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Recent auto insurance quotes in Ontario

Shopper from NEPEAN, ONTARIO
2009 MERCEDES-BENZ C300W 4MATIC 4DR November 29, 2022
$ 2,031
Per year
Cheapest Rate
$ 3,873
Per year
Average Rate
$ 1,842
or
48 %
in savings
Shopper from CAMBRIDGE, ONTARIO
2021 KIA SOUL EX+ 5DR November 29, 2022
$ 3,404
Per year
Cheapest Rate
$ 5,272
Per year
Average Rate
$ 1,868
or
35 %
in savings

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Written by Alexandra Bosanac

Car insurance in Ontario

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 own insurance company, no matter who is at fault in an accident.

Ontario car insurance rate & regulations

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 can apply to increase or decrease their rates every quarter, and usually request rate increases due to changes in a particular coverage. For example, 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 shows 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.

How to file a car insurance claim in Ontario

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:

  1. Your auto insurance policy number
  2. Your licence number
  3. Your vehicle information, such as make, model and year
  4. A description of the event
  5. A description of the damage or injury, including photos if possible
  6. A list of the passengers present at the time of the incident
  7. A list of drivers involved, along with their licence numbers and insurance providers
  8. The badge number of the police officer if one is called to the scene

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. In the event an at-fault driver is uninsured, your claim will be processed through the Uninsured Automobile portion of your policy.

What it means to be at fault in Ontario

Being at fault means you have been deemed responsible for damage or injury by your insurance company. A driving event, such as 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 into your driving 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.

How much does average car insurance cost in Ontario?

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.

The factors that determine the cost of your Ontario car insurance

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:

  1. The make and model of your vehicle: The cost to repair your vehicle affects your premiums. Your vehicle's safety rating, driving features and statistical likelihood of being stolen, also contribute. You can save big by selecting a vehicle that is cheap to insure.
  2. Your driving record: Your claims history and driving record are a major contributor. The number of speeding tickets, driving convictions and at-fault accidents you've had will all influence how much you pay for insurance.
  3. Your driving experience: Your history of driving will determine how much you pay for car insurance. Speeding tickets and at-fault accidents, for instance, will mean you have to pay more for coverage. If you've moved provinces or recently immigrated to Canada, you may be asked to provide a letter of experience that confirms the information you've provided is correct.
  4. Location, location, location: Your city, and even your postal code, affect your premiums. You'll pay more if you live somewhere with a high rate of theft, fraud or accidents. Typically (but not always), this means car insurance costs more in larger cities.
  5. Vehicle usage: The number of kilometres you drive in a year affects the cost of car insurance in Ontario. The more you drive, the more likely you'll make a claim, the more you'll pay. If you use your vehicle only sparingly, consider a pay-as-you-go policy.
  6. The coverage you have: Ontario has mandatory and optional auto insurance coverages. If you select coverages beyond the minimum requirement, you'll pay more for protection. See the mandatory and optional types of car insurance in Ontario.
  7. Discount eligibility: Ontario car insurance may be expensive, but there are numerous opportunities to save. Your age, occupation and alumni are all potential sources of discounts. Ask your insurance provider what sort of discounts you're eligible for to make sure you don't overpay.
  8. Additional drivers: A policy that includes Secondary drivers will expand the coverage of your vehicle, but it also means you'll pay more.
  9. Bundle your insurance: Bundling insurance, such as home and car, is an easy way to save anywhere from 5-15% on your premiums.

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.

Mandatory and optional auto insurance in Ontario

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

Frequently asked questions about car insurance in Ontario

Why should Ontario drivers compare 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, like FSRA recommend to shop around and get 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.

Which city in Ontario has the cheapest car insurance?

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.

Which city has the most expensive car insurance in Ontario?

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 $2,104 per year, Richmond Hill $2,025 per year , Brampton $1,976 per year, Mississauga $1,971 per year , and Pickering $1,959 per year.

Which car has the cheapest insurance in Ontario?

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.

What does Statutory Accident Benefits cover?

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.

Why do Ontario car insurance rates change so much?

Insurers in Ontario must go through to the Financial Services Regulatory Authority of Ontario (FSRA) if they want to increase (or decrease) rates. FSRA releases a list of these insurance companies and the approved rate changes shortly after approval is granted.

Why are car insurance rates in Ontario going up?

Ontario drivers have dealt with years of consecutive price increases for car insurance. However, prices have fallen during the COVID-19 pandemic. People are driving less and insurance companies have issued pandemic rebates — this all translates into lower premiums.

However, once traffic starts to climb to pre-pandemic levels, an increase in premiums could follow. Actually, we bet on that happening.

Here's why: the issues that insurers said were forcing them to raise prices have not been resolved.

Before the pandemic, the Financial Services Regulation Authority of Ontario (FSRA) noted that the cost to repair cars had gone up. Supply chain shortages and worsening inflation is pushing up repair costs even higher.

Plus, distracted driving due to cell phone use has increased the number of accidents on Ontario’s roads. In fact, FSRA reports that accident benefits and third-party liability claims account for more than half of all auto insurance claims.

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

How to get the cheapest car insurance in Ontario

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 as well.

  1. Compare quotes: Of course, the easiest way to save money is to compare auto insurance quotes on RATESDOTCA! If you’re looking to buy a new car, compare quotes for the vehicles you’re considering to see which one is cheapest to insure.
  2. Increase your deductible: The deductible is what you must pay out of pocket if you file a claim. The more you agree to pay, the lower your premium will be.
  3. Bundle home and auto insurance: If you bundle your home and auto insurance under the same insurance company, you can save 5 to 15% off both policies. This is also called a multi-line discount.
  4. Change into winter tires: Ontario roads face some harsh winter conditions. Save 5% on your car insurance by installing winter tires for the season. Protect your wallet and keep you and your family safe on icy roads.
  5. Know what coverage you need: Review your coverage each year and cancel any add-ons you no longer need. For example, if you drive an older car that isn't worth repairing, it would make economic sense to cancel your collision coverage.
  6. Pay annually: If you can pay your premiums annually rather than monthly, you can often save a bit of money. Some insurance companies offer a discount on the payment of annual premiums upfront.
  7. Drive less: The less you drive, the more you save. If you commute to work via car, switching to transit can slash your premiums. If you don’t drive as much as you used to, call your insurance company and let them know.
  8. Drivers education: Most insurance companies offer discounts for new drivers who complete driver training from a Ministry of Transportation accredited driving school. A defensive driving course can also make you eligible for discounts.
  9. Multi-vehicle discounts: Like multi-product discounts, multi-vehicle discount allows you to insure more than one vehicle under the same insurance company to snag a 5 to 15% discount on your premiums.
  10. Group discounts; If you are part of a professional association, union, or non-profit association, you may be eligible for group discounts.
  11. Safety features: Installing approved anti-theft devices or safety features on your car can lead to discounts. Check device eligibility before you purchase and install it.

Top Car Insurance Companies in Ontario - 2022

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 name of car insurance company.

By taking away the names of the insurance companies, users were more focus on the amount of coverage and picking their cheapest rates.

Complete ranking of car insurance premiums by Ontario city

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, and in Toronto, drivers pay roughly $1,953. That means drivers in these cities pay $624 and $398 more than the provincial average, respectively.

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.

Ontario's average car insurance premium vs. other provinces

See how Ontario's average car insurance rate compares to the average auto insurance rates in other provinces.

Ontario car insurance comparison

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

Ontario's average car insurance premium vs. other provinces 

At $1,655 per year or $138 per month, Ontario has the most expensive car insurance premiums in Canada.

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.

Why is car insurance in Ontario the most expensive 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:

  • Direct compensation for property damage (often shortened to DCPD)
  • Third-party liability coverage
  • Uninsured automobile protection
  • Accident benefits

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.

Why is auto insurance so cheap in Quebec?

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 amount of 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.

How does Ontario compare to Alberta and B.C.?

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 businesses in the province.

In 2019, the next government removed the cap, which drove rates up again.

Despite these issues, car insurance premiums were still cheaper in Alberta than in Ontario in 2020: $141 per year less.

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.

Economic pressures Canadian insurance companies face and what it means for your auto insurance rate

The insurance markets in each province are all under the same pressures, threatening to trigger rate increases in 2022 and beyond:

  • Inflation is driving up the cost of repairs and liability.
  • The frequency of accidents is increasing.
  • Physical damage caused by climate change is on the rise.
  • Car insurance fraud is also on the rise.
  • Vehicle theft is surging across Canada.

That's why it’s essential to monitor your car insurance rates and shop around for a better deal.

https://gaa.qc.ca/en/statistics/automobile-insurance-rates/comparison-by-province/

http://www.ibc.ca/bc/resources/media-centre/media-releases/bc-drivers-continue-to-pay-the-highest-auto-insurance-premiums-in-canada

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

Average Ontario car insurance rate changes

The table below outlines quarterly average rate increases from 2018 to the current day, as reported by the Financial Services Regulatory of Ontario (FSRA).

Ontario car insurance rate changes approved by FSRA

Quarter and Year Total Average Market Impact
Q2 2022 0.50%
Q1 2022 -0.27%
Q4 2021 -0.25%
Q3 2021 0.02%
Q2 2021 -0.01%
Q1 2021 -0.10%
Q4 2020 -0.17%
Q3 2020 0%
Q2 2020 1.29%
Q1 2020 0.88%
Q4 2019 1.56%
Q3 2019 2.60%
Q2 2019 1.99%
Q1 2019 2.70%
Q4 2018 3.35%
Q3 2018 2.06%
Q2 2018 1.11%
Q1 2018 2.23%

The average Ontario car insurance rates have fallen since late 2020 and consistently throughout 2021. This is because collisions have decreased, drivers have decreased their coverage, and insurance companies have issued base rate reduction, pandemic discounts and rebates. We even see the biggest rate decrease of -0.27% happened in Q1 2022.

ontario car insurance rate changes 2018 - 2022

Find the best Ontario car insurance on RATESDOTCA

Back in the day, comparing quotes was a time-consuming chore that involved calling individual companies, and reciting your information over and over again. Thankfully things have changed since then.

Technology has made comparing insurance companies much easier. RATESDOTCA runs the information you provide against a database of quotes provided by insurance providers. This allows you to easily compare quotes side-by-side, from more than 50 car insurance companies in Ontario.

Our service is free and Ontario drivers who use RATESDOTCA save an average of $772.*

*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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