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 who are regulated by the Financial Services Regulatory Authority of Ontario (FRSA). The regulator is there to ensure rate increases are substantiated and to ensure consumer rights are protected.

How to purchase auto insurance in Ontario:

Ontario's private insurance model gives you the freedom of choice to shop different providers until you find your best deal (i.e. car insurance rate). Depending on your driving record you can shop both the direct or broker market. A direct insurer only sells insurance for one brand and are considered agencies, while an insurance brokerage represents many insurance companies and can will 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 you 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.

Ontario drivers are faced with the highest average insurance premiums in Canada. According to the 2026 AIRB Mid-Year Market and Trends Report, Ontario's average annual auto insurance premium was $2,133. Previously reported data by FSRA highlights that the cost isn't linear, as drivers in the GTA saw an average of $2,638, while those in rural areas paid an average of $1,592. The cost of Ontario auto insurance is still on the rise as Applied's 2025 Q4 rating index showed rates had increased by +17.1% YoY.

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.

Why is car insurance in Ontario so expensive?

Auto insurance in Ontario is the most expensive in Canada and continues to rise YoY - up 17% from last year. The price of car insurance in Ontario is expensive due a number of systemic and market issues such as rising auto theft trends, market inflation, growing vehicle and repair maintenance costs, as well insurance fraud and costly claims settlements. 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. 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.

Ontario drivers are required to purchase an auto policy in order to legally operate a vehicle; however, despite this mandate, they do have some freedom of choice when selecting their policy. Given that Ontario is a private market, not only can a driver select which company they want to purchase from, but they also have some control over their coverage.  

Mandatory types of Ontario car insurance coverage:

The government's required amount of coverage is very minimal, and most drivers opt for more when finalizing their policy. These are the requirements of a basic auto insurance policy – let's take a look at the minimum coverage requirements you need to carry.

Popular optional types of Ontario car insurance coverage:

The Ontario government only requires a minimum level of coverage to legally drive a vehicle, but you can also increase your protection with optional coverage add-ons, enhancements and endorsements. Here's a quick overview of the 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.