Cheap Ontario Car Insurance Quotes

Insurance companies use similar rating factors to determine your quote but evaluate risk differently. This results in different prices for the same coverage. As a result, provincial regulators, like FSRA, recommend shopping around and getting multiple quotes before you purchase a policy. It's the easiest way to ensure you get the best rate available.

According to data from the RATESDOTCA Insuramap, Cloyne, located in Eastern Ontario in the Greater Napanee area, has the cheapest auto insurance in Ontario; the average auto insurance premium is $546 per year.

Several other locales have average premiums that are in the hundreds of dollars. Most are in Northern and Northwestern Ontario, including Summer Beaver, Dryden, and Keewatin (all tied at $586 per year). Kapuskasing's average premium is $888 per year. Chesley, which is in Southwestern Ontario, averages out at $894.

Generally, car insurance rates trend below the provincial average the further away from urbanized areas you get. For example, cities like Toronto and Brampton have some of the highest insurance rates in the province. In contrast, small towns are relatively cheap.

According to data from the RATESDOTCA Insuramap, the Ontario cities with the highest car insurance premiums are all in the GTA.

Brampton has the highest overall premium at $2,707 annually. Toronto is second ($2,325), followed by Mississauga ($2,311), Richmond Hill ($2,188), and Vaughan ($2,158).

Collisions occur more frequently in the GTA, meaning insurance companies pay more claims to customers. The high premiums represent the increased cost of doing business here.

Insurance companies pour a lot of resources into accurately predicting how much it would cost to repair or replace each car model on the road, meaning the make and model of the vehicle you drive will significantly impact your rates.

So, which models were the cheapest to insure in Ontario last year?

To find out, we looked at some of the best-selling cars in Canada. Then, we compared quotes for a 35-year-old driver from Toronto, where the average premium is $2,325. Our persona had no convictions or tickets and lived in the west-end postal code of M6H.

Pickup trucks occupied the top three spots. The best-selling 2021 GMC Sierra, a light-duty pickup truck, came first, commanding premiums of $1,779 per year (about $150 a month).

The Chevrolet Silverado ($1,811) and the Ford F-150 ($1,862) came in second and third, respectively.

According to the Insurance Institute for Highway Safety, pickup trucks are among the safest vehicles on the road, which helps keep their rates low.

Unsurprisingly, pickups also reigned supreme when we compared cars by body type.

The Chevrolet Colorado cost $1,542 annually ($128 monthly) to insure in late 2021. 

The Honda Civic is one of the most stolen vehicles in Canada, which is part of the reason it is more expensive to insure. The Civic costs $2,592 annually ($216 monthly) to insure in Toronto.

How does your car compare? Check out our complete rankings of the cars that are cheapest to insure in Ontario in 2022, including an analysis of cars by price, body segment, and overall popularity.

Statutory accident benefits provide 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 OHIP doesn't pay. 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 dependent, and a maximum of $6,000 in funeral costs.

Additional protection is available for purchase on top of the minimum Statutory Accident Benefits 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 all injuries, not just catastrophic ones.
• Housekeeping and Home Maintenance Expenses: Can be increased to apply to injuries, not just catastrophic ones.
• Death and Funeral Benefits: Can be increased to $50,000 for the spouse, $20,000 for each dependant, and $8,000 for funeral costs.

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

Car insurance prices are rising again in Ontario after an unprecedented period of no growth during provincially mandated quarantines.

Mass vaccination programs have allowed Ontarians to return to routines resembling pre-pandemic ones, which included much more driving. More cars back on the road means drivers are more likely to be in a collision that results in a claim, which their insurance company will pay.

Predictably, the agency that helps regulate auto insurance prices approved 56 rate increases by the end of the third quarter of 2023, compared with 29 during the same period in 2022.

When COVID-19 first struck Ontario, insurance companies issued rebates to policyholders who had decreased their coverage or needed financial relief.

The story today is very different.

Inflation is putting strain on insurers' operating budgets. And essential car parts, particularly semiconductors, have been in short supply, which is driving up prices.

A Canada-wide spike in car thefts is also aggravating the situation as drivers with comprehensive insurance file claims to have their cars replaced. Thefts in Ontario spiked 48.3% in 2022, and this year’s count is on track to surpass that.

Plus, issues that predate the pandemic, which insurers said were forcing them to raise prices, still exist.

For example, car repair costs have increased as manufacturers introduce new technologies like sensors and cameras to even economy cars.

There are more collisions, too, and the claims stemming from them tend to be more expensive. The province now reports that accident benefits and third-party liability claims account for over half of all auto insurance claims. Translated, many of these claim payouts are going towards legal and medical costs, which add up quickly.

If you feel like you're paying too much, one of the most effective and immediate ways to lower your car insurance costs is to shop around for quotes, according to the Financial Services Regulatory Authority of Ontario (FSRA). Ontario drivers save $800* on average when comparing car insurance quotes on RATESDOTCA.