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Why do I need to compare auto insurance quotes in Ontario?

Why do I need to compare auto insurance quotes in Ontario?

Ontario operates under a private auto insurance model, which makes the insurance industry—and insurance rates—competitive. Although all insurance companies use the same information to determine your quote, they calculate rates differently. This is why official regulators recommend getting at least three online quotes from different providers before you purchase. Comparing insurance quotes from different providers is the easiest way to save.

Car owners in Ontario are required by law to have car insurance. Car insurance helps to ensure that you, your vehicle, and your passengers are protected financially and from liability, in the event, something unexpected happens, such as a collision.

Ontario’s standard auto insurance policy includes four mandatory types of coverage to meet the minimum provincial regulations: third-party liability, direct compensation-property damage (DC-PD), uninsured automobile insurance and accident benefits. Additional insurance add-ons can be purchased to increase your coverage.

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How to get Ontario car insurance quotes on Rates.ca

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1. Tell us about your vehicle

Answer a few basic questions about your driving & car insurance history.

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2. Compare your quotes

See quotes from 30+ insurance companies side by side.

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3. Choose the right coverage

Find the right protection for your vehicle.

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4. Secure your rate

Connect with the provider and secure your rate.

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10 ways to reduce car insurance rates in Ontario

10 ways to reduce car insurance rates 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 ahead: If you’re looking to buy a new car, compare quotes for the vehicles you’re considering to see which one will cost less to insure.
  2. Bundle home & auto insurance: If you bundle your home and car insurance under the same insurance company, you can save 5 to 15% off both policies. This is also called a multi-line discount.
  3. 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.
  4. Know what coverage you need: If you have an older vehicle that wouldn’t cost much to replace, paying extra for collision coverage or comprehensive coverage might be a waste of your money. Review your coverage each year and cancel any add-ons you no longer need.
  5. Pay annually: If you can pay your premiums annually rather than monthly. you can save a bit of money. Some insurance companies offer a discount on the payment of annual premiums upfront.
  6. 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.
  7. 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.
  8. Multi-vehicle Discounts: Like multi-product discounts, you can insure more than one vehicle under the same insurance company to snag a 5 to 15% discount on your premiums.
  9. Group Discounts: If you are part of a professional association, union, or non-profit association, you may be eligible for group discounts.
  10. 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.

    And of course, the easiest way to save money is to compare car insurance quotes today to make sure you're getting the best deal!
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What is the average car insurance rate in Ontario?

Ontario drivers pay an average of $1,505 annually for car insurance, according to the Insurance Bureau of Canada (IBC). While the province no longer holds the title of most expensive car insurance in the country (that crown now goes to British Columbia), Ontario drivers still face rates higher than the majority of Canadians.

Average car insurance rate by province

Here is a comparison chart of annual premiums by province, in 2018 and 2019:

Province or Territory Average Premium 2018 Average Premium 2019 Average provincial premium increase
Alberta $1,251 $1,316 5.2%
British
Columbia
$1,680 $1,832 9.05%
Manitoba $1,080 $1,080** N/A
New
Brunswick
$819 $867 5.85%
Newfoundland
& Labrador
$1,132 $1,168 3.18%
Northwest
Territories
$978 N/A N/A
Nova
Scotia
$842 $891 5.82%
Nunavut $963 N/A N/A
Ontario $1,445 $1,505 4.15%
Prince
Edward Island
$796 $816 2.51%
Quebec $661** $717 8.47%
Saskatchewan $936** $1,235 31.94%
Yukon
Territories
$812 N/A N/A

Average insurance premium numbers are according to data released by the Insurance Bureau of Canada press releases in July 2018 and August 2019 respectively.

** Previous year's average

Why do Ontario car insurance rates change so much?

Why do Ontario car insurance rates change so much?

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

According to FSRA, auto insurance premiums in Ontario increased an average of 1.56% in Q4 over the previous quarter. Some insurers were approved for rate increases as high as 11.05%.

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 is another ongoing problem as 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.

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Average Ontario car insurance rate increases

This table outlines quarterly average rate increases as reported by FSRA.

Quarter and Year Approved Average Rate Change (%)
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%
Q4 2017 1.03%

What car insurance is mandatory in Ontario?

There are four types of car insurance in Ontario that are required by law. All of these are included in a standard auto insurance policy:

  1. Third-Party Liability
  2. Direct Compensation-Property Damage (DC-PD)
  3. Uninsured automobile insurance
  4. Accident Benefits

In addition, Ontario drivers can purchase optional coverages including collision coverage, comprehensive coverage, specified perils coverage, and all-perils coverage, which may have their own deductibles.

Insurance type Mandatory coverage amount Optional/Additional coverage
Third-Party Liability $200,000 minimum

Provides coverage in the event of a
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
Coverage limits can be increased
Collision Coverage (Also Upset Coverage) NA Covers the costs of repairing or replacing your vehicle following a collision with another vehicle, an object, or property
Comprehensive Coverage NA 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 NA 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 NA Combines collision/upset and comprehensive coverage

Also provides additional protection if a household member or an employee steals your vehicle

Frequently Asked Questions about Car Insurance in Ontario

How does car insurance work in Ontario?

Ontario operates under a no-fault insurance system, which means drivers go through their own insurance company no matter who is at fault in an accident or incident.

In Ontario, 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.

Insurance policies in Ontario are provided by private insurance companies who will look at your driving record, personal information, vehicle details, past convictions, and more before granting you coverage. This makes the market competitive, which is why Ontario drivers are encouraged to compare quotes before the purchase a policy.

How much is car insurance per month in Ontario?

Ontario auto insurance premiums average $1505 annually, or $125 monthly, according to the Insurance Bureau of Canada’s 2019 report.

That said, premiums can vary significantly depending on the vehicle you drive, your personal driving and insurance history, the length of your commute, and various other factors.

Why should Ontario drivers compare rates?

Ontario’s insurance marketplace is competitive. Premiums vary from one provider to another, which is why provincial regulators like the FSRA recommend comparing multiple quotes before you purchase a policy. It is the easiest way to ensure you are getting the best rate available.

Car insurance rates change over time. 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.

Compare rates today to see if you could be getting a better Ontario car insurance quote.

Which city in Ontario has the cheapest car insurance?

On average, rural areas are less busy and considered less of a risk than busier municipalities, which means drivers in these regions pay less on average than city-based drivers. In Ontario, drivers in busy cities like 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 area also come into play. This is why premiums not only vary by city but can vary by postal code as well.

Your postal code is only one aspect of your insurance rate, however. Your personal driving record and insurance history have a lot more to do with it.

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 were the RAM 1500 and the Chevrolet Silverado, while the most expensive vehicles to insure were Honda Civics and Toyota Corolla.

Interesting to note, RAM pickups 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. Honda Civics frequently make annual lists of the most stolen vehicles in Canada, which is part of the reason they are more expensive to insure.

What factors affect car insurance premiums in Ontario?

Here are some of the key factors that affect your Ontario car insurance premiums:

1. 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.

2. 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.

3. Your driving record: If you have tickets, accidents, or convictions on your record, this is almost guaranteed to raise your premiums.

4. Your postal code: Where you live in Ontario affects your rates. On average, city-based drivers pay more than rural drivers due to the high number of claims reported in the city and the increased likelihood of getting in an accident.

5. Additional coverages: If you add any optional coverages to your policy, your premiums will increase to account for this extra protection.

6. 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.

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 like 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

How can I get the cheapest car insurance rates in Ontario?

How can I get the cheapest car insurance rates in Ontario?

The old school way of comparing quotes involved calling individual companies separately to get rates. Technology has made comparing insurance quotes way easier. As an aggregator site, Rates.ca 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 30 top car insurance companies in Canada. According to our internal data, drivers in Ontario saved approximately $500 on average by comparing quotes in 2019.

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Recent Auto Quotes in Ontario

Shopper from PICKERING, ONTARIO
2020 HONDA CIVIC EX 4DR
CAA Insurance
$1382
per year
Royal & SunAlliance
$1772
per year
Desjardins General Insurance
$1774
per year
Western Assurance Company
$1785
per year
Range of quotes $403
Shopper from GRIMSBY, ONTARIO
2016 TOYOTA PRIUS 5DR
Pembridge Insurance Company
$1315
per year
CAA Insurance
$1394
per year
Gore
$1466
per year
Allstate
$1542
per year
Range of quotes $227
Shopper from TECUMSEH, ONTARIO
2020 HYUNDAI ELANTRA ESSENTIAL 4DR
Aviva Agency
$1766
per year
Economical Mutual
$1796
per year
Allstate
$1950
per year
Intact Insurance Company
$1985
per year
Range of quotes $219
Shopper from GUELPH, ONTARIO
2011 VOLKSWAGEN JETTA 2.5 SE 4DR
Pembridge Insurance Company
$1189
per year
Aviva
$1204
per year
Economical Mutual
$1233
per year
Dominion of Canada
$1274
per year
Range of quotes $85
Updated Jul 07, 2020

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