Matt Hands, VP, Insurance and MoneySense
Auto insurance is mandatory in Toronto. It's illegal to operate a vehicle that isn't equipped with the minimum required coverages, outlined in Ontario's Insurance Act. With that being said, most drivers increase their protection beyond the minimum aways by setting out higher payout limits and adding optional coverages to their policy.
Toronto (along with the rest of Ontario) runs on a no-fault insurance system. This doesn't mean you'll never be deemed at fault after an accident. Instead, it means that regardless of fault, you'll only be filing accident claims with your own insurance company to recoup compensation for your losses. The idea behind a no-fault auto insurance system is that the claims process can be streamlined and drivers will receive their payout as early as possible. On the contrary, a tort-based system means that drivers need to sue for compensation which undoubtedly, can take much more hassle and time.
Car insurance in Ontario is also provided by private insurance carriers that are regulated by the Federal Services Regularly Authority of Ontario (FSRA). This ensures that rate increases are substantiated – simply put, auto insurance companies can't just increase rates on their own. They need to be backed up by financial records and approved by the regulatory body.
With the many options available, it's important to research the best auto insurance company for your needs. You'll want to learn more about car insurance in Toronto before you secure your policy – and we can help you do exactly so.
Direct compensation for property damage (DCPD)
Emergency roadside assistance
How much is car insurance in Toronto?
According FRSA data from October 2023, the average cost of auto insurance in the GTA is $2,391 per year – a much higher price than the Ontario-wide average of $1,796. To find the exact cost you'll be paying, be sure to compare car insurance quotes with us today.more about toronto car insurance
Insurers in Toronto don't just look at your coverage options and policy limits to determine your car insurance rate – they also look at your risk profile as a driver. Here, we cover a few of the individualized factors that'll impact your monthly bill (plus a few interesting numbers about our Toronto users from January 2024).
Younger drivers tend to face the most expensive car insurance rates. The average Ratehub.ca user from Toronto is 38 years old.
Males tend to see higher auto insurance rates than females. The gender breakdown of our Toronto users is 66% (males) and 34% (females).
Areas with a high rate of claims also come with a high (insurance) rate. Our data shows that Toronto users pay an average monthly rate of $348.
Cars that cost more to replace, cost more to protect. Based on our Toronto averages, the Ford Bronco is one of the cheapest cars to insure.
A driving conviction will negatively impact your car insurance quote. According to our Toronto data, only 5% of our users have one on record.
Longer commutes lead to higher car insurance rates. Our internal data shows that Torontonians commute an average of 13 km per day.
Getting your G license will lead to cheaper car insurance rates. According to our internal data, 86% of our Toronto users are fully licensed.
A business-use car will cost more to insure than a pleasure-use one. 93% of our Toronto users come here, looking to insure a vehicle for pleasure-use.
Shop and compare
Lucky for you, comparing car insurance quotes with us is completely free – you won't know which provider offers the lowest rate until you take a look.
Bundle insurance products
If you use the same insurance company for both your home and auto insurance needs, your insurer will thank you with a dip in the premiums.
Some Toronto auto insurance companies give a loyalty discount to drivers who remain active with them for several years. But you'll still want to shop the market first.
Get a multi-vehicle discount
If you have multiple cars within one household, listing all vehicles under one auto insurance policy can bring big savings.
Increase your deductible
Your deductible is the share you'll need to pay before your insurer foots the rest. If you're willing to set a higher one, you'll see lower rates.
Pay annual premiums
Paying monthly premiums adds to your insurer's administrative costs, so if you’re able to pay in full annually, you can lower your car insurance rate.
Stay safe on the road
Accidents can stay on your record for up to ten years, leading to higher rates. So stay safe on the roads – not just for physical self but also for your financial self.
Get a group rate
Ask your insurance representative about group rates – some providers offer discounts to certain members, professionals, or alumni.
Still looking for Toronto car insurance?
You've found the right place. Get personalized auto insurance quotes from top providers across the city, all in once instance.
To compare the cost of Toronto auto insurance with other cities, we took a look at the average rates our Ontario users received based on their location. While Toronto users who recently compared car insurance quotes with us saw an average monthly rate of $348, here's a brief overview of the trends we saw in four other popular cities. All data was last updated in January 2023.
Here are some of the most popular insurance providers within the city – keep in mind that the best car insurance company for yourself will be the one that offers all the coverage you need for the lowest rate possible. Compare quotes with us today to find out which one you should choose.
Ready to get Toronto car insurance?
We can help – compare personalized auto insurance quotes from top providers across the city today.
Why is Toronto car insurance so expensive?
One of Ontario's most expensive cities for car insurance is Toronto – this is especially the case in the suburbs. Suburban drivers depend on cars more often to get to places due to the lack of transit beyond the central core. Driving on bigger highways and more congested roads also leads to a rise in risk which ultimately contributes to higher car insurance premiums.
In Brampton, a suburb just outside of Toronto, drivers face some of the highest car insurance rates due to the high volume of fraud and uninsured vehicles on the road. Despite being a relatively low-risk driver, location can still play a big factor in the price of your policy.
Which car has the cheapest insurance in Toronto?
The vehicle you drive is one of the many factors that go into your car insurance quote. That being said, inexpensive, used cars (as well as cars with high safety ratings and low theft rates) generally come with cheaper premiums.
Minivans and SUVs can also be cheaper to insure than sedans due to the typical risk profile of these vehicles' drivers – experienced drivers who have a family tend to be more cautious on the road.
For more information, here is a list of the cheapest cars in Ontario (and the cost to insure them).
What is the cheapest car insurance in Toronto?
You won't know which provider offers the cheapest car insurance in Toronto until you compare all your options. The good news is that we make it extremely easy for you to do so – by providing us with a few details, we'll show you customized quotes from the city's top providers. That way, you can view your lowest rate in one instance, instead of bouncing around from insurer to insurer.
Do you need insurance to rent a car in Toronto?
Rental cars in Toronto typically only come with the minimum required coverages, so you'll want to purchase additional rental car insurance to ensure you're covered for vehicle damages. Otherwise, you could be liable for paying thousands of dollars out-of-pocket to repair or replace the car after an accident.
While you can get insurance from the rental car company, this is often the most expensive option. To avoid paying high fees, you can add a non-owner car insurance endorsement on your personal auto insurance policy – which extends your current coverage to the rental car – or check to see if your credit card already provides insurance.
What are the best insurance companies in Toronto?
Big-name insurers include Aviva, Intact, and CAA, but the best Toronto car insurance company for yourself will be the one that meets all your coverage needs for the lowest rate possible. That's why it's helpful to review the value of each policy. Onlia – a newer player in the industry, for instance – is backed by worldwide underwriters and offers unique perks such as usage-based driving rewards. Be sure to compare Toronto car insurance quotes with us today to view your best option.