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 face a fine anywhere between $5,000 and $50,000, your license may be suspended, and your car could be impounded.

Ontario runs on a no-fault auto insurance system, which means drivers look to their own insurers 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 car insurance in Ontario is $2,164. However, costs are not the same across the province; drivers in the GTA paid an average of $2,810, while those in rural areas paid an average of $1,740. Year-over-year, the cost of auto insurance in Ontario has increased by 7%, according to Applied's 2026 Q2 rating index. 

Below, we break down the average cost of car insurance in the province based on our own user data as of July 2025. 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 rates, market inflation, rising vehicle, repair and maintenance costs, insurance fraud and costly claims settlements. Other factors include dense urban sprawl, leading to increased congestion and 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.

Who has the cheapest car insurance in Ontario?

CAA Insurance consistently has the cheapest car insurance rates in Ontario according to Ratehub’s internal quoting data. However, car insurance companies use different methods to calculate premiums based on factors such as the driver’s age, location, driving history and vehicle. That means the cheapest car insurance company can vary for each driver. To find your cheapest car insurance in Ontario, compare auto quotes on Ratehub.ca and select the provider that offers you the best rate.

The main factors that affect your Ontario car insurance rate are your age, gender, location, vehicle type, driving history and driving behaviour. Auto insurance companies weigh each one to calculate your quote. Below are factors you should be aware of, along with Ratehub.ca’s Ontario user data as of September 2025 for the past 12 months.

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.