Matt Hands, VP, Insurance and MoneySense
Car insurance in Ontario – as well as the rest of Canada – is required by law. It's there to protect you financially from all different driving-related incidents, such as liability claims, medical needs, 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, but the Financial Services Regulatory Authority of Ontario (FRSA) is there to ensure rate increases are substantiated. The agency exists to protect consumer rights and review complaints when insurers aren't following the rules.
Recent Ontario auto insurance news
As incidents of vehicle theft continue to rise, some Ontario auto insurance companies are taking matters into their own hands – by asking policyholders to install anti-theft tracking devices, such as Tag.
According to a recent article from CTV News, one local driver received a letter from their insurance provider, TD Insurance, claiming that he must install an anti-theft device or face a significant rate increase otherwise. While the insurer agreed to reimburse the cost of the installation, the ask still came as quite a shock.
Other companies have also asked customers who drive highly stolen vehicles to install tracking devices. This includes Aviva Canada, Intact Insurance, and Desjardins Insurance.
As insurers attempt to minimize losses from auto theft, the hope is that these devices will ultimately contribute to the reduction in auto insurance premiums for customers. The effectiveness of such measures offers a promising outlook for the fight against car theft within Ontario – but only time will tell as to whether this will actually help drivers (and of course, insurance companies) in the long run.
Direct compensation for property damage (DCPD)
Emergency roadside assistance
Endorsements (Ontario Policy Change Forms)
Are you getting the best price for Ontario auto insurance?
In less than five minutes, you can compare multiple car insurance quotes from Ontario's top providers, free of charge.
According to the Financial Services Regulatory Authority of Ontario (FSRA), Ontario's average annual auto insurance premium as of October 2023 was $1,796. Drivers in the GTA saw an average of $2,391 while those in rural areas paid an average of $1,404. We decided to take it a step further and break down the average cost of car insurance in the province based on our own user data.
Average monthly quote by age and gender
Average monthly quote by Ontario city
Average monthly quote by vehicle make
Aside from your coverage options and your 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 from January 2024.
The younger you are, the more expensive your auto insurance will be. Based on our data, the average Ontario driver comparing quotes is 38 years old.
Males tend to face higher auto insurance premiums than females. Our Ontario user demographic breakdown is about 62% male and 38% female.
High-risk areas come with high-rate insurance. Our Brampton users see the most expensive rates, with the average being $434 per month.
Cars that cost more to replace, cost more to protect. Based on our average rates, the Kia Sportage is one of the cheapest vehicle to insure.
Getting ticketed doesn't just hurt your record – it can also hurt your insurance. According to our Ontario data, 8% of users have a conviction.
The more you drive, the more your insurance rate drives up too. On average, our Ontario users commute 14 km each day.
Insurers value experience, so fully-licensed drivers receive the cheapest car insurance rates. 86% of our Ontario users have their G license.
Business-use cars are more expensive to insure than pleasure-use ones. 92% of our Ontario users come to us to insure a pleasure-use vehicle.
Shop and compare
You won't know which Ontario insurer offers the cheapest premium until you shop around – thankfully, comparing quotes is free with us.
Bundle your policies
Insuring multiple products (e.g. car, house, condo, boat) under one provider is a great way to rack up some savings.
Get a multi-car discount
If you own more than one car, insuring them together under one policy, instead of purchasing coverage separately, can lead to substantial savings.
Track your driving
Tracking your driving with usage-based insurance (or telematics) is ideal for safe, low-range drivers – you'll be rewarded for exhibiting good habits.
Keep a clean record
Traffic convictions and at-fault accidents inevitably lead to higher rates. So stay safe on the road to maintain your cheap insurance.
Install winter tires
Ontario winters don't always come with the safest driving conditions – some insurers offer a discount for installing the right tires.
Increase your deductible
Your deductible is the amount you'll be paying before your insurer provides the rest. Higher deductibles lead to cheaper auto insurance.
Get a group rate
It never hurts to ask about group discounts. Many providers offer lower rates for corporation members and special alumnus.
The inflation of auto insurance in Ontario
According to the Consumer Price Index from Statistics Canada, auto insurance premiums for passenger vehicles increased by 5.9% nationwide year-over-year in December 2023. Ontario drivers, on the other hand, saw a 9.7% increase. To combat the added cost, make sure you shop the market with us today.learn more about inflation
When comparing car insurance quotes with us, opting for usage-based insurance and auto-home bundling 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 January 2024.
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.
32% of Ontario users opt-in for auto-home bundling – Every P&C insurer offers its own version of a bundling discount (typically up to 25% off), so be sure to opt-in if you're also looking for property coverage. And the savings aren't just limited to your car policy – you'll see a discount on your home insurance too.
of Ratehub.ca users opt-in for telematics.
of Ratehub.ca users opt-in for auto and home bundling.
The best auto insurance provider for yourself 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.
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How much is car insurance in Ontario?
According to the FSRA, the average price of car insurance in Ontario is $1,674 per year. However, there are many factors that go into your Ontario car insurance quote including your driving history, the type of car you drive, and the area where you live.
Who can drive my car under my insurance in Ontario?
In Ontario, so long as they have a valid driver's license, anyone can drive your car under your insurance. If they're regularly driving your vehicle, you should list them on your insurance policy as an occasional driver. Car insurance in Ontario follows the vehicle, not the driver.
Do I need auto insurance in Ontario?
Yes, it’s the law. There is basic mandatory Ontario insurance coverage you need to legally operate a vehicle in the province and a slew of additional options to further protect yourself.
Does my Ontario car insurance cover me if I drive for Uber or Lyft?
In Ontario, you will always need your own insurance in order to operate legally operate a vehicle. Uber and Lyft offer full coverage via their commercial policies when you are logged in and actively working as one of their ridesharing drivers.
However, you can nullify your own insurance if you have not informed your insurer ahead of time. As a best practice, we recommend that you contact your car insurance company to inform them of your ridesharing intentions. Failing to notify your auto insurer could result in repercussions, such as the cancellation of your auto policy.
Can you register a car without insurance in Ontario?
According to the Ministry of Transportation (MTO), you don't need Ontario car insurance to own a car, but to drive it, you'll need license plates (and you can't get license plates without insurance).
How do I report a claim in Ontario?
Call your Ontario insurance company – they may send out an adjuster to review the scene. The number is typically listed on the pink slip and people often keep this slip in their glove box. Gather all important details such as the make, model, and year of all cars involved, license plate and insurance slip numbers, and take as many photos as possible. If you believe the damage to be greater than $2,000, call the non-emergency police line.
Why does car insurance in Ontario cost so much?
The amount of insurance fraud and claims settlements being statistically high are the primary reasons why Ontario’s 9.7 million drivers pay so much for car insurance. Other factors include dense urban sprawl, leading to an increase in congestion resulting in more collisions on the road. Poor drivers in any given neighbourhood increase the rates for all involved.
Is roadside assistance required in Ontario?
No, but it can save you money on car insurance in Ontario. It’s also great for peace of mind in case of a battery failure, tire puncture, or you need a tow.
How long do driving offences last on my driving record in Ontario?
A moving violation in Ontario will stay on your record for 3 years following a conviction (not the offence date). If you are in an at-fault accident, it will stay on your record for 6 years.
What is the cheapest car insurance company in Ontario?
Insurance companies use different methods to determine car insurance estimates when calculating their customer’s premiums – therefore, the cheapest car insurance company in Ontario for any driver may also differ. To find your cheapest auto insurance provider, however, you can compare auto quotes with us and select your best rate.
What insurer offers the best car and home insurance bundle in Ontario?
Most property and casualty (P&C) insurance companies offer both car and home insurance – and you can get a discount by purchasing the two types of coverages under the same provider. In this case, the best insurer for yourself will be the one that offers all the protection you need for the cheapest price possible. To find your lowest rate, compare bundled home and auto insurance quotes with us, so you can maximize your potential savings.
How do you get car insurance in Ontario?
Purchasing automobile insurance in Ontario is extremely simple – after taking a few minutes to provide us with a few details in our online car insurance calculator, we'll connect you with a licensed insurance broker who can help you with all your coverage needs.