Cheap Toronto Car Insurance Quotes
With RATESDOTCA, drivers in Toronto saved an average of $635* on their car insurance premiums.
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On this page:
- Car insurance in Toronto
- Toronto auto insurance rate & regulations
- How much does car insurance cost in Toronto on average?
- Factors that determine your Toronto car insurance quotes
- Mandatory and optional auto insurance in Toronto
- Frequently asked questions about Toronto car insurance
- How to get the cheapest car insurance in Toronto
- Companies that provide auto insurance quotes in Toronto
- Best car insurance companies in Toronto 2025
- Toronto car insurance rates by postal code
- Where are the cheapest car insurance rates in Toronto?
- Average Toronto car insurance rate changes
- Save on Toronto car insurance today
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Car insurance in Toronto
Drivers in Toronto 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.
Toronto auto insurance rate & regulations
Toronto 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 regulates all Ontario auto insurance rates to ensure their rate changes are reasonable, while also allowing them to charge enough to cover their operating costs, future claims from consumers and make a profit. Auto insurance providers must apply to increase or decrease their rates, and usually request rate adjustments due to changes in a particular coverage.
Direct writers vs. insurance brokers vs. quote comparison websites
There are more ways to buy insurance than ever before. Here's a breakdown of all the entities that exist to help Canadian consumers get coverage.
First, there's the classic insurance company. These institutions underwrite policies and rely on dedicated agents to sell their products. Agents can only sell the products offered by the insurance company.
Many insurance companies now offer a convenient option known as 'direct writing'. This term refers to a division of an insurance company that underwrites and sells simplified policies directly to consumers. With direct writers, you can complete your purchase online without the need for an agent. This not only saves you time but also often results in lower premiums due to their streamlined operations. However, it's important to note that direct writers may not be suitable for those considered high-risk to insure.
Insurance brokers offer quotes from multiple companies. However, they do not sell insurance; they can only refer you to an insurance company, which will then complete the sale. Brokers earn commissions from the insurance companies they partner with, which makes their services free for consumers.
Quote comparison websites, such as RATESDOTCA, offer a flexible and accessible way to compare insurance options. They aggregate quotes from multiple brokers and insurance companies, allowing you to easily see the range of prices and policies available. If you find a price you like, we will transfer you to the company offering it. It's as simple as using a hotel or flight comparison website. Plus, there's no obligation to follow-up on a quote.
Recent car insurance quotes in Toronto
Recent auto Insurance Quote from Toronto, Ontario
Male, 19 years old
2012 MAZDA MAZDA3 SPORT GT 5DR
July 11, 2025
Cheapest Quote
$ 752 / month
$ 9,022 / yearAverage Quote
$ 1,075 / month
$ 12,898 / yearSavings
$ 323 / month
$ 3,876 / year
30 %
Recent auto Insurance Quote from Toronto, Ontario
Male, 26 years old
2003 TOYOTA ECHO 4DR
July 11, 2025
Cheapest Quote
$ 167 / month
$ 2,000 / yearAverage Quote
$ 288 / month
$ 3,454 / yearSavings
$ 121 / month
$ 1,454 / year
42 %
Recent auto Insurance Quote from Toronto, Ontario
Male, 36 years old
2019 VOLKSWAGEN JETTA S 1.4 TSI 4DR
July 11, 2025
Cheapest Quote
$ 614 / month
$ 7,370 / yearAverage Quote
$ 743 / month
$ 8,913 / yearSavings
$ 129 / month
$ 1,543 / year
17 %
Auto insurance quotes are compared from CAA, Coachman Insurance Company, Echelon Insurance, Economical Insurance, Gore Mutual, Pafco, Pembridge, SGI, Travelers, Zenith Insurance Company
How much does car insurance cost in Toronto on average?
The average cost of car insurance in Toronto for 2023 is $2,325 per year or about $193 per month, according to RATESDOTCA Insuramap. That’s a 19% jump from the 2021 premium of $1,953.
Toronto’s average car insurance rate is 33.3% higher than the provincial average of $1,744 per year or $145 per month.
Although inflation has come down somewhat from its peak of 8.1% last year, the effects were felt throughout the industry in 2023, which helps explain the jump in rates. In total, 73 auto insurance companies requested and received approvals to raise rates last year, with some raising the rates by as much as 16%. The average rate change was 3.9%.
Another reason for the rapid growth of auto insurance rates is the number of thefts in Ontario. Specifically in Toronto, more than 12,000 cars were stolen in 2023 – a more than 24% jump from 2022.
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:
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- Additional drivers: A policy that includes secondary drivers will expand your vehicle's coverage, but it also means you'll pay more.
- 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%.
How to get Toronto car insurance quotes on RATESDOTCA
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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. |
| 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. |
| Direct Compensation-Property Damage (DC-PD) | Optional | DCPD is a standard coverage, but drivers in Ontario can opt to remove it. It covers damage to your car, or loss of use of your vehicle, if someone else is at fault. It must have involved another insured vehicle. Removing DCPD coverage disqualifies you from these benefits and you cannot sue for vehicle damage, either. |
| 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?
One of the best ways to save money on Toronto car insurance is to compare rates from different providers in the area.
The average amount we save Toronto drivers is $959*. How do we do that?
It starts with you taking a few minutes to tell us a little bit about yourself and your car insurance needs. We will provide quotes from multiple auto insurance providers in mere minutes. RATESDOTCA compares more car insurance providers than anyone so you can be assured you’ve left no stone unturned, and you are seeing the cheapest rates.
The savings are not just a promise; they're real and can be achieved with very little effort on your part. Join the thousands of Toronto drivers who have successfully lowered their car insurance bills with RATESDOTCA. Start saving today.
* 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
Car insurance rates in Toronto are overseen by the Financial Services Regulatory of Ontario (FSRA). The tactics that lower your car insurance premium in Toronto apply to the rest of Ontario, too. Here are a few tips to get the cheapest car insurance in Ontario.
- 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.
- 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 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.
- Use 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 | Quotes |
|---|---|---|---|---|
Aviva | Insurance company | 1 (800) 387-4518 | 100 King St. W., Toronto, ON M5X 1E3 | |
Economical | Insurance company | 1 (800) 268-8801 | 121 King St. W. #1400, Toronto, ON M5H 3T9 | |
Facility Association | Non-profit association of insurers | (416) 863-1750 | 777 Bay St., Toronto, ON M5G 2C8 | |
iA Financial Group | Insurance company | 1 (877) 422-6487 | 522 University Ave., Toronto, ON M5G 1A4 | |
Insurance Hotline | Quotes comparison | 1 (855) 821-7312 | 225 King St W, Suite 1000, Toronto, ON, M5V 3M2 | |
LowestRates.ca | Quotes comparison | 1 (855) 487-6911 | 1910 Yonge St. Suite 401, Toronto, ON M4S 3B2 | |
Northbridge | Insurance company | (416) 350-4300 | 105 Adelaide St. W., Toronto, ON M5H 1P9 | |
RBC Insurance | Insurance company | (416) 955-6286 | 155 Wellington St. W. #138B, Toronto, ON M5V 3H1 | |
RSA Insurance | Insurance company | 1 (800) 268-8406 | 700 University Ave., Suite 1500A, Toronto, ON M5G 0A1 | |
RATESDOTCA | Quotes comparison | 1 (844) 726-0907 | 225 King St W, Suite 1000, Toronto, ON, M5V 3M2 | |
Scoop Insurance | Insurance broker | 1 (866) 456-6620 | 300 Lincoln St. Unit 22, Welland, ON L3B 4N4 | |
Travelers | Insurance company | (416) 360-8183 | 20 Queen St. W., Toronto, ON M5H 3R3 | |
Wawanesa | Insurance company | 1 (800) 268-7300 | 4120 Yonge St. Suite 100, North York, ON M2P 2B7 | |
Western Assurance | Insurance company | (416) 366-7511 | 18 York St., Toronto, ON M5J 2T8 |
The best car insurance companies in Toronto in 2025
Choosing a car insurance company can be confusing. While we at RATESDOTCA encourage drivers to shop around for the lowest priced insurer, sometimes you’re looking for something more — like whether an insurer has good rates and superb customer service, a useful app, and helpful claims agents.
For our second RATESDOTCA Annual Best Auto Insurance Study, we surveyed drivers in Ontario and Alberta to see what they say are the best car insurance companies in several categories. Here's what they said are the best car insurance companies in Canada right now.
Rates.ca Annual Best Auto Insurance Study 2025
Awards
CAA Insurance: WINNER
About
CAA Insurance is the best overall insurance company, say Canadian drivers surveyed by Rates.ca. It excels in trustworthiness, policy documents, and ease of claims filing.
Drivers see CAA as offering the lowest rates and best value for money. Customers also like its suite of innovative products and for having coverage that fits their needs.
It's the second year in a row that CAA has earned platinum distinctions.
Pros
- Rated highest in overall satisfaction by current customers.
- Most affordable premiums, according to customers.
- Coverage provides good value in return for premiums, customers also say.
- Rated highly for its innovative products and coverage options.
- Market leader in issuing policy documents and billing statements that are easy to understand.
Awards
Gore Mutual
About
Gore Mutual has emerged as one of the study's best rated insurance companies, achieving some of the highest satisfaction ratings among Canadians surveyed.
Gore scores highly in all areas of service. Customers say that policy documents and billing statements are clear and easy to understand, and that the website is user-friendly.
Gore policyholders are more likely to file a claim online than clients of other insurance companies.
Pros
- Won Gold in trustworthiness, best policy documents, and best billing statements
- Ranks highly for innovation; customers rate Gore's website positively, and most file claims by email
- Gore excels in all areas of service and are seen to offer products that meets customers' needs
- Scores highly for quality of policy documents
Awards
Intact Insurance
About
Intact Insurance rates consistently well in all categories, placing third overall. They also placed third in categories of Most Trustworthy, Best Auto Claims Experience, and Best Billing Documents.
Customers with Intact are most likely to contact the insurance broker first to open a claim and were much more likely to use Intact's online app compared to other carriers. They were also more likely to receive policy documents electronically.
Pros
- Customers are likely to say that Intact is a trustworthy brand.
- Intact scores high for its claims service, with more customers likely to file a claim via online app than other carriers.
- Intact customers are also more likely to receive status updates on their claims by telephone; in general, customers with Intact had higher than average contact with the insurer than other companies.
How we got these rankings
RATESDOTCA surveyed more than 12,600 drivers in Ontario and Alberta and asked them to rate their insurer's performance in key areas. The highest-scoring ones were eligible for three awards: Best Overall Insurer, Most Trustworthy Insurer, and Best Auto Claims Experience. Here's the criteria our survey respondents used to rate their insurer:
- Trustworthiness: This section assessed whether an insurance company provides good value for the premiums charged and also whether their products meet the current needs of drivers.
- Claims experience: We asked drivers how easy filing a claim is with a company and asked them to rate the service they received. For example, did they do a good job of outlining next steps and was it resolved in a timely manner?
- Policy documents: We asked whether Canada’s insurers make it to understand what coverages are (and are not) included in a policy and whether they make it clear who you should contact in different situations.
- Billing statements: We wanted to know if the bills issued by Canada’s insurers are easy or crazy-making. For example, is the premium amount and payment schedule clearly outlined?
- Customer portal/app: The design of an app can make or break your opinion about your insurance company. We asked customer whether about their insurer’s app makes it easy to find to complete a task.
Learn more about the methodology we used.
Toronto car insurance rates by postal code
| Postal code | Borough | Estimated average premium 2023 |
|---|---|---|
M4B | East York | $2,326 |
M4G | East York | $2,210 |
M4H | East York | $2,326 |
M8V | Etobicoke | $2,158 |
M8W | Etobicoke | $2,158 |
M8X | Etobicoke | $2,158 |
M8Y | Etobicoke | $2,158 |
M8Z | Etobicoke | $2,158 |
M9A | Etobicoke | $2,158 |
M9B | Etobicoke | $2,158 |
M9C | Etobicoke | $2,158 |
M9P | Etobicoke | $2,217 |
M9R | Etobicoke | $2,217 |
M9V | Etobicoke | $2,217 |
M9W | Etobicoke | $2,217 |
M2H | North York | $2,401 |
M2J | North York | $2,401 |
M2K | North York | $2,242 |
M2L | North York | $2,242 |
M2M | North York | $2,401 |
M2N | North York | $2,242 |
M2P | North York | $2,210 |
M2R | North York | $2,242 |
M3A | North York | $2,242 |
M3B | North York | $2,210 |
M3C | North York | $2,401 |
M3H | North York | $2,419 |
M3J | North York | $2,892 |
M3K | North York | $2,422 |
M3L | North York | $2,553 |
M3M | North York | $2,553 |
M3N | North York | $2,892 |
M4A | North York | $2,401 |
M4N | North York | $2,210 |
M6A | North York | $2,553 |
M6M | North York | $2,553 |
M9L | North York | $2,892 |
M9M | North York | $2,731 |
M9N | North York | $2,553 |
M1B | Scarborough | $2,580 |
M1C | Scarborough | $2,331 |
M1E | Scarborough | $2,331 |
M1G | Scarborough | $2,392 |
M1H | Scarborough | $2,572 |
M1J | Scarborough | $2,580 |
M1K | Scarborough | $2,572 |
M1L | Scarborough | $2,401 |
M1M | Scarborough | $2,331 |
M1N | Scarborough | $2,326 |
M1P | Scarborough | $2,572 |
M1R | Scarborough | $2,401 |
M1S | Scarborough | $2,572 |
M1T | Scarborough | $2,360 |
M1V | Scarborough | $2,572 |
M1W | Scarborough | $2,360 |
M1X | Scarborough | $3,371 |
M4C | Toronto | $2,217 |
M4E | Toronto | $2,331 |
M4J | Toronto | $2,217 |
M4K | Toronto | $2,210 |
M4L | Toronto | $2,217 |
M4M | Toronto | $2,217 |
M4P | Toronto | $2,210 |
M4R | Toronto | $2,210 |
M4S | Toronto | $2,210 |
M4T | Toronto | $2,210 |
M4V | Toronto | $2,210 |
M4W | Toronto | $2,210 |
M4X | Toronto | $2,217 |
M4Y | Toronto | $2,326 |
M5A | Toronto | $2,217 |
M5B | Toronto | $2,217 |
M5C | Toronto | $2,217 |
M5E | Toronto | $2,217 |
M5G | Toronto | $2,217 |
M5H | Toronto | $2,217 |
M5J | Toronto | $2,217 |
M5K | Toronto | $2,217 |
M5L | Toronto | $2,217 |
M5M | Toronto | $2,210 |
M5N | Toronto | $1,389 |
M5P | Toronto | $2,210 |
M5R | Toronto | $2,217 |
M5S | Toronto | $2,217 |
M5T | Toronto | $2,217 |
M5V | Toronto | $2,217 |
M5W | Toronto | $2,217 |
M5X | Toronto | $2,217 |
M6B | Toronto | $2,217 |
M6C | Toronto | $1,389 |
M6G | Toronto | $2,217 |
M6H | Toronto | $2,217 |
M6J | Toronto | $2,217 |
M6K | Toronto | $2,217 |
M6L | Toronto | $2,217 |
M6N | Toronto | $1,466 |
M6P | Toronto | $2,217 |
M6R | Toronto | $2,217 |
M7A | Toronto | $2,242 |
M7Y | Toronto | $2,242 |
M6E | York | $2,553 |
M6S | York | $2,158 |
Estimated average insurance premiums are from the 2023 RATESDOTCA Auto Insuramap.
Where are the cheapest car insurance rates in Toronto?
Where you live in Toronto dramatically impacts what you pay for car insurance. People living just one postal code over could be paying a different average rate than you. In Toronto, it's not always immediately apparent which neighbourhood will have low rates. The city's constantly growing and changing, so hazards change and relocate accordingly.
Two postal codes in one city ward are tied for having the most affordable rates in the city. These postal codes lie in midtown Toronto in predominantly affluent neighbourhoods with good public transportation and access to amenities. Drivers can leave their cars at home during the workweek and likely have the cash to take extra measures to reduce their theft risk. Single-family homes with garages where cars can be secured and monitored are common.
Here they are, sorted by official city ward:
- Eglinton-Lawrence (M5N, M6C)
- Average premium in 2023: $1,389
The second lowest auto insurance premium in Toronto is in the ward of York South-Weston in the Stockyards neighbourhood. The area is a mix of industrial, commercial, and residential uses. While the area is no stranger to traffic congestion, many residents rely on public transportation; buses and streetcars all run through here.
- York South-Weston (M6N)
- Average premium in 2023: $1,466
Finally, the third cheapest rate in the city is found in a few west-end wards. At $2,158 and $2,210 annually, rates here are substantially higher rates than the next lowest rates (47% and 33.6% higher, to be specific). These are car-dependent neighbourhoods, with greater risk of accidents and theft. However, residents can supplement their car use with streetcars, subways, buses, and commuter trains.
- Etobicoke-Lakeshore (M8V, M8X, M8Y, M8Z, M9A, M9B)
- Etobicoke Centre (M9C)
- Parkdale-High Park (M6S)
- Average premium in 2023: $2,158
Average Toronto car insurance rate changes
Toronto car insurance rate (2018-2023)
| Year | Estimated average premium | Change |
|---|---|---|
| 2023 | $2,325 | 19% |
| 2021 | $1,953 | -12.6% |
| 2020 | $2,200 | 19.1% |
| 2018 | $1,780 | N/A |
Estimated average insurance premiums are based on the RATESDOTCA Auto Insuramap data.
As seen in the chart above, insurance averages in Toronto have bounced around over the last half-decade. Starting after the COVID-19 pandemic took hold and forced many people and businesses to remain in lockdown, average insurance rates dropped by more than 12% after having been on a tear previously.
Fewer drivers were going to an office, there was nowhere to shop or dine out, and people simply stayed out of their cars. But as the pandemic abated and inflation reared its head, average car insurance rates began to rise once again. This can be seen between 2021 and 2023 when the average premium increased by 19%.
Insurance companies have requested rate increases in order to keep up with the pace of inflation. The Financial Services Regulatory Authority of Canada approved rate increases for 73 auto insurance companies this year.
Auto thefts haven’t helped, either. Due to the increase in thefts, comprehensive insurance premiums for commonly stolen vehicles have increased between 25% and 50% over the past two years.
We saved Toronto drivers a total of $31,790,946 last year.*
Sure, its 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 Toronto who obtained a quote on RATESDOTCA from January to December 2023 saved an average of $635 per year. The average savings represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by RATESDOTCA.
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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