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How much is car insurance in Toronto?

Shopping for Toronto car insurance? Compare auto quotes with us today, so you can find your cheapest rate.

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Shopping for Toronto car insurance? It’s no surprise that the city’s car insurance rates are among some of the highest across Ontario – so let’s take a look at how much you could be paying (and how you can reduce the cost).


The average cost of car insurance in Toronto 

While insurance premiums will differ on a case-to-case basis, the average cost of car insurance in Toronto is expected to be over $2,000 each year. Keep in mind that companies consider many factors – including your age, gender, location, and driving history – to determine your exact car insurance rate. And the more coverage options you want, the more it’ll cost you. So you won’t know your exact premium until you shop around for car insurance quotes yourself.

To compare how car insurance differs depending on age and location, however, we can look at rates for a hypothetical driver in Toronto. 


Toronto car insurance rates by age

The following table outlines car insurance quotes for a female driver living in Downtown, Toronto. Assuming her driving history is clean, and she is purchasing the insurance for a Toyota Corolla, premiums can be estimated based on age using Ratehub.ca’s Toronto car insurance calculator. 

The prospective policy includes $1 million in liability coverage, plus a $1,000 deductible for both collision and comprehensive insurance. And all monthly and annual costs listed are an average of the three cheapest car insurance options available.

Age

Monthly cost

Annual cost

20

$263

$3,154

30

$138

$1,663

40

$109

$1,315

50

$98

$1,179

60

$89

$1,066

 

Keep in mind that these numbers are representative of one specific driver, and you could be paying a premium much higher or much lower, depending on your situation. For instance, if you recently got your license at 30 years old, your coverage will be more expensive than the average policyholder at that age due to your lack of driving experience.

READ: The average cost of car insurance in Ontario by age


Toronto car insurance rates by location

Aside from age, location is another factor that plays a big role in the calculation of your car insurance rate. And as Toronto is the largest city in Canada, rates can change substantially across each area. So the following table outlines auto insurance quotes for a hypothetical driver in each Toronto borough for the same policy mentioned above – a $1 million liability limit with a $1,000 deductible for both collision and comprehensive coverage. 

Again, all monthly and annual premiums listed are an average of the three cheapest options determined by Ratehub’s car insurance calculator. And similarly, the prospective policyholder is a 30-year-old female with a clean driving history, looking to insure her Toyota Corolla. 

Toronto Location

Monthly cost

Annual cost

Old Toronto (M5V)

$138

$1,663

East York (M4J)

$149

$1,786

Etobicoke (M9B)

$139

$1,670

North York (M2N)

$137

$1,641

Scarborough (M1P)

$164

$1,969

York (M6E)

$168

$2,018

 

It’s important to note, once again, that these Toronto insurance rates are only representative of one specific driver, living in one specific location – rates can still fluctuate extensively depending on your exact neighbourhood. Narrowing down the calculations by borough and postal code can be a good way to get a general idea of how much you could be paying, but you won’t know your exact cost until you compare car insurance quotes for yourself.

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Why is Toronto car insurance so expensive?

Torontonians pay some of the highest rates for auto insurance in Ontario, and this is largely due to the statistical risk factors of driving in the city. Densely populated areas are more prone to car accidents, simply because there are more people walking, biking, and driving at the same time. And with a population of nearly three million, it’s no surprise that car insurance companies consider Toronto a high-risk area for collision insurance claims to be made. 

And let’s not forget about the higher likelihood of theft, vandalism, and fraud in urban areas. Even if you’re doing everything you can to protect your vehicle, the historical trends of criminal activity in Toronto can show insurers you’re statistically more likely to make a claim, increasing the cost of your car insurance. 

READ: How stolen vehicle trends can impact your auto insurance


How to get cheap car insurance in Toronto

Living in the city may increase your car insurance rate, but there are still steps you can take to ensure you’re getting the best deal possible – here are a few ways you can get cheap car insurance quotes in Toronto: 

  • Reduce your driving – In a city where public transit is extremely accessible, the cost of driving a car every day may no longer be worth it. By commuting to work via subway or streetcar, you’re not only saving money on gas, but you could be eligible for a low-mileage discount with your insurer. 
  • Switch to usage-based insurance – While Toronto may be known as a high-risk area for insurance providers, UBI policies allow safe or low-mileage drivers to pay cheaper premiums. So if you want a rate that’s more reflective of your driving behaviour, consider opting for usage-based insurance. 
  • Bundle auto and home insurance – Toronto housing is also expensive, so if you’re also in need of home, condo, or tenant insurance, consider bundling the coverage with your car policy to increase your savings. 
  • Compare car insurance quotes – When your policy is up for renewal, it’s a good idea to shop around and get quotes from multiple providers to ensure you’re getting the best rate on the market. Insurance companies use different methods to calculate your customized quote, so you could save hundreds of dollars just by considering a few more options.


The bottom line

Toronto auto insurance premiums are based on many individualized factors – such as age and location – so to find the exact cost you’ll be paying, be sure to compare car insurance quotes with us. Driving in the city can add to your expenses quickly, so it’s always worthwhile to seek out different ways to save. 


Also read

Driving less due to gas prices? Ask for a car insurance discount

Inflation in Canada – what it means for your auto insurance

The top 10 most stolen vehicles in Canada

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