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How to get Toronto car insurance quotes on RATESDOTCA

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1. Tell us about your vehicle

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3. Choose the right coverage

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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!

Frequently asked questions about Toronto car insurance

How much does car insurance cost in Toronto?

Toronto consistently ranks in the top ten most expensive cities for auto insurance. The average Torontonian pays around $2,000 per year (around $166.67 per month), which is $495 more than the provincial average of $1505.

It doesn’t come as a surprise since Toronto is one of the most populous cities in Ontario. High premiums are also linked to the likelihood of claims, as well as crime rates in the city, which is why Toronto drivers pay more than drivers who live in smaller towns.

In Toronto, as in the rest of Ontario, drivers are required to hold a mandatory minimum car insurance policy that includes the following coverage: third-party liability, statutory accident benefits, direct compensation-property damage, and uninsured automobile. Optional coverage like collision and comprehensive can be purchased to include in your basic policy. You can learn more about these on our Ontario car insurance page.

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 2019, the average annual savings for Toronto drivers who used RATESDOTCA was $511*. Some drivers saved thousands by comparing quotes with us. If we look at the whole of Ontario, drivers who used RATESDOTCA saved an average of $520 on their annual car insurance premiums.**

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!

* Savings are calculated by deducting the lowest available quote from the second-lowest available quote. In 2019 the average savings for Toronto drivers were $510.63.

** Savings are calculated by deducting the lowest available quote from the second lowest available quote. In 2019 the average savings for Ontario drivers were $520.40.

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.

How do insurance companies calculate rates for Toronto drivers?

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.

Here are some of the lesser-known aspects 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.
  2. Your vehicle: Driving a car decked out with aftermarket accessories or customized specifications will also affect 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 the 401 each day, battling rush hour traffic and then having to zigzag your way into downtown, you will face a higher rate than someone who leaves the car at home and takes the TTC or GO train to work. From an insurance perspective, commuting via transit, walking or cycling is a much better choice.
  4. Your driving history: Your personal driving record plays the biggest role in 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.

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).

Save on Toronto car insurance today!

We understand that it’s easy to stay with your current insurer and automatically renew it when it’s time. But there’s nothing wrong with checking out other rates. Compare quotes from more than 30 of Canada’s top insurance companies and find better rates today. You’re all about those savings, and we’re all about helping you find them.

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