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Drivers in Toronto are required by law to have car insurance. If you are found driving without valid auto insurance, your driver's license will be suspended and your vehicle will be towed. Fines for not carrying valid auto insurance is ranging from $5000 to $50,000.
Toronto operates under a no-fault insurance system, which means drivers always go through their own insurance company, no matter who is at fault in an accident. Auto insurance in Toronto is a privatized industry, meaning you purchase your policy from a licensed insurance broker, insurance agent or direct writer.
Toronto auto insurance is regulated by the Financial Services Regulatory Authority of Ontario (FSRA), formerly known as the Financial Services Commission of Ontario (FSCO), an agency of the Ministry of Finance. FSRA regulates all Ontario auto insurance rates to ensure their rate changes are reasonable, while also allowing them to charge enough to cover their operating costs, future claims from consumers and make a profit. Auto insurance providers must apply to increase or decrease their rates, and usually request rate adjustments due to changes in a particular coverage.
There are more ways to buy insurance than ever before. Here's a breakdown of all the entities that exist to help Canadian consumers get coverage.
First, there's the classic insurance company. These institutions underwrite policies and rely on dedicated agents to sell their products. Agents can only sell the products offered by the insurance company.
Many insurance companies now offer a convenient option known as 'direct writing'. This term refers to a division of an insurance company that underwrites and sells simplified policies directly to consumers. With direct writers, you can complete your purchase online without the need for an agent. This not only saves you time but also often results in lower premiums due to their streamlined operations. However, it's important to note that direct writers may not be suitable for those considered high-risk to insure.
Insurance brokers offer quotes from multiple companies. However, they do not sell insurance; they can only refer you to an insurance company, which will then complete the sale. Brokers earn commissions from the insurance companies they partner with, which makes their services free for consumers.
Quote comparison websites, such as RATESDOTCA, offer a flexible and accessible way to compare insurance options. They aggregate quotes from multiple brokers and insurance companies, allowing you to easily see the range of prices and policies available. If you find a price you like, we will transfer you to the company offering it. It's as simple as using a hotel or flight comparison website. Plus, there's no obligation to follow-up on a quote.
The average cost of car insurance in Toronto for 2023 is $2,325 per year or about $193 per month, according to RATESDOTCA Insuramap. That’s a 19% jump from the 2021 premium of $1,953.
Toronto’s average car insurance rate is 33.3% higher than the provincial average of $1,744 per year or $145 per month.
Although inflation has come down somewhat from its peak of 8.1% last year, the effects were felt throughout the industry in 2023, which helps explain the jump in rates. In total, 73 auto insurance companies requested and received approvals to raise rates last year, with some raising the rates by as much as 16%. The average rate change was 3.9%.
Another reason for the rapid growth of auto insurance rates is the number of thefts in Ontario. Specifically in Toronto, more than 12,000 cars were stolen in 2023 – a more than 24% jump from 2022.
No one pays the same amount for car insurance, and insurance companies factor in many details when calculating your rate. Some are obvious. You can expect to pay a higher premium if you have received multiple speeding tickets or have been at fault for collisions. But there are also other factors most drivers aren’t familiar with.
Here are some of the main factors that insurance companies consider when calculating car insurance rates in Toronto:
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Insurance type | Mandatory coverage | Optional/Additional coverage |
---|---|---|
Third-Party Liability | $200,000 minimum. Provides coverage in the event of a lawsuit resulting from an accident where you are at fault. | Coverage can be increased to $500,000, $1 million, or $2 million, with up to $2 million limit. |
Uninsured Automobile Insurance | Provides up to $200,000 in coverage if you are injured or killed by an uninsured driver, or if your vehicle is damaged as a result of a hit-and-run by an unidentified, uninsured motorist. | Family Protection Coverage is an optional coverage that includes additional coverage of up to $1 million in the case of a hit-and-run by an uninsured motorist. |
Statutory Accident Benefits | Provides coverage if you are injured in an accident, regardless of who is at fault. Covers medical expenses that aren’t covered by OHIP. | Coverage limits can be increased. |
Collision Coverage (Also Upset Coverage) | Optional | Covers the costs of repairing or replacing your vehicle following a collision with another vehicle, an object, or property. |
Comprehensive Coverage | Optional | Covers damages caused by named perils identified under the Specified Perils coverage, as well as losses from other perils like falling or flying objects, theft, fire, hail, windstorms, missiles, and vandalism. |
Specified Perils Coverage | Optional | Covers damages caused by named perils such as theft, attempted theft, explosions, natural disasters like fire, lightning, windstorm, hail, rising water, earthquakes, and also other perils specified in your policy. Specified perils do not cover damages due to vandalism, breakage of glass, etc. |
Direct Compensation-Property Damage (DC-PD) | Optional | DCPD is a standard coverage, but drivers in Ontario can opt to remove it. It covers damage to your car, or loss of use of your vehicle, if someone else is at fault. It must have involved another insured vehicle. Removing DCPD coverage disqualifies you from these benefits and you cannot sue for vehicle damage, either. |
All-Perils Coverage | Optional | Combines collision/upset and comprehensive coverage. Also provides additional protection if a household member or an employee steals your vehicle. |
OPCF 20: Coverage for Transportation Replacement | Optional | Covers the cost of your transportation replacement and rental car insurance if you were to get into a car accident or if your vehicle is stolen. |
OPCF 27: Liability for Damage to Non-Owned Automobile(s) | Optional | Covers if you damage a borrowed or rental vehicle. The coverage limit is usually around $25,000 to $50,000. |
OPCF 39: Accident Waiver/Forgiveness | Optional | Protect your premium from rising when you have your first at-fault accident. |
OPCF 43: Waiver of Depreciation | Optional | Protects you by removing your insurer's right to deduct depreciation from the value of your vehicle when settling a claim. This coverage is for new vehicles with fewer than 5,000 kilometres. |
OPCF 44R: Family Protection Coverage | Optional | Protects you if you or a family member is injured, regardless of whether you or your family members are in the car when the accident occurs |
Insurance companies base your rates on how likely you are to make a claim. Although your driving history is a major factor, high traffic volumes, collision numbers, and the cost of repairs also play a part.
Despite these factors, you can always find a better rate. Compare insurance rates today to get the best quote.
One of the best ways to save money on Toronto car insurance is to compare rates from different providers in the area.
The average amount we save Toronto drivers is $959*. How do we do that?
It starts with you taking a few minutes to tell us a little bit about yourself and your car insurance needs. We will provide quotes from multiple auto insurance providers in mere minutes. RATESDOTCA compares more car insurance providers than anyone so you can be assured you’ve left no stone unturned, and you are seeing the cheapest rates.
The savings are not just a promise; they're real and can be achieved with very little effort on your part. Join the thousands of Toronto drivers who have successfully lowered their car insurance bills with RATESDOTCA. Start saving today.
* The average savings amount represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third lowest quoted premiums generated by RATESDOTCA.
You don’t need to wait until renewal time to shop around for rates. If you’re done paying big city premiums and want to find cheaper rates, the easiest way to switch to a better rate is to shop online and compare. Let’s take a look at what else you could do to get cheaper car insurance rates:
Car insurance rates in Toronto are overseen by the Financial Services Regulatory of Ontario (FSRA). The tactics that lower your car insurance premium in Toronto apply to the rest of Ontario, too. Here are a few tips to get the cheapest car insurance in Ontario.
Companies | Company Type | Phone | Address | Quotes |
---|---|---|---|---|
Aviva |
Insurance company |
1 (800) 387-4518 |
100 King St. W., Toronto, ON M5X 1E3 |
|
Economical |
Insurance company |
1 (800) 268-8801 |
121 King St. W. #1400, Toronto, ON M5H 3T9 |
|
Facility Association |
Non-profit association of insurers |
(416) 863-1750 |
777 Bay St., Toronto, ON M5G 2C8 |
|
iA Financial Group |
Insurance company |
1 (877) 422-6487 |
522 University Ave., Toronto, ON M5G 1A4 |
|
Insurance Hotline |
Quotes comparison |
1 (855) 821-7312 |
225 King St W, Suite 1000, Toronto, ON, M5V 3M2 |
|
LowestRates.ca |
Quotes comparison |
1 (855) 487-6911 |
1910 Yonge St. Suite 401, Toronto, ON M4S 3B2 |
|
Northbridge |
Insurance company |
(416) 350-4300 |
105 Adelaide St. W., Toronto, ON M5H 1P9 |
|
RBC Insurance |
Insurance company |
(416) 955-6286 |
155 Wellington St. W. #138B, Toronto, ON M5V 3H1 |
|
RSA Insurance |
Insurance company |
1 (800) 268-8406 |
700 University Ave., Suite 1500A, Toronto, ON M5G 0A1 |
|
RATESDOTCA |
Quotes comparison |
1 (844) 726-0907 |
225 King St W, Suite 1000, Toronto, ON, M5V 3M2 | |
Scoop Insurance |
Insurance broker |
1 (866) 456-6620 |
300 Lincoln St. Unit 22, Welland, ON L3B 4N4 |
|
Travelers |
Insurance company |
(416) 360-8183 |
20 Queen St. W., Toronto, ON M5H 3R3 |
|
Wawanesa |
Insurance company |
1 (800) 268-7300 |
4120 Yonge St. Suite 100, North York, ON M2P 2B7 |
|
Western Assurance |
Insurance company |
(416) 366-7511 |
18 York St., Toronto, ON M5J 2T8 |
Choosing a car insurance company can be confusing. While we at RATESDOTCA encourage drivers to shop around for the lowest priced insurer, sometimes you’re looking for something more — like whether an insurer has good rates and superb customer service, a useful app, and helpful claims agents.
For our first-ever Best Home and Auto Insurer Awards, we surveyed drivers in Ontario and Alberta to see what they say are the best car insurance companies in several categories. Here's what they said are the best car insurance companies in Canada right now.
Best overall | Most trustworthy | Best claims experience | Best policy documents | |
---|---|---|---|---|
1 | CAA | CAA | Travelers | CAA |
2 | Northbridge | Northbridge | Aviva | Northbridge |
3 | Wawanesa | Wawanesa | Zenith Northbridge (tied) | Wawanesa |
RATESDOTCA surveyed more than 8,875 drivers in Ontario and Alberta and asked them to rate their insurer's performance in key areas. The highest-scoring ones were eligible for three awards: Best Overall Insurer, Most Trustworthy Insurer, and Best Claims Experience. Here's the criteria our survey respondents used to rate their insurer:
We took the scores for each category and found the average score to determine the best overall score, with a margin of error of +/- 1.01%. Learn more about the methodology we used.
Postal code | Borough | Estimated average premium 2023 |
---|---|---|
M4B |
East York |
$2,326 |
M4G |
East York |
$2,210 |
M4H |
East York |
$2,326 |
M8V |
Etobicoke |
$2,158 |
M8W |
Etobicoke |
$2,158 |
M8X |
Etobicoke |
$2,158 |
M8Y |
Etobicoke |
$2,158 |
M8Z |
Etobicoke |
$2,158 |
M9A |
Etobicoke |
$2,158 |
M9B |
Etobicoke |
$2,158 |
M9C |
Etobicoke |
$2,158 |
M9P |
Etobicoke |
$2,217 |
M9R |
Etobicoke |
$2,217 |
M9V |
Etobicoke |
$2,217 |
M9W |
Etobicoke |
$2,217 |
M2H |
North York |
$2,401 |
M2J |
North York |
$2,401 |
M2K |
North York |
$2,242 |
M2L |
North York |
$2,242 |
M2M |
North York |
$2,401 |
M2N |
North York |
$2,242 |
M2P |
North York |
$2,210 |
M2R |
North York |
$2,242 |
M3A |
North York |
$2,242 |
M3B |
North York |
$2,210 |
M3C |
North York |
$2,401 |
M3H |
North York |
$2,419 |
M3J |
North York |
$2,892 |
M3K |
North York |
$2,422 |
M3L |
North York |
$2,553 |
M3M |
North York |
$2,553 |
M3N |
North York |
$2,892 |
M4A |
North York |
$2,401 |
M4N |
North York |
$2,210 |
M6A |
North York |
$2,553 |
M6M |
North York |
$2,553 |
M9L |
North York |
$2,892 |
M9M |
North York |
$2,731 |
M9N |
North York |
$2,553 |
M1B |
Scarborough |
$2,580 |
M1C |
Scarborough |
$2,331 |
M1E |
Scarborough |
$2,331 |
M1G |
Scarborough |
$2,392 |
M1H |
Scarborough |
$2,572 |
M1J |
Scarborough |
$2,580 |
M1K |
Scarborough |
$2,572 |
M1L |
Scarborough |
$2,401 |
M1M |
Scarborough |
$2,331 |
M1N |
Scarborough |
$2,326 |
M1P |
Scarborough |
$2,572 |
M1R |
Scarborough |
$2,401 |
M1S |
Scarborough |
$2,572 |
M1T |
Scarborough |
$2,360 |
M1V |
Scarborough |
$2,572 |
M1W |
Scarborough |
$2,360 |
M1X |
Scarborough |
$3,371 |
M4C |
Toronto |
$2,217 |
M4E |
Toronto |
$2,331 |
M4J |
Toronto |
$2,217 |
M4K |
Toronto |
$2,210 |
M4L |
Toronto |
$2,217 |
M4M |
Toronto |
$2,217 |
M4P |
Toronto |
$2,210 |
M4R |
Toronto |
$2,210 |
M4S |
Toronto |
$2,210 |
M4T |
Toronto |
$2,210 |
M4V |
Toronto |
$2,210 |
M4W |
Toronto |
$2,210 |
M4X |
Toronto |
$2,217 |
M4Y |
Toronto |
$2,326 |
M5A |
Toronto |
$2,217 |
M5B |
Toronto |
$2,217 |
M5C |
Toronto |
$2,217 |
M5E |
Toronto |
$2,217 |
M5G |
Toronto |
$2,217 |
M5H |
Toronto |
$2,217 |
M5J |
Toronto |
$2,217 |
M5K |
Toronto |
$2,217 |
M5L |
Toronto |
$2,217 |
M5M |
Toronto |
$2,210 |
M5N |
Toronto |
$1,389 |
M5P |
Toronto |
$2,210 |
M5R |
Toronto |
$2,217 |
M5S |
Toronto |
$2,217 |
M5T |
Toronto |
$2,217 |
M5V |
Toronto |
$2,217 |
M5W |
Toronto |
$2,217 |
M5X |
Toronto |
$2,217 |
M6B |
Toronto |
$2,217 |
M6C |
Toronto |
$1,389 |
M6G |
Toronto |
$2,217 |
M6H |
Toronto |
$2,217 |
M6J |
Toronto |
$2,217 |
M6K |
Toronto |
$2,217 |
M6L |
Toronto |
$2,217 |
M6N |
Toronto |
$1,466 |
M6P |
Toronto |
$2,217 |
M6R |
Toronto |
$2,217 |
M7A |
Toronto |
$2,242 |
M7Y |
Toronto |
$2,242 |
M6E |
York |
$2,553 |
M6S |
York |
$2,158 |
Estimated average insurance premiums are from the 2023 RATESDOTCA Auto Insuramap.
Where you live in Toronto dramatically impacts what you pay for car insurance. People living just one postal code over could be paying a different average rate than you. In Toronto, it's not always immediately apparent which neighbourhood will have low rates. The city's constantly growing and changing, so hazards change and relocate accordingly.
Two postal codes in one city ward are tied for having the most affordable rates in the city. These postal codes lie in midtown Toronto in predominantly affluent neighbourhoods with good public transportation and access to amenities. Drivers can leave their cars at home during the workweek and likely have the cash to take extra measures to reduce their theft risk. Single-family homes with garages where cars can be secured and monitored are common.
Here they are, sorted by official city ward:
The second lowest auto insurance premium in Toronto is in the ward of York South-Weston in the Stockyards neighbourhood. The area is a mix of industrial, commercial, and residential uses. While the area is no stranger to traffic congestion, many residents rely on public transportation; buses and streetcars all run through here.
Finally, the third cheapest rate in the city is found in a few west-end wards. At $2,158 and $2,210 annually, rates here are substantially higher rates than the next lowest rates (47% and 33.6% higher, to be specific). These are car-dependent neighbourhoods, with greater risk of accidents and theft. However, residents can supplement their car use with streetcars, subways, buses, and commuter trains.
Year | Estimated average premium | Change |
---|---|---|
2023 | $2,325 | 19% |
2021 | $1,953 | -12.6% |
2020 | $2,200 | 19.1% |
2018 | $1,780 | N/A |
Estimated average insurance premiums are based on the RATESDOTCA Auto Insuramap data.
As seen in the chart above, insurance averages in Toronto have bounced around over the last half-decade. Starting after the COVID-19 pandemic took hold and forced many people and businesses to remain in lockdown, average insurance rates dropped by more than 12% after having been on a tear previously.
Fewer drivers were going to an office, there was nowhere to shop or dine out, and people simply stayed out of their cars. But as the pandemic abated and inflation reared its head, average car insurance rates began to rise once again. This can be seen between 2021 and 2023 when the average premium increased by 19%.
Insurance companies have requested rate increases in order to keep up with the pace of inflation. The Financial Services Regulatory Authority of Canada approved rate increases for 73 auto insurance companies this year.
Auto thefts haven’t helped, either. Due to the increase in thefts, comprehensive insurance premiums for commonly stolen vehicles have increased between 25% and 50% over the past two years.
Sure, it’s easy to stay with your current insurer and to let your policy renew automatically. But you could be leaving money on the table by not shopping around.
Take three minutes to see if another insurance company can offer you a better rate. RATESDOTCA compares more car insurance providers than anyone else, so you can be confident that you’re finding the lowest price on car insurance. As you can see, the savings add up.
Join the thousands of Toronto drivers who use RATESDOTCA to lower their car insurance bills today.
*Shoppers in Toronto who obtained a quote on RATESDOTCA from January to December 2023 saved an average of $635 per year. The average savings represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by RATESDOTCA.
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