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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 (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.
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.
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:
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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 |
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.
Despite these factors, you can always find a better rate. Compare insurance rates today to get the best quote.
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.
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:
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.
Companies | Company Type | Phone | Address |
---|---|---|---|
Direct Writer |
1 (800) 387-4518 |
100 King St. W., Toronto, ON M5X 1E3 |
|
Direct Writer |
1 (800) 268-8801 |
121 King St. W. #1400, Toronto, ON M5H 3T9 |
|
Direct Writer |
(416) 863-1750 |
777 Bay St., Toronto, ON M5G 2C8 |
|
Direct Writer |
1 (877) 422-6487 |
522 University Ave., Toronto, ON M5G 1A4 |
|
Quotes Comparison |
1 (855) 821-7312 |
225 King St W, Suite 1000, Toronto, ON, M5V 3M2 |
|
Quotes Comparison |
1 (855) 487-6911 |
1910 Yonge St. Suite 401, Toronto, ON M4S 3B2 |
|
Direct Writer |
(416) 350-4300 |
105 Adelaide St. W., Toronto, ON M5H 1P9 |
|
Direct Writer |
(416) 955-6286 |
155 Wellington St. W. #138B, Toronto, ON M5V 3H1 |
|
Direct Writer |
1 (800) 268-8406 |
700 University Ave., Suite 1500A, Toronto, ON M5G 0A1 |
|
Quotes Comparison |
1 (844) 726-0907 |
225 King St W, Suite 1000, Toronto, ON, M5V 3M2 | |
Insurance Brokers |
1 (866) 456-6620 |
300 Lincoln St. Unit 22, Welland, ON L3B 4N4 |
|
Direct Writer |
(416) 360-8183 |
20 Queen St. W., Toronto, ON M5H 3R3 |
|
Direct Writer |
1 (800) 268-7300 |
4120 Yonge St. Suite 100, North York, ON M2P 2B7 |
|
Direct Writer |
(416) 366-7511 |
18 York St., Toronto, ON M5J 2T8 |
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.
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 | $1,810 | 6.35% |
M4R | $1,695 | $1,810 | 6.35% |
M4S | $1,695 | $1,810 | 6.35% |
M4T | $1,695 | $1,810 | 6.35% |
M4V | $1,695 | $1,810 | 6.35% |
M5P | $1,695 | $1,810 | 6.35% |
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 | $1,887 | 10.17% |
M5N | $1,695 | $1,887 | 10.17% |
M6L | $2,016 | $1,887 | -6.84% |
M6G | $2,065 | $2,060 | -0.24% |
M6B | $2,202 | $2,060 | -6.89% |
M6C | $2,065 | $2,161 | 4.44% |
M6N | $2,463 | $2,238 | -10.05% |
Estimated average insurance premiums are from the 2021 RATESDOTCA Auto Insuramap.
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:
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.
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.
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 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.
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.
*Represents the average saved by Toronto shoppers who obtained a quote on RATESDOTCA and transacted via our contact centre between January and December 2022. 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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