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Cheap Ontario Car Insurance Quotes

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Aviva
CAA
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Economical

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Recent auto insurance quotes in Ontario

Shopper from MOUNT FOREST, ONTARIO
2022 KIA TRUCK/VAN SPORTAGE LX 4DR 2WD 02:27 EDT on Nov 27, 2021
$ 1895
Per year
Company A (Cheapest Rate)
$ 1967
Per year
Company B
$ 2063
Per year
Company D (Highest Rate) Company C
Range of Quotes
$ 168
Shopper from GODFREY, ONTARIO
2006 HONDA CIVIC LX 4DR 20:45 EDT on Nov 26, 2021
$ 1848
Per year
Company A (Cheapest Rate)
$ 1928
Per year
Company B
$ 2440
Per year
Company D (Highest Rate) Company C
Range of Quotes
$ 592
Shopper from HAMILTON, ONTARIO
2010 MERCEDES-BENZ B200 5DR 20:43 EDT on Nov 26, 2021
$ 1283
Per year
Company A (Cheapest Rate)
$ 1505
Per year
Company B
$ 1927
Per year
Company D (Highest Rate) Company C
Range of Quotes
$ 644
Shopper from GODFREY, ONTARIO
2006 HONDA CIVIC LX 4DR 20:41 EDT on Nov 26, 2021
$ 1877
Per year
Company A (Cheapest Rate)
$ 2192
Per year
Company B
$ 2840
Per year
Company D (Highest Rate) Company C
Range of Quotes
$ 963

How does car insurance work 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 car insurance cost in Ontario?

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's average car insurance premium of $1,832), Ontario drivers still face rates higher than the majority of Canadians. Ontario has the 2nd highest auto insurance premium in Canada. Based on FSRA, the average Ontario car insurance premium was $1,651 as of March 2021. Our RATESDOTCA insurmap data from December 2020 shows the average Ontario car insurance premium is $1,616.

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. 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 proprietary data from RATESDOTCA, Kingston, Napanee, Port Hope, Cobourg and Brockville sit in a five-way tie for the cheapest auto insurance in Ontario.

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 urban centres like Collingwood and Owen Sound are relatively cheap.

Which city has the most expensive car insurance in Ontario?

According to proprietary data from RATESDOTCA, the cities with the most expensive car insurance in Ontario are all part of the GTA. Brampton has the most expensive car insurance rates on average, followed by Mississauga, Vaughan, Richmond Hill, Markham and Toronto.

Brampton car insurance rates are especially high do to traffic density and high rates of insurance fraud.

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 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.

Why are car insurance rates in Ontario going up?

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.

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, you can 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.

Best (Cheapest) Car Insurance Companies in Ontario

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 Lowestrates.ca car insurance quotes and wanted 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.

Source: https://www.lowestrates.ca/resource-centre/auto-insurance/best-car-insurance-companies#ontario-best-car-insurance-companies

The Cheapest Car Insurance Cities in Ontario

City/Town Auto Insurance Rate
Grimsby and Waterdown $1,192
Sudbury $1,165
Sarnia $1,159
St. Thomas $1,124
Cornwall, Petawawa, and Russell $1,107
Kingston, Napanee, Port Hope, Cobourg and Brockville $1,103

For the most part, high car insurance rates can usually found in larger cities due to traffic congestion, increased car accident claims and auto insurance fraud. About 83% of auto insurance fraud in Ontario takes place in the GTA, according to the Ontario Auto Insurance Anti-Fraud Task Force. Thus, car insurance rates are more reasonable outside of the GTA. City of Kingston, Napanee, Port Hope, Cobourg and Brockville have the cheapest car insurance rate in Ontario ($1,103 per year), St. Thomas ($1,124), Sarnia ($1,159), Sudbury ($1,165) and Grimsby and Waterdown ($1,192). They are from 27.9% to 31.7% cheaper than the average Ontario car insurance rate ($1,616) base on RATESDOTCA Insuramap data.

Compare Ontario's car insurance premium

See how Ontario's car insurance rates compare to other Canadian provinces.

Compare car insurance premiums against Ontario

 

Province or Territory Average Premium 2018

Average Premium 2019

Difference against Ontario Premium 2018 Difference against Ontario Premium  2019 Difference against Ontario Premium Increase/Decrease
Alberta $1,251 $1,316 $194 $189 -2.65%
British Columbia $1,680 $1,832 -$235 -$327 28.13%
Manitoba $1,080  $1,080 $365  $425 14.12%
New Brunswick $819 $867 $626 $638 1.88%
Newfoundland and Labrador $1,132 $1,168  $313 $337 7.12%
Northwest Territories $978 N/A $467 N/A N/A
Nova Scotia $842 $891 $603 $614 1.79%
Nunavut $963 N/A $482 N/A N/A
Ontario $1,445 $1,505 $0 $0 N/A
Prince Edward Island $796 $816 $649 $689 5.81%
Quebec $661 $717 $784 $788 0.51%
Saskatchewan $936 $1,235 $509 $270 -88.52%
Yukon $812 N/A $633 N/A N/A

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

Ontario's car insurance premiums vs. other provinces

Ontario is the second most expensive province when it comes to car insurance premiums. If you live in Ontario, your average auto insurance premium will be over $1,500 a year. Auto insurance premiums are affected by whether the provincial insurance programmes are sponsored by a government agency or promoted by a private entity. Generally, insurance premiums subjected to market forces gravitate toward the lower end of the price range.

But it is important to note that the private-is-cheaper phenomenon doesn't take shape in every case. Car insurance rates in Ontario, a province which offers you a choice of several non-public insurers, is placed directly behind B.C.'s rates as the second-most expensive in the country. One of the cheapest provinces for car insurance includes Quebec, with an average of $661 in car insurance premiums for 2018 and $717 in 2019.

Car insurance premiums in Ontario are elevated due to the increase of fatalities resulting from collisions, which numbered 343 in 2017, a marked increase from the 307 traffic-related deaths in 2016, according to Ontario Provincial Police. Collision claims between 2008 and 2018 increased more than 30% within a 10-year time frame.

Most importantly, vehicle insurance is mandatory in Ontario, but unlike BC you have the option to shop around for the best rates. Always look for the best car insurance rates in the market to find the best deal.

Average Ontario car insurance rate changes

This table outlines quarterly average rate increases over the last three years, as reported by FSRA:

Ontario car insurance rate changes approved by FSRA

Quarter and Year Total Average Market Impact
Q3 2021 -0.18%
Q2 2021 -0.01%
Q1 2021 -0.14%
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%
Q4 2017 1.03%

ontario-car-insurance-rate-changes.jpg

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 $676.*

*Shoppers in Ontario who obtained a quote on RATESDOTCA and transacted via our contact centre from August to December 2020 saved an average amount of $676. 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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