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Toronto car insurance

Ahhh Toronto, a sparkling gem of a city, nestled on the northern shores of Lake Ontario, birthplace of cultural icons Drake and Neil Young, the city where insulin was discovered, where Canada Dry ginger ale and the whoopee cushion were invented (yes, really), and also the home of Rates.ca!

That’s right, we live and work in this wonderful city, and understand as well as anyone the challenges of driving here: cyclists, cabbies, streetcars, thousands of pedestrians all staring down at their phones or up at the CN Tower, flash floods, Olympic-size potholes, a confusing myriad of one-way streets, the Gardiner Expressway, never-ending construction – I need to lie down.

To add insult to injury, Toronto drivers face some of the highest car insurance premiums in Canada. It doesn’t seem fair, does it? Well, there is some good news. While it might be hard to remain patient, exercise courtesy and practice safe driving habits in such a chaotic environment, finding cheap car insurance does not have to add to your stresses!

If you are considering a new auto insurance policy, simplify the process by simultaneously getting multiple quotes from Canada’s top insurance providers. Rates.ca does just this, with a proven comparison tool that helps you find the lowest car insurance policies on the market. It only takes a few minutes and is completely free to use!

We know it won’t make your commute faster, but in 2018, Toronto drivers who used Rates.ca saved an average of $541.91!*

With savings like that, you could afford to park downtown!

How much does car insurance cost in Toronto?

How much does car insurance cost in Toronto?

Rates vary depending on your individual circumstances, but Toronto consistently ranks in the top ten most expensive cities for auto insurance. The average Torontonian pays around $2,000 per year.

While it’s not the highest average premium in Canada, there is no denying Toronto drivers pay a lot to insure their cars.

For this reason, you should compare auto insurance rates at least once a year to make sure you are getting the best deal. Compare rates today and see how much you can save.

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Why is car insurance so expensive in Toronto?

Why is car insurance so expensive in Toronto?

The most obvious reason is the volume of traffic in Toronto. Toronto is the most populated city in Canada, which means there are tons of cars on the road. More cars equals more accidents, and insurance companies increase their premiums to reflect this. Consider for example the intersection at Yonge-Dundas; 33,030 vehicles and 96,674 pedestrians cross this intersection every single day. No other Canadian city has to deal with so many people.

There are other reasons that contribute to the high cost of Toronto car insurance, the most significant being fraud. As depressing as it sounds, Toronto is a hotbed for auto insurance fraud, which covers everything from mechanics who exaggerate the extent of vehicular damage, to drivers who fake collisions and profit from insurance payouts. It sucks, but there is hope: Ontario has rolled out the Fair Auto Insurance Plan, which aims to crack down on these unscrupulous activities and ultimately reduce the high premiums facing drivers in this province.

Until we see the results of this initiative, the best way to save money is by comparing car insurance quotes on Rates.ca.

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How much can I save on car insurance with Rates.ca?

How much can I save on car insurance with Rates.ca?

In 2018, the average annual savings for Toronto drivers who used Rates.ca was $541.91.* And that’s just the average. Some drivers saved thousands by comparing quotes with us.

If we look at the whole of Ontario, drivers who used Rates.ca saved an average of $496.65 on their annual car insurance premiums.**

Our tool is free to use and it only takes ten 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. Rates.ca 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!

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How do insurance companies calculate rates for Toronto drivers?

Everyone pays a different amount for car insurance, and there are multiple factors at play when insurance companies 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.

Here are some of the lesser-known aspects that insurance companies consider when calculating car insurance rates in Toronto:

Your neighbourhood

Whilst it may seem discriminatory, your postal code does influence car insurance rates. Insurance providers are risk assessors, so if your neighbourhood sees an increase in claim payouts then your rates will go up.

Your vehicle

If you drive a classic car with aftermarket accessories and customized specifications then, well done mate! But also recognize that if you are involved in an accident, it will cost the insurance company a lot more to fix your car than it would to fix a Honda Civic, which has cheap replacement parts readily available across Canada. The insurance companies realize this and hike up premiums on most fancy cars.

A second consideration is how attractive your car is to thieves. Every year, the Insurance Bureau of Canada produces a list of the top 10 stolen vehicles in each province. If your can appears on this list, it is likely your insurance premiums will increase.

In Ontario, for 2018, the top 10 most stolen cars were:

1. 2004 CHEVROLET/GMC TAHOE/YUKON 4DR 4WD

2. 2006 CHEVROLET/GMC SILVERADO/SIERRA 2500 4WD

3. 2003 CHEVROLET/GMC TAHOE/YUKON 4DR 4WD

4. 2007 FORD F350 SD 4WD

5. 2003 CHEVROLET/GMC SUBURBAN/YUKON XL 1500 4DR 4WD

6. 2002 CHEVROLET/GMC SUBURBAN/YUKON XL 1500 4DR 4WD

7. 2003 CHEVROLET AVALANCHE 1500 4WD

8. 2005 CHEVROLET/GMC TAHOE/YUKON 4DR 4WD

9. 2003 CHEVROLET/GMC SILVERADO/SIERRA 2500 4WD

10. 2002 CHEVROLET/GMC TAHOE/YUKON 4DR 4WD

While this is bad news for Chevy drivers, the good news for other law-abiding citizens is that there are no new models on the list. This is an indication that car thieves are wary of the tracking and anti-theft features installed on newer vehicles.

Your daily commute

You will notice when completing our form that insurance companies request your annual mileage. More time on the road means more chances of an accident, and this elevated risk increases the cost of your annual premium.

If you spend two hours on the 401 each day, battling rush hour traffic and then have to zigzag your way into downtown, you will face a higher rate than someone who can leave the car at home and TTC to work. From an insurance perspective, commuting via transit, walking or cycling is a much better choice. It turns out that those annoying signs over the Allen Road are correct!

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Image source: Google Street View

Recent Toronto car insurance quotes

Shopper from TORONTO, ONTARIO
2018 AUDI S5 3.0T QUATTRO CABRIOLET
Royal & SunAlliance
$1275
per year
SGI Canada
$1451
per year
Intact Insurance Company
$1519
per year
Dominion of Canada
$1564
per year
Range of quotes $289
Shopper from TORONTO, ONTARIO
2018 ALFA ROMEO TRUCK/VAN STELVIO TI 4DR AWD
Zenith Insurance
$1276
per year
Pembridge Insurance Company
$1299
per year
Wawanesa Mutual
$1530
per year
Royal & SunAlliance
$1634
per year
Range of quotes $358
Shopper from TORONTO, ONTARIO
2018 BMW TRUCK/VAN X3 30i 4DR AWD
Desjardins General Insurance
$1234
per year
Intact Insurance Company
$1265
per year
Zenith Insurance
$1647
per year
Aviva Agency
$1689
per year
Range of quotes $455
Shopper from TORONTO, ONTARIO
2013 CHRYSLER 200 TOURING V6 CONVERTIBLE
Zenith Insurance
$1473
per year
Aviva Agency
$1525
per year
Allstate
$1782
per year
Intact Insurance Company
$1812
per year
Range of quotes $339
Updated May 23, 2019

Tips for driving in Toronto

Toronto is a busy place, and while sharing the road is not something you have to enjoy, it is something you have to be good at!

Watch out for streetcars

Never pass a streetcar when it is stopped. Streetcars stop at almost every downtown intersection to let passengers hop on and off. When they stop, all cars behind them must stop too.

It might seem obvious, but don’t drive into streetcar tunnels! You will inconvenience thousands of people, you will be embarrassed, and quite possibly arrested. Take your time to ensure you understand Toronto’s transit signage.

Watch out for cyclists

There are lots of cyclists in downtown Toronto. Take great care when driving in the city, especially when turning right or opening your door, to ensure that there are no cyclists in your blind spot.

Don’t stop in bike lanes, and make sure you keep a one-metre (three feet) distance when passing cyclists in your car. It’s the law.

Avoid these intersections at rush hour

Toronto Mayor John Tory worked with the city to identify ten of Toronto’s most congested intersections. They are:

  • Eglinton Avenue West and Martin Grove Road
  • Lawrence Avenue West and Black Creek Drive
  • St. Clair Avenue East and Mount Pleasant Avenue
  • Finch Avenue and Yonge Street
  • Sheppard Avenue and Yonge Street
  • Bloor Street East and Parliament Avenue
  • O’Connor Drive and Don Mills Road
  • Eastern Avenue and Carlaw Avenue
  • Finch Avenue East and Victoria Park Avenue
  • Kingston Road and Lawrence Avenue East

It is fair to say that driving during rush hour at any intersection, in any city, is probably a bit of a pain, but if you can adjust your route to avoid these Toronto hotspots you’ll save time (and perhaps keep the gray hairs at bay for a little longer).

Save on Toronto car insurance today!

Save on Toronto car insurance today!

Potentially $500 in savings for just 10 minutes of your time? Ask anyone, it’s a good deal!

Stop overpaying on auto insurance. Save your hard-earned dollars for a tall soy carmel machiato latte with no foam and a dash of cinnamon…or whatever else the kids in Toronto are enjoying these days.

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* Savings are calculated by deducting the lowest available quote from the second lowest available quote. In 2018 the average savings for Toronto drivers was $541.91.

** Savings are calculated by deducting the lowest available quote from the second lowest available quote. In 2018 the average savings for Ontario drivers was $496.65.

Get notified when it’s time to save.

Let us know your renewal date and we’ll let you know the best time to shop the market for the cheapest car insurance rates.

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