. We can achieve this by implementing proactive maintenance practices, developing safe driving habits, and exploring alternative fuel technologies. By doing so, we can all play a part in creating a greener and more sustainable future on the road.
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[Skip to main content](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#quotes) [**1-855-550-5515**](tel:1-855-550-5515) [![ThinkInsure logo](https://www.thinkinsure.ca/images/thinkinsure-logo.png)](https://www.thinkinsure.ca/) QUOTES menu [![ThinkInsure logo](https://www.thinkinsure.ca/images/thinkinsure-logo.png)](https://www.thinkinsure.ca/) - [Auto Insurance](https://www.thinkinsure.ca/car-insurance/quotes.php) [Ontario Car Insurance](https://www.thinkinsure.ca/car-insurance/ontario-quote.php) [Alberta Car Insurance](https://www.thinkinsure.ca/car-insurance/alberta-quote.php) [High Risk Insurance](https://www.thinkinsure.ca/car-insurance/high-risk-quotes.php) [Home & Auto Insurance Bundles](https://www.thinkinsure.ca/car-insurance/auto-and-home-quote.php) [Car Insurance Calculator](https://www.thinkinsure.ca/car-insurance/calculator.php) - [Home Insurance](https://www.thinkinsure.ca/home-insurance/quotes.php) [Ontario Home Insurance](https://www.thinkinsure.ca/home-insurance/ontario-quotes.php) [Alberta Home Insurance](https://www.thinkinsure.ca/home-insurance/alberta-quotes.php) [Condo Insurance](https://www.thinkinsure.ca/condo-insurance/quotes.php) [Tenant Insurance](https://www.thinkinsure.ca/tenant-insurance/quotes.php) - [Commercial Insurance](https://www.thinkinsure.ca/business-insurance/quotes.php) [Small Business Insurance](https://www.thinkinsure.ca/business-insurance/small-business-quotes-ontario.php) [Commercial Auto Insurance](https://www.thinkinsure.ca/business-insurance/commercial-auto-quotes.php) [Commercial Property Insurance](https://www.thinkinsure.ca/business-insurance/commercial-property-quotes.php) [Contractors Insurance](https://www.thinkinsure.ca/business-insurance/contractors-insurance) [Cyber Liability Insurance](https://www.thinkinsure.ca/business-insurance/cyber-liability-quotes.php) [Professional Liability Insurance](https://www.thinkinsure.ca/business-insurance/professional-liability-quotes.php) - More Insurance [Life Insurance](https://www.thinkinsure.ca/life-insurance/) [Travel Insurance](https://www.thinkinsure.ca/travel-insurance/) [Motorcycle Insurance](https://www.thinkinsure.ca/motorcycle-insurance/quotes.php) [Classic Car Insurance](https://www.thinkinsure.ca/car-insurance/classic-car-quotes.php) [Boat Insurance](https://www.thinkinsure.ca/boat-insurance/quotes.php) [RV Insurance](https://www.thinkinsure.ca/rv-insurance/quotes.php) [All Products](https://www.thinkinsure.ca/products/index.php) - [Why Us](https://www.thinkinsure.ca/why-us/) - Customer Service [Contact Us](https://www.thinkinsure.ca/customer-service/contact.php) [Make A Claim](https://www.thinkinsure.ca/customer-service/claims-services.php) # What Is Vehicle Fuel Efficiency? ![Young excited woman in a car](https://www.thinkinsure.ca/uploads/man-fillingup-car-with-gas.jpg) Share : [![link icon](https://www.thinkinsure.ca/images/svg/link-share.svg)](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![facebook icon](https://www.thinkinsure.ca/images/svg/facebook-share.svg)](https://www.facebook.com/sharer/sharer.php?u=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![x icon](https://www.thinkinsure.ca/images/svg/x-share.svg)](https://x.com/intent/tweet?url=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![linkedIn icon](https://www.thinkinsure.ca/images/svg/linkedin-share.svg)](https://www.linkedin.com/shareArticle?mini=true&url=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html&title=What%20Is%20Vehicle%20Fuel%20Efficiency?) ![Author photo](https://www.thinkinsure.ca/images/author-kayla-jane-barrie.jpg) Written by Kayla Jane Barrie Updated on Nov 24, 2025 6 mins read ⊸ [Blog](https://www.thinkinsure.ca/insurance-help-centre/ "Blog")⊸ What Is Vehicle Fuel Efficiency? ## Get the best fuel economy from your car with these tips Fuel efficiency is a term used to describe how effectively a vehicle uses fuel to power the engine and generate motion. It is typically measured in miles per gallon (MPG) or litres per 100 kilometres (L/100km), indicating the distance a vehicle can travel on a specific amount of fuel. The higher the MPG or the lower the L/100km, the more efficient the vehicle is in terms of fuel consumption. Maximizing fuel efficiency is crucial for reducing our carbon footprint and promoting sustainability. To make informed decisions about our vehicles, we must understand fuel efficiency, how to improve it, why cars lose efficiency over time, and whether hybrid cars genuinely live up to their reputation. ### What you need to know about fuel-efficient vehicles: - Hybrids and fuel vehicles can offer sustainable solutions if you are looking for good fuel efficiency. - Your driving habits can have a positive or negative impact on efficiency. - Fuel efficiency describes how efficiently a car, truck, or other vehicle uses fuel to power the engine. ### What's on this page: - [What is considered a fuel-efficient vehicle?](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-1) - [How to calculate fuel economy](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-2) - [How to improve fuel efficiency](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-3) - [5 Tips for buying a fuel-efficient vehicle](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-4) - [What is an EnerGuide label?](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-5) - [Are hybrid cars more fuel-efficient?](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-6) - [Why is my car losing fuel efficiency?](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-7) - [Fuel efficiency FAQs](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-8) - [Lower your driving costs with a fuel-efficient vehicle](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html#jl-9) ## What is considered a fuel-efficient vehicle? Fuel efficiency, or fuel economy, refers to the distance a vehicle can travel on an amount of fuel. Vehicles listed as having a fuel efficiency of less than 6L/100 km are considered fuel-efficient. The 100 km is how many litres of fuel the car needs to travel 100 km. The lower the number of litres stated, the better the vehicle’s fuel economy is. Depending on how many [kilometres you drive per year](https://www.thinkinsure.ca/insurance-help-centre/average-km-per-year-canada.html), purchasing a car with low fuel economy can be top of mind. There are many options for the [best fuel-efficient vehicles in Canada](https://www.thinkinsure.ca/insurance-help-centre/most-fuel-efficent-cars.html); from cars, trucks, and SUVs, you can lower your monthly gas costs and meet your driving needs and dreams. ## How to calculate fuel economy The best way to determine if your vehicle is fuel-efficient is to compare the fuel economy number versus the cost of gas and the car. Calculating fuel costs for cars of different engine sizes can be determined by calculating their average fuel efficiency in kilometres per litre (km/L). With an assumed yearly mileage of 15,000 km, we can use average fuel efficiency to make informed decisions about fuel expenses. Here is an example: ### 4L Car: - **Fuel efficiency:** 10 km/L - **Total litres of fuel consumed per year:** 15,000 km / 10 km/L = 1500 litres - **Cost of fuel per year:** 1500 litres \* \$1.45/L = \$2175 ### 5L Car: - **Fuel efficiency:** 8 km/L - **Total litres of fuel consumed per year:** 15,000 km / 8 km/L = 1875 litres - **Cost of fuel per year:** 1875 litres \* \$1.45/L = \$2718.75 ### 6L Car: - **Fuel efficiency:** 6 km/L - **Total litres of fuel consumed per year:** 15,000 km / 6 km/L = 2500 litres - **Cost of fuel per year:** 2500 litres \* \$1.45/L = \$3625 Assuming a fuel price of \$1.45/L and given fuel efficiencies and mileage, the annual fuel costs for cars with engine capacities 4L, 5L, and 6L would be \$2175, \$2718.75, and \$3625, respectively. ## Fuel up on savings for your insurance Owning a car can be expensive. Compare quotes from the top providers instantly and save on your auto coverage today\! [Compare Rates](https://thinkinsure.ca/quotes/auto "Compare Rates") ![google rating](https://www.thinkinsure.ca/images/svg/google-rating-color.svg) ![silver car parked in driveway us house](https://www.thinkinsure.ca/images/bundle-insurance-promo4.jpg) ## How to improve fuel efficiency You may have a vehicle with low usage per kilometre, but you should drive in fuel-efficient ways and [maintain your vehicle](https://www.thinkinsure.ca/insurance-help-centre/car-maintenance-tips.html) to achieve the best efficiency. With the vehicle you have now, you can drive more fuel-efficiently with these techniques: - **Accelerate gently:** When you accelerate hard, you use more fuel. Ease onto the accelerator pedal gently when changing lanes or increasing speed. - **Avoid high speeds and maintain speed:** Studies show that you can [increase fuel usage by 20%](https://natural-resources.canada.ca/energy-efficiency/transportation-energy-efficiency/personal-vehicles/fuel-efficient-driving-techniques) when your speed increases and lowers. - **Anticipate traffic:** Keep a safe distance between the vehicle in front of you and be mindful of pedestrians so you can slow down and keep a steady speed. - **Coast before braking:** Observe how traffic is behaving in front of you and if there are any lights. Cruising before braking conserves fuel because it allows you to slow down gradually, rather than using your brakes immediately, which preserves your forward momentum. When you are not driving, there are tips you can follow to improve the fuel economy, such as: - **Check tire pressure monthly:** You can find your vehicle’s correct tire pressure on the tire place card located on the driver’s door or the doorpost. - **Avoid idling your vehicle:** On average, vehicles waste over one cup of fuel every ten minutes. - **Extra weight:** Remove unnecessary weight such as sports equipment, salt or sand, and take the roof or bike racks off. - **Use air conditioning in moderation:** It can increase fuel consumption by 20%. Open the windows when possible, use the flow-through or re-circulate ventilation system. - **Fuel display:** Drivers consume 15% less fuel by seeing the feedback from a fuel consumption display – if your vehicle has one, use it. ## 5 Tips for buying a fuel-efficient vehicle Shopping smart can help you save money on fuel. If you’re ready to buy the [best fuel-efficient vehicle](https://www.thinkinsure.ca/insurance-help-centre/most-fuel-efficent-cars.html) or looking for a [hybrid car](https://www.thinkinsure.ca/car-insurance/hybrid-car-quote.php). Here are five tips for buying a fuel-efficient vehicle. 1. **Buy less horsepower:** The bigger the engine, the greater the horsepower, and the more fuel it will consume. The smaller the engine, the more cost affordable. 2. **Choose a small vehicle:** Generally speaking, the smaller a vehicle, the less fuel it will consume. Narrowing down the smallest version of the vehicle will help you save money in the showroom and on the road. 3. **Simplify drivetrain:** Front-wheel drive is often more fuel-efficient compared to all-wheel and four-wheel drive. 4. **Avoid unnecessary add-ons:** Turbocharged engines, permanent roof racks, and remote starters are a few of the ways fuel may be wasted from aerodynamic drag or idling your vehicle. 5. **Ask for fuel-efficient features:** Aluminum wheels, removable roof racks, cruise control, trip computer and tachometers are some great options to track fuel usage or limit the use. ![fuel economy explained](https://www.thinkinsure.ca/uploads/fuel-eff-illustration-1.jpg) ## What is an EnerGuide label? You can locate a car's fuel economy on the EnerGuide label. If you're not familiar with the EnerGuide label, it's typically affixed to the vehicle and displays fuel consumption ratings for both city and highway driving. Additionally, it offers an estimate of the vehicle's yearly fuel cost. Here's an example: 1. **Vehicle technology and fuel:** The text and related icon identify the type of fuel used by the vehicle. 2. **Fuel consumption:** This is a prominent combined fuel consumption rating and separate city and highway fuel consumption ratings in L/100 km. The combined rating reflects a 55% city and 45% highway driving ratio. 3. **Fuel economy:** Here, the combined rating is expressed in miles per imperial gallon (mi/gal). 4. **Annual fuel cost:** This is an estimate based on the combined fuel consumption rating, 20,000 km driven, and the fuel price indicated. 5. **Vehicle class range:** This shows the best and worst combined fuel consumption ratings of vehicles in the same class. 6. **CO2 and smog ratings:** Here are the vehicle’s tailpipe emissions of CO2 and smog-forming pollutants rated on a scale from 1 (worst) to 10 (best). The CO2 emissions, in grams per kilometre driven, are shown on the CO2 bar. 7. **QR code:** The quick-response code links smartphone users to the fuel consumption ratings search tool. ## Are hybrid cars more fuel-efficient? Hybrid cars have become popular because they improve fuel efficiency and reduce emissions. These vehicles use a combination of an internal combustion engine, an electric motor, and a battery pack to optimize power delivery and minimize fuel consumption, especially during stop-and-go driving conditions. Although hybrid cars usually provide better fuel efficiency when compared to traditional gasoline-powered vehicles, the actual performance of a hybrid car can be influenced by several factors, including driving habits, vehicle size, and the level of technological advancement. Variables such as driving style, terrain, and weather conditions all play a significant role in determining the effectiveness of hybrid systems in conserving fuel. If you’re ready to ditch fuel entirely, take a look at the [best electric vehicles](https://www.thinkinsure.ca/insurance-help-centre/best-electric-vehicles.html) or [electric trucks in Canada](https://www.thinkinsure.ca/insurance-help-centre/best-electric-trucks-canada.html). ## Why is my car losing fuel efficiency? If you notice your car is losing fuel efficiency, there are a few reasons why it may be happening. It may be due to poor driving habits (heavy braking and accelerating) or mechanical issues. Here is a list of potential problems and solutions to improve fuel usage. - **Tire pressure:** Whether you have all-seasons or winter tires, having properly inflated tires will make your drive safer and improve fuel economy. - **Fuel system:** If you have a dirty or old fuel filter or injector, it can impact the flow of fuel to the engine. - **Exhaust system:** The oxygen sensor, the catalytic converter, an exhaust pipe leak, muffler or some other emissions issue all play a crucial role in fuel economy. - **Spark plugs:** If spark plugs are not working properly, it can lower fuel efficiency. - **Oil:** The type of motor oil you use can impact mileage. Ensure you have regular oil changes and use a high-grade oil that is specifically designed for your vehicle. - **Driving habits:** Idling, fast acceleration, and [aggressive driving](https://www.thinkinsure.ca/insurance-help-centre/road-rage-on-the-rise-in-ontario.html) can all increase how much fuel you use per drive. ## Fuel efficiency FAQs ### Can I save money on insurance with a fuel-efficient car? Although you can save money on your fuel expenses, purchasing a fuel-efficient car will not impact your [car insurance quotes](https://www.thinkinsure.ca/car-insurance/quotes.php). Insurance costs are reflected in various aspects, including your driving habits and vehicle [safety features](https://www.thinkinsure.ca/insurance-help-centre/car-safety-features.html). ### Are motorcycles more fuel-efficient than cars? Motorcycles can be more fuel-efficient compared to vehicles. An [experiment by MythBusters](https://www.latimes.com/archives/blogs/greenspace/story/2011-09-28/mythbusters-asks-are-motorcycles-greener-than-cars "Edmunds Gas Calculator") found that models made in the 2000s used 28% less fuel than cars. If you’re making the switch over to two wheels, don’t forget to update your [motorcycle insurance](https://www.thinkinsure.ca/motorcycle-insurance/quotes.php) ## Lower your driving costs with a fuel-efficient vehicle Maximizing fuel efficiency is a wise financial decision and an important step towards reducing our environmental impact and promoting sustainability. We can achieve this by implementing proactive maintenance practices, developing safe driving habits, and exploring alternative fuel technologies. By doing so, we can all play a part in creating a greener and more sustainable future on the road. Share [![link icon](https://www.thinkinsure.ca/images/svg/link-share.svg)](https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![facebook icon](https://www.thinkinsure.ca/images/svg/facebook-share.svg)](https://www.facebook.com/sharer/sharer.php?u=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![x icon](https://www.thinkinsure.ca/images/svg/x-share.svg)](https://x.com/intent/tweet?url=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html) [![ linkedin icon](https://www.thinkinsure.ca/images/svg/linkedin-share.svg)](https://www.linkedin.com/shareArticle?mini=true&url=https://www.thinkinsure.ca/insurance-help-centre/fuel-efficiency-explained.html&title=What%20Is%20Vehicle%20Fuel%20Efficiency?) ![author portrait](https://www.thinkinsure.ca/images/author-kayla-jane-barrie.jpg) [![ linkedin icon](https://www.thinkinsure.ca/images/svg/linkedin-line-icon.svg)](https://ca.linkedin.com/in/kayla-jane-barrie "Kayla Jane Barrie linkedin") #### [Kayla Jane Barrie](https://www.thinkinsure.ca/about-us/team/authors/kayla-jane-barrie.php) **Digital Content Writer** Kayla-Jane has been a content writer with ThinkInsure since 2020. She creates insurance content for auto, home, and commercial. Kayla-Jane has a diploma in Journalism. | | | |---|---| | Categories | [Auto](https://www.thinkinsure.ca/insurance-help-centre/auto) | | Tags | [Repairs and Maintenance](https://www.thinkinsure.ca/insurance-help-centre/auto/repairs-and-maintenance)[Driving Tips](https://www.thinkinsure.ca/insurance-help-centre/auto/driving-tips) | ## Insurance Blog And News Read our insurance blog to get helpful tips, information and news. [![Rural road with many potholes filled with water](https://www.thinkinsure.ca/uploads/rural-road-potholes.jpg)](https://www.thinkinsure.ca/insurance-help-centre/does-insurance-cover-pothole-damage.html) 2026-03-09 ### [Is Pothole Damage To My Vehicle Covered By Insurance?](https://www.thinkinsure.ca/insurance-help-centre/does-insurance-cover-pothole-damage.html) Has your vehicle been damaged by hitting a pothole? Find out if your insurance will cover the damage. Learn about tips to avoid potholes. [![red car parked behind shrubs](https://www.thinkinsure.ca/uploads/red-car-parked-shrubs.jpg)](https://www.thinkinsure.ca/insurance-help-centre/accident-benefits-changes-guide-2026.html) 2026-02-25 ### [Accident Benefits Are Changing in Ontario](https://www.thinkinsure.ca/insurance-help-centre/accident-benefits-changes-guide-2026.html) Big changes are coming to Ontario car insurance. Starting July 1, 2026, many accident benefits will become optional. Learn how these "à la carte" reforms impact your coverage and why opting out could be a major financial risk. [![green electric vehile charging](https://www.thinkinsure.ca/uploads/green-ev-charging.jpg)](https://www.thinkinsure.ca/insurance-help-centre/electric-vehicle-affordability-program.html) 2026-02-19 ### [Electric Vehicle Affordability Program (EVAP) 2026](https://www.thinkinsure.ca/insurance-help-centre/electric-vehicle-affordability-program.html) Learn about Canada's new Electric Vehicle Affordability Program (EVAP). Discover how the \$50,000 transaction rule works, which cars qualify, and how to claim your rebate. [![Toronto street car traffic at rush hour](https://www.thinkinsure.ca/uploads/toronto-streetcar-rushhour.jpg)](https://www.thinkinsure.ca/insurance-help-centre/fatal-collision-trends-canada.html) 2026-02-10 ### [Analyzing Canada’s Fatal Collision Trends](https://www.thinkinsure.ca/insurance-help-centre/fatal-collision-trends-canada.html) Fatal collisions in Canada rose 9.14% from 2019 to 2023. Discover the latest road safety statistics, provincial rankings, and how these trends affect your auto insurance rates. [Read more articles ›](https://www.thinkinsure.ca/insurance-help-centre/ "Read More Insurance Articles") Compare rates and save more today\! 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Readable Markdown
## What is considered a fuel-efficient vehicle? Fuel efficiency, or fuel economy, refers to the distance a vehicle can travel on an amount of fuel. Vehicles listed as having a fuel efficiency of less than 6L/100 km are considered fuel-efficient. The 100 km is how many litres of fuel the car needs to travel 100 km. The lower the number of litres stated, the better the vehicle’s fuel economy is. Depending on how many [kilometres you drive per year](https://www.thinkinsure.ca/insurance-help-centre/average-km-per-year-canada.html), purchasing a car with low fuel economy can be top of mind. There are many options for the [best fuel-efficient vehicles in Canada](https://www.thinkinsure.ca/insurance-help-centre/most-fuel-efficent-cars.html); from cars, trucks, and SUVs, you can lower your monthly gas costs and meet your driving needs and dreams. ## How to calculate fuel economy The best way to determine if your vehicle is fuel-efficient is to compare the fuel economy number versus the cost of gas and the car. Calculating fuel costs for cars of different engine sizes can be determined by calculating their average fuel efficiency in kilometres per litre (km/L). With an assumed yearly mileage of 15,000 km, we can use average fuel efficiency to make informed decisions about fuel expenses. Here is an example: ### 4L Car: - **Fuel efficiency:** 10 km/L - **Total litres of fuel consumed per year:** 15,000 km / 10 km/L = 1500 litres - **Cost of fuel per year:** 1500 litres \* \$1.45/L = \$2175 ### 5L Car: - **Fuel efficiency:** 8 km/L - **Total litres of fuel consumed per year:** 15,000 km / 8 km/L = 1875 litres - **Cost of fuel per year:** 1875 litres \* \$1.45/L = \$2718.75 ### 6L Car: - **Fuel efficiency:** 6 km/L - **Total litres of fuel consumed per year:** 15,000 km / 6 km/L = 2500 litres - **Cost of fuel per year:** 2500 litres \* \$1.45/L = \$3625 Assuming a fuel price of \$1.45/L and given fuel efficiencies and mileage, the annual fuel costs for cars with engine capacities 4L, 5L, and 6L would be \$2175, \$2718.75, and \$3625, respectively. ## How to improve fuel efficiency You may have a vehicle with low usage per kilometre, but you should drive in fuel-efficient ways and [maintain your vehicle](https://www.thinkinsure.ca/insurance-help-centre/car-maintenance-tips.html) to achieve the best efficiency. With the vehicle you have now, you can drive more fuel-efficiently with these techniques: - **Accelerate gently:** When you accelerate hard, you use more fuel. Ease onto the accelerator pedal gently when changing lanes or increasing speed. - **Avoid high speeds and maintain speed:** Studies show that you can [increase fuel usage by 20%](https://natural-resources.canada.ca/energy-efficiency/transportation-energy-efficiency/personal-vehicles/fuel-efficient-driving-techniques) when your speed increases and lowers. - **Anticipate traffic:** Keep a safe distance between the vehicle in front of you and be mindful of pedestrians so you can slow down and keep a steady speed. - **Coast before braking:** Observe how traffic is behaving in front of you and if there are any lights. Cruising before braking conserves fuel because it allows you to slow down gradually, rather than using your brakes immediately, which preserves your forward momentum. When you are not driving, there are tips you can follow to improve the fuel economy, such as: - **Check tire pressure monthly:** You can find your vehicle’s correct tire pressure on the tire place card located on the driver’s door or the doorpost. - **Avoid idling your vehicle:** On average, vehicles waste over one cup of fuel every ten minutes. - **Extra weight:** Remove unnecessary weight such as sports equipment, salt or sand, and take the roof or bike racks off. - **Use air conditioning in moderation:** It can increase fuel consumption by 20%. Open the windows when possible, use the flow-through or re-circulate ventilation system. - **Fuel display:** Drivers consume 15% less fuel by seeing the feedback from a fuel consumption display – if your vehicle has one, use it. ## 5 Tips for buying a fuel-efficient vehicle Shopping smart can help you save money on fuel. If you’re ready to buy the [best fuel-efficient vehicle](https://www.thinkinsure.ca/insurance-help-centre/most-fuel-efficent-cars.html) or looking for a [hybrid car](https://www.thinkinsure.ca/car-insurance/hybrid-car-quote.php). Here are five tips for buying a fuel-efficient vehicle. 1. **Buy less horsepower:** The bigger the engine, the greater the horsepower, and the more fuel it will consume. The smaller the engine, the more cost affordable. 2. **Choose a small vehicle:** Generally speaking, the smaller a vehicle, the less fuel it will consume. Narrowing down the smallest version of the vehicle will help you save money in the showroom and on the road. 3. **Simplify drivetrain:** Front-wheel drive is often more fuel-efficient compared to all-wheel and four-wheel drive. 4. **Avoid unnecessary add-ons:** Turbocharged engines, permanent roof racks, and remote starters are a few of the ways fuel may be wasted from aerodynamic drag or idling your vehicle. 5. **Ask for fuel-efficient features:** Aluminum wheels, removable roof racks, cruise control, trip computer and tachometers are some great options to track fuel usage or limit the use. ![fuel economy explained](https://www.thinkinsure.ca/uploads/fuel-eff-illustration-1.jpg) ## What is an EnerGuide label? You can locate a car's fuel economy on the EnerGuide label. If you're not familiar with the EnerGuide label, it's typically affixed to the vehicle and displays fuel consumption ratings for both city and highway driving. Additionally, it offers an estimate of the vehicle's yearly fuel cost. Here's an example: 1. **Vehicle technology and fuel:** The text and related icon identify the type of fuel used by the vehicle. 2. **Fuel consumption:** This is a prominent combined fuel consumption rating and separate city and highway fuel consumption ratings in L/100 km. The combined rating reflects a 55% city and 45% highway driving ratio. 3. **Fuel economy:** Here, the combined rating is expressed in miles per imperial gallon (mi/gal). 4. **Annual fuel cost:** This is an estimate based on the combined fuel consumption rating, 20,000 km driven, and the fuel price indicated. 5. **Vehicle class range:** This shows the best and worst combined fuel consumption ratings of vehicles in the same class. 6. **CO2 and smog ratings:** Here are the vehicle’s tailpipe emissions of CO2 and smog-forming pollutants rated on a scale from 1 (worst) to 10 (best). The CO2 emissions, in grams per kilometre driven, are shown on the CO2 bar. 7. **QR code:** The quick-response code links smartphone users to the fuel consumption ratings search tool. ## Are hybrid cars more fuel-efficient? Hybrid cars have become popular because they improve fuel efficiency and reduce emissions. These vehicles use a combination of an internal combustion engine, an electric motor, and a battery pack to optimize power delivery and minimize fuel consumption, especially during stop-and-go driving conditions. Although hybrid cars usually provide better fuel efficiency when compared to traditional gasoline-powered vehicles, the actual performance of a hybrid car can be influenced by several factors, including driving habits, vehicle size, and the level of technological advancement. Variables such as driving style, terrain, and weather conditions all play a significant role in determining the effectiveness of hybrid systems in conserving fuel. If you’re ready to ditch fuel entirely, take a look at the [best electric vehicles](https://www.thinkinsure.ca/insurance-help-centre/best-electric-vehicles.html) or [electric trucks in Canada](https://www.thinkinsure.ca/insurance-help-centre/best-electric-trucks-canada.html). ## Why is my car losing fuel efficiency? If you notice your car is losing fuel efficiency, there are a few reasons why it may be happening. It may be due to poor driving habits (heavy braking and accelerating) or mechanical issues. Here is a list of potential problems and solutions to improve fuel usage. - **Tire pressure:** Whether you have all-seasons or winter tires, having properly inflated tires will make your drive safer and improve fuel economy. - **Fuel system:** If you have a dirty or old fuel filter or injector, it can impact the flow of fuel to the engine. - **Exhaust system:** The oxygen sensor, the catalytic converter, an exhaust pipe leak, muffler or some other emissions issue all play a crucial role in fuel economy. - **Spark plugs:** If spark plugs are not working properly, it can lower fuel efficiency. - **Oil:** The type of motor oil you use can impact mileage. Ensure you have regular oil changes and use a high-grade oil that is specifically designed for your vehicle. - **Driving habits:** Idling, fast acceleration, and [aggressive driving](https://www.thinkinsure.ca/insurance-help-centre/road-rage-on-the-rise-in-ontario.html) can all increase how much fuel you use per drive. Fuel efficiency FAQs Can I save money on insurance with a fuel-efficient car? Although you can save money on your fuel expenses, purchasing a fuel-efficient car will not impact your [car insurance quotes](https://www.thinkinsure.ca/car-insurance/quotes.php). Insurance costs are reflected in various aspects, including your driving habits and vehicle [safety features](https://www.thinkinsure.ca/insurance-help-centre/car-safety-features.html). Are motorcycles more fuel-efficient than cars? Motorcycles can be more fuel-efficient compared to vehicles. An [experiment by MythBusters](https://www.latimes.com/archives/blogs/greenspace/story/2011-09-28/mythbusters-asks-are-motorcycles-greener-than-cars "Edmunds Gas Calculator") found that models made in the 2000s used 28% less fuel than cars. If you’re making the switch over to two wheels, don’t forget to update your [motorcycle insurance](https://www.thinkinsure.ca/motorcycle-insurance/quotes.php) ## Lower your driving costs with a fuel-efficient vehicle Maximizing fuel efficiency is a wise financial decision and an important step towards reducing our environmental impact and promoting sustainability. We can achieve this by implementing proactive maintenance practices, developing safe driving habits, and exploring alternative fuel technologies. By doing so, we can all play a part in creating a greener and more sustainable future on the road.
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