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Cheap Toronto Car Insurance Quotes

Toronto drivers save $816 on average by comparing car insurance quotes with RATESDOTCA.*

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Recent car insurance quotes in Toronto

Shopper from TORONTO, ONTARIO
2009 HONDA ACCORD EX 4DR October 03, 2022
$ 4,549
Per year
Cheapest Rate
$ 7,502
Per year
Average Rate
$ 2,953
or
39 %
in savings
Shopper from TORONTO, ONTARIO
2021 VOLKSWAGEN GTI AUTOBAHN 2.0 TSI 4DR HATCHBACK October 03, 2022
$ 6,925
Per year
Cheapest Rate
$ 10,104
Per year
Average Rate
$ 3,179
or
31 %
in savings

About Toronto car insurance

Toronto is a busy city. With so many vehicles on the road, Toronto drivers are used to heavy traffic. One thing we can never get used to, however, is the higher car insurance rates that come with living in, or commuting to, the city. Insurance rates vary depending on a lot of factors. If you haven’t been comparing rates, you are probably not getting the cheaper rates you deserve.

It won’t make your commute faster but comparing rates will help you save. Our data shows that drivers from the city saved an average of $511 on their car insurance premiums after comparing rates on RATESDOTCA.

With savings like that, you could afford to park downtown!

How does car insurance work in Toronto?

Toronto 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. Auto insurance in Toronto is a privatized industry, meaning you purchase your policy from a licensed insurance broker, insurance agent or direct writer:

Insurance brokers - they represent number of different insurance companies and their job is to find you the best rate from insurance companies that they represent.

Insurance agents - they represent only one insurance company. They only resell that particular company's insurance products.

Direct Writers - they are insurance companies that sell their own insurance policies directly to you.

Auto Insurance Regulations & Restrictions in Toronto

Car owners in Toronto (same as all cities in Ontario) are required by law to have car insurance. If you are found driving without valid auto insurance, your driver's license will be suspended and your vehicle will be towed. Fines for not carrying valid auto insurance is ranging from $5000 to $50,000.

Toronto auto insurance (same as 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 regulate all Ontario auto insurance rates to ensure all insurance company's proposed rates are reasonable, but also allow them to charge enough to cover their operating cost, future claims from consumers and their own profit.

Mandatory and optional auto insurance in Toronto

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 Toronto car insurance

Why is car insurance so expensive in Toronto?

Insurance companies base your rates on how likely you are to make a claim. Although your driving history is a major factor, high traffic volumes, collision numbers, and the cost of repairs also play a part.

  • Traffic Congestion: One of the busiest highways in the world, the 401, runs straight through the city of Toronto. With so many cars on the road, there’s a likelihood of more accidents. This leads to more claims that in turn drive up the costs of insurance.
  • Auto Insurance Fraud: Big cities like Toronto experience a lot of insurance fraud, which affects the entire insurance industry. When insurance companies have to pay out on fraudulent claims and repairs, they can no longer afford to maintain lower premiums. Rate increases are implemented to help cover these costs.
  • Auto Theft: According to the Insurance Bureau of Canada (IBC), a car is stolen every six minutes in Canada. Driving a car that is more susceptible to theft, and living in areas that have higher crime rates, will result in higher premiums. Every year, IBC produces a list of the top 10 stolen vehicles in each province. If your car appears on this list, it is very likely your insurance premiums will increase upon renewal.

Despite these factors, you can always find a better rate. Compare insurance rates today to get the best quote.

How much can I save on Toronto car insurance with RATESDOTCA?

In 2021, the average annual savings for Ontario drivers who used RATESDOTCA was $772*. Some drivers saved thousands more by comparing quotes with us.

Our tool is free to use, and it only takes a few minutes to find the cheapest rate. If you complete the process and don’t like what you see, you are under no obligation to buy. RATESDOTCA does not take any payment information. That’s left to our insurance partners whom we connect you with directly.

Toronto drivers pay a lot for auto insurance, but you can help bring the average down. Get a personalized car insurance quote today and see how much you can save!

* 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.

When should I shop around for the best car insurance rates in Toronto?

You don’t need to wait until renewal time to shop around for rates. If you’re done paying big city premiums and want to find cheaper rates, the easiest way to switch to a better rate is to shop online and compare. Let’s take a look at what else you could do to get cheaper car insurance rates:

  • Did you take a ministry-approved training program? Completing a Ministry of Transportation approved and accredited driving school will not only help you get your licence, but can bring down your premiums. When you’re on the lookout for quotes, make sure you mention this to get significant discounts.
  • Are you in the market to buy a car? Do some research before you buy and compare the cost of insurance for your shortlisted vehicles. Often, luxury cars and sports cars will cost more to insure, while cars like Toyota Camrys, Honda Accords, and Hyundai Elantras will cost less.
  • Are you planning a move? Since where you live affects your car insurance rates, it’s worth having a look at how insurance rates vary between postal codes. Toronto’s housing market isn’t cheap but depending on where you live you can save on car insurance.
  • Did you just get married? Or change jobs? Mention important life changes to your insurer as these milestones can help you save. If you have recently gotten married, for example, you might be seen as a safer driver and thus you might be eligible for savings.

Factors that determine your Toronto car insurance quotes

Everyone pays a different amount for car insurance, and insurance companies factor in a lot of details when they calculate your rate. Some are obvious. If you have received multiple speeding tickets or have been at fault for collisions, you would expect to pay a higher premium. But there are also other factors most drivers aren’t familiar with.

Here are some of the main factors that insurance companies consider when calculating car insurance rates in Toronto:

  1. Your neighbourhood: Your postal code can influence your car insurance rates. Insurance providers are risk assessors, so if drivers in your neighbourhood are more likely to file claims, then your rates will reflect this. Differences in the rate of claims from one postal code to the next can be linked to driving behaviour and congestion in the area, crime rates, and other geographic differences.
  2. Your vehicle: Driving a car decked out with aftermarket accessories, customized specifications, or luxury trim will also raise your insurance rates. These cars cost significantly more to repair or replace in the event of an accident.
  3. Your daily commute: You may have noticed that insurance companies request your annual mileage. The more time you spend on the road, the more likely you are to get in an accident. This is why commuters tend to pay more for car insurance. If you spend two hours on Highway 401 each day then zigzagging your way into downtown Toronto, you will face higher insurance costs than someone who leaves the car at home and takes the TTC or GO train to work. From an auto insurance perspective, commuting by transit, walking or cycling is a much better choice.
  4. Your driving history: Your personal driving record has an outsized impact in determining your car insurance premiums. If you have any convictions or accidents on your record, you’ll pay more for insurance until enough time has passed (usually six years). Those pesky speeding tickets can raise a red flag if you have a pattern of accumulating them. While parking tickets will not increase your insurance rates, if your driver’s licence gets suspended because of too many unpaid parking tickets, this can cause your insurance provider to increase your rates.
  5. The coverage you have: Like all cities in Ontario, Toronto has mandatory and optional auto insurance coverages. If you select coverages beyond the minimum requirement, you will pay more for that enhanced protection.
  6. Discount eligibility: Your age, occupation and alumni are all potential sources of discounts. You can always ask your insurance provider the type of discounts you're eligible for to make sure you get the best rate.
  7. Additional drivers: A policy that includes secondary drivers will expand the coverage of your vehicle, but it also means you'll pay more.
  8. Bundle your insurance: Your insurance provider might also ask you to bundle your insurance policies, such as home and auto, is an easy way to reduce your premium from 5-15%.

Toronto Car Insurance Rates By Postal Code

Postal Code Average Premium
M4C 0A1$2014
M4E 0A1$2014
M4J 0A1$2014
M4K 0A1$2014
M4L 0A1$2014
M4M 0A1$2014
M4P 0A1$1695
M4R 0A1$1695
M4S 0A1$1695
M4T 0A2$1695
M4V 0A1$1695
M4W 0A1$1695
M4X 0A1$2014
M4Y 0A1$2014
M5A 0A1$2014
M5B 0A1$2014
M5C 0A1$2016
M5E 0A1$2014
M5G 0A1$2016
M5H 0A1$2014
M5J 0A1$2016
M5K 0A1$2016
M5L 0A2$2016
M5M 0A1$1695
M5N 0A1$1695
M5P 0A1$1695
M5R 0A1$2016
M5S 0A1$2016
M5T 0A1$2014
M5V 0A1$2016
M5W 0A1$2016
M5X 1A1$2016
M6B 0A1$2202
M6C 0A1$2065
M6G 0A1$2065
M6H 0A1$2202
M6J 0A1$2065
M6K 0A1$2016
M6L 0A1$2016
M6N 0A1$2463
M6P 0A1$2154
M6R 0A1$2154
M7A 0A1$2016
M7Y 2G1$2014

Above average insurance premium numbers are according to data from RATESDOTCA Insuramap.

How to get the cheapest car insurance in Toronto

Want to pinch pennies on your car insurance? With Ontario’s relatively high auto insurance costs, many drivers in Toronto and throughout the province are looking to save on their premiums. Here are a few tips to get the cheapest Toronto car insurance quote.

Side note, car insurance rates in Toronto are governed by the Financial Services Regulatory of Ontario (FSRA). To get the cheapest car insurance in Toronto will be same way as getting the cheapest car insurance in Ontario.

  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: Toronto 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, multi-vehicle discount means you can insure more than one vehicle under the same insurance company to snag a 5 to 15% discount on your premiums.
  10. Ask about employee or alumni 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.
  12. Avoid additional drivers: A policy that includes secondary drivers will expand the coverage of your vehicle, but it also means you'll pay more. If you have a family member who rarely uses a vehicle, consider whether you need to keep them on the policy.

Tips for driving in Toronto

Toronto is a busy place, and while sharing the road is not something you have to enjoy, it is something you have to be good at!

Watch out for streetcars

Never pass a streetcar when it is stopped. Streetcars stop at almost every downtown intersection to let passengers hop on and off. When they stop, all cars behind them must stop too.

It might seem obvious, but also don’t drive into streetcar tunnels! You will inconvenience thousands of people, you will be embarrassed, and quite possibly arrested. Take your time to ensure you understand Toronto’s transit signage.

Watch out for cyclists

There are lots of cyclists in downtown Toronto. Take great care when driving in the city, especially when turning right or opening your door, to ensure that there are no cyclists in your blind spot.

Don’t stop in bike lanes, and make sure you keep a one-metre (three feet) distance when passing cyclists in your car. It’s the law.

Avoid these intersections at rush hour

Toronto Mayor John Tory worked with the city to identify ten of Toronto’s most congested intersections. They are:

  • Eglinton Avenue West and Martin Grove Road
  • Lawrence Avenue West and Black Creek Drive
  • St. Clair Avenue East and Mount Pleasant Avenue
  • Finch Avenue and Yonge Street
  • Sheppard Avenue and Yonge Street
  • Bloor Street East and Parliament Avenue
  • O’Connor Drive and Don Mills Road
  • Eastern Avenue and Carlaw Avenue
  • Finch Avenue East and Victoria Park Avenue
  • Kingston Road and Lawrence Avenue East

It is fair to say that driving during rush hour at any intersection, in any city, is probably a bit of a pain, but if you can adjust your route to avoid these Toronto hotspots you’ll save time (and perhaps keep the grey hairs at bay for a little longer).

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We saved Toronto drivers a total of $31,790,946 last year.*

Sure, it’s easy to stay with your current insurer and to let your policy renew automatically. But you could be leaving money on the table by not shopping around.

Take three minutes to see if another insurance company can offer you a better rate. RATESDOTCA compares more car insurance providers than anyone else, so you can be confident that you’re finding the lowest price on car insurance.  As you can see, the savings add up.

Join the thousands of Toronto drivers who use RATESDOTCA to lower their car insurance bills today.

*Shoppers in Ontario who obtained a quote on RATESDOTCA and transacted via our contact centre from July to December 2021 saved an average amount of $772. 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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