Compare cheap Ontario car insurance quotes

Yes, car insurance is required by law in Ontario and the rest of Canada. It's there to protect you financially from various driving-related incidents, including liability claims, medical expenses, and vehicle damage. Without it, you could see a fine anywhere between $5,000 to $50,000, your license may be suspended, and your car could be impounded.

Ontario runs on a no-fault auto insurance system. This doesn't mean that you'll never be found at fault for a driving incident. Instead, it means that drivers look toward their own insurance companies for compensation after an accident, regardless of fault. 

Auto insurance in the province is provided by private insurance companies that are regulated by the Financial Services Regulatory Authority of Ontario (FRSA). The regulator is there to ensure that rate increases are substantiated and that consumer rights are protected.

How do I purchase auto insurance in Ontario?

Ontario's private insurance model gives you the freedom to shop from different providers until you find your best car insurance rate. Depending on your driving record, you can shop both the direct or broker markets. A direct insurer only sells insurance for one brand and is considered an agency, while an insurance brokerage represents many insurance companies and can work to help you find the best rate they can offer via their contracted companies.

Both sales channels have their pros and cons, so you need to do your research to find the best company for your situation. You can start your journey at Ratehub.ca. Using our simple online car insurance calculator, we'll connect you with a licensed insurance broker or agent who can help you with all your coverage needs.

According to the FSRA, the average cost of auto insurance in Ontario is $2,164 as of late 2025. However, costs are not linear in the province as drivers in the GTA saw an average of $2,810, while those in rural areas paid an average of $1,740. The cost of Ontario auto insurance is still on the rise, as Applied's 2026 Q2 rating index showed rates had increased by +7% YoY.

Below, we break down the average cost of car insurance in the province based on our own user data. The quotes are representative of the average monthly rate that Ratehub.ca users received and expressed interest in.

Why is car insurance in Ontario so expensive?

Car insurance in Ontario is expensive due to a number of systemic and market issues such as rising auto theft trends, market inflation, growing vehicle and repair maintenance costs, insurance fraud and costly claims settlements. Other factors include dense urban sprawl, leading to increased congestion, resulting in more collisions on the road. Poor drivers in any given neighbourhood increase the rates for all involved. To find affordable coverage, compare car insurance quotes online. 

Aside from your coverage options and policy limits, there are many individualized factors auto insurance companies look at when calculating your quote. Here are a few you should be aware of, plus some interesting Ratehub.ca user statistics as of September 2025 for the past 12 months.

When comparing car insurance quotes on Ratehub.ca, opting for policy discounts such as usage-based insurance and bundling policies are two additional steps you can take to ensure you're getting the cheapest rate possible. Here's what we found when looking at Ratehub.ca Ontario user data from September 2025.

48% of Ontario users opt-in for telematics – When exhibiting safe driving habits, drivers can save between 10 to 30% by participating in a telematics (or usage-based insurance) program. Keep in mind, however, that you may also see a surcharge in Ontario if you're deemed a risky driver. 

33% of users opt-in to bundle their home and car insurance in Ontario – Every P&C insurer offers its own version of a bundling discount (typically up to 25% off). The savings aren't just limited to your car policy. You'll also see a discount on your home insurance.

The government's required amount of coverage is very minimal, and most drivers opt for more when finalizing their policy. Below are the requirements of a basic auto insurance policy drivers need to carry:

While the Ontario government only requires a minimum level of coverage by law, you can customize your auto insurance policy with optional add-ons, known as endorsements. Here are the most common coverage additions made by Ontario drivers:

Ontario’s auto insurance system is a private market, which means you have the freedom to choose which provider you want to work with. Selecting the best auto insurance provider for you will be the one that meets all your coverage needs for the lowest rate possible, so be sure to research all your options carefully. Here's a quick overview of some of the top car insurance companies across Ontario.