Compare car insurance quotes to get the lowest rates in Ontario
With more drivers than in any other province in Canada, Ontario roads get a workout. They also wind their way through a diverse set of landscapes, like the urban jungle of Toronto and the rolling vineyards of Niagara. As the province's licence plate says, Ontario really is "Yours to Discover." But before you get behind the wheel in Ontario, you’ll need a great auto insurance policy for your vehicle.
Comparison sites allow you to find the cheapest auto insurance in whatever city and province you live in — just like that. As you start your search, it’s important to understand how auto insurance works in Ontario and how to get the best policy at the lowest price. Below you'll find tips and information about driving in Ontario that'll help you shop for an auto insurance policy.
How do car insurance comparison sites work?
We ask you for your driver info, then we use those details to generate and rank your quotes from the top car insurers across Ontario. Once you select your quote, you can call one of our insurance brokers directly. They'll help you lock in your rate with the insurer and get set up with your new policy.
The entire process takes only minutes. Not only will you save time and money – you'll also have the satisfaction of knowing you got the cheapest car insurance rate available. Comparison sites allow Ontario drivers to quickly and accurately find the best auto insurance quotes from all the top insurers.
Who sets auto insurance rates in Ontario?
In the province of Ontario, auto insurance rates are set by individual insurers and then reviewed and approved by the Superintendent of Financial Services and the Financial Services Commission of Ontario.
What factors determine auto insurance rates in Ontario?
Insurers evaluate a variety of factors before they calculate your auto insurance rate. The following variables are used to determine your insurance rate in the province:
- Your driving experience
- Your driving record
- Your age and gender
- Where you drive
- The type of vehicle you drive
- How you use your vehicle
- How much coverage you need
Unfortunately, Ontario auto insurance premiums are the highest in Canada. Why? Many experts point to high fraud rates and higher than average traffic on Ontario roads.
Average auto insurance rates by province
| Province | Average Rates |
|---|---|
| Ontario | $1,445 |
| British Columbia | $1,680 |
| Alberta | $1,251 |
| Newfoundland & Labrador | $1,132 |
| Manitoba | $1,080 |
| Northwest Territories | $978 |
| Nunavut | $963 |
| Yukon | $812 |
| Nova Scotia | $842 |
| Saskatchewan | $936 |
| New Brunswick | $819 |
| Prince Edward Island | $796 |
| Quebec | $661* |
Source: Insurance Bureau of Canada, 2017
*2016 data
Experts say rampant fraud is the main reason cheap auto insurance is so hard to come by in Ontario. Strict mandatory minimum liability regulations and generous accident benefits laws are a couple other factors that contribute to Ontario's high rates.
Will auto insurance rates in Ontario go down anytime soon?
Yes. Slowly but surely, rates are going down. In 2013, the Ontario government promised to put downward pressure on auto insurance rates across the province, and since then, average rates dropped by 8.35%. However, rates continue to creep upward despite this overall trend. According to the Financial Services Commission of Ontario, average auto insurance rates increased by 1.50% in the third quarter of 2016. Nearly a dozen auto insurers were approved for rate increases, many of which were 5% or higher. Of course, these are all average figures, and many Ontario drivers will still see rate reductions. Among LowestRates.ca users, rates actually dropped 9% between 2015 and 2016.
Ontario auto insurance rate changes
| Quarter | Rate change |
|---|---|
| 2018 Q4 (Oct.1 - Dec. 31) | +3.35% |
| 2018 Q3 (Jul. 1 - Sep. 30) | +2.06% |
| 2018 Q2 (Apr. 1 - Jun. 30) | +1.1% |
| 2018 Q1 (Jan. 1 - Mar. 31) | +2.23% |
| 2017 Q4 (Oct. 1 - Dec. 31) | +1.03% |
| 2017 Q3 (Jul. 1 - Sep. 30) | -0.1% |
| 2017 Q2 (Apr. 1 - June 30) | +0.76% |
| 2017 Q1 (Jan. 1 - Mar. 31) | +1.24% |
| 2016 Q4 (Oct. 1 - Dec. 31) | -0.14% |
| 2016 Q3 (Jul. 1 - Sep. 30) | +1.50% |
| 2016 Q2 (Apr. 1 - Jun. 30) | +0.33% |
| 2016 Q1 (Jan. 1 - Mar. 31) | -3.07% |
| 2015 Q4 (Oct. 1 - Dec. 31) | -0.15% |
| 2015 Q3 (Jul. 1 - Sep. 30) | -0.50% |
| 2015 Q2 (Apr. 1 - Jun. 30) | +0.60% |
Source: fsco.gov.on.ca
How can I get cheap auto insurance in Ontario?
There are many ways to get cheap car insurance in Ontario. Here's what you can do:
- Compare quotes online
- Pay premiums on time
- Choose the right insurance coverage
- Complete a certified driver training program
- Insure all your vehicles with the same company
- Use winter tires (insurers offer discounts)
- Bundle your home insurance with your auto insurance
- Maintain a good driving history (always drive carefully and obey the rules of the road)
Is auto insurance required in Ontario?
Yes. By law, all Ontario drivers must carry insurance for their vehicle.
What's the minimum requirement for auto insurance in Ontario?
Ontarians are required to carry $200,000 in third-party liability insurance for their vehicles. Without the minimum amount of coverage, drivers can't register their automobiles.
Drivers in Ontario are also required to buy direct compensation property damage (DCPD) coverage. DCPD covers your vehicle damages if another driver is found at fault for the accident. Even if someone else damages your car, you collect benefits from your own insurer.
What kind of auto insurance system does Ontario have?
Ontario operates under a no-fault insurance system. Your insurer pays for your damages and the other driver's insurer pays for theirs.
In addition to vehicle repairs and property damage, what else will my auto insurance policy cover?
If you have an automobile accident in Ontario, regardless of who's at-fault, your liability coverage provides these supplementary benefits:
- Income replacement: 70% of gross wages to a maximum of $400 per week
- Benefit to disabled non-earners: $185/week for 104 weeks
- Medical, rehabilitation, and attendant care: up to $65,000 for non-catastrophic injuries or up to $1 million for catastrophic injuries
- Funeral expenses: up to $6,000
- Payment to survivors of a person who's killed: minimum of $25,000 to spouse and $10,000 to dependants
- Other expenses
What are the penalties for driving without insurance in Ontario?
Motorists convicted of driving without insurance in Ontario must pay a fine ranging from $5,000 to $25,000 for their first offence. Second offence fines range from $10,000 to $50,000, and your driver's licence may be suspended for up to a year.
If you're convicted of driving without the minimum auto insurance coverage required by law, you'll be identified as "high risk". You'll likely face higher auto insurance rates in the future, and your vehicle may be impounded.
What's the minimum legal driving age in Ontario?
You can begin the licensing process in Ontario when you turn 16. To get a learner's licence (G1) in Ontario, you have to pass a written rules of the road knowledge test and a vision test. When you pass these tests, you get your G1 licence. But once you get behind the wheel, you must be accompanied by a fully licensed driver whose blood alcohol content (BAC) is less than 0.05, and your own BAC must be 0.
How do I get a probationary licence (G2) in Ontario?
After you hold your G1 licence for 12 months, or 8 months with the completion of a driver's education course, you have to pass an advanced road test to earn your probationary licence (G2). Drivers with a G2 licence cannot drive between 12:00 AM and 5:00 AM or on high-speed expressways (including 400-series highways). And they must maintain a BAC of 0.
How do I get a full licence in Ontario?
Once you've had your G2 licence for 12 months, you can take your final road test, which usually includes driving on a four-lane highway. If you pass, you get your full licence (called a G). Just remember: you have to renew your G license every 5 years, and Ontario drivers have to maintain a BAC of 0 until they turn 22.
Is ride-sharing insurance available in Ontario?
Yes. Ontario was the first province to approve an insurance policy for ride-sharing. So if you drive for a ride-sharing service like Uber, make sure you get the right coverage. Ride-sharing insurance is absolutely essential to keep your customers, your vehicle, and yourself protected in case something happens while you’re on the road.
Is usage-based insurance available in Ontario?
Yes. Ontario was one of the first jurisdictions in Canada to approve usage-based car insurance policies, and drivers in the province can take advantage of this new type of insurance plan to dramatically lower their premiums.
Learn more about usage-based car insurance here.
