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In less than 5 minutes, compare auto insurance quotes from Canada's top providers to find your cheapest rate and unlock your savings.

How to compare car insurance quotes with Ratehub.ca

  1. Share information

    Tell us a little about yourself and your auto coverage needs.

  2. Compare quotes

    We instantly show you auto insurance quotes from top Canadian providers.

  3. Save money

    Choose your quote and secure your car insurance rate online.

Compare cheap auto insurance quotes from Ratehub.ca users

Thousands of Canadians come to us weekly, looking for ways to save on their next auto insurance policy. Just like we've helped them compare the market with ease, we can do the same for you. Here are a few sample car insurance quotes Ratehub.ca users received on February 25, 2024 – to find out how little you could be paying, take advantage of our free comparison service and uncover your potential savings today.

  • $84/month

    42-year-old male

    driving a 2019 Honda Civic under CAA Insurance

  • $126/month

    30-year-old male

    driving a 2011 BMW 328i under Pembridge Insurance

  • $154/month

    36-year-old female

    driving a 2020 Jeep Wrangler under Onlia Insurance

  • $223/month

    26-year-old female

    driving a 2017 Jeep Cherokee under Gore Mutual

A few things we're proud of

  • 1,200,000

    monthly users

  • 11 years

    young

  • Over 1M

    better choices made

  • Trusted partner

    to Canada’s top financial institutions

Why should I compare car insurance quotes?

In 2021, we surveyed over 1,500 Canadians to learn more about auto insurance shopping behaviour within the country. 76% of policyholders claimed to be confident with the coverage they had in place – they did not feel overinsured or underinsured. On top of that, 65% of the group said they were happy with the rate they were currently paying.

But what about those who didn't feel this way? Shopping around for car insurance and comparing quotes online is one of the best ways you can ensure your policy meets all your coverage needs for the lowest rate possible.

While 64% of Canadians said they allow their policy to renew automatically when the time comes (leaving potential savings on the table), 51% also claimed a dislike for comparing car insurance quotes because it takes too long, and they don't believe they'll find a better deal. This is simply untrue – with us, you can save hundreds of dollars each year by taking just a few minutes out of your day.

64%

of Canadians allow their car insurance policy to auto-renew.

51%

of Canadians think comparing quotes is time consuming and ineffective.

Why do I need car insurance in Canada?

First and foremost, it's the law. Car insurance is a requirement for everyone who wishes to drive a car in Canada. The coverage is there to protect you from all kinds of financial implications, such as vehicle repairs after a collision or liability claims after an accident. 

In Canada, driving an uninsured vehicle is a serious offence – you could a heavy fine or even a license suspension. You'll also need to provide proof of an auto insurance policy before you're able to register your vehicle. 

How does car insurance work in Canada?

Even though auto insurance is legally mandated Canada-wide, the coverage requirements for a standard car insurance policy vary provincially (and it heavily depends on whether the province runs on a public or private insurance system). 

British Columbia, Saskatchewan, and Manitoba are public insurance markets where you buy auto insurance from the government (with the option of purchasing supplemental coverage from private insurers). Alberta, Ontario, and Atlantic Canada have private insurance companies vying for your business which is why comparing car insurance quotes online is an effective strategy for uncovering lower rates. Quebec, on the other hand, is a hybrid system that offers the cheapest car insurance rates. There, you buy injury coverage from the government and property damage from a private insurer.

Even though each province sets a minimum standard for coverage, most people purchase a more comprehensive insurance policy. In fact, in every province, you can customize your policy's coverages and amounts to further suit your personal needs.

Another thing to understand about auto insurance in Canada is the differences between the accident claim systems. Several provinces have shifted towards a no-fault insurance system in which you only deal with your own insurance company when seeking financial compensation for a collision you were involved in (regardless of fault). The other system is a tort-based system – many consider this to be inefficient as you'll need to deal with the at-fault driver's insurer to seek compensation.

Regardless of the rules in your province, not having the right auto insurance policy in place will leave you financially vulnerable if you're ever involved in an incident. So make sure you understand the coverage you need when shopping around for car insurance.

Types of auto insurance in Canada

While the types of car insurance you're required to carry will differ from province-to-province, you'll have the option of customizing your policy with additional options, no matter where you're situated. Here's a quick overview of the main coverages in Canada.

Third-party liability


Accident benefits


Uninsured motorist


Direct compensation for property damage


Collision


Comprehensive


Optional endorsements


How auto insurance differs from province to province

Auto insurance works differently depending on where you're situated within the country. In the table below, we break down the key differences in each province, including public vs. private systems and mandatory vs. optional coverages.

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How much is car insurance in Canada?

Here is a chart displaying the average car insurance cost in Canada. Your car insurance rate will vary depending on a multitude of factors, but this can give you an idea of how average car insurance quotes differ across each province. To find the exact cost you’ll be paying for your auto coverage, be sure to compare auto insurance rates with us. 

graph-showing-average-auto-insurance-premium-by-province-in-canada

Source: Insurance Bureau of Canada (2019), GISA & MSA data for private insurers (2018), SGI Annual Report (2018), MPI Annual Report (2017), Société de l'assurance automobile du Québec (SAAQ), and ICBC Service Plan (2019).  

How are auto insurance quotes calculated in Canada?

Auto insurance companies quote you based on various individualized factors – generally speaking, the more risk you bring, the more your policy will cost. Here, we cover a few of the main factors, so you can better understand the pricing dynamics behind the system,

  1. Driver age

    The highest age-specific rate of passenger vehicle death in Canada was found among 16 to 24 year olds. Young drivers tend to see more expensive premiums, due to the increased risk they bring.

  2. Driver gender

    Statistics Canada found that males were nearly twice as likely to die in a vehicle collision compared to females. Not all provinces use gender as a quoting factor but many do – and of course, this leads to higher rates for male drivers.

  3. Location

    Generally speaking, living in rural areas will lead to cheaper insurance rates. Cities with large populations tend to come with high crime rates and busy streets – resulting in costlier premiums.

  4. Vehicle type

    The more expensive your vehicle is to repair or replace, the more expensive your insurance will be. But it doesn't stop there – cars with high theft and accident rates often see increased premiums also.

  1. Driving history

    Generally speaking, the more experience you have as a driver, the lower yoiur rates will be. But if you have several convictions on your record, expect to see higher car insurance premiums.

  2. Driving activity

    It's no surprise that more time on the road equals to a higher likelihood of making a claim. So the longer your daily commute, the more expensive your premium will be. And one way to lower your premium is to simply drive less.

  3. Insurance coverage

    It's no surprise that adding on optional coverages and increasing your policy limits will lead a to higher auto insurance premium. The additional peace of mind doesn't come without a price.

  4. Applicable discounts

    Different insurers offer different types of discounts, so be sure to ask about your eligibility. Bundling multiple policies under one provider, for example, is a great way to save.

What market conditions can impact car insurance rates?

There are a number of market conditions that impact the price Canadians pay for auto insurance, and unfortunately, a lot of these are largely out of the public's control. Insurers monitor the trends of these conditions, and use their learnings as the basis for their pricing model changes – below, we cover a few major market conditions you should be aware of.

  • Inflation

    In October of 2023, Canada's CPI rose 3.8% on a year-over-year basis while auto insurance premiums saw a 7.5% increase. As the cost of living gets more expensive, insurance won't be immune to its effects.

  • Vehicle theft

    According to Équité Association, car theft rates in 2022 reached historical highs – Ontario saw a 48% increase. With stolen vehiocles trends on the rise, insurers will charge customers more to cover the risk.

  • Insurance fraud

    According to the Insurance Bureau of Canada, insurance fraud costs Canadians over $1 billion in additional premiums. Some common examples of fraud include staged accidents and inaccurate reportings of car repairs.

  • Repair costs

    Vehicle parts, repairs, and maintenance saw a year-over-year increase of 7.3% in the October 2023 CPI. Plus, technological advancements have also made it more costly for insurers to cover repairs and replacement claims.

  • Supply chain issues

    If the supply chain is slowed down, vehicles take longer to repair, forcing insurers to pay out more funds. For example, rental cars may be needed for an extended period of time while a driver awaits their car to be fixed.

  • Increased drivers

    As more and more people start driving in Canada, it increases the likelihood of accidents on the road. With that, it's inevitable that insurers will need to pay out more claims, causing premiums to rise for all.

How to get the cheapest car insurance quotes in Canada

While market conditions may not be factors you can inherently control, there are a few steps you can take to ensure you're paying the best car insurance rate possible. Here, we can cover ten different steps you can take to help lower your bill.

  1. Compare quotes

    While two providers may offer the same coverages, the price of auto insurance can vary drastically. To make sure you're getting the best rate possible, be sure to shop the market.

  2. Bundle policies

    Insurance companies value loyal customers. By having your auto and home insurance bundled together under the same carrier, you can expect a substantial rate reduction.

  3. Increase your deductible

    The deductible is what you pay when something happens to your car before the insurance company pays the rest. Increasing your deductible will lower your annual premium.

  4. Get a group rate

    Many insurance companies offer discounts to members of professional organizations or affiliation groups – so it pays to ask about savings (literally).

  5. Install safety devices

    Insurance companies are all about lowering the risk of a claim. You could see a rate deduction by installing anti-theft devices or opting for a car that's already equipped with the newest safety features.

  1. Pay annually

    Paying your full premium up-front tends to be less money in the long run, compared to making multiple, monthly payments. This is because insurers like to see a commitment to the policy.

  2. Keep a clean driving record

    At-fault collisions and driving convictions stay on your insurance record for years and make your rates go way up – if you drive safely over a long period, you’ll pay the lowest rates.

  3. Track your driving

    According to a Ratehub.ca survey, only 12% of Canadians have tried usage-based insurance. If you haven't yet done so, opting-in for UBI (tracking your driving behaviour) can lead to big savings.

  4. Install winter tires

    While winter tires are only required in select provinces, it's always better to be safe than sorry – and the potential auto insurance savings are a plus.

  5. Take a course

    Accredited driving courses will not only make you a better driver, but it can also lead to cheaper car insurance rates. This is because insurers see graduates as a lower-risk policyholder.

Compare cheap auto insurance quotes for free to unlock your savings.

Now that you've learned how quotes are created and what factors impact your rates, it's time to see how much you can save on car insurance today.

The top auto insurance misconceptions in Canada

In a 2021 survey, we presented common car insurance misconceptions to over 1,500 Canadians, asking them to agree or disagree with the statements – all of them were actually false.

We found Canadians to be fairly knowledgeable, but there were still many gaps when it came to understanding how car insurance works across the country – the average responder was only correct about half the time. Click on each misconception below to learn more.

"My insurer won't find out about my ticket or accident if I don't tell them."


"My insurer won't find out about my ticket or accident if I don't tell them."


"My postal code doesn't impact my car insurance rate."


"How much I drive won't impact my car insurance rate."


"Speeding tickets under 15 km won't impact my car insurance rate."


"My car insurance rate will only go up if I make a claim."


"The police determine fault when I make an insurance claim."


"Car insurance follows the person, not the car."


"Speed camera tickets will impact my car insurance rate."


Recent Canadian auto insurance news

Vehicle theft continues to play a big role in the price of auto insurance in Canada – so much so that the industry is looking for ways to improve theft prevention and vehicle security. According to an Équité Association report released in November of 2023, auto theft in Canada reached a historical high in 2022.

As a major source of illegal trade, the country has been put in the spotlight globally. In Ontario, auto theft increased by 48% while Quebec saw an even higher increase of 50%. And for the first time in history, 2022 marked a year where private Canadian insurers paid out $1.2 billion in theft-related claims.

While the full impact of vehicle theft may hit each driver differently, one common consequence we may all face is the potential increase in our auto insurance premiums. As theft continues to rise, insurers will need to increase their rates in order to offset the increase in claims. Drivers of highly stolen vehicles can also expect a bigger impact on the price they'll be paying for coverage.

Frequently asked Canadian auto insurance questions

Is car insurance in Canada mandatory?


Why are my auto insurance quotes so high?


How do I find the cheapest auto insurance rates?


Is auto insurance different between provinces?


What do I need to get car insurance in Canada?


Do I need car insurance if I don't drive my car in Canada?


Who has the best and cheapest car insurance?


Do I need special insurance to drive for Uber?


How does a car insurance deductible work?


At what age does car insurance go down?


What doesn't impact my car insurance rate?


Do I need to purchase car insurance from my home insurance provider?


Can I drive a car if I don't have auto insurance?


Can I cancel my car insurance?


What happens if I stop paying my car insurance premium?


How long do car accidents stay on your record?


How much does car insurance increase after an at-fault accident claim?