News & Resources

Which Cities Have Cheap Auto Insurance?

July 26, 2019
3 mins
A man driving in his modern car

Are you looking for cheap auto insurance in Ontario? Ontario has some of the highest insurance rates in Canada. The average insurance premium in Ontario is estimated at $1,473. 

In Brampton, drivers pay about $2,494 and in Toronto it's $1,948. These figures exceed the average by $500 to $1,000. With over six million residents in Toronto, depending on where you live 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.

Where to find cheap car insurance in Ontario

Every quarter, insurers can request to have their rates raised or lowered. It was the Financial Services Commission of Ontario (FSCO) until June, but insurance pricing is now regulated by the Financial Services Regulatory Authority of Ontario (FSRA). They can approve and deny all of the requests that insurers have.

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. These include:

  • Ottawa $1,151 per year
  • Kitchener $1,264 per year
  • London $1,392 per year
  • Windsor $1,368 per year

Exploring areas outside of the GTA

About 83% of auto insurance fraud in Ontario takes place in the GTA. That's according to the Ontario Auto Insurance Anti-Fraud Task Force.

Additionally, insurance fraud costs consumers about $1.3 billion or 13% of their auto insurance premiums. When shopping for the cheapest car insurance rates in Ontario, you'll find that rates are cheaper outside of the GTA. There are a few areas that show average insurance premiums which are lower than $1,100. These areas include:

  • Belleville, Bracebridge and Brockville
  • Cobourg, Cornwall and Gravenhurst
  • Huntsville, Kincardine and Kingston
  • Napanee, Parry Sound and Pembroke
  • Picton, Port Elgin, Port Hope and Trenton

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. But, there are a few ways that can help you save money on your auto insurance.  From bundling insurance to winter tires and driver safety courses, here's how to save money on insurance premiums. Ways to save on 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.
  • Keep a clean driving record. Avoiding tickets, accidents and claims can reduce your premiums.
  • Bundle your insurance. Combining insurances like home and auto, insurance can lower your rates by 5 to 15%.
  • Increase your deductible. Raising your $250 or $500 deductible to $1,000 can lower your rates by up to 10%. Just ensure you will have the money available if you have an accident claim.
  • Add winter tires. You can save up to 5% on coverage.
  • 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 for drivers that take a safety course.
  • Change your coverage. You can add on options (which might increase your coverage amount). Or, take off options (like if you only want basic coverage for an older vehicle you don't 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.

Latest life insurance articles

Will a Life Insurance Policy Cover Death Due to COVID-19?
Demand for life insurance may be on the rise during the pandemic as more Canadians consider buying a policy or reviewing ones they already have. If you’re thinking of applying for a policy, here are a few things to keep in mind.
How Does Vaping and e-Cigarettes Affect Life Insurance?
Many insurers may classify vaping in the same way they do smoking. If you smoke or vape, you can still qualify for a life insurance premium, but in all likelihood, you will pay a higher rate than someone who does not.
Credit Life Insurance: Is It Worth It?
You’re a new homebuyer in the final stages of closing a mortgage. Suddenly the lender rep asks if you want to take out a life insurance policy for your mortgage. Do you take it?