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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 can approve or decline rate change requests. Car insurance providers apply to increase or decrease their rates throughout the year. If an insurer pays more claims within a fiscal year due to car accidents, they will likely apply for permission to raise rates to help offset their costs.
Ontario auto insurance is privatized, meaning you purchase your policy from companies rather than a government body. FSRA's approved quarterly changes show how often rates fluctuate, making comparing quotes and finding the lowest rate essential.
In 2023, Ontario drivers who used RATESDOTCA saved, on average, $800 on their car insurance.
An auto insurance claim should be filed as soon as possible. Your claim could be denied if you don't file it within a week.
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 your eligibility and the amount you may be entitled to. 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 multiple at-fault motorists.
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 General Insurance Statistical Agency, Ontario drivers paid an average of $1,662 annually for car insurance or $139 per month in 2022 — the most out of all provinces with private insurance. The Financial Services Regulatory Association of Ontario estimates the average Ontario car insurance premium to be $1,737 annually or $145 per month as of June 2023. RATESDOTCA Auto Insuramap data from early 2023 shows that the average Ontario car insurance premium is $1,744 annually or $145 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 calls out some of the most influential factors Ontario car insurance providers use.
|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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Insurance companies use similar rating factors to determine your quote but evaluate risk differently. This results in different prices for the same coverage. As a result, provincial regulators, like FSRA, recommend shopping around and getting multiple quotes before you purchase a policy. It's the easiest way to ensure you get the best rate available.
According to data from the RATESDOTCA Insuramap, Cloyne, located in Eastern Ontario in the Greater Napanee area, has the cheapest auto insurance in Ontario; the average auto insurance premium is $546 per year.
Several other locales have average premiums that are in the hundreds of dollars. Most are in Northern and Northwestern Ontario, including Summer Beaver, Dryden, and Keewatin (all tied at $586 per year). Kapuskasing's average premium is $888 per year. Chesley, which is in Southwestern Ontario, averages out at $894.
Generally, car insurance rates trend below the provincial average the further away from urbanized areas you get. For example, cities like Toronto and Brampton have some of the highest insurance rates in the province. In contrast, small towns are relatively cheap.
Collisions occur more frequently in the GTA, meaning insurance companies pay more claims to customers. The high premiums represent the increased cost of doing business here.
Insurance companies pour a lot of resources into accurately predicting how much it would cost to repair or replace each car model on the road, meaning the make and model of the vehicle you drive will significantly impact your rates.
So, which models were the cheapest to insure in Ontario last year?
To find out, we looked at some of the best-selling cars in Canada. Then, we compared quotes for a 35-year-old driver from Toronto, where the average premium is $2,325. Our persona had no convictions or tickets and lived in the west-end postal code of M6H.
Pickup trucks occupied the top three spots. The best-selling 2021 GMC Sierra, a light-duty pickup truck, came first, commanding premiums of $1,779 per year (about $150 a month).
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.
Unsurprisingly, pickups also reigned supreme when we compared cars by body type.
The Chevrolet Colorado cost $1,542 annually ($128 monthly) to insure in late 2021.
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.
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 OHIP doesn't pay. 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.
Car insurance prices are rising again in Ontario after an unprecedented period of no growth during provincially mandated quarantines.
Mass vaccination programs have allowed Ontarians to return to routines resembling pre-pandemic ones, which included much more driving. More cars back on the road means drivers are more likely to be in a collision that results in a claim, which their insurance company will pay.
Predictably, the agency that helps regulate auto insurance prices approved 56 rate increases by the end of the third quarter of 2023, compared with 29 during the same period in 2022.
When COVID-19 first struck Ontario, insurance companies issued rebates to policyholders who had decreased their coverage or needed financial relief.
The story today is very different.
Inflation is putting strain on insurers' operating budgets. And essential car parts, particularly semiconductors, have been in short supply, which is driving up prices.
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 Ontario spiked 48.3% in 2022, and this year’s count is on track to surpass that.
Plus, issues that predate the pandemic, which insurers said were forcing them to raise prices, still exist.
For example, car repair costs have increased as manufacturers introduce new technologies like sensors and cameras to even economy cars.
There are more collisions, too, and the claims stemming from them tend to be more expensive. The province now reports that accident benefits and third-party liability claims account for over half of all auto insurance claims. Translated, many of these claim payouts are going towards legal and medical costs, which add up quickly.
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 $800* on average when comparing car insurance quotes on RATESDOTCA.
Maintaining a 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.
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||2023 premium||2021 premium||Change (%)|
|32||ST GEORGE BRANT||$1,581||$1,368||16%|
|50||IROQUOIS FALLS A||$1,397||$1,398||0%|
|61||SAULT STE. MARIE||$1,185||$1,398||-15%|
Generally, car insurance gets cheaper the further away you are 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.
It's no surprise 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.
|Age||Male premium||Female premium|
|Year||Average car insurance premium|
*As of June 2023 according to FSRA.
Source: Insurance Bureau of Canada, General Insurance Statistical Agency, Financial Services Regulatory of Ontario
At $1,676 per year or $140 per month, Ontario's average auto insurance premium is on the rise and has already surpassed the average rate of other provinces.
Several factors converged to make this possible. 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 equals more claims, which leads to higher car insurance premiums for everyone.
Then there’s the fact a standard auto insurance policy in Ontario has rich benefits, including the following:
In Ontario, drivers can also sue for damages after 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.
Another factor that can lead to increased premiums is insurance fraud, which is exceptionally high in Ontario. According to the Insurance Bureau of Canada, fraud costs each Ontario driver an estimated $236 a year.
Ontario's insurance market is also under the same economic pressures, which threaten to trigger rate increases in 2023 and beyond:
When the price of everything is going up, it's essential to keep an eye on how your premium compares to the average and to shop around for a better deal.
In Ontario, car insurance companies must get approval from the province's insurance regulator before changing rates.
Current policyholders will feel the effects of the rate changes when their policy renews, while new policyholders are immediately affected.
Rate increases don't affect policyholders equally. For example, suppose a company raises premiums by 5%. In that case, policyholders with poor driving and insurance histories may see their rate rise by that much. At the same time, long-time customers with good track records may not notice a difference.
The table below outlines the rate changes approved by the Financial Services Regulatory of Ontario (FSRA) in 2023.
|Insurer||Insurer group||Approved rate change %||Date effective|
|Primmum Insurance Company||TD||0.00%||1/1/2023|
|Security National Insurance Company||TD||0.00%||1/1/2023|
|SOMPO Japan Insurance Inc.||Sompo||0.00%||1/1/2023|
|TD General Insurance Company||TD||0.00%||1/1/2023|
|Co-operators General Insurance Company||Co-op||-0.43%||1/13/2023|
|Aviva General Insurance Company||Aviva||1.17%||2/1/2023|
|Belair Insurance Company Inc.||Intact||0.46%||2/1/2023|
|Chubb Insurance Company of Canada||Chubb||12.60%||2/1/2023|
|Farm Mutual Reinsurance Plan Inc. (on behalf of Ontario Mutuals)||FMRe||0.00%||2/1/2023|
|S&Y Insurance Company||Aviva||0.00%||2/1/2023|
|Scottish & York Insurance Co. Limited||Aviva||3.02%||2/1/2023|
|S&Y Insurance Company||Aviva||0.00%||2/2/2023|
|Intact Insurance Company||Intact||0.62%||2/4/2023|
|Definity Insurance Company||Definity||0.00%||2/8/2023|
|Security National Insurance Company||TD||4.60%||2/12/2023|
|Aviva Insurance Company of Canada||Aviva||0.00%||3/1/2023|
|Co-operators General Insurance Company||Co-op||0.00%||3/1/2023|
|Gore Mutual Insurance Company||Gore||-0.80%||3/1/2023|
|Peel Mutual Insurance Company||Peel||4.91%||3/1/2023|
|Scottish & York Insurance Co. Limited||Aviva||-0.11%||3/1/2023|
|Traders General Insurance Company||Aviva||0.00%||3/1/2023|
|Gore Mutual Insurance Company||Gore||6.96%||3/10/2023|
|Unica Insurance Inc.||La Capitale||4.92%||3/15/2023|
|Belair Insurance Company Inc.||Intact||0.00%||3/24/2023|
|Pembridge Insurance Company||Allstate||15.00%||4/1/2023|
|Chubb Insurance Company of Canada||Chubb||0.00%||4/2/2023|
|Coachman Insurance Company||SGI||9.71%||4/15/2023|
|Sonnet Insurance Company||Definity||12.28%||4/26/2023|
|Certas Direct Insurance Company||Desjardins||1.63%||4/27/2023|
|Certas Home and Auto Insurance Company||Desjardins||1.54%||4/27/2023|
|Personal Insurance Company (The)||Desjardins||1.46%||4/27/2023|
|Definity Insurance Company||Definity||3.43%||4/29/2023|
|Verassure Insurance Company||Northbridge||4.96%||4/29/2023|
|Allstate Insurance Company of Canada||Allstate||11.72%||5/1/2023|
|Aviva General Insurance Company||Aviva||3.94%||5/1/2023|
|Primmum Insurance Company||TD||5.04%||5/1/2023|
|Security National Insurance Company||TD||0.00%||5/1/2023|
|TD General Insurance Company||TD||4.98%||5/1/2023|
|Aviva Insurance Company of Canada||Aviva||0.00%||6/1/2023|
|CUMIS General Insurance Company||Co-op||5.99%||6/1/2023|
|Scottish & York Insurance Co. Limited||Aviva||0.00%||6/1/2023|
|Traders General Insurance Company||Aviva||0.00%||6/1/2023|
|CAA Insurance Company||CAA||-10.49%||6/15/2023|
|CAA Insurance Company||CAA||2.17%||6/15/2023|
Source: Financial Services Regulatory Authority of Ontario
After seven consecutive quarters of little to no change, Ontario car insurance rates have rebounded with a vengeance in 2023.
Pembridge Insurance was approved to raise rates by 15%, which will take effect on Apr. 1, 2023.
The most significant decrease came from CAA Insurance, which received permission to decrease rates by a combined 8.32% (effective Jun. 15, 2023). However, the reduction is masking a rate increase. CAA is removing the 15% pandemic discount, so rates are actually increasing by 6.68%.
Ontario car insurance rates were static during 2020 and 2021 as pandemic restrictions changed 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 began in the spring of 2022 and has since gained momentum. It may just be the beginning — insurance prices are still catching up with record inflation.
In Ontario, there’s a delay between when a new rate is approved and when an insurer can start charging it to customers. 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 can help you save money. Don't just take our word for it: comparing quotes is recommended by Ontario’s regulator of car insurance prices, the Financial Services Regulatory Authority of Ontario (FSRA), and the Financial Consumer Agency of Canada (FCAC), the federal government's consumer watchdog.
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, technology has made comparing insurance companies much easier.
RATESDOTCA runs your details through a database of quotes from Ontario insurance companies. Then, we bring you a list of quotes from more than 50 insurance companies, allowing you to compare quotes side-by-side easily.
Our service is free, and Ontario drivers who use RATESDOTCA save an average of $800.*
*Shoppers in Ontario who obtained an auto insurance quote on RATESDOTCA and transacted via our contact centre from January to December 2022 saved an average amount of $800. 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.