Cheap Ontario Car Insurance Quotes

How to get the cheapest car insurance in Ontario

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.
 

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 the 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 add your home insurance policy under the same insurance company, you can save anywhere from 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.
    
5. Know what coverage you need: Review your coverage each year and cancel any add-ons you no longer need. For example, cancelling your collision coverage would make economic sense if you drive an older car and buying a new one would be more cost-effective.
    
6. Pay annually: If you can pay your premiums annually rather than monthly, you can often save a bit. 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. Driver's 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.
     
     

Rising car thefts in Ontario: Protect your wheels and secure affordable coverage

Car theft poses a significant challenge in Ontario, with one vehicle stolen every 48 minutes. Unfortunately, this problem is on the rise, and it coincides with an upward trend in car prices. Between 2022 and 2023, car prices surged by 21.3%, resulting in an average new vehicle cost of $66,288. These combined factors are driving up insurance costs for all drivers, not only those with theft coverage. Insurance companies must raise rates for all drivers to some extent to cover the claims of customers whose cars have been stolen. This collective adjustment helps manage the costs associated with theft-related claims.

To safeguard your vehicle and potentially prevent your insurance premiums from increasing, consider trying some of the following measures.
 

1. Choose your car based on insurance cost: Doing some research will help you control your insurance costs before you even take ownership of a car. The make and model significantly influence insurance. If cost reduction is a priority, opt for an entry-level vehicle — used ones are particularly cost-effective to insure since they don’t require specialized parts and labour. Additionally, modest cars are less appealing to thieves (unlike SUVs and crossovers, which tend to attract their attention). The Equite Association keeps track of models that are less prone to theft, and several GM models make the list.
    
2. Park in a private garage: If possible, avoid parking overnight outside. The safest place to park your car is in a private, covered garage. Doing this can impede car thieves and might lower your insurance rate.
    
3. Explore aftermarket security systems: Thieves are outpacing the security measures provided by manufacturers (such as car immobilizers). To enhance protection, consider installing aftermarket devices. Doing so could reduce your risk exposure and potentially lower your car insurance premium. Available products include:
   • Steering wheel clubs,
   • Wheel locks,
   • AirTags,
   • OBD port locks,
   • Pedal locks,
   • Faraday pouches,
   • Security cameras for your home and inside your car.

The best auto insurance in Ontario 2025

Finding a good price for insurance coverage matters more than ever. But it’s probably not the only factor you care about when you’re shopping for car insurance. For example, knowing that the provider you choose has a track record of being there for policyholders when they need them is important – and that’s hard to judge based on price tag alone.

To find out which insurance companies offer policyholders the most value for their premiums, we turned to the experts: drivers like you.

We collected the opinions of 12,600 drivers for the RATESDOTCA Annual Best Auto Insurance Study. Below, you’ll find which companies received the highest marks across categories that included convenience, customer service, and claims resolution.

^{Source: RATESDOTCA}

Why age and gender matter for your car insurance rate

A driver's age and gender are two factors that significantly impact insurance costs. These rating factors hold the most weight for young drivers, especially males.

We pulled quotes for drivers of different ages to illustrate this. Except for age, each applicant:

• Drove a 2022 four-door Honda Civic
• Parked in a private driveway
• Drove five kilometres daily
• Has a clean driving record
• Standard insurance with no optional coverages and no discounts applied
• No collision and comprehensive coverage

All things equal, a 17-year-old boy with a G2 licence would pay an eye-watering $8,000 a year for an insurance policy, and a girl of the same age would pay $6,000, according to RATESDOTCA data.

However, each year they remain claims and are free of traffic convictions, premiums decrease by hundreds of dollars.

Men and women end up paying equal rates by age 30. Premiums continue to decrease each decade if they remain claims and conviction-free.

^{*As of October 2024, according to FSRA.}

^{Source: Insurance Bureau of Canada, General Insurance Statistical Agency, Financial Services Regulatory of Ontario}

Understanding Ontario’s high auto insurance premiums

At about $2,006 per year or $167 per month, Ontario's average auto insurance premium is higher than that of other provinces.

There are many reasons for this. Ontario, being Canada’s most populous province, has a high concentration of people living in urban areas. This density results in more insurance claims, which ultimately contributes to higher car insurance premiums for everyone.

Another factor is that a standard auto insurance policy in Ontario offers substantial benefits, including the following:

• Third-party liability coverage
• Accident benefits
• Uninsured automobile protection
• Direct compensation for property damage (also known as DCPD; as of 2024, Ontarians can apply to remove it from a standard auto insurance policy)

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.

Car theft and insurance fraud are twin pressures that lead to increased premiums, and both are exceptionally high in Ontario. According to the Insurance Bureau of Canada, fraud costs each Ontario driver an estimated $236 a year and theft adds an extra $130.

More factors that could trigger rate increases in 2025 and beyond include:

• U.S.-imposed tariffs on the North American automotive industry
• Vehicle theft, which remains prevalent, although rates of theft have decreased thanks to Canada-wide coordination
• The demand for parts and labour exceeds Ontario’s supply.
• Inflation raises the cost of claims, which eats into funds reserved for future claims. Therefore, insurers may raise rates to bring in more cash.
• Car insurance fraud is also on the rise.
• The frequency of fatal car accidents is increasing in Ontario.

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.

Ontario car insurance rate changes by company 2025

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 only see a slight change in their premium, if at all.

The table below outlines the rate changes approved by the Financial Services Regulatory of Ontario (FSRA) set to take effect in 2024.

^{Source: Financial Services Regulatory Authority of Ontario}

Analysis: car insurance rate trends in Ontario for 2025

Ontario car insurance rates are expected to rise in 2025, but not at the same pace as in previous years.

Inflation, supply shortages, and concerning levels of car theft prompted insurance companies to raise premiums in 2023 and 2024. While these issues persist, rate change applications indicate that insurance companies have generated sufficient funds to cover future claims. As a result, rate increases in 2025 are expected to be much less dramatic and focused more on maintaining reserve funds.

The U.S. currently imposes 25% tariffs on non-CUSMA-compliant aspects of the Canadian auto industry, as well as on Canadian steel and aluminum. Further tariffs on Canadian auto manufacturing cannot be entirely ruled out. These measures will increase the cost of paying claims, potentially prompting insurers to raise prices. However, this impact is not expected to affect consumers until 2026.

Province proposes solutions to unaffordability in 2024 budget

In 2024, the government, police forces, car manufacturers, and the insurance industry banded together to propose solutions to the issues driving unaffordability.

The Ontario government made direct compensation property damage (DCPD) coverage optional. You can remove it from your policy by applying for an endorsement, OPCF 49. This could help you save some money, but it means you won't be entitled to have your insurance company pay for physical damage caused to your car by an accident you're not at fault for.

The 2024 provincial budget also outlined plans to make some aspects of mandatory accident benefits coverage optional, which would lower the premiums of people who apply to remove the coverage. However, the government acknowledges that this change will occur in stages and will involve consultation with the auto insurance industry. The expected date for these changes to be fully implemented is sometime in 2026.

Governments unleash funds to combat auto theft

In 2024, The government of Canada announced $15 million in funding to fight auto theft. Some of the funds will be allocated to INTERPOL to help retrieve stolen vehicles from Canada that have been shipped abroad, but the majority will go to provincial, territorial, and municipal law enforcement agencies through the Contribution Program to Combat Serious and Organized Crime (CPCSOC).

The Ontario budget earmarked $49 million for the Ontario Provincial Police's auto theft team, tasked with analyzing and identifying trends related to auto theft.

Another $46 million was reserved for the purchase of four helicopters, which the government says is essential to help police forces stop car thefts in progress.

From quarantine-era rate freezes to 2022 reversal

Ontario car insurance rates were static during 2020 and 2021 as pandemic restrictions altered 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 following seven consecutive quarters of little to no change and has maintained momentum since.

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.