Average Car Insurance In Ontario By Month, Age And Gender

Average car insurance costs are on the rise in 2024

Car insurance rates are increasing in 2024. Now is a good time for drivers to compare prices and explore other options for better rates when their policy is up for renewal.

During the COVID-19 pandemic, insurance rates remained flat or even decreased due to fewer people on the roads, resulting in fewer claims and accidents. However, as things return to normal, costs are rising for insurers.

The top reasons for rate increases are:

• Claims frequency is returning to pre-pandemic levels, contributing to increased auto claims.
• Supply chain demands and labour shortages.
• Reduced availability of replacement parts and vehicles, leading to higher claims costs.
• The increasing complexity of car features translates to expensive parts and longer repair times.
• Auto theft is the biggest issue, raising insurance premiums. Ontario has the highest rate of vehicle theft in Canada.

Under these circumstances, insurers are implementing rate updates to stay competitive. Consumers should expect additional rate increases throughout the year as insurers adapt to the challenges of the current economic environment.

Average car insurance by age

Insurance companies consider age an important indicator. Premiums tend to decrease as you age, and mature drivers experience more savings. Men and women in the 18-25 age range have higher rates.

Insurance for young drivers is more expensive because they are more likely to get into an accident. This means there are higher claims costs associated with younger drivers. The same is true for seniors. Once you reach a certain age, you could see rates start increasing again. This happens because elderly drivers are statistically more likely to be involved in accidents.

Here is a look at yearly and monthly costs by age:

Is auto insurance more for women or men?

Gender is another indicator used by insurers to determine premiums. Men are a greater threat to road safety than women. They tend to drive more, are more likely to be involved in an accident and partake in riskier driving behaviours. Males pay more than females.

To illustrate this point, we sourced data from our quoter and compared males and females in various age categories to the overall average for all drivers. In all scenarios, males pay more than females for coverage.

Average auto insurance by gender

Are you paying above average for auto insurance?

How much is car insurance in Ontario? Find out by comparing rates from the top providers to see if you can save more.

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What is the cost of car insurance for new drivers?

Insurance for first-time drivers tends to be the highest. New drivers, especially if you are under 25 years of age, have some of the highest premiums. People with a G2 licence will pay more than those with a G licence. As you progress through the licensing system, the amount will decrease. Remember that G1 drivers cannot be listed as the primary driver on a policy. However, a policy with a G1 licence listed will increase the rate.

You can get a policy with a G2. But this can be expensive because you are not fully licensed. You can get listed on a parent or guardian plan as an occasional driver to save money. It will increase the premium, but less than if you took out a separate policy.

Overall, expect rates for a new driver to be considerably more than the provincial or city average.

Prices can vary significantly by age, driving record, and insurance history. Check out our car insurance calculator to learn more about determining rates.

How much is insurance for a teenage driver?

Teenage drivers are known for paying a lot for insurance. Based on data from our quoter*, the average for a teenager (age 16-19) is $3,550 per year.

For example, it can be $4,430 per year for a 16-year-old. A 17-year-old taking out a policy can expect it to be approximately $291 per month or $3,502 annually.

Compare this to the typical amount of a 40-year-old, and you’ll see a significant difference of approximately $1,500 per year.

Why is there so much of a difference? Teens are a more significant threat to road safety. They have minimal experience behind the wheel. To save money, it’s recommended that younger people get added as a secondary driver on a parent or guardian’s plan. Also, teens may not qualify for regular coverage and may need to get high risk auto insurance which is much more expensive.

Here is a breakdown of rates for teens by age:

Regardless of your age or gender where you live impacts the price of your insurance

Location plays a huge role in average auto insurance prices. Depending on where you live in the province your premium could vary by hundreds of dollars annually. For example, the average premium for car insurance in Toronto is $2,400 annually.

In Brampton, it is about $2,900 annually, the highest in the province.

The lowest area is the northeastern area of the province. Cities such as Kingston and Belleville average about $1,700 per year.

Here are the average costs for some cities:

• Ottawa is about $1,827 annually.
• London is about $2,225 annually.
• Mississauga is over $2,531 annually.
• Hamilton is approximately $2,396 annually.

Some other factors that affect your auto insurance

Many factors have a direct impact on the price of insurance. Some you can control (what you drive, driving history), and others you cannot (insurance industry factors).

Industry

Here are some of the things that you have no control over:

• Fraud: Fraud has been spiking claims expenses for drivers and insurers adding up to over $1.3 billion a year.
• Claims expenses: New technology and designs increase the MSRP and the cost of repairing or replacing vehicles.
• Approved rate increases: Insurers can apply to increase their rates each year based on overall expenses. If fraud and claims numbers are high, they are more likely to request an increase.

Individual

There are certain things you can control to help keep your payments down:

• Location: Where you live in the province will impact the price. It's more expensive in urban cities compared to rural areas. More vehicles increase the threat of a collision, theft, or claim.
• Coverage type and limits: The amount of coverage you have on your policy will affect the price. The more protection you have, the more it increases payments.
• Deductible amount: Lowering your deductible will lower the amount.
• Driving history: The more driving experience you have driving and being a good driver will help you save.
• Vehicle: The type of vehicle you drive can lower your monthly cost. Check out our article on finding a cheap car to insure.
• How much you drive: The more you drive, the higher your monthly premiums will be.
• Claims history: Having an at-fault accident on your record means higher rates.

There are also individual considerations you cannot control, such as your age and gender. For more information, visit our page and see what factors affect Ontario car insurance.

A final word on average car insurance costs

Your age and gender are key cost indicators, even though you have no control over them. Other things like your location, coverage choice, and vehicle type also matter. In general, young drivers have higher premiums. As you age, you’ll see your premiums go down over time. That is if you keep a squeaky-clean record and capitalize on savings opportunities.

*Quotes from January 1st, 2022, to August 31, 2024. Clean driving record and standard coverage.

**https://www.fsrao.ca/consumers/auto-insurance/understanding-auto-insurance-rates/your-average-premium