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Car Insurance Ontario

Find Ontario's best car insurance rates

Getting the best auto insurance quotes in Ontario is important as rates continue to rise. Car insurance rates are higher in Ontario and can vary significantly between providers. That's why ThinkInsure offers car insurance for Ontario drivers from the top providers in Canada. We offer flexible coverage options and will help you find the cheapest car insurance in the Ontario marketplace.

So, no matter where you live in Ontario or what kind of driver you are, we've got auto insurance for you. Find better savings by comparing car insurance quotes from multiple companies in just a couple of minutes. Enter some basic driving information and you can quickly compare cheap rates online for free. Our licensed brokers will help you get proper coverage while finding you the most affordable Ontario car insurance policy.

Keep reading to learn about how car insurance works in Ontario and find out all the ways you can save on your auto insurance quote.

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How to compare cheap car insurance quotes in Ontario

Just follow these quick and easy steps to see the cheapest car insurance quotes in Ontario.

1) Start your quote

Enter your postal code and some basic information.

2) Enter your driving details

Provide your driving and vehicle information.

3) Compare quotes

See quotes from the leading companies in Canada.

Choose your policy

Choose the cheapest rate. Confirm the details with our experts and get insured.

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How does car insurance in Ontario work?

All drivers are subject to auto insurance rules in Ontario. These rules are in place to help regulate drivers and insurers. They define eligibility, policy requirements, how to buy, claims, proof of insurance, cancellation and more. They outline consumer rights and responsibilities. Breaking these rules could result in fines, cancellation, increased premiums, and even criminal charges.

Here are some important things to know about how car insurance works in Ontario.

Ontario vehicle owners must have car insurance to drive on provincial roadways. The penalty for driving without insurance includes fines ranging from $5,000 to $50,000. You could also have your licence suspended for up to one year, vehicle impounded and face increased insurance premiums.

Auto insurance in Ontario and other parts of Canada is required as a means of protection for all drivers. It provides a minimum level of financial protection for those involved in accidents. Without mandatory insurance, some would not have the resources to cover the cost of repairs or healthcare for accident-related injuries.

There is a minimum amount of mandatory coverage required which is part of a standard basic policy. This includes :

  • Third-party liability (TPL)
  • Accident benefits (AB)
  • Direct compensation property damage (DCPD)
  • Uninsured motorist insurance

You can also add optional coverage :

  • Collision insurance
  • Comprehensive insurance
  • Specified perils
  • All perils
The Ontario car insurance market operates under a private model. You must purchase your policy from private insurance companies via an insurance broker or agent.
No-fault does not mean no one is at-fault for an accident. No-fault insurance means that each driver goes through their insurer when a claim is made. This is regardless of who is determined to be at-fault for the accident.
Auto insurance in Ontario is regulated by the Financial Services Regulatory Authority of Ontario (FSRAO). All drivers have certain rights under the Insurance Act. You have the right to purchase car insurance coverage, to be treated fairly and to change or cancel your policy. You also have responsibilities as an insured driver. You are responsible to show proof of insurance, pay your premiums on time, and provide accurate information to your insurance company.

Here’s a list of your rights and responsibilities under the Auto Insurance Consumers Bill Of Rights.

Mandatory auto insurance coverage in Ontario

Ontario auto insurance policies have different levels of coverage. You must have a minimum amount that is included in a standard policy. It may not be enough to fully cover the costs of an accident, injuries, and lawsuits. Standard policies cover the repair or replacement of your vehicle, medical expenses, and liability.

There are four types of mandatory auto insurance coverage required by law in Ontario that is included in your basic plan. This applies to vehicles that are leased, financed, or owned.

You must have a minimum of $200,000 in third-party liability insurance. This covers you in the event you cause damage or injure someone. For example, you cause a collision and damage city or private property. TPL would cover you in this situation.

You can have a higher amount of third-party liability coverage. Most have at least $1 million in coverage, but you can increase it to $2 million for more protection.

You will receive certain medical benefits and other expenses if injured or killed in an auto accident. You can purchase additional accident benefits and change your limits.

Here is the minimum included :

  • Medical payments : Up to $65,000 for non-catastrophic injuries or up to $1 million for catastrophic injuries.
  • Funeral expenses : Up to $6,000.
  • Disability income benefits : $185/week for 104 weeks.
  • Death benefits : Minimum of $25,000 to spouse and $10,000 to dependants.
  • Income replacement : 70% of gross wages. Maximum of $400 per week.

Learn more about what's covered under statutory accident benefits.

Direct compensation property damage covers damage to your vehicle in a collision where you are not at-fault. For this to take effect, the accident must occur in the province and must involve another insured vehicle. For example, another driver runs a red light, hits your vehicle, and caused damage. DCPD would cover this situation.
Also called uninsured automobile coverage, this protects you in the event of injury or death by an uninsured motorist. You have $200,000 in coverage.

It also applies if you’re involved in a hit and run or if the other driver is unidentified.

Optional car insurance coverage for Ontario drivers

You can add extra auto insurance in Ontario that is above the minimum coverage amounts. There are also different types of optional coverage available for better protection :

Comprehensive insurance covers vehicle damage from weather events, theft, vandalism, fire, earthquake, and falling objects.

There are a lot of threats to your vehicle when it’s parked in the driveway, in a parking lot or on the street. For example, you’ll be covered if a tree falls on your car or if it is scratched in the parking garage.

Collision insurance (upset coverage) protects against damage from a collision by another vehicle or object. This applies to most types of collisions where you are fully or partially at fault. For example, you back into another vehicle when backing out of your driveway. Or you hit a mailbox or hit a light pole.
Specified perils protect against pre-defined risks named in your policy. This can include theft, fire, wind, hail, water, and other types of damage.

If a peril is listed, you have protection. If it is not, you will not be covered. Even though it may be cheaper than comprehensive insurance, you could open yourself up to greater exposure to threats. For example, if you don’t include theft protection and your vehicle is stolen you will not be covered.

All perils combine comprehensive and collision. You are covered for all types of risk unless they are explicitly excluded.

This is the most thorough type of plan. You will have peace of mind in knowing you are covered for most things. But, if you see an exclusion listed, you are not covered. For example, if earthquakes are listed as an exclusion, you will not be covered for damage to your automobile because of an earthquake.

Emergency roadside assistance is a service that covers you if your vehicle has mechanical issues or breaks down. For example, you hit a pothole and get a flat tire or your battery needs a boost. This will cover the cost of the tow truck.

It is offered by many providers as an additional service. It can also be purchased separately from CAA or other providers.

There are also optional Ontario Policy Change Forms (OPCF) or endorsements that drivers can add for optional coverage. The most common OPCF endorsements that people add are :
  • OPCF 27 : This allows you to drive another person's vehicle and is also known as Legal Liability For Damage To Non Owned Automobiles.
  • OPCF 20 : This covers expenses for a rental car if your vehicle is being repaired or replaced after an accident.
  • OPCF 43 : Also called Removing Depreciation Deduction, this endorsement removes depreciation from the value of a claim settlement when a vehicle is a total write-off.
  • Accident forgiveness / OPCF 39 : Accident forgiveness is sometimes included by some insurers as part of a plan. It can also be added as an optional endorsement called OPCF 39 which forgives you for your first at-fault accident.
  • OPCF 44 : The Family Protection endorsement covers you or a family member with additional protection if you are in an accident with an at-fault driver who is underinsured or has no coverage.

Savings on recent Ontario car insurance quotes

Tips to get cheap Ontario car insurance

We all want to find the cheapest car insurance in Ontario and lower our premiums. Here are some great tips for better savings :

  1. Compare to find the best quotes : Car insurance quotes vary between providers and change often. Shopping for rates with multiple companies is the best way to find the lowest price.
  2. Bundle policies : Combine your auto and home insurance with the same company and enjoy discounts up to 20% or more.
  3. Look for discounts : There are many different types of insurance discounts. Ask your insurer which discounts you qualify for and see how much you can save.
  4. Use winter tires : Install winter tires and save with up to a 5% discount.
  5. Multi-vehicle discount : Insure all your vehicles together with the same provider and receive up to 15% in discounts.
  6. Don't drive as much : You can save a lot by driving less. Consider using public transit to go to work and tell your insurance company.
  7. Don't over-insure : Don't have more coverage than you require. If you drive an older vehicle consider dropping optional coverage to save money.
  8. Increase your deductible : Your deductible is the amount you pay if you make a claim. If you increase it from $500 to $1,000 you could save up to 10%.
  9. Drive a safe vehicle : Driving a vehicle with a high safety rating will help keep you costs down. You have a better chance of staying accident and claims free by driving a safer vehicle.
  10. Review your policy each year : A lot can change in a year. Review your plan each year prior to renewal. Does your coverage match your needs? Has there been a change in your driving history?
  11. Pay annually : Pay your annual premium in advance to avoid administrative fees. You may also get a discount for paying in full.
  12. Take drivers training : Completing a drivers training course with a government accredited driving school helps to lower your rate.

How much is car insurance in Ontario?

Car icon and Ontario flag with average Ontario car insurance cost of $1,655

The average cost of Ontario car insurance is $1,655 according to the Insurance Bureau of Canada (IBC). This makes the average rate per month around $138.

How much you pay for car insurance in Ontario is unique to your situation. Rates vary greatly based on your driving record, insurance history, and location. A good driver with a clean record can pay significantly less than someone with tickets or at-fault accidents on their record. It literally pays to drive safely.

Your location is also a key factor. Car insurance in Toronto and other large cities like Mississauga or Brampton can be more expensive than the provincial average. There is more traffic and risk associated with these regions. Rates tend to be cheaper in more rural areas and in the Northern part of the province.

Ontario auto insurance rates continue to rise

Auto insurance rates in Ontario have been rising for some time. However, there was a slight decline in 2021.

“In March, 2021, the largest auto insurers comprising more than 95% of the Ontario market voluntarily committed to additional rate reductions for their customers,” says FSRAO.

Here’s an overview of premium changes from 2008 to 2020 :

How do Ontario car insurance premiums differ?

Ontario is the second most expensive province to purchase car insurance in behind British Columbia. Annual premiums increased by $129 in 2020 to $1,634 from $1,505 in 2019. See how much drivers pay compared to other provinces in Canada in 2019.

Province Average Annual Premium
British Columbia $1,832
Ontario $1,634
Alberta $1,316
Saskatchewan $1,232
Newfoundland & Labrador $1,168
Manitoba $1,140
Nova Scotia $891
New Brunswick $867
Prince Edward Island $816
Quebec $717

Source : Insurance Bureau of Canada.

Ontario car insurance rate changes

Car insurance companies can apply to have their rates increased in Ontario. The increases must be approved by the Financial Services Regulatory Authority of Ontario (FSRAO). This occurs because of changes in offerings or expenses. Requests for changes must be reasonable. The FSRAO can require providers to lower rates when system changes occur.

Here is a summary of rate changes for the last few years that were approved.

Quarter Overall Rate Change
Q4 2021 -0.25%
Q3 2021 -0.02%
Q2 2021 -0.01%
Q1 2021 -0.14%
Q4 2020 -0.17%
Q3 2020 0%
Q2 2020 +1.29%
Q1 2020 +0.88%
Q4 2019 +1.56%
Q3 2019 +2.60%
Q2 2019 +2.00%
Q1 2019 +2.70%
Q4 2018 +3.35%
Q3 2018 +2.06%
Q2 2018 +1.10%
Q1 2018 +2.23%

What factors impact Ontario car insurance quotes?

Family unpacking a silver SUV at a campground

Insurance companies in Ontario can use many things to determine your car insurance quote. Here are some of the key considerations that impact your rate :

  • Experience behind the wheel : Experienced drivers are less likely to be in a collision compared to novice drivers.
  • Your age, gender and marital status : Insurers consider personal information such as your age, gender and marital status when determining rates.
  • Your driving record : A good driving record can make a huge difference in how much you pay. At-fault accidents and traffic violations will increase your quote.
  • Your car : The type of vehicle, make and model, age, safety ratings, price, theft, and repairs. These all have a big impact on your rate.
  • Usage : Do you use your vehicle to commute to work? How many kilometres do you drive per year? The less you drive the cheaper your insurance will be.
  • Your postal code : Where you live is a big factor when companies are determining premiums. If your neighbourhood has higher statistics for claims, your premium will be higher.
  • Coverage amounts : The type and amount you select will impact your rates. Adding more coverage and endorsements will increase your premium but offers better protection.
  • Your insurance history : Policy gaps and payment issues will affect insurance history how much you pay.
  • Claims expenses : Car insurance claim expenses are surging. New technology in cars and more accidents in the province is contributing to the climb. As the costs go up, so do your premiums.
  • Approved rate changes : Providers are allowed to ask for increases quarterly. These are approved by the FSRAO. They request these increases because of climbing costs and other considerations.
  • Insurance companies : They determine rates on an individual basis. The provider you choose will impact how your driving profile is assessed. Premiums for the same driver can vary by hundreds of dollars based on the company you choose.

What are the best car insurance companies in Ontario?

It’s understandable for people to want to use the best car insurance companies in Ontario when exploring their options. But it’s challenging to offer up a definitive list of providers because there is so much variation in what they offer in terms of products, claims services, discounts, and coverage options.

Fortunately, we’ve partnered with many of the leading auto insurance companies in the country. Our team has worked closely with these brands for years. Our customers have also built loyalty with these providers over time. Here are some of the insurers we can get you quotes and coverage with :

  • Aviva Canada
  • Intact Insurance
  • Economical Insurance
  • Travelers Insurance
  • Wawanesa Insurance
  • Pembridge Insurance
  • SGI Canada
  • Gore Mutual
  • Unica Insurance
  • Echelon Insurance

The most important thing is that you find the car insurance company that is best for you. So, it’s important to get Ontario car insurance quotes from multiple insurers. This way you can see which one offers you the best price and coverage. Get started online or speak with our advisors to help you check prices and select coverage options and ensure you have the right protection to match your driving needs.

What cities in Ontario have the cheapest car insurance?

Where you choose to live matters. Planting roots in a smaller town or rural area will also help you save with more affordable car insurance in Ontario.

Statistics show that less populated areas have fewer cars and accidents, less theft and crime. This means a lower chance of a claim being made. Drivers in towns such as Brockville, Cornwall, Kincardine, Trenton, and Perth have some of the cheapest car insurance.

The further you are from a large city, the less you will generally pay. Here are prices for some of the larger cities in the province :

Auto premiums by city

City Average Premium
Brampton $2,494
Mississauga $2,086
Toronto $2,071
Hamilton $1,670
Kitchener $1,500
Barrie $1,400
London $1,400
Windsor $1,375
Ottawa $1,151
Sudbury $1,100
Thunder Bay $1,000

Source : Insurance Bureau of Canada.

Ontario car insurance FAQs

There is no single company that has the cheapest car insurance in Ontario. Some companies prefer good drivers and others will accept a couple of accidents or tickets. Some offer good prices in cities while others do in rural areas.

Companies also change their rates often based on claims experience and other considerations they use to determine premiums. A good way to find out who has the lowest rate is to compare quotes from multiple providers.

Auto insurance rates in Ontario are some of the highest in Canada. British Columbia is the only province with more expensive insurance. One of the main reasons why it is so expensive is the prevalence of fraud in the province. This raises the amount paid out by insurance companies for claims.

Other factors include higher car repair expenses and more claims. Get quotes frequently to make sure you are not overpaying.

The make, model, MSRP, safety rating, and chance of being stolen all affect the price of insurance. When it comes to the cheapest car to insure, models like the Honda Odyssey, Jeep Wrangler, and Toyota Prius, and Chevy Silverado are consistently the lowest in their category.

There are many reasons to compare car insurance quotes in Ontario. The most important reason is to save money! Prices change all the time. Companies frequently file to increase or decrease their rates with FSRAO based on claims policyholders make and their overall profitability.

There may also have been some updates to your driving profile such as a ticket falling off your record or maybe you got a new vehicle. Comparing quotes annually from multiple providers is the best way to ensure you are getting the most affordable rates.

Ontario auto insurance rates continue to go up. Automobiles are more sophisticated and expensive to repair or replace. Insurance companies are paying out more. Here are the top factors :

  • Inflation : Operating expenses rise each year due to inflation and other economic considerations.
  • Crime : More crime and fraud are increasing the amount providers have to payout.
  • More collisions : The number of claims submitted each year is on the rise. Distracted driving is one of the main causes of collisions in the province.
  • Costs for repairs : The expense repairs continues to go up as vehicle features and technologies become more sophisticated.

You must be 16 years of age to be eligible for a driver’s licence. The province operates using a graduated driver’s licencing system.

Drivers must complete all levels to become fully licenced. The G1 is your learner's permit. You must be at least 16 and pass a written test. A fully licenced driver must accompany you to drive. It is recommended for drivers with this licence to be added to a parents or guardians plan to pay less.

To obtain a G2 licence, you must have your G1 for one year. It can be 8 months if you complete a driver training course. With this licence you can drive alone. Coverage can be expensive because of your age, relative inexperience, and the chance of being in a collision.

To obtain a full G driver’s licence you must have your G2 for at least one year. You must pass the G2 exit test. No restrictions apply if you are over 21. At this point, you will see some savings.

If you are an experienced driver, adding a new driver will cause your rate to go up. Teenagers with a G1 or G2 pay the highest amount. Ensure they take a driving course to qualify for the most savings.

Accident forgiveness is a feature available in Ontario auto insurance. It allows you to have one at-fault accident without affecting your rate. It's viewed as a way for an insurance company to reward good driving habits and a having a claims-free record. Not all companies offer this perk. To qualify, you must be in good standing, have a clean record and meet other criteria.

In Ontario, your auto insurance coverage follows the vehicle, not the driver. Anyone you permit to drive your vehicle is insured under your policy. This also means that if they are an accident the claim will go on your record.

It depends on what is included in your policy. The OPCF 27 endorsement, Legal Liability For Damage To Non Owned Automobiles, should be added to your policy. This will cover you if you drive another person’s vehicle. This is often included with comprehensive insurance. If you are not sure if you have this, check with your insurer for clarification.

You are not automatically eligible for basic car insurance in Ontario. You must meet a series of residency rules to be eligible to get a standard personal use automobile policy :

  • You must reside in Ontario and be a Canadian resident.
  • You must have a valid Ontario driver’s licence (G, G2, G1).
  • Anyone listed on the policy must have a valid licence.
  • Your vehicle is to be used for personal use only. You will need commercial auto insurance if you use your car for business purposes.
  • Your vehicle must be roadworthy and pass a car safety inspection. Any modifications must be reported to your insurer.
  • You do not have previous fraud convictions.
  • No serious past convictions or payment issues on your driving record.
  • You must fully disclose all information about yourself, vehicle and driving history.

Yes. An insurance company can deny you standard auto insurance coverage in Ontario. You have the right to receive a written reason why you were denied. If you’ve been denied, you can still qualify for high-risk auto insurance or through the Facility Association.

It is rather straightforward to add a driver to your Ontario auto insurance. You should contact your insurer. Provide them with the driver’s information and licence number. They will ask you some questions about their driving history.

You do not need to add an occasional driver if they are only using your vehicle one time. For example, lending your automobile to a neighbour or a relative who is visiting on vacation. You are required to add licenced drivers who reside in your home and use your vehicle occasionally.

No. Credit score checks are not required to buy car insurance in Ontario. They also do not have any impact on the price of premiums.

New permanent residents are required by the government to have an Ontario driver’s licence and auto insurance from a provider in the province. This is the case whether you are moving from another province or another country.

You need to exchange your licence from your previous province or country within 60 days of moving. The provincial government officially recognizes licences from many countries, including the United States, Australia, France, Germany, Great Britain, and others.

If your country is not part of the licence exchange agreement with the province, you will have to complete the graduated licencing process.

It is advisable to obtain a record of insurance from your previous insurer. This can help you show proof of your history. It can also help you get cheaper car insurance.

Distracted driving continues to be a serious risk to road safety. If you are caught driving while distracted, you can expect to pay higher premiums. Plus, you face further penalties. Fines start at $1,000, a 3-day licence suspension, and 3 demerit points.

After your first conviction, the price could go up to 10% - 20% more. A second conviction could see increases by 30% or more.

Yes. You can be insured with Uber insurance and ridesharing coverage in Ontario. If you are planning to work for a ridesharing service, speak with your insurer. It is important to make sure you have the right coverage in place. Being insured properly will protect you and your customers when the meter is on.

If you are involved in an auto accident that involves significant damage or injury, you need to report it to your insurance company. Report it as soon as possible to start the car insurance claims process.

Here is how the basic process works :

  • Report the accident to the police or accident reporting centre.
  • Open a claim by providing the accident information to your insurance company.
  • An adjuster will be assigned to your case to determine fault.
  • Get an estimate for the repairs. Determine if repairs are needed or the vehicle is a total loss.
  • Your insurer will determine who is at-fault.
  • Your automobile is repaired.
  • The claim will be closed.
  • If you are found to be at-fault, your rates will likely go up on renewal.

Claims with injuries can require additional steps. Speak with your provider for more details about the specific steps they required.

Silver SUV drving on highway

Find lower Ontario car insurance quotes

Comparing the best Ontario car insurance quotes is easy with ThinkInsure. You'll be able to instantly see the cheapest rates from the top insurance companies. Get free quotes online or give us a call. Our friendly brokers will make sure you are getting proper coverage and help you get insured for a great price.

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