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Cheap Toronto Car Insurance Quotes

Toronto drivers save $772* on average with RATESDOTCA.

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Aviva
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Economical

Car insurance 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 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.

Toronto auto insurance rate & regulations

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. Auto insurance providers can apply to increase or decrease their rates every quarter, and usually request rate increases due to changes in a particular coverage. Auto insurance companies also offer rate reduction, insurance rebate and billing flexibility to provide financial relief to their customers during this COVID-19 pandemic.

How to get Toronto car insurance quotes on RATESDOTCA

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Recent auto insurance quotes in Toronto

Shopper from TORONTO, ONTARIO
2022 MERCEDES-BENZ CLA250 4MATIC 4DR COUPE July 01, 2022
$ 2,924
Per year
Cheapest Rate
$ 4,743
Per year
Average Rate
$ 1,819
or
38 %
in savings
Shopper from TORONTO, ONTARIO
2017 HYUNDAI SANTA FE SPORT 4DR 2WD July 01, 2022
$ 1,141
Per year
Cheapest Rate
$ 2,040
Per year
Average Rate
$ 899
or
44 %
in savings
Shopper from TORONTO, ONTARIO
2009 MAZDA MAZDA3 GX 4DR July 01, 2022
$ 2,270
Per year
Cheapest Rate
$ 3,718
Per year
Average Rate
$ 1,448
or
39 %
in savings
Shopper from TORONTO, ONTARIO
2012 HONDA ACCORD SE 4DR July 01, 2022
$ 1,102
Per year
Cheapest Rate
$ 1,848
Per year
Average Rate
$ 746
or
40 %
in savings

How much does average car insurance cost in Toronto?

The average Toronto car insurance cost $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.

High cost in Toronto car insurance 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.

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%.

Mandatory and optional auto insurance in Toronto

Providers of auto insurance quotes in Toronto  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.

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.

Companies that provide auto insurance quotes in Toronto

Companies Company Type Phone Address

Aviva

Direct Writer

1 (800) 387-4518

100 King St. W., Toronto, ON M5X 1E3

Economical

Direct Writer

1 (800) 268-8801

121 King St. W. #1400, Toronto, ON M5H 3T9

Facility Association

Direct Writer

(416) 863-1750

777 Bay St., Toronto, ON M5G 2C8

iA Financial Group

Direct Writer

1 (877) 422-6487

522 University Ave., Toronto, ON M5G 1A4

Insurance Hotline

Quotes Comparison

1 (855) 821-7312

360 Adelaide St. W. Suite 100, Toronto, ON M5V 1R7

LowestRates.ca

Quotes Comparison

1 (855) 487-6911

1910 Yonge St. Suite 401, Toronto, ON M4S 3B2

Northbridge

Direct Writer

(416) 350-4300

105 Adelaide St. W., Toronto, ON M5H 1P9

RBC Insurance

Direct Writer

(416) 955-6286

155 Wellington St. W. #138B, Toronto, ON M5V 3H1

RSA Insurance

Direct Writer

1 (800) 268-8406

700 University Ave., Suite 1500A, Toronto, ON M5G 0A1

RATESDOTCA

Quotes Comparison

1 (844) 726-0907

360 Adelaide St.. W Suite 100, Toronto, ON M5V 1R7

Scoop Insurance

Insurance Brokers

1 (866) 456-6620

300 Lincoln St. Unit 22, Welland, ON L3B 4N4

Travelers

Direct Writer

(416) 360-8183

20 Queen St. W., Toronto, ON M5H 3R3

Wawanesa

Direct Writer

1 (800) 268-7300

4120 Yonge St. Suite 100, North York, ON M2P 2B7

Western Assurance

Direct Writer

(416) 366-7511

18 York St., Toronto, ON M5J 2T8

Direct writers vs. insurance brokers vs. quote comparison websites

In the insurance business, 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 aggregates the rates for users. By offering more options, shoppers have a better chance of finding a better policy when they use a quote comparison website.

Toronto car insurance rates by postal code

Postal Code Estimated Average Premium 2020 Estimated Average Premium 2021 YoY change
M4W$1,695$1,620-4.63%
M4X$2,014$1,620-24.32%
M4Y$2,014$1,620-24.32%
M5B$2,014$1,620-24.32%
M5H$2,014$1,620-24.32%
M5G$2,016$1,620-24.44%
M5J$2,016$1,620-24.44%
M5S$2,016$1,620-24.44%
M5V$2,016$1,620-24.44%
M7A$2,016$1,620-24.44%
M5T$2,014$1,684-19.60%
M6K$2,016$1,684-19.71%
M6J$2,065$1,684-22.62%
M6P$2,154$1,684-27.91%
M6R$2,154$1,684-27.91%
M6H$2,202$1,684-30.76%
M4P$1,695$1,8106.35%
M4R$1,695$1,8106.35%
M4S$1,695$1,8106.35%
M4T$1,695$1,8106.35%
M4V$1,695$1,8106.35%
M5P$1,695$1,8106.35%
M4C$2,014$1,810-11.27%
M4E$2,014$1,810-11.27%
M4J$2,014$1,810-11.27%
M4K$2,014$1,810-11.27%
M4L$2,014$1,810-11.27%
M4M$2,014$1,810-11.27%
M5A$2,014$1,810-11.27%
M5E$2,014$1,810-11.27%
M7Y$2,014$1,810-11.27%
M5C$2,016$1,810-11.38%
M5K$2,016$1,810-11.38%
M5L$2,016$1,810-11.38%
M5R$2,016$1,810-11.38%
M5W$2,016$1,810-11.38%
M5X$2,016$1,810-11.38%
M5M$1,695$1,88710.17%
M5N$1,695$1,88710.17%
M6L$2,016$1,887-6.84%
M6G$2,065$2,060-0.24%
M6B$2,202$2,060-6.89%
M6C$2,065$2,1614.44%
M6N$2,463$2,238-10.05%

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

Where in Toronto have the cheapest car insurance rates?

Where you live has a big impact on what you pay for car insurance, and when it comes to city-dwelling, the variances are heightened. People living just one postal code over are likely paying a different average rate than you. In a city, it’s not always immediately obvious which neighbourhood will have low rates. The city’s population and infrastructure is always growing and changing, so that means 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 ward in North York, located above the downtown core of Toronto. 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

Toronto car insurance rate (2018-2021)

Year Estimated Average Premium Changes
2018 $1,780 N/A
2020 $2,200 19.13%
2021 $1,952 -11.30%

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 a number of 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.

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Compare Toronto car insurance quotes & start saving today!

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 high 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 car insurance quotes, you are probably not getting the cheaper rates you deserve.

It won’t make your commute faster but comparing car insurance quotes will help you save. Our data shows that drivers from the city saved an average of $772 on their car insurance premiums after comparing quotes on RATESDOTCA.

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 quotes. Compare quotes from more than 50 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.

*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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