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What's the average cost of car insurance in Ontario?
The estimated average car insurance premium in Ontario is $2,653 per year as of March 2026, according to Rates.ca data. This works out to $221 per month.
How Rates.ca finds the average car insurance premium
Rates.ca’s Auto Insuramap is an interactive map that shows how car insurance rates compare across Ontario’s forward sortation areas (FSA).
The estimated premiums for each FSA are based on the average of the three lowest premiums quoted. These quotes were acquired from Rates.ca using a specific driver profile: a 40-year-old male driver with 16 years of continuous insurance history, driving a four-door Honda Civic that is approximately five years old at the time of quoting.
Very young men tend to pay more for car insurance than young women. We made our driver persona 40-years-old because the differences in premiums for men and women tend to resolve by then. We also made it male to avoid understating the premiums.
From there, we matched the FSAs to their corresponding city, town, or community, along with the number of quotes we received from real Rates.ca users in that area. The average premium for each municipality was weighted based on the number of quotes.
The estimated premium for all of Ontario was calculated by averaging the municipal averages.
Key numbers: Ontario car insurance
- The average car insurance rate in Ontario is $2,653 annually, or $221 per month. That’s a 4.5% decrease from 2025, when the average premium was $2,779.
- Car insurance costs vary widely across the province. Drivers in Beachburg and Petawawa pay an average of $1,824 per year, while the average premium in Brampton is $3,802.
- Live in a Toronto suburb? Your downtown counterparts are likely paying less for coverage. Premiums in Scarborough and Etobicoke are 23% and 18% higher, respectively, than the average in Toronto proper.
- Small communities in Eastern Ontario continue to have the cheapest rates, a carryover from 2025. Average premiums in communities along the Ottawa Valley and St. Lawrence River corridors are roughly 30% lower than the provincial average.
- After years of rising premiums driven by inflation and vehicle theft, rates appear to be stabilizing. That makes now a good time for drivers to shop around and lock in a better deal.
Changes coming to Ontario car insurance in 2026
Car insurance prices in Ontario will continue rising in 2026, but not as sharply as they did in 2023. Still, many drivers may notice higher premiums when their policies renew this year.
- Factors like increasing healthcare costs, cars being more high-tech, and auto theft are leading to higher insurance claims payouts. Insurance companies have raised premiums to cover these costs.
- On July 1, new rules will also change how accident benefits work in Ontario. Some benefits that used to be included automatically will now become optional.
- If you get a new policy after July 1, many accident benefits will not be included unless you ask for them.
- Choosing to do away with the newly optional accident benefits may save up to 5%, but you could lose access to tens of thousands of dollars in critical benefits.
- With the cost of everything rising, it can be tempting to cut down on coverage. Comparing car insurance quotes can help you save without giving up protection.
Why car insurance costs differ across Ontario
Car insurance in Ontario generally becomes cheaper the farther you get from the Golden Horseshoe — the densely populated region that hugs the western end of Lake Ontario, stretching from Niagara Falls to Oshawa, and extending north to Barrie and Peterborough.
The Golden Horseshoe is home to 54% of Ontario’s population. Densely populated areas tend to record higher rates of vehicle theft, insurance fraud, and collisions, all of which push up the average car insurance premium for drivers who live there.
For example, drivers in Mississauga pay about $3,078 a year for car insurance. By comparison, a driver in Peterborough, in Central Ontario, with an identical vehicle and the same driving record pays $1,970 — 36% less than their Mississauga counterpart.
Car insurance is based on pooled risk. When many drivers pay into the pool, those funds are used to cover the costs of claims made by a smaller number of policyholders. If insurers didn’t need to recover as many losses from theft, fraud, and collisions in places like Mississauga, car insurance rates in communities such as Peterborough could be even lower than what they are today.
However, an unprecedented number of Ontario drivers have filed claims for stolen vehicles in recent years, particularly in the Greater Toronto Area (GTA). This surge in claims — which rose 72% between 2014 and 2021, and another 14% in 2023 — is a leading reason insurers have raised premiums for drivers across the province.
Ontario car insurance: communities ranked by average premium (2026)
| Rank | City | Monthly premium | Annual premium |
|---|---|---|---|
| 1 | Petawawa | $152 | $1,824 |
| 1 | Pembroke | $152 | $1,824 |
| 1 | Beachburg | $152 | $1,824 |
| 4 | Napanee | $152 | $1,829 |
| 5 | Arden | $152 | $1,830 |
| 6 | Kingston | $153 | $1,835 |
| 7 | Cobourg | $154 | $1,843 |
| 8 | Cornwall | $155 | $1,865 |
| 8 | Gananoque | $155 | $1,865 |
| 10 | Perth | $156 | $1,869 |
| 10 | Smiths Falls | $156 | $1,869 |
| 10 | Brockville | $156 | $1,869 |
| 10 | Kemptville | $156 | $1,869 |
| 10 | Prescott | $156 | $1,869 |
| 15 | Renfrew | $157 | $1,886 |
| 15 | Arnprior | $157 | $1,886 |
| 15 | Quinte West | $157 | $1,886 |
| 15 | Belleville | $157 | $1,886 |
| 19 | Carleton Place | $158 | $1,897 |
| 20 | Port Hope | $160 | $1,920 |
| 20 | Milbrook | $160 | $1,920 |
| 22 | Russell | $161 | $1,928 |
| 22 | Hawkesbury | $161 | $1,928 |
| 22 | Clarence-Rockland | $161 | $1,928 |
| 22 | Kanata | $161 | $1,928 |
| 26 | Elizabethtown | $161 | $1,936 |
| 27 | Winchester | $162 | $1,938 |
| 28 | Amherstview | $162 | $1,941 |
| 29 | Stirling | $163 | $1,960 |
| 30 | Nepean | $164 | $1,964 |
| 31 | Vankleek Hill | $164 | $1,966 |
| 31 | Chelmsford | $164 | $1,966 |
| 31 | Elliot Lake | $164 | $1,966 |
| 31 | Little Current | $164 | $1,966 |
| 31 | Mississagi River 8 | $164 | $1,966 |
| 36 | Peterborough | $164 | $1,970 |
| 37 | Greater Sudbury | $164 | $1,971 |
| 38 | Lakefield | $164 | $1,973 |
| 38 | Kawartha Lakes | $164 | $1,973 |
| 38 | Bobcaygeon | $164 | $1,973 |
| 41 | Kirkland Lake | $166 | $1,997 |
| 41 | Verner | $166 | $1,997 |
| 41 | Timmins | $166 | $1,997 |
| 41 | Iroquois Falls | $166 | $1,997 |
| 41 | James | $166 | $1,997 |
| 41 | Kapuskasing | $166 | $1,997 |
| 41 | South Porcupine | $166 | $1,997 |
| 41 | Cochrane | $166 | $1,997 |
| 41 | Espanola | $166 | $1,997 |
| 50 | Point Edward | $167 | $2,001 |
| 51 | Sundridge | $167 | $2,006 |
| 51 | North Bay | $167 | $2,006 |
| 51 | Mckellar | $167 | $2,006 |
| 54 | New Hamburg | $168 | $2,015 |
| 55 | Sault Ste. Marie | $168 | $2,017 |
| 56 | Sturgeon Falls | $169 | $2,032 |
| 57 | Pelham | $169 | $2,033 |
| 57 | Port Colborne | $169 | $2,033 |
| 57 | Welland | $169 | $2,033 |
| 57 | Grimsby | $169 | $2,033 |
| 57 | Smithville | $169 | $2,033 |
| 57 | Beamsville | $169 | $2,033 |
| 63 | St. Catharines | $170 | $2,034 |
| 64 | Fergus | $170 | $2,041 |
| 64 | Elmira | $170 | $2,041 |
| 66 | Thorold | $170 | $2,046 |
| 67 | Mitchell | $171 | $2,052 |
| 67 | Stratford | $171 | $2,052 |
| 67 | Listowel | $171 | $2,052 |
| 67 | Saint Marys | $171 | $2,052 |
| 67 | Kincardine | $171 | $2,052 |
| 67 | Goderich | $171 | $2,052 |
| 67 | Hanover | $171 | $2,052 |
| 74 | Sarnia | $171 | $2,055 |
| 75 | Orillia | $172 | $2,063 |
| 76 | Parry Sound | $173 | $2,070 |
| 77 | Ottawa | $173 | $2,071 |
| 78 | Kenora | $173 | $2,076 |
| 79 | Muskoka | $173 | $2,079 |
| 80 | Strathroy | $174 | $2,090 |
| 80 | Lucan | $174 | $2,090 |
| 82 | Wawa | $174 | $2,091 |
| 83 | Caledonia | $175 | $2,094 |
| 84 | Waterloo | $175 | $2,106 |
| 85 | St. Thomas | $176 | $2,108 |
| 86 | Burlington | $176 | $2,109 |
| 87 | Aylmer | $176 | $2,113 |
| 87 | Port Stanley | $176 | $2,113 |
| 87 | Dorchester | $176 | $2,113 |
| 90 | Guelph | $176 | $2,115 |
| 91 | Windham Centre | $177 | $2,119 |
| 91 | Delhi | $177 | $2,119 |
| 91 | Hagersville | $177 | $2,119 |
| 94 | Red Lake | $177 | $2,121 |
| 94 | Minaki | $177 | $2,121 |
| 94 | Geraldton | $177 | $2,121 |
| 94 | Dryden | $177 | $2,121 |
| 94 | Sioux Lookout | $177 | $2,121 |
| 94 | Ingolf | $177 | $2,121 |
| 100 | Thornbury | $177 | $2,124 |
| 100 | Meaford | $177 | $2,124 |
| 100 | Flesherton | $177 | $2,124 |
| 103 | Waterdown | $177 | $2,126 |
| 104 | Stayner | $177 | $2,128 |
| 104 | Wasaga Beach | $177 | $2,128 |
| 104 | Phelpston | $177 | $2,128 |
| 107 | Woodstock | $178 | $2,130 |
| 107 | Tillsonburg | $178 | $2,130 |
| 107 | Ingersoll | $178 | $2,130 |
| 107 | Salford | $178 | $2,130 |
| 111 | Midland | $178 | $2,136 |
| 111 | Collingwood | $178 | $2,136 |
| 111 | Penetanguishene | $178 | $2,136 |
| 111 | Springwater | $178 | $2,136 |
| 115 | Chatham | $178 | $2,138 |
| 116 | Lambton County | $178 | $2,140 |
| 117 | Fort Frances | $179 | $2,144 |
| 118 | Wallaceburg | $179 | $2,148 |
| 118 | Leamington | $179 | $2,148 |
| 118 | Kingsville | $179 | $2,148 |
| 118 | Dresden | $179 | $2,148 |
| 122 | Oakville | $181 | $2,167 |
| 123 | Emo | $181 | $2,171 |
| 124 | Laurel | $181 | $2,172 |
| 125 | Uxbridge | $181 | $2,175 |
| 126 | Neebing | $182 | $2,180 |
| 127 | Fort Erie | $183 | $2,191 |
| 128 | Port Perry | $183 | $2,193 |
| 129 | Thunder Bay | $183 | $2,197 |
| 130 | Niagara Falls | $184 | $2,203 |
| 130 | Whitchurch-Stouffville | $184 | $2,203 |
| 130 | Kitchener | $184 | $2,203 |
| 130 | Essex | $184 | $2,203 |
| 134 | Branchton | $184 | $2,206 |
| 135 | Cambridge | $184 | $2,207 |
| 136 | Newcastle | $186 | $2,235 |
| 137 | Owen Sound | $187 | $2,247 |
| 138 | Acton | $188 | $2,250 |
| 139 | Brant | $188 | $2,254 |
| 140 | Sunderland | $188 | $2,260 |
| 141 | Orono | $189 | $2,269 |
| 142 | Amherstburg | $189 | $2,274 |
| 143 | Newmarket | $190 | $2,275 |
| 144 | Shelburne | $190 | $2,279 |
| 145 | Brantford | $191 | $2,287 |
| 146 | Halton Hills | $193 | $2,317 |
| 147 | Orangeville | $196 | $2,357 |
| 148 | Tecumseh | $197 | $2,367 |
| 149 | Kettleby | $198 | $2,380 |
| 149 | Georgina | $198 | $2,380 |
| 151 | Milton | $199 | $2,384 |
| 152 | New Tecumseth | $199 | $2,385 |
| 153 | Aurora | $200 | $2,397 |
| 154 | East Gwillimbury | $200 | $2,399 |
| 155 | Bowmanville | $201 | $2,407 |
| 155 | London | $201 | $2,407 |
| 157 | Barrie | $201 | $2,412 |
| 157 | Innisfil | $201 | $2,412 |
| 159 | Courtice | $203 | $2,435 |
| 160 | Bradford West Gwillimbury | $203 | $2,437 |
| 161 | Hamilton | $205 | $2,457 |
| 162 | Whitby | $207 | $2,483 |
| 163 | Richmond Hill | $208 | $2,491 |
| 164 | Oshawa | $213 | $2,559 |
| 165 | Windsor | $215 | $2,576 |
| 166 | Bolton | $221 | $2,646 |
| 167 | Pickering | $221 | $2,650 |
| 168 | Ajax | $224 | $2,692 |
| 169 | Caledon | $233 | $2,794 |
| 170 | Downtown Toronto | $241 | $2,888 |
| 171 | King City | $241 | $2,894 |
| 172 | Markham | $242 | $2,900 |
| 173 | Mississauga | $257 | $3,078 |
| 174 | Scarborough | $265 | $3,180 |
| 175 | East York | $267 | $3,207 |
| 176 | Vaughan | $272 | $3,259 |
| 177 | Etobicoke | $273 | $3,277 |
| 178 | Simcoe | $278 | $3,340 |
| 179 | North York | $279 | $3,348 |
| 180 | Brampton | $317 | $3,802 |
Ontario average premium: $2,653
Updated March 2026
Ontario car insurance rates: trends to know in 2026
After two years of big price increases, car insurance costs in Ontario are levelling off, according to the Rates.ca Auto Insurance Rate Index.
The index looks at approved rate changes from insurance companies in Ontario.
Data from 2025 shows that prices are finally stabilizing, which is good news for drivers.
Looking at the year-over-year data, the rate of price increases dropped by 2.6 percentage points between the last quarter of 2024 and the first quarter of 2025.
Between the first and second quarters, it fell another 1.2 percentage points year-over-year.
This suggests that insurance companies have recovered from revenue problems caused by the COVID-19 pandemic. Now that they’re more stable, they’re focusing on keeping rates steady.
Drivers have faced big price jumps in recent years. In 2023, the average provincial car insurance rate increases rose by a whopping 4.9 percentage points year-over-year from Q1 to Q2. Growth continued by 0.9 points to Q3 and 0.7 points to Q4.
FSRA’s yearly data confirms this trend. The average cost of car insurance in Ontario went from $1,674 in 2022 to $1,796 in 2023, and then to $2,006 in 2024.
These increases match the quarterly hikes tracked by the Rates.ca index. When companies get approval to raise rates, those changes show up in what drivers pay.
Source: Rates.ca
The Rates.ca Auto Insurance Index (above) shows the average change in premiums compared to the same quarter of the prior year. While prices are still increasing in Ontario, the pace of the increases slowed by the second quarter of 2024 compared to the previous six quarters.
What the Rates.ca Auto Insurance Index represents and why it matters
The Rates.ca Auto Insurance Index is intended to help helps drivers understand whether rates are generally rising or falling before shopping for coverage. The Index accounts for new business activity, ensuring the analysis captures real shifts in the marketplace. To provide an accurate representation of the industry, we weigh insights based on each insurer's market share in Ontario. Industry professionals then validate the data. Keep in mind, the data are not necessarily reflective of what a person renewing their policy may experience.
What caused the dramatic increase in auto insurance rates in 2023?
The COVID-19 pandemic had a big impact on car insurance. In 2020, many drivers cut back on coverage or even paused their policies. Insurance companies gave rebates because there was less risk. Fewer cars on the road meant fewer accidents, so claims dropped. Even with rebates, insurers made record profits during this time.
Things changed in 2022 when lockdowns ended. More cars on the road meant more accidents and damage claims. At the same time, supply chain problems made it harder to get cars and parts. This pushed up car prices and led to more car thefts, which added extra costs for insurers.
By 2023, insurers were feeling the pressure. A report from Statistics Canada showed their return on equity (ROE)—a measure of profit—fell to 9.1%. That’s 28% lower than the year before and 50% lower than in 2021. With claims costing more, insurers needed extra income, so they raised premiums for drivers.
Source: Rates.ca
The Financial Services Regulatory Authority of Ontario allows insurers to change their rates, but all changes must be approved first. The chart above shows how approved rate changes build up over time. The data are weighted, indexed, and based on when approvals were granted.
By averaging monthly rate approvals, we can estimate the direction and overall level of car insurance premiums. Premium growth was very low during the first two years of the pandemic. It began rising quickly in mid‑2022 as more people returned to driving. By mid‑2025, price increases had largely levelled off.
Normal insurance rate growth predicted for 2026
By 2024, things started to settle down as supply chain problems improved. This helped slow down the rise in insurance premiums. In the first half of 2025, car thefts in Ontario dropped by about 26% compared to the year before, according to the Équité Association. This gave insurers and drivers some relief.
Because of these improvements, experts at Rates.ca expect smaller price increases in the future. Insurance companies will likely ask for changes that lead to an overall increase of about 5% to 6% by the end of 2025 and into 2026.
Increases like this are normal because the cost of claims goes up every year. Insurance companies usually set rates a little higher than inflation.
Still, there are challenges. U.S. tariffs on auto parts that don’t meet trade rules, plus 25% tariffs on Canadian steel and aluminum, could push rates up if these issues aren’t fixed.
This hasn’t happened yet, but the 2026 renegotiation of CUSMA and fewer people working from home could also raise rates later. Even if these changes occur, it would take months for premiums to go up because Ontario has strict rules.
For now, the outlook for Ontario drivers looks more stable, which is good news after the sharp increases in 2023 and 2024.
Will it be easier to find a lower car insurance rate in 2026?
"Drivers should shop their insurance every year to see if there's a more competitive rate out there, but 2026 could offer some opportunities for savings.
Because companies are becoming more profitable, some insurers will be looking to grow their client base and may lower rates for the drivers that they want to attract.
That's the advantage of having 50-plus insurance companies in Ontario — you're going to have price variation. We've seen companies over the last few years target new geographical regions and age groups, so it's never one-size-fits-all."
Steve Cohen, VP of Insurance & Chief Underwriting Officer at Rates.ca
Recent auto insurance quotes in Ontario
Recent auto Insurance Quote from Scarborough, Ontario
Male, 29 years old
2026 TOYOTA TACOMA DOUBLE CAB 4WD
June 04, 2026
Cheapest Quote
$ 360 / month
$ 4,321 / yearAverage Quote
$ 733 / month
$ 8,796 / yearSavings
$ 373 / month
$ 4,475 / year
51 %
Recent auto Insurance Quote from Gloucester, Ontario
Male, 47 years old
2007 BMW X3 3.0I 4DR AWD
June 04, 2026
Cheapest Quote
$ 123 / month
$ 1,479 / yearAverage Quote
$ 183 / month
$ 2,197 / yearSavings
$ 60 / month
$ 718 / year
33 %
Recent auto Insurance Quote from Scarborough, Ontario
Male, 24 years old
2026 HONDA CR-V EX-L HEV 4DR AWD
June 04, 2026
Cheapest Quote
$ 943 / month
$ 11,317 / yearAverage Quote
$ 2,013 / month
$ 24,160 / yearSavings
$ 1,070 / month
$ 12,843 / year
53 %
Auto insurance quotes are compared from CAA, Coachman Insurance Company, Echelon Insurance, Economical Insurance, Gore Mutual, Pafco, Pembridge, SGI, Travelers, Zenith Insurance Company
The best car insurance companies of 2026
Drivers should always compare multiple quotes to find the best policy for their needs, and that doesn’t always mean the lowest-priced premium. Instead, a great rate should provide value and quality, with attentive customer service, an easy claims process, and personalized policy offerings.
The Rates.ca Annual Best Auto Insurance Study surveyed 14,676 auto insurance customers in Ontario about their experiences with Canada’s top auto insurance providers. These customers are from five major insurance brokerages that collectively serve more than 220,000 personal line customers.
Customers were asked about their satisfaction levels across multiple categories, from claims processing to ease of communication, as well as coverage options and overall trustworthiness.
Here are the top-ranking auto insurance companies in 2026.
Rates.ca Annual Best Auto Insurance Study 2026
CAA Insurance Company
About the winner
CAA Insurance Company ranks as the top insurer for the third year in a row, also placing first in: Most Trustworthy, Best Product & Value, and Best Communication & Clarity.
Customers praise its low rates and strong claims service. Many use its recommended repair shops.
Its products address real needs, like MyPace, which rewards low-mileage drivers skeptical of traditional usage-based insurance.
Key takeaways
- CAA Insurance leads the market with strong customer satisfaction.
- Competitive rates are the top reason customers choose it.
- The company scores highly for product value, meeting customer needs, and policy innovation.
- It also excels in communication clarity, with nearly all respondents satisfied with their policy documents and over half reporting they are very satisfied.
Intact Insurance
About the winner
Intact Insurance achieved outstanding scores for its claims process. Customers find Intact reps easy to reach, knowledgeable, and proactive. The vast majority report quick claims resolutions.
Over half of customers bypassed their broker and went straight to Intact, underscoring its reputation for hassle-free service.
Of all insurers, Intact Insurance customers are also the most likely to use the company’s app for updates.
Key takeaways
- Intact Insurance is a trustworthy brand, according to the majority of customers surveyed.
- Top-ranked for ease of its claims process; customers say it’s clearly outlined and that reps are helpful.
- Quick claims handling drives satisfaction, with nearly two-thirds of those very satisfied.
- Intact Insurance customers are more likely to reach out directly than calling their broker.
Northbridge Insurance
About the winner
Northbridge Insurance promises quick support: calls are answered within 20 seconds, and an adjuster follows up within three hours.
This speed and efficiency helped drivers rank it among Canada’s best car insurers.
It earns strong marks for claims experience, and customers say it delivers solid value for the premiums they pay without compromising service.
Key takeaways
- Northbridge Insurance is a trustworthy brand according to survey respondents.
- Earned top marks for claims experience across virtually all aspects of the claims process
- Ease of claims handling and expert representatives are key strengths for Northbridge Insurance.
- High ratings for product offerings and overall value.
How we got our ranking
To properly evaluate how great an insurance company is, you have to look way beyond online reviews. In collaboration with Pollara Strategic Insights, we surveyed 14,676 drivers in Ontario about their interactions with their insurers and specific experiences when filing claims to capture new trends and evolving expectations.
According to our methodology, we also asked them to rate their satisfaction with their insurance companies across a few critical areas, including: brand trustworthiness, claims experience, communication, products and billing.
This year, we also expanded the field and allowed insurers to rank for the following titles:
- Best Overall
- Most Trustworthy
- Best Auto Claim Experience
- Best Product & Value
- Best Communication & Clarity
To find the best overall scores, we took the scores for each survey category and weighted averages based on customer demographics, brokerage and insurance carrier.
Find the best Ontario car insurance on Rates.ca
Back in the day, comparing car insurance quotes was a time-consuming chore that involved calling several insurance companies one by one and reciting the same information over and over. Thankfully, technology has made comparing insurance companies much easier.
Rates.ca runs your details through a database of quotes from Ontario insurance companies. Then, we bring you a list of quotes from more than 50 insurance companies, allowing you to compare quotes side-by-side easily.
Our service is free, and Ontario drivers who use Rates.ca save an average of $500+.*
Ontario car insurance rates and regulations
Car owners in Ontario are required by law to have car insurance.
Car insurance ensures that you and your vehicle are financially protected in the event of vehicle damage or personal injury.
Ontario also operates under a no-fault insurance system, which means drivers always file damage and injury claims with their insurance company – never through the insurance company of any other party involved, no matter who is at fault for an accident.
“The no-fault process is intended to speed up the claims process and prevents the need for consumers to use the court system to privately sue in the event of a loss.” - Mariah Etten, registered insurance broker (RIBO ID: 53409).
How car insurance rates are set in Ontario
In Ontario, auto insurance is regulated by the Financial Services Regulatory Authority of Ontario (FSRA), an agency of the Ministry of Finance.
FSRA oversees all insurance regulations in Ontario and can approve or decline rate change requests. Car insurance providers apply to increase or decrease their rates throughout the year. If an insurer pays more claims within a fiscal year due to an increase in accidents, for example, they will likely apply for permission to raise rates to help offset their costs.
Ontario auto insurance is privatized, meaning you buy a policy from a private company rather than a government body. FSRA's approved changes show how often rates fluctuate, making comparing quotes and finding the lowest rate essential.
Car insurance agents and brokers also must follow the Take-All-Comers rule: it mandates that they must provide coverage to any driver that meets their acceptability criteria and that they must be offered the lowest price possible for the risk they pose.
However, an insurance company can still decline to give you coverage, if you fall outside their level of acceptable risk.
In that case, you may need to approach a car insurance company that specializes insuring high-risk drivers (there are a few companies like this in Ontario) or use Facility Insurance. The latter is a fund, pooled by insurance companies operating in Ontario, that provides coverage to drivers who can’t get coverage anywhere else.
“With auto insurance being mandatory in Ontario, the Take-All-Comers requirement is one that insurance providers are obligated to abide by to ensure a fair and consistent result for all consumers.” - Taylor Girard, registered insurance broker (RIBO ID: 54202).
Mandatory and optional auto insurance in Ontario
| Protection type & status | Coverage details & risks |
|---|---|
| Third-party liability [MANDATORY] | $200,000 minimum in coverage is required. Provides coverage in the event of a lawsuit resulting from an accident where you are at fault. Ontario drivers are encouraged to buy at least $1M in third-party liability insurance. |
| Accident benefits: Basic medical & rehab [MANDATORY] | Provides coverage if you are injured in an accident, regardless of who is at fault. Covers medical expenses that aren’t covered by OHIP. |
| Accident benefits: Income & family support [OPTIONAL] | Replaces lost wages, caregiver costs, and funeral expenses. After July 1, 2026, this coverage is no longer included by default on new policies; you must actively opt-in to keep your income safety net. Renewing policies will keep this coverage. |
| Uninsured automobile [MANDATORY] | 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. |
Direct compensation property damage [OPTIONAL] | DCPD is a standard coverage. It covers damage to your car, or loss of use of your vehicle, if someone else is at fault. DCPD is automatically included in all policies, but an insurance professional can remove it using form OPCF 49. Insurance experts, as well as the Ontario regulator, warn against this. |
| Collision [ADD-ON] | Covers the costs of repairing or replacing your vehicle following a collision with another vehicle, an object, or property. Usually required for leased vehicles. |
| Comprehensive [ADD-ON] | 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. Usually required for leased vehicles. |
| Specified perils [ADD-ON] | 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 [ADD-ON] | Combines collision/upset and comprehensive coverage. Also provides additional protection if a household member or an employee steals your vehicle. |
| OPCF 20: Replacement vehicle [ADD-ON] | 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: Rental car liability [ADD-ON] | Covers if you damage a borrowed or rental vehicle. The coverage limit is usually around $25,000 to $50,000. |
| OPCF 39: Accident forgiveness [ADD-ON] | Protect your premium from rising when you have your first at-fault accident. |
| OPCF 43: Depreciation waiver [ADD-ON] | 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 [ADD-ON] | Increases your coverage if you're injured or killed in a collision involving an underinsured, uninsured, or unidentified driver. This coverage also applies if you or a family member is injured as a passenger, pedestrian, or cyclist. |
| OPCF 49: DCPD opt-out [ADD-ON] | Removes DCPD coverage from your insurance policy. |
| Legend | Essential: Critical coverage you should always have, with few exceptions Caution: Think carefully before removing Optimal: Useful add-on |
Factors that determine the cost of your Ontario car insurance premium
The average cost of car insurance in Ontario is high, but individual rates vary by driver. Numerous factors contribute to the cost of a car insurance policy and insurance companies all have a slightly different approach to rating customers. However, they key factors listed below are considered by all insurers and have the greatest impact on your premium.
The make and model of your vehicle
The cost to repair your vehicle affects your premiums. Your vehicle's safety rating, driving features and the statistical likelihood of being stolen also contribute. You can save big by selecting a vehicle that is cheap to insure.
Your driving record
Your claims history and driving record are major contributors. The number of speeding tickets, driving convictions and at-fault accidents you've had will all influence how much you pay for insurance.
Your driving experience
Another major contributing factor are your claims history and driving record.
Insurers in Canada typically grant a conviction-free discount to drivers who have maintained a clean driving record for a certain period. After your first minor conviction, insurers will remove the conviction-free discount.
The number of speeding tickets, driving convictions and at-fault accidents you've had will all influence how much you pay for insurance. “You could see a rate increase of 10-25% on your premiums each year for the next three years.” - Allan Wilson, registered insurance broker (RIBO ID: 45886).
Location, location, location
Your city, and even your postal code, affects your premium. You'll pay more if you live somewhere with a high rate of theft, fraud or accidents. Usually (but not always), car insurance costs more in larger cities. “Certain postal codes have been pinpointed due to claims frequency and severity.” - X-anthia Martin, registered insurance broker (RIBO ID: 51958).
How often you use the vehicle
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 and the more you'll pay. If you use your vehicle only sparingly, consider a pay-as-you-go policy.
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.
Your 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 discounts you're eligible for to ensure you don't overpay.
Additional drivers
A policy that includes secondary drivers will expand your vehicle's coverage, but it also means you'll pay more.
Whether you bundle your insurance
Bundling insurance, such as home and car, is an easy way to save anywhere from 5%-15% on your premiums.
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.
- Compare quotes: Of course, the easiest way to save money is to compare auto insurance quotes on Rates.ca. 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.
- 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.
- 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.
- Change into winter tires: Ontario roads face some harsh winter conditions. Save 5% on your car insurance by installing winter tires for the season.
- 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.
- 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.
- 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.
- 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.
- 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.
- Group discounts; If you are part of a professional association, union, or non-profit association, you may be eligible for group discounts.
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Frequently asked questions about car insurance in Ontario
Have more questions about car insurance? We answer them here.
Why should Ontario drivers compare car insurance rates?
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.
Which city in Ontario has the cheapest car insurance?
Eastern Ontario has the cheapest car insurance rates.
According to Rates.ca data from March 2026, Beachburg and Petawawa are tied for the cheapest average car insurance premium. These communities in the Upper Ottawa Valley boast an annual premium of $1,824 — hardly cheap, still but less than what drivers in the Greater Toronto–Hamilton area pay.
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. By contrast, small towns are much cheaper.
Which car has the cheapest insurance in Ontario?
The cost to insure of the Mazda CX-30 is relatively low at $1,966 annually.
Other cars that fare well are the Hyundai Kona ($2,106), Hyundai Tucson ($2,228), and the Mazda 3 sedan ($2,345).
All of these are well below Ontario's average estimated car insurance premium of $2,779 per year.
So, if you’ve ever wondered whether the car you pick affects your insurance rates, the answer is yes, it absolutely does.
Insurance companies pour tons of resources into statistical modelling that helps them accurately predict how much it costs to repair and replace each car model on the road. These predictions influence the cost of coverage for specific makes and models.
How does your car compare? Check out the complete ranking of cars that are cheapest to insure in Ontario this year, broken down by class, size, and body type.
Why do Ontario car insurance rates change so much?
In Ontario, insurance companies are allowed to change their rates so that they’re enough to cover claims obligations, operating expenses, and collect a reasonable amount of profit.
Overall, insurance rates in Ontario don’t tend to swing wildly – change tends to be more gradual. This is due to the regulatory oversight of the insurance industry, which itself is designed to maintain predictability and stability for consumers and the companies themselves.
However, there have been notable exceptions in recent years, which have caused rates to shift both up and down. The main causes are the COVID-19 pandemic, rising theft rates, as well as inflation and supply chain issues.
In terms of your personal rate, there are reasons it may rise or fall that are mostly disconnected from the macro factors. For example, your claims may change if you’ve had a milestone birthday, recently had a claims-free anniversary, had a driving conviction come off your record, or you moved to a different part of town, or you’ve changed your car.
Why are car insurance rates in Ontario going up?
There are many reasons for the ever‑increasing price of car insurance in Ontario. Canada’s most populous province has a high concentration of residents living in urban areas. This population density leads to 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 relatively generous benefits, including the following:
- Third‑party liability coverage
- Accident benefits
- Uninsured automobile protection
- Direct compensation for property damage (DCPD)
In Ontario, drivers can also sue for damages after a car accident. Depending on the policy, an insurance provider may cover all or part of a driver’s legal fees, which can cost insurance companies millions of dollars. To recover these costs, insurers raise auto insurance rates.
To help reduce premiums, the Ontario government has made some standard coverages optional or customizable. As of 2024, for example, drivers can remove DCPD from their policy. By July 1, 2026, accident benefits that cover income replacement and family support will no longer be included in a standard auto insurance policy. Drivers purchasing a new policy will need to opt in to receive these benefits.
However, removing DCPD and opting out of accident benefits typically reduces premiums by only about 5%. In addition, removing DCPD means you cannot sue for vehicle damage after a collision — even if you were not at fault. As a result, insurance professionals strongly recommend keeping the coverages that were previously standard.
Recent factors that have contributed to rising car insurance costs include:
- COVID‑19 pandemic recovery: During lockdowns, car insurance rates were artificially low due to rebates and reduced coverage. By 2022, driving increased and accident claims surged.
- Vehicle theft: Although theft rates are beginning to decline thanks to nationwide coordination among law enforcement agencies, the premium increases implemented during peak theft years are now baked into average rates.
- Supply chain issues: Ongoing shortages of auto parts and skilled labour in Ontario.
- Inflation: Higher costs erode funds set aside for future claims, prompting insurers to raise premiums. Inflation reached 8.1% in 2022.
- Car insurance fraud and vehicle theft: Both remain widespread in Ontario. According to the Insurance Bureau of Canada, fraud costs each Ontario driver an estimated $236 per year, while theft adds another $130.
- Fatal car accidents: These have been increasing in frequency across the province.
While U.S. tariffs on vehicles and auto parts have not yet caused significant price increases in insurance, the 2026 renegotiation of CUSMA and the continued decline of work‑from‑home arrangements could lead to further premium increases.
How do I file a car insurance claim in Ontario?
When filing an auto insurance claim in Ontario, include as many of the following as possible:
- Your auto insurance policy number
- Your licence number
- Your vehicle information, such as make, model and year
- A description of the event
- A description of the damage or injury, including photos if possible
- A list of the passengers present at the time of the incident
- A list of drivers involved, along with their licence numbers and insurance providers
- The badge number of the police officer if one is called to the scene
Make sure you file as soon as possible. Your claim could be denied if you don't file it within a week. Once your claim is filed, you will be contacted by a claims adjustor to discuss your case and determine your eligibility and the amount you may be entitled to. If an at-fault driver is uninsured, your claim will be processed through the uninsured automobile portion of your policy.
What does it mean to be found 'at-fault' for an accident in Ontario?
Being at-fault means you have been deemed responsible for damage or injury by your insurance company. A driving event, like a collision, can have multiple at-fault motorists.
If you are found to be 50% or more at fault for a claim, the event will go on your insurance record. Having an at-fault accident on your record may cause your premiums to increase, though some insurance providers offer accident forgiveness, which means they won't increase your premiums after your first accident.
Alexandra Bosanac, Content Manager
Alexandra Bosanac has been a content manager for Rates.ca since 2021, specializing in auto insurance. She began covering auto insurance in 2017. Alexandra has a bachelor's degree in journalism from Toronto Metropolitan University. Before joining the Rates.ca editorial team, she reported for the Canadian Business, the Toronto Star, the National Post, and the CBC.
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Disclaimers
*More than 50% of Rates.ca users in Ontario who obtained an auto insurance quote from January to December 2024 saw savings ranging from $250 to $850, with an average savings of $517. The average savings amount represents the difference between the users’ average lowest quoted premium and the average of the second and third lowest quoted premiums generated by Rates.ca.
**The Registered Insurance Brokers of Ontario (RIBO) is the self-regulatory organization in charge of overseeing insurance brokers working in the province. Its mandate is to protect the public by ensuring that brokers meet provincial standards for licensing, professional competence, and ethical conduct. It maintains a public database of registered brokers, which displays a broker's licensing status and their standing within RIBO.