Ontario's Best
Car Insurance Rates

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 recommend 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 up to four times per year. By shopping around, you can check to see if your current insurance provider is still the one that offers you the best rates. If not, it might be time to switch to a company that offers a better price.

On average, rural areas are less busy and have fewer motor accidents, which means drivers in these regions pay less than city dwellers. In Ontario, drivers in Toronto and Brampton face some of the highest insurance rates, while drivers outside of the GTA typically pay less.

However, the number of claims in your neighbourhood, the number of vehicle thefts, and the incidences of insurance fraud in your local area also come into play. This is why premiums not only vary by city, but by postal code as well.

The make and model of the vehicle you drive has a big impact on your rates. There are two major things insurance companies consider when it comes to your car: the vehicle’s safety rating, and the likelihood of it being stolen.

We took a look at some of the best-selling cars in Canada and compared quotes for an average 35-year-old driver without any convictions or tickets in ten cities across Ontario, including Ottawa and Toronto. We averaged the rates and found the cheapest vehicles to insure are the Dodge RAM 1500 and the Chevrolet Silverado, while the most expensive vehicle to insure is the popular Honda Civic.

RAM pickup trucks and the Chevrolet Silverado are among the safest vehicles on the road, according to the Insurance Institute for Highway Safety, which helps keep their rates low. The Honda Civic is one of the most stolen vehicles in Canada, which is part of the reason it is more expensive to insure.

Here are some of the key factors that influence your Ontario auto insurance premium:

• The car you drive: The make, model and the age of your vehicle will affect your premiums. Brand new cars, luxury cars and sports cars typically cost more to insure due to the cost of replacing and repairing parts.
• Usage of the car: Your commute time, the average kilometers you drive in a day, and whether you use your vehicle for business or pleasure will affect your rates.
• Your driving record: Tickets, accidents, or convictions on your record will lead to higher premiums.
• Your postal code: Where you live in Ontario affects your rates. On average, city-based drivers pay more, due to the high number of claims reported in urban areas, and the increased likelihood of getting in an accident.
• Additional coverages: If you add any optional coverages to your policy, your premiums will increase to account for this extra protection.
• Discounts and benefits: Many insurance companies provide discounts for winter tires, bundling insurance products, insuring two or more cars under the same company, being part of a professional association, and so much more. Eligible discounts will lower your premiums.

Statutory Accident Benefits provides 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:

• Income Replacement Benefits: Weekly replacement of 70% of your gross income up to $400 per week.
• Medical, Rehabilitation and Attendant Care Benefits: Up to $65,000 for serious injuries like sprains and broken bones, and $1 million for catastrophic injuries like loss of limb, paralysis, etc.
• Caregiver Benefits: Up to $250 per week for the first dependant, and $50 per week for each additional dependant, for catastrophic injuries.
• Housekeeping and Home Maintenance Expenses: Maximum of up to $100 payout per week in the case of a catastrophic injury.
• Death and Funeral Benefits: Up to $25,000 payout to the spouse, $10,000 for each of the dependents, and a maximum of $6,000 in funeral costs.

There is additional protection that is available for you to purchase on top of the minimum Statutory Accident Benefits included in a basic policy. This includes:

• Income Replacement Benefits: Can be extended to $600, $800, or $1000 per week.
• Medical, Rehabilitation and Attendant Care Benefits: Can be increased up to $1 million for serious injuries, and $2 million for catastrophic injuries.
• Caregiver Benefits Expenses: Can be increased to apply to any kind of injuries, not just catastrophic ones.
• Housekeeping and Home Maintenance Expenses: Can be increased to apply to any kind of injuries, not just catastrophic ones.
• Death and Funeral Benefits: Can be increased to $50,000 to the spouse, $20,000 to each dependant, $8,000 for funeral costs.

According to the Insurance Bureau of Canada, Ontario drivers pay an average of $1,505 annually for car insurance, or $125 each month. While the province no longer holds the title of most expensive auto insurance in the country (that award now goes to British Columbia), Ontario drivers still face rates higher than the majority of Canadians. See a cost comparison chart of provinces here.

Insurers in Ontario cannot increase their rates whenever they please. They must apply to the Financial Services Regulatory Authority of Ontario (FSRA) on a quarterly basis if they want to increase (or decrease) their rates. FSRA releases a list of these insurance companies and the approved rate changes on a quarterly basis.

See a table of recent Ontario auto insurance rate changes here.

Ontario has seen consistent insurance rate increases over the years. FSRA notes that insurance companies have reported an increase in claims costs for vehicle repairs, which may contribute to the hikes. Distracted driving due to cell phone use is another ongoing problem. It has increased the number of accidents on Ontario’s roads, thus increasing the number of claims insurers have to pay out. FSRA reports that Accident Benefits and Third-Party Liability coverages account for more than half of all auto insurance claims.

See a table of recent Ontario auto insurance rate changes here.