Cheap Toronto Car Insurance Quotes

How much does average car insurance cost in Toronto?

The average Toronto car insurance costs $1952 per year or $163 per month, based on our current RATESDOTCA Insuramap data, which is $297 more than the Ontario provincial average of $1,555 a year. The average cost of car insurance for the Greater Toronto Area (including Toronto) is $1,842, meaning that driving costs Toronto drivers about 6% more than their suburban counterparts. When we look at prices for the rest of Ontario, Toronto is the seventh most expensive city to be a driver.

The high average cost of Toronto car insurance is also linked to the likelihood of claims and crime rates in the city, which is why Toronto drivers pay more than drivers who live in smaller towns.

Factors that determine your Toronto car insurance quotes

No one pays the same amount for car insurance, and insurance companies factor in many details when calculating your rate. Some are obvious. You can expect to pay a higher premium if you have received multiple speeding tickets or have been at fault for collisions. 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, 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 after 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 about the discounts you're eligible for to ensure you get the best rate.
7. Additional drivers: A policy that includes secondary drivers will expand your vehicle's coverage, 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, as an easy way to reduce your premium from 5-15%.

Direct writers vs. insurance brokers vs. quote comparison websites

Direct writers provide insurance quotes from a single company. Insurance brokers offer quotes from a handful of companies. Quote comparison websites, like RATESDOTCA, compile insurance quotes from multiple brokers and insurance companies and aggregate user rates. By offering more options, shoppers have a better chance of finding a better policy when they use a quote comparison website.

Estimated average insurance premiums are from the 2021 RATESDOTCA Auto Insuramap.

Where are the cheapest car insurance rates in Toronto?

Where you live greatly impacts what you pay for car insurance. The variances are heightened in major cities. People living just one postal code over could be paying a different average rate than you. In Toronto, it’s not always immediately obvious which neighbourhood will have low rates. The city’s population and infrastructure are always growing and changing, so risks tend to migrate, too.

Eleven Toronto postal codes are tied for having the cheapest premiums in 2021. Here they are, sorted by official city ward:

• Toronto Centre (M4X. M5B, M4Y, M5H, M5G)
• University-Rosedale (M4W, M5S, M7A)
• Spadina-Fort York (M4X, M5V, M5J)
  • Average premium in 2021: $1,620

The neighbourhoods paying $1,620 a year are in central downtown Toronto. We can deduce that the reason people who live here pay cheaper rates is because they drive less frequently than their suburban counterparts and they have access to many other modes of transportation, like walking, biking, public transportation, and taxis.

The second-lowest premiums are found near the centre of Willowdale, a North York ward above Toronto's downtown core. The major intersections around the M2N postal code are Finch Ave. W. in the north, Sheppard Ave. W. to the south, Senlac Road to the west, and Yonge Street to the east. Residents here are more car-reliant, meaning claims activity is higher than in the downtown core.

• Willowdale (M2N)
  • Average premium in 2021: $1,652

The same can be said about the areas with the third-lowest premiums in the city. These postal codes are located in the western part of Toronto, with the fringes of some downtown wards included in the mix.

• University-Rosedale (M5T)
• Davenport (M6P, M6J, M6R, M6H, M6K)
• Parkdale-High Park (M6R, M6S, M6P)
• Spadina-Fort York (M5T,M6J, M6K,)
• Etobicoke-Lakeshore (M8Y, M8Z, M8X, M8W, M8V, M9B)
• Etobicoke Centre (M8X, M9B)
  • Average premium in 2021: $1,684

Average Toronto car insurance rate changes

Estimated average insurance premiums are based on the RATESDOTCA Auto Insuramap data.

After years of increases, the cost of auto insurance in Toronto declined when COVID-19 swept the city in early 2020. The average annual premium for Toronto in 2021 was 11.3% lower than the previous year's average.

However, for several reasons, the trend is not expected to continue into 2022. Chief among them is that Covid-19 insurance rebates offered by insurance companies as relief are expiring soon. Insurance costs will also be affected by people resuming their pre-pandemic driving habits. Rising inflation is also projected to put upward pressure on premiums.

*Represents the average saved by shoppers who obtained a Toronto quote on RATESDOTCA and transacted via our contact centre between January and December 2021. 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.