Compare cheap Ontario car insurance quotes online

Car insurance in Ontario, and across Canada is a requirement for all drivers, but there are some provincial differences in coverage requirements.

To begin, Ontario operates in a no-fault insurance system. No-fault means drivers use their own insurance company regardless of who is at-fault in an accident.  

Ontario auto insurance is provided by private insurance carriers and is regulated by the Financial Services Regulatory Authority of Ontario (FSRAO). FSRAO ensures rate increases are substantiated.

Available coverage is broken down into two categories - mandatory and optional.

Mandatory Ontario auto insurance coverage includes (full descriptions below)

• Third-party liability (TPL)
• Accident benefits (AB)
• Uninsured automobile insurance
• Direct Compensation Property Damage (DCPD)

Optional Ontario car insurance coverage includes (full descriptions below)

• Collision insurance
• Comprehensive car insurance
• Specified perils
• All perils

There are also Optional Policy Change Forms (OPCF) which are endorsements you can add to your coverage. Here are 3 common Ontario endorsements. 

• OPCF 20 - covers the cost of a rental vehicle while yours is being repaired or replaced
• OPCF 27 - Ports your existing insurance to a rental car or car you borrow
• OPCF 43 - Removes depreciation in calculating the value of your car when settling a claim

Since the start of the year 2000 the Ontario car insurance industry has seen significant change in the average rates they charge to consumers. On average there has been a +52.35% increase in cost of car insurance in Ontario. The last few years have seen the rates level out a bit more, with subtle increases and decreases, but in the early 2000 there were significant price swings on both sides of the equation. In Ontario, car insurance rate changes are a result of a few factors such as market inflation, insurance fraud and claims volumes. The volatility of the auto insurance market has resulted the residents of Ontario paying the most for their policies.

The historical rate changes shown below are based on all the drivers insured each year by every insurance company in Ontario. The rates are approved and tracked by the Financial Services Regulatory Authority of Ontario (FSRAO). In order for an Ontario insurer to be approved for a rate change, as required by law, the proposed rates must be just and reasonable, not excessive, and not going to impair a company’s financial solvency. Ontario car insurance providers submit their proposed changes to FSRAO for approval along with supporting actuarial data.

 

_{*information and data sourced from FSRAO (2020)}

It's hard to define the best auto insurance companies in Ontario because much depends on quality of service, price, and claims experience.

That said, in 2021, here is a list of the best car insurance companies in Ontario by price from Ratehub's car insurance calculator. 

1. Aviva Canada
2. Economical Insurance
3. SGI Canada
4. Pembridge Insurance
5. Unica Insurance
6. Onlia Insurance
7. Intact Insurance
8. CAA Insurance
9. South Easthope Mutual
10. Echelon Insurance

Based on a 2018 report from J.D. Power, the best car insurance companies in Ontario for customer service are:

1. The personal (A division of Desjardins)
2. The Co-operators
3. Intact Insurance

Reading reviews can create flawed arguments if the reviewer doesn't understand the context of why they were denied a claim (and lead to a negative review). 

That said, best to compare Ontario insurance quotes from multiple providers to see which one will give you the best price. Then, speak to a broker who can help you decide on which of the cheapest Ontario car insurance companies you should select based on their experience dealing with many different companies.