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Which Cities Have Cheap Auto Insurance?

Aug. 19, 2021
3 mins
A husband and wife taking the groceries in from the car

Are you looking for cheap auto insurance in Ontario? The province has some of the highest insurance rates in Canada, with the average insurance premium being an estimated $1,616 annually, according to RATESDOTCA’s Insuramap.

In Brampton, drivers pay about $2,698, and in Toronto, drivers pay roughly $2,201. These figures cost a startling $500 to $1,000 more than the provincial average. With over six million residents in the greater Toronto area (GTA), factors like traffic and congestion account for the higher premiums. But it is possible to find cheap auto insurance coverage.

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Where to find cheap car insurance in Ontario

Every quarter, insurers can request to have their rates raised or lowered. The Financial Services Regulatory Authority of Ontario (FSRA) regulates insurance pricing by approving or denying all insurers’ requests.

For the most part, rate increases might occur because of higher payouts due to increased car accident claims in larger cities. But a city’s size is not always indicative of the insurance rate that a Canadian driver will pay.

A few of Ontario’s biggest cities have lower insurance premiums than the provincial average, including:

  • London ($1,509)
  • Windsor ($1,412)
  • Kitchener ($1,341)
  • Ottawa ($1,213)

Exploring areas outside of the GTA

About 83% of auto insurance fraud in Ontario takes place in the GTA, according to the Ontario Auto Insurance Anti-Fraud Task Force. Overall, insurance fraud costs consumers over $1 billion annually or up to $236 per year per policy.

When shopping for the cheapest car insurance in Ontario, you’ll find that rates are more reasonable outside of the GTA.

Here are the towns or cities in Ontario that have some of the cheapest car insurance rates in 2020:

  • Grimsby and Waterdown ($1,192)
  • Sudbury ($1,165)
  • Sarnia ($1,159)
  • St. Thomas ($1,124)
  • Cornwall, Petawawa, and Russell ($1,107)
  • Kingston, Napanee, Port Hope, Cobourg and Brockville ($1,103)

How to reduce your Ontario auto insurance rate

Even if you’re an excellent driver, your rates can change if you move, buy a new car, change your commute distance, or add other vehicles to your policy.

Here are a few tips to lower your auto insurance costs:

  • Comparison shop to find the best rates. There might be an insurer offering a lower car insurance rate than what you currently have. You should check every year for added savings by using an online auto insurance comparison tool before your renewal date.
  • Keep a clean driving record. Avoid tickets, accidents, and claims to reduce your premiums.
  • Bundle your insurance. Combine your home and auto insurance. You may be able to save anywhere from 5% to 15% on your premiums.
  • Increase your deductible. Raising your $250 or $500 deductible to $1,000 can lower your rates by up to 10%. However, you will have the money available if you have an accident claim, so consider if this option is right for you.
  • Add winter tires. You can save up to 5% on coverage for having your winter tires installed.
  • Pay your insurance premiums annually instead of monthly. You won’t incur the administrative fees each month when you do.
  • Ask for a discount. Some insurers provide senior discounts. There are also discounts for good drivers and those who have taken a government-recognized driver’s safety course.
  • Change your coverage. You can add options (which might increase your coverage amount) or take off options (like if you only want basic coverage for an older vehicle you do not drive every day).

Are you ready to shop for the best auto insurance rates?

In some parts of Ontario, drivers will pay more for auto insurance premiums. But, outside of the GTA, there are areas where insurance is cheaper. A clean driving record, bundling policies and comparison shopping are among factors that can reduce rates. Compare cheap car insurance quotes from Canada’s leading insurers to find the best price.

RATESDOTCA Team

The RATESDOTCA editorial team are experienced writers focused on sharing stories and bringing you the latest news in insurance and personal finance. Our goal is to provide Canadians with the information and resources they need to make better insurance and financial decisions.

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