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Car owners in Ontario are required by law to have car insurance.
Car insurance helps ensure that you and your vehicle are financially protected in the event of vehicle damage or personal injury.
Ontario operates under a no-fault insurance system, which means drivers always go through their insurance company, no matter who is at fault in an accident.
In Ontario, 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 oversees all insurance regulations in Ontario and has the power to approve or decline car insurance rate change requests. Car insurance providers apply to increase or decrease their rates throughout the year. If a particular insurer experiences an increase in payouts resulting from car accidents, they might apply to have their rates increased to help offset their costs.
Ontario auto insurance is a privatized industry, meaning you purchase your policy from a private company. FSRA's approved quarterly changes show how rates can fluctuate, making it extremely important to compare quotes and find the lowest rate.
Last year, Ontario drivers who used RATESDOTCA paid, on average, 30% less than the average market rate.
An auto insurance claim should be filed as soon as possible following the incident that resulted in damage or injury. Failing to report the incident within a week can lead to the claim being denied.
When filing an auto insurance claim in Ontario, include as many of the following as possible:
Once your claim is filed, you will be contacted by a claims adjustor to discuss your case and determine the eligibility and amount of compensation. If an at-fault driver is uninsured, your claim will be processed through the uninsured automobile portion of your policy.
Being at fault means you have been deemed responsible for damage or injury by your insurance company. A driving event, like a collision, can have more than one at-fault motorist.
If you are found to be 50% or more at fault for a claim, the event will go on your insurance record. Having an at-fault accident on your record may cause your premiums to increase, though some insurance providers offer accident forgiveness, which permits one accident before premiums are raised.
According to the Insurance Bureau of Canada, Ontario drivers paid an average of $1,655 annually for car insurance, or $138 per month in 2020. Ontario drivers paid the highest auto insurance premium in Canada. Based on FSRA, the average Ontario car insurance premium was $1,651 annually or $137.6 per month as of March 2021. Our RATESDOTCA Auto Insuramap data from December 2021 shows the average Ontario car insurance premium is $1,555 annually or $129.6 per month.
Though the average cost of car insurance in Ontario is high, it varies among individual drivers. Numerous factors contribute to the cost of an auto insurance policy. In Ontario, the most influential of these factors are:
More goes into determining the premiums you pay than what's listed above. This list merely calls out some of the most influential factors used by Ontario car insurance providers.
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. |
Direct Compensation-Property Damage (DC-PD) | Covers damage to your car, or loss of use of your vehicle, if someone else is at fault. Must involve another insured vehicle. | For additional vehicle coverage including for when you are at-fault, consider collision coverage. |
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. Income Replacement Benefits: Basic weekly income replacement of 70% of your gross income up to $400/wk. Medical, Rehabilitation and Attendant Care Benefits: Up to $65,000 for serious injuries, and $1 million for catastrophic injuries. Caregiver Benefits: Up to $250 per week for the first dependent, and $50 per week for each dependent after that. Housekeeping and Home Maintenance Expenses: Maximum payout $100 per week. Death and Funeral Benefits: Up to $25,000 is provided to your spouse, $10,000 for each dependent, and up to $6,000 in funeral costs in the event you are killed in an automobile accident. |
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. |
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 |
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Although all insurance companies use the same information to determine your quote, they evaluate your risk differently. This means they all offer different prices for broadly the same coverage. As a result, provincial regulators, like FSRA, recommend to shop around and getting multiple quotes before you purchase a policy. It is the easiest way to ensure you get the best rate available.
Ontario Car insurance rates change at least four times per year. By shopping around, you can check to see if your current insurance provider still offers you the best rates. If not, it might be time to switch to a company that offers a better price.
According to data from RATESDOTCA Insuramap, Cornwall, Elizabethtown, Amherstview, Gananoque, Martintown, Iroquois, Brockville, and Kingston are tied for the cheapest auto insurance in Ontario; they all have the average auto insurance premium of $1,132 per year.
Generally speaking, smaller, more rural locations tend to have lower car insurance rates than big cities with high traffic density. For example, cities like Toronto and Brampton have some of the highest insurance rates in the province, while smaller cities like Belleville are relatively cheap.
According to proprietary data from RATESDOTCA Insuramap, the cities with the most expensive car insurance in Ontario are all part of the GTA. Vaughan has the most expensive car insurance rates on average of $2,179 per year, followed by Ajax at $2,104 per year, Richmond Hill at $2,025 per year, Brampton at $1,976 per year, Mississauga at $1,971 per year, and Pickering at $1,959 per year.
Did you know the make and model of the vehicle you drive significantly impact your rates?
Insurance companies pour a lot of time and money into accurately predicting the likelihood of each car model on the road being stolen and what it would cost to repair it.
So, which models were the cheapest to insure in Ontario in 2022?
To find out, we looked at some of the best-selling cars in Canada and compared quotes for a 35-year-old driver from Toronto without any convictions or tickets who lives in the west-end postal code of M6H.
The top three spots were occupied by pickup trucks. The best-selling 2021 GMC Sierra, a light-duty pickup truck, came first, commanding premiums of $1,779 per year (about $150 a month).
That's 9% less than the average Toronto premium, which was $1,952 in late 2021.
The Chevrolet Silverado ($1,811) and the Ford F-150 ($1,862) came in second and third, respectively.
According to the Insurance Institute for Highway Safety, pickup trucks are among the safest vehicles on the road, which helps keep their rates low.
No surprise then that when we compared cars by body type, pickups continued to reign supreme.
The Chevrolet Colorado cost $1,542 annually ($128 monthly) to insure in late 2021. Insurance on a Colorado is 21% cheaper than the Toronto average.
The Honda Civic is one of the most stolen vehicles in Canada, which is part of the reason it is more expensive to insure. The Civic costs $2,592 annually ($216 monthly) to insure in Toronto, or 33% more than the average premium.
How does your car compare? Check out our complete rankings of the cars that are cheapest to insure in Ontario in 2022, including an analysis of cars by price, body segment, and overall popularity.
Statutory Accident Benefits provide coverage if you are injured in an automobile accident, regardless of who is at fault. This helps cover the costs of medical expenses, including physiotherapy and rehabilitation costs that aren't covered by OHIP. This coverage is mandatory in Ontario and included in a standard auto insurance policy.
Here is a more detailed breakdown of what statutory accident benefits cover:
Additional protection is available for purchase on top of the minimum Statutory Accident Benefits in a basic policy. This includes:
Insurers in Ontario must go to the Financial Services Regulatory Authority of Ontario (FSRA) to increase (or decrease) rates. FSRA releases a list of these insurance companies, and the approved rate changes shortly after approval is granted.
As of fall 2022, car insurance prices are rising again after a long period of no growth.
Ontario drivers dealt with years of consecutive price increases for car insurance. But 2020 marked the first time in memory when car insurance prices stayed flat, even decreasing for some.
People drove less during the first few waves of the COVID-19 pandemic, and insurance companies issued rebates to policyholders who had decreased their coverage or needed financial relief.
Mass vaccination programs have allowed Ontarians to return to routines that mostly resemble their pre-pandemic ones. With that, the sweet sights and sounds of rush hour traffic have returned.
Predictably, the agency that helps regulate auto insurance prices approved 31 rate changes by October 2022 (compared with one in all of 2021 and zero in 2020).
More cars on the road mean a higher likelihood of people being involved in a collision resulting in a claim, which their insurance company will pay.
That's not the only reason premium increases are making a comeback, however.
The cost for insurers to provide coverage has increased due to the pandemic-time economy.
Record-high inflation is putting strain on insurers' business costs.
And essential computer parts, particularly semiconductors, have been in short supply due to China keeping COVID restrictions active longer than the West.
A Canada-wide spike in car thefts is also aggravating the situation as drivers with comprehensive insurance file claims to have their cars replaced. Thefts in Toronto alone were up 45% compared with 2021.
Plus, the issues that predate the pandemic, which insurers said were forcing them to raise prices, still exist.
For example, the cost of repairing cars has increased as manufacturers introduce new technologies like sensors and cameras to even entry-model cars.
Distracted driving due to cell phone use has increased on Ontario's roads. The province now reports that accident benefits and third-party liability claims account for more than half of all auto insurance claims.
If you feel like you're paying too much, one of the most effective and immediate ways to lower your car insurance costs is to shop around for quotes, according to the Financial Services Regulatory Authority of Ontario (FSRA). Ontario drivers save $772 on average when comparing car insurance quotes on RATESDOTCA.*
Maintaining a safe and conviction-free driving record is, without a doubt, the best way to keep your premiums down, but there are plenty of other ways to save.
Insurance Company | Rating |
---|---|
CAA | A+ |
Pembridge | A+ |
Sonnet | A |
Gore Mutual | A |
Onlia | A |
Scottish & York | A |
Zenith Insurance | A |
Royal & SunAlliance | A- |
The above insurance company rankings are based on the number of users who have completed car insurance quotes and asked to be connected with the insurance agent or broker offering the rate. These users were given only the rates but not the names of the car insurance companies.
By concealing the insurance companies, users could focus on the value delivered by each one.
Rank | City | 2021 premium | 2020 premium | YoY change |
---|---|---|---|---|
1 | VAUGHAN | $2,179 | $2,334 | -6.70% |
2 | AJAX | $2,104 | $2,141 | -1.70% |
3 | RICHMOND HILL | $2,025 | $2,286 | -11.40% |
4 | BRAMPTON | $1,976 | $2,698 | -26.80% |
5 | MISSISSAUGA | $1,971 | $2,372 | -16.90% |
6 | PICKERING | $1,959 | $1,961 | -0.10% |
7 | TORONTO | $1,953 | $2,201 | -11.30% |
8 | OSHAWA | $1,833 | $1,636 | 12.10% |
9 | WHITBY | $1,792 | $1,777 | 0.90% |
10 | NOBLETON | $1,766 | $1,547 | 14.20% |
10 | SCHOMBERG | $1,766 | $1,547 | 14.20% |
10 | ORANGEVILLE | $1,766 | $1,547 | 14.20% |
10 | KING CITY | $1,766 | $1,547 | 14.20% |
11 | MARKHAM | $1,744 | $2,222 | -21.50% |
12 | CALEDON | $1,717 | $1,547 | 11.00% |
13 | MULMUR | $1,689 | $1,568 | 7.70% |
14 | ALLISTON | $1,636 | $1,568 | 4.30% |
14 | SHELBURNE | $1,636 | $1,568 | 4.30% |
14 | BRADFORD | $1,636 | $1,568 | 4.30% |
14 | BORDEN | $1,636 | $1,568 | 4.30% |
15 | BARRIE | $1,582 | $1,568 | 0.90% |
15 | STOUFFVILLE | $1,582 | $1,547 | 2.30% |
15 | HOLLAND LANDING | $1,582 | $1,568 | 0.90% |
15 | AURORA | $1,582 | $1,547 | 2.30% |
15 | WASAGA BEACH | $1,582 | $1,568 | 0.90% |
15 | KESWICK | $1,582 | $1,568 | 0.90% |
15 | INNISFIL | $1,582 | $1,568 | 0.90% |
15 | NEWMARKET | $1,582 | $1,558 | 1.60% |
16 | SELKIRK | $1,580 | $1,432 | 10.30% |
17 | HAMILTON | $1,564 | $1,755 | -10.90% |
18 | GEORGETOWN | $1,526 | $1,547 | -1.40% |
18 | ACTON | $1,526 | $1,380 | 10.60% |
19 | LONDON | $1,505 | $1,509 | -0.20% |
20 | MILTON | $1,498 | $1,380 | 8.60% |
21 | WINDSOR | $1,491 | $1,412 | 5.50% |
22 | PRICEVILLE | $1,459 | $1,568 | -7.00% |
23 | CAMBRIDGE | $1,412 | $1,318 | 7.20% |
24 | OAKVILLE | $1,408 | $1,380 | 2.00% |
25 | FOLEYET | $1,398 | $1,519 | -8.00% |
25 | THESSALON | $1,398 | $1,519 | -8.00% |
25 | ELLIOT LAKE | $1,398 | $1,501 | -6.90% |
25 | SAULT STE. MARIE | $1,398 | $1,430 | -2.20% |
25 | HEARST | $1,398 | $1,519 | -8.00% |
25 | SOUTH PORCUPINE | $1,398 | $1,519 | -8.00% |
25 | IROQUOIS FALLS | $1,398 | $1,519 | -8.00% |
25 | DUBREUILVILLE | $1,398 | $1,519 | -8.00% |
25 | MANITOWANING | $1,398 | $1,519 | -8.00% |
26 | DUNNVILLE | $1,394 | $1,236 | 12.80% |
27 | GUELPH | $1,391 | $1,302 | 6.80% |
28 | LASALLE | $1,383 | $1,213 | 14.00% |
28 | AMHERSTBURG | $1,383 | $1,213 | 14.00% |
28 | WALLACEBURG | $1,383 | $1,213 | 14.00% |
28 | COMBER | $1,383 | $1,213 | 14.00% |
28 | CHATHAM | $1,383 | $1,213 | 14.00% |
28 | KINGSVILLE | $1,383 | $1,213 | 14.00% |
28 | ESSEX | $1,383 | $1,213 | 14.00% |
28 | PELEE ISLAND | $1,383 | $1,213 | 14.00% |
28 | LEAMINGTON | $1,383 | $1,213 | 14.00% |
29 | ESPANOLA | $1,378 | $1,519 | -9.30% |
29 | TIMMINS | $1,378 | $1,519 | -9.30% |
29 | COURTICE | $1,378 | $1,547 | -10.90% |
29 | BOWMANVILLE | $1,378 | $1,547 | -10.90% |
29 | NEWCASTLE | $1,378 | $1,547 | -10.90% |
30 | BURLINGTON | $1,374 | $1,337 | 2.70% |
31 | SHUNIAH | $1,369 | $1,488 | -8.00% |
31 | NEEBING | $1,369 | $1,488 | -8.00% |
31 | BRANTFORD | $1,369 | $1,344 | 1.90% |
31 | THUNDER BAY | $1,369 | $1,488 | -8.00% |
32 | ST GEORGE BRANT | $1,368 | $1,192 | 14.80% |
32 | GRIMSBY | $1,368 | $1,192 | 14.80% |
32 | BINBROOK | $1,368 | $1,192 | 14.80% |
32 | CAMPBELLVILLE | $1,368 | $1,192 | 14.80% |
32 | WATERDOWN | $1,368 | $1,192 | 14.80% |
33 | WATERLOO | $1,351 | $1,276 | 5.90% |
34 | BOBCAYGEON | $1,351 | $1,234 | 9.50% |
34 | MIDLAND | $1,351 | $1,234 | 9.50% |
34 | CANNINGTON | $1,351 | $1,234 | 9.50% |
34 | LAKEFIELD | $1,351 | $1,234 | 9.50% |
34 | SUNDERLAND | $1,351 | $1,234 | 9.50% |
34 | NORTH BAY | $1,351 | $1,234 | 9.50% |
34 | COBALT | $1,351 | $1,234 | 9.50% |
34 | ELMVALE | $1,351 | $1,436 | -5.90% |
34 | LORING | $1,351 | $1,234 | 9.50% |
34 | ORONO | $1,351 | $1,234 | 9.50% |
34 | STURGEON FALLS | $1,351 | $1,234 | 9.50% |
34 | PENETANGUISHENE | $1,351 | $1,234 | 9.50% |
34 | MINESING | $1,351 | $1,234 | 9.50% |
34 | PETERBOROUGH | $1,351 | $1,234 | 9.50% |
34 | UXBRIDGE | $1,351 | $1,234 | 9.50% |
34 | LINDSAY | $1,351 | $1,234 | 9.50% |
34 | CUMBERLAND BEACH | $1,351 | $1,234 | 9.50% |
34 | PORT PERRY | $1,351 | $1,234 | 9.50% |
34 | ORILLIA | $1,351 | $1,234 | 9.50% |
35 | KITCHENER | $1,346 | $1,341 | 0.40% |
36 | WOODSTOCK | $1,331 | $1,256 | 6.00% |
37 | PORT COLBORNE | $1,327 | $1,236 | 7.40% |
37 | ST DAVIDS | $1,327 | $1,236 | 7.40% |
37 | ST CATHARINES | $1,327 | $1,242 | 6.90% |
37 | NIAGARA FALLS | $1,327 | $1,247 | 6.40% |
37 | THOROLD | $1,327 | $1,247 | 6.40% |
37 | FORT ERIE | $1,327 | $1,247 | 6.40% |
37 | WELLAND | $1,327 | $1,247 | 6.40% |
38 | ST MARYS | $1,318 | $1,211 | 8.80% |
38 | FERGUS | $1,318 | $1,211 | 8.80% |
38 | DELHI | $1,318 | $1,211 | 8.80% |
38 | OWEN SOUND | $1,318 | $1,211 | 8.80% |
38 | HURON PARK | $1,318 | $1,211 | 8.80% |
38 | PARIS | $1,318 | $1,211 | 8.80% |
38 | STRATFORD | $1,318 | $1,211 | 8.80% |
38 | HANOVER | $1,318 | $1,211 | 8.80% |
38 | OIL SPRINGS | $1,318 | $1,211 | 8.80% |
38 | ELMIRA | $1,318 | $1,211 | 8.80% |
38 | SIMCOE | $1,318 | $1,211 | 8.80% |
38 | KINCARDINE | $1,318 | $1,211 | 8.80% |
38 | NEW HAMBURG | $1,318 | $1,211 | 8.80% |
38 | PORT ELGIN | $1,318 | $1,211 | 8.80% |
38 | CHESLEY | $1,318 | $1,211 | 8.80% |
38 | COURTLAND | $1,318 | $1,211 | 8.80% |
38 | STRATHROY | $1,318 | $1,211 | 8.80% |
38 | AYLMER | $1,318 | $1,211 | 8.80% |
38 | MEAFORD | $1,318 | $1,211 | 8.80% |
38 | WELLESLEY | $1,318 | $1,211 | 8.80% |
38 | TILLSONBURG | $1,318 | $1,211 | 8.80% |
38 | SHEDDEN | $1,318 | $1,211 | 8.80% |
38 | INGERSOLL | $1,318 | $1,211 | 8.80% |
38 | COLLINGWOOD | $1,318 | $1,211 | 8.80% |
38 | LISTOWEL | $1,318 | $1,211 | 8.80% |
38 | ROSTOCK | $1,318 | $1,211 | 8.80% |
38 | GODERICH | $1,318 | $1,211 | 8.80% |
39 | SUMMER BEAVER | $1,310 | $1,424 | -8.00% |
39 | INGOLF | $1,310 | $1,424 | -8.00% |
40 | KIRKLAND LAKE | $1,306 | $1,470 | -11.20% |
40 | KAPUSKASING | $1,306 | $1,519 | -14.00% |
41 | FORT FRANCES | $1,283 | $1,203 | 6.70% |
41 | KENORA | $1,283 | $1,203 | 6.70% |
41 | KEEWATIN | $1,283 | $1,203 | 6.70% |
41 | SIOUX LOOKOUT | $1,283 | $1,203 | 6.70% |
41 | DRYDEN | $1,283 | $1,203 | 6.70% |
41 | DEVLIN | $1,283 | $1,203 | 6.70% |
41 | KASABONIKA | $1,283 | $1,203 | 6.70% |
42 | PORT STANLEY | $1,278 | $1,124 | 13.70% |
42 | ST THOMAS | $1,278 | $1,124 | 13.70% |
43 | HANMER | $1,258 | $1,165 | 8.00% |
43 | LIVELY | $1,258 | $1,165 | 8.00% |
43 | GARSON | $1,258 | $1,165 | 8.00% |
43 | VAL CARON | $1,258 | $1,165 | 8.00% |
43 | SUDBURY | $1,258 | $1,165 | 8.00% |
44 | OTTAWA | $1,257 | $1,213 | 3.60% |
45 | SARNIA | $1,256 | $1,159 | 8.40% |
46 | CURRAN | $1,255 | $1,020 | 23.00% |
47 | BARRYS BAY | $1,253 | $1,234 | 1.50% |
48 | HAWKESBURY | $1,239 | $1,020 | 21.50% |
49 | ROCKLAND | $1,206 | $1,107 | 8.90% |
49 | RENFREW | $1,206 | $1,107 | 8.90% |
49 | CARLETON PLACE | $1,206 | $1,107 | 8.90% |
49 | CASSELMAN | $1,206 | $1,107 | 8.90% |
49 | PETAWAWA | $1,206 | $1,107 | 8.90% |
49 | RUSSELL | $1,206 | $1,107 | 8.90% |
49 | ARNPRIOR | $1,206 | $1,107 | 8.90% |
49 | PERTH | $1,206 | $1,107 | 8.90% |
49 | NAVAN | $1,206 | $1,107 | 8.90% |
49 | PEMBROKE | $1,206 | $1,107 | 8.90% |
50 | KILWORTHY | $1,187 | $1,234 | -3.80% |
50 | NOVAR | $1,187 | $1,234 | -3.80% |
50 | HUNTSVILLE | $1,187 | $1,234 | -3.80% |
50 | MCKELLAR | $1,187 | $1,234 | -3.80% |
50 | UTTERSON | $1,187 | $1,234 | -3.80% |
50 | GRAVENHURST | $1,187 | $1,234 | -3.80% |
50 | BRACEBRIDGE | $1,187 | $1,234 | -3.80% |
50 | ROSSEAU | $1,187 | $1,234 | -3.80% |
50 | PARRY SOUND | $1,187 | $1,234 | -3.80% |
51 | CLOYNE | $1,185 | $1,103 | 7.40% |
51 | SMITHS FALLS | $1,185 | $1,103 | 7.40% |
51 | KEMPTVILLE | $1,185 | $1,103 | 7.40% |
52 | COBOURG | $1,175 | $1,103 | 6.50% |
52 | BELLEVILLE | $1,175 | $1,225 | -4.10% |
52 | NAPANEE | $1,175 | $1,103 | 6.50% |
52 | TRENTON | $1,175 | $1,225 | -4.10% |
52 | PICTON | $1,175 | $1,103 | 6.50% |
52 | KENDAL | $1,175 | $1,271 | -7.60% |
52 | PORT HOPE | $1,175 | $1,103 | 6.50% |
53 | AMHERSTVIEW | $1,132 | $1,103 | 2.60% |
53 | BROCKVILLE | $1,132 | $1,103 | 2.60% |
53 | IROQUOIS | $1,132 | $1,103 | 2.60% |
53 | MARTINTOWN | $1,132 | $1,107 | 2.30% |
53 | ELIZABETHTOWN | $1,132 | $1,103 | 2.60% |
53 | CORNWALL | $1,132 | $1,107 | 2.30% |
53 | KINGSTON | $1,132 | $1,103 | 2.60% |
53 | GANANOQUE | $1,132 | $1,103 | 2.60% |
Generally, car insurance gets cheaper the further away get from dense urban centres. That’s because there are fewer incidences of theft, fraud, and collisions in rural areas. In fact, more than 80% of car insurance fraud takes place in the Greater Toronto Area (GTA), according to the Ontario Auto Insurance Anti-Fraud Task Force.
In Vaughan, drivers pay about $2,179; in Toronto, drivers pay roughly $1,953. That means drivers in these cities pay $624 and $398 more than the provincial average.
No surprise then that the Ontario towns and cities with the lowest auto insurance premiums are outside of the GTA.
Find the average estimated car insurance rate for your postal code using the RATESDOTCA Auto Insuramap.
See how Ontario's average car insurance rate compares to the average auto insurance rates in other provinces.
Province or territory | Average premium 2020 |
Year-over-year change (2020/2019) |
Difference vs. Ontario |
Ontario | $1,655 | 1.33% | - |
Alberta | $1,514 | 7.07% | -$141 |
British Columbia | $1,582 | -15.80% | -$73 |
Manitoba | $1,200 | 10.00% | - $455 |
New Brunswick | $1,014 | 7.00% | -$641 |
Newfoundland and Labrador | $1,251 | 1.76% | - $404 |
Northwest Territories |
$1,007 |
4.10% | - $648 |
Nova Scotia | $1,066 | 7.04% | - $589 |
Nunavut | $1,033 | 5.81% | - $622 |
Prince Edward Island | $885 | 2.26% | - $770 |
Quebec | $857 | 6.88% | - $798 |
Saskatchewan | $1,274 | 3.06% | - $381 |
Yukon | $889 | 3.94% | - $766 |
https://gaa.qc.ca/en/statistics/automobile-insurance-rates/comparison-by-province/
British Columbia (ICBC only)- ICBC Annual Report.
Manitoba - MPI Annual Report, private insurers
Saskatchewan- IBC calculation with data from SGI, SAF, and private insurers. SK premiums are a proxy per policy for all vehicles
At $1,655 per year or $138 per month, Ontario has the most expensive car insurance premiums in Canada, according to the Insurance Bureau of Canada (IBC).
Ontario has officially overtaken British Columbia, which claimed the top spot for years.
Today, the average annual premium in B.C. is $1,582, and Alberta places third with $1,514.
Ontario's immediate neighbour to the east, Quebec, has the lowest average insurance premium in the entire country at $857 a year.
Read on to learn why rates in Ontario are higher than anywhere else in Canada.
A convergence of factors is responsible for Ontario's high auto insurance prices.
For one, Ontario is the country's most populous province, with most people residing in large, urban areas. More people living close to each other equal more claims, which leads to higher car insurance premiums for everyone.
Ontario's mandatory auto insurance also has rich benefits. Ontarians are required to purchase more insurance than drivers in other provinces. A standard auto insurance policy in Ontario includes:
Auto insurance fraud is exceptionally high in Ontario. It's estimated to cost drivers $236 a year, according to the Insurance Bureau of Canada.
In Ontario, drivers can also sue for damages from a car accident. Depending on your car insurance, your provider may cover all (or a portion) of your legal fees, which can cost insurance companies millions. To cover their costs, insurers need to increase auto insurance rates.
Quebec's auto insurance delivery system is unique to Canada as it follows a half-public, half-private model.
The province covers accident benefit claims – the costliest aspect of insurance – and drivers are not allowed to sue for damages.
Insurance companies only provide coverage for physical damage you may cause to others. The minimum liability insurance you need to carry in Quebec is $50,000 compared to $200,000 in Ontario. This shaves off hundreds of dollars from auto insurance premiums.
For many years, B.C. car insurance prices were incredibly high.
The province previously had a tort-based, public auto insurance system. That meant you could only buy basic auto insurance from one provider — the provincial government — and people had wide latitude to sue for damages.
Another not insignificant factor is that Metro Vancouver has the highest number of luxury vehicles per capita in North America. These vehicles command huge auto insurance premiums since they're expensive to repair and usually require additional car insurance, pushing the cost of claims up.
Combined, these factors led to unsustainably high premiums.
Then, in 2019, the province introduced several changes to target the cost of premiums (while still preserving the public delivery system):
In April 2019, the Insurance Corporation of British Columbia (ICBC) implemented several new measures to lessen car insurance costs, including capping pain and suffering awards for minor injuries at $5,500 and launching a new online tribunal service to deal with injury claim disputes valued at $50,000 or less.
The following year, B.C. residents paid $73 less per year for insurance than Ontarians, according to the Insurance Bureau of Canada.
In May 2021, the province made another significant change by switching from a tort system to a no-fault one, which puts even more restrictions on people's ability to sue. This could drive rates down even further.
Finding cheap car insurance in Alberta has also been challenging for a long time.
In 2017, then-premier Rachel Notley introduced a rule that prevented the Auto Insurance Rate Board from approving rate increases of more than 5%.
Insurance experts complained that rates were artificially low, and many car insurance companies wound down their operations in the province.
In 2019, the next government removed the cap, which drove rates up again.
Despite these issues, car insurance premiums were cheaper in Alberta than in Ontario in 2020: $141 per year less, according to the Insurance Bureau of Canada.
However, the Alberta government assembled a committee to review auto insurance regulations to tame rising prices for good.
One adopted recommendation called to include direct compensation for property damage (DCPD) in all standard insurance policies.
With DCPD, drivers deal with their own insurers to cover repair costs if they are not at fault in collisions instead of suing the at-fault person's insurance provider.
This reduces legal expenses for auto insurance companies and helps claimants get the benefits they need sooner.
The changes are expected to eventually deliver relief to drivers through lower auto insurance rates.
The insurance markets in each province are all under the same pressures, threatening to trigger rate increases in 2022 and beyond:
That's why monitoring your car insurance rates and shopping around for a better deal is essential.
The table below outlines quarterly average rate increases from 2018 to the current day, as reported by the Financial Services Regulatory of Ontario (FSRA).
Quarter and year | Largest increase by an insurer | Largest decrease by an insurer | Total average market impact** |
---|---|---|---|
Q1 2023* | 12.6% | -0.8% | 0.6% |
Q4 2022* | 10.4% | -1.8% | 1.0% |
Q3 2022* | 5.0% | -2.2% | 0.5% |
Q2 2022* | 12.1% | -0.7% | 0.1% |
Q1 2022* | 4.0% | -0.8% | -0.1% |
Q4 2021 | 4.7% | -7.5% | -0.3% |
Q3 2021 | 1.0% | -5.0% | 0.0% |
Q2 2021 | 0.0% | -0.1% | 0.0% |
Q1 2021 | 5.0% | -5.0% | -0.1% |
Q4 2020 | 2.0% | -2.2% | -0.2% |
Q3 2020 | 5.0% | -0.1% | 0.8% |
Q2 2020 | 6.3% | -0.6% | 1.5% |
Q1 2020 | 11.1% | 0.0% | 2.0% |
Q4 2019 | 15.5% | -1.2% | 1.8% |
Q3 2019 | 20.0% | 0.0% | 2.0% |
Q2 2019 | 34.9% | 0.0% | 3.0% |
Q1 2019 | 16.8% | 0.0% | 2.9% |
Q4 2018 | 14.6% | 0.0% | 1.7% |
Q3 2018 | 9.6% | -0.7% | 1.2% |
Q2 2018 | 9.4% | -1.3% | 2.4% |
Q1 2018 | 10.0% | -12.7% | 1.0% |
Source: Financial Services Regulatory Authority of Ontario
Ontario car insurance rates are rebounding after seven consecutive quarters of little to no change.
Ontario car insurance rates were static during 2020 and 2021, as pandemic conditions significantly altered our collective driving habits. There were fewer collisions, drivers decreased their coverage, and insurance companies issued base rate reductions, pandemic discounts and rebates.
The reversal started in the spring of 2022 and has been gaining momentum. Many consumers with policies that renewed between April and June likely saw a subtle increase in their premiums. Customers with policies that renewed in July through September were probably in for a surprise when they opened their mail: some companies (TD, Pembridge, Allstate, and Gore) raised premiums their premiums by about 5% each.
Using Ontario's average premium as an example ($1,655 in late 2021), an increase of that size amounts to an extra $83 a year.
It may be the beginning of more rate hikes. Insurance prices may still be catching up with record inflation due to how Ontario’s auto insurance system works. Providers file a request to change rates and wait for regulatory approval. Then, there's usually a lag between when a new rate is approved and when they start applying it to customers. Because of this, insurance rates are considered a 'lagging' economic indicator, a term used to describe metrics that confirm a pattern already in progress.
If your car insurance policy is renewing soon and you're concerned about rising prices, shopping around and comparing quotes from multiple insurance companies is recommended by Ontario’s regulator of car insurance prices, the Financial Services Regulatory Authority of Ontario (FSRA), as well as the Financial Consumer Agency of Canada (FCAC), the federal government's consumer watchdog.
* 2022 and 2023 overall market impact is calculated based on 2021 market share %.
** Overall market impact is based on the renewal effective date
Back in the day, comparing car insurance quotes was a time-consuming chore that involved calling several insurance companies one by one and reciting the same information over and over. Thankfully things have changed since then. Technology has made comparing insurance companies much easier.
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*Shoppers in Ontario who obtained a quote on RATESDOTCA and transacted via our contact centre from July to December 2021 saved an average amount of $772. 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.
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