Compare cheap car insurance quotes in Ontario for free.

Compare Ontario auto insurance quotes to find your lowest rate.

Not only does Ontario have more drivers than any province in Canada, but it also has the most expensive car insurance in the country. The average cost of a car insurance policy for an Ontario driver is $1,655 according to 2020 estimates from the Insurance Bureau of Canada.

That’s a lot of money, but there are still ways to find savings on auto insurance.

Lowestrates.ca will help you find the cheapest car insurance policy no matter where you live in the province. Start by entering your postal code and in three minutes you’ll receive quotes from 50+ Canadian insurance providers.

We believe you’ll be surprised by how much your quotes vary.

Want to know more about how auto insurance works in Ontario and how to get the best policy at the lowest price? Keep reading for helpful information and tips.

Different types of auto insurance in Ontario.

Mandatory car insurance coverage

Ontario's no-fault insurance system requires that drivers carry at least $200,000 in third-party liability insurance for their vehicles. Without this minimum amount of liability coverage, drivers can't register their automobiles. A basic insurance policy in Ontario also includes coverage for medical services and damage to your vehicle. Each is described below.

Accident benefits in Ontario

These are the medical benefits that come with a standard auto insurance policy:

• Up to $3,500 per person for injuries that are deemed minor.

• Up to $65,000 per person for combined medical and attendant care for serious, but not catastrophic, injuries for up to five years.

• Up to $1 million for combined medical and attendant care for catastrophic injuries.

Direct compensation property damage coverage (DCPD)

Ontario drivers 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.

Uninsured vehicle insurance

This coverage protects you and your family from losses related to a collision with an uninsured vehicle or a hit-and-run driver. If you are injured or killed, you and your family can be compensated. You will also be protected against damage to your vehicle caused by an uninsured car.

Optional car insurance coverage

You can add coverage to your base policy if you believe you'll need it. There are four types of optional coverages and coverage amounts you can purchase. Here's what each one protects against.

• Collision coverage in Ontario: Collision insurance covers the cost of replacing or repairing your car if it's damaged in a collision and you are at fault for the accident.

• Comprehensive coverage in Ontario: Comprehensive insurance covers the cost of damage incurred by theft and vandalism, weather events, earthquakes, explosions, and debris. This type of insurance also entitles you to a cash settlement if your car is declared a total loss.

• Specified perils coverage in Ontario: Specified perils insurance covers the cost of damage from fire, theft or attempted theft, lightning, windstorms, hail, water, earthquakes, explosions, civil unrest, and damage during transport.

• All-perils coverage in Ontario: Provides broad coverage, an amalgamation of collision and comprehensive insurance.

Other types of car insurance coverage

Borrowed and rented vehicles coverage

Extended coverage beyond your primary vehicle to include any vehicles you rent or borrow on a short-term basis. Is added to your policy as an endorsement, OPCF 27, Liability for Damage to Non-Owned Automobile(s).

Leased vehicle coverage

Adds protection for long-term leases as opposed to short-term rentals. Is added to your policy as an endorsement, OPCF 5, Permission to Rent or Lease Automobiles and Extending Coverage to the Specified Lessee(s).

Loss of use coverage

This covers a rental car while your vehicle is repaired or replaced due to a covered accident or other insured damage. It's added to your base policy as an endorsement, OPCF 20, Coverage for Transportation Replacement.

New vehicle replacement

Offers temporary protection for new vehicles, usually for the first two years of owning a new car. This means that if your vehicle is damaged following a covered peril, the insurance provider won't factor its depreciated value into your compensation. This could more easily allow you to replace the vehicle with another new vehicle. It is added to the policy as an endorsement, OPCF 43, Removing Depreciation Deduction.

Ride-sharing driver coverage

Ontario was the first province to approve an insurance policy for ride-sharing drivers. If you drive for a ride-sharing service like Uber or Lyft, make sure you get the right coverage. Ride-sharing insurance is essential to keep your customers, your vehicle, and yourself protected in case something happens while you're on the road.

Usage-based car insurance coverage

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 newer type of insurance plan to dramatically lower their premiums.

Factors that determine car insurance rates in Ontario.

Insurance providers evaluate a variety of factors before they calculate your car 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.

When applying for a car insurance quote, these are the factors that will most strongly impact the premiums offered to you.

Auto insurance legal requirements & rate regulations in Ontario.

Ontario's auto insurance system & its legal requirements

All drivers in Canada are required by law to have car insurance.

To ensure you have the best coverage at the lowest rate, it helps to understand the nuances of the system.

First, there's mandatory coverage that all drivers in Ontario are required to have third-party liability, accident benefits, direct compensation property damage (DCPD) and uninsured vehicle.

Second, drivers can opt to add coverage to their policy – either by adding individual endorsements, or by purchasing a coverage package. Many insurance providers describe these packages as collision, comprehensive, specified perils or all-perils.

It's also helpful to understand how the overall car insurance industry operates in Canada. Car insurance rates are regulated by each province, resulting in slightly different coverage between each.

Ontario has a no-fault system. This means that your car insurance company handles your claim, regardless of who caused the accident.

One of the benefits of a no-fault regime is that there's no delay for injured parties receiving compensation. Rather than having to sue the at-fault driver, claims are processed by each party's own insurance provider.

However, the term ‘no fault’ can cause some confusion; insurance providers still want to know who caused the collision because they will need to establish fault before financial compensation can be awarded.

If the collision was your fault, it will be reflected on your record and your premiums may increase.

You can still be convicted under the Criminal Code and the Highway Traffic Act, and you can also be sued by the injured party for damages that exceed the limits of your insurance benefit.

Another detail to be aware of: If you're found driving without car insurance coverage in Ontario, you will be penalized. Motorists convicted of driving without insurance 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 in a collision, don't have coverage and are convicted of driving without the minimum auto insurance coverage required by law, you'll be identified as a “high-risk driver”. You'll face higher auto insurance rates in the future, and your vehicle may be impounded.

The costs of being in a collision when you don't have a licence could also be significant. For example, you could be responsible for covering the cost of property damage and physical damage for anyone injured.

Ontario's auto insurance authority & rate regulation

Auto insurance premiums in Canada are government regulated, meaning that they don't change without approval.

To change rates, insurance providers in Ontario must go through the Financial Services Regulatory Authority of Ontario (FSRA).

Following approval, FSRA publishes a list of approved rate changes.

The approval process means that auto insurance rates don't tend to change as often as home insurance rates, which are unregulated.

Insurance providers make money through premiums as well as investments. In a low-interest rate environment, when investments aren't necessarily producing a high return, home insurance premiums are likely to increase sooner than car insurance premiums.

Car insurance coverage for specific demographics in Ontario.

Ontario car insurance for seniors

Extensive driving history and a clean record are two factors that can help bring down a car insurance premium for drivers 30-69 years old. As a result, many drivers in that cohort enjoy some of the lowest rates. In fact, many providers offer age-specific discounts for drivers ages 50-69.

However, insurance providers begin to consider a driver who's 70 or older a greater risk. As a result, premiums begin to increase.

There are still ways to reduce your premium past age 70. Comparison shopping for the best rate each time your policy is up for renewal is an essential first step to managing your insurance costs. We also recommend that you consider bundling your policies, increasing your deductible, enrolling in a telematics program and/or even driving less. It's still possible to get a lower car insurance rate. However, you must be strategic in how you go about it.

Ontario car insurance for new immigrants

To secure car insurance in Canada, you must have a Canadian driver's licence. In some instances, you can simply exchange the one you had in your previous country. However, not all countries have a reciprocal licence exchange with Canada.

If you can't exchange your licence, you must complete the Ontario requirements for getting a driver's licence, including written and driving tests.

Once you have a licence, you'll follow the same process for getting car insurance as every resident.

Comparison shopping is the crucial first step in getting the best coverage at the lowest rate. In addition, you can customize your policy so that you're only paying for the coverage you need, nothing more.

Drivers who have no known driving history may be subject to higher premiums. This is because insurance providers have little information to gauge the risk they're assuming by writing a policy for you.

As you gain a longer driving history in Canada, you'll be more likely to secure a lower rate. We recommend that you comparison shop for a lower rate every time your policy is up for renewal.

Ontario car insurance for students

Students are most likely to secure a lower car insurance premium when they're added to the policy of a parent or guardian.

This approach to coverage offers the same amount of protection as a policy held on its own, however, the premium is based on the record of the policy holder, an experienced driver.

When a driver is young and without much driving history, insurance providers offer higher premiums because they're unable to gauge how likely the driver is to make a claim.

Ontario car insurance for high-risk drivers

Since car insurance is required by law in Canada, every driver must be insured, including those whose driving records are so problematic that many insurance providers would pause before writing a policy with them.

Drivers with poor driving records or numerous traffic tickets can be deemed high-risk drivers. Other offences likely to land a driver in that category include drivers with at-fault accidents on their record, an impaired driving conviction or one for stunt driving.

If you have been deemed a high-risk driver, expect your car insurance premiums to be more expensive.

You'll still be eligible for basic car insurance either from providers who specialize in providing coverage for high-risk drivers, or through the Facility Association, a group of providers that guarantees coverage for all eligible drivers.

Ontario cities with the cheapest car insurance.

Insurance companies say that auto insurance tends to get cheaper the farther you are from Toronto and its surrounding suburbs.

Our data confirms it. We examined car insurance quotes generated on our site in early 2020 and found that the top five Ontario cities with the cheapest insurance are:

• Embrun, Ont.

• Kemptville, Ont

• Brockville, Ont.

• Perth, Ont.

• Arnprior, Ont.

Why is insurance cheaper in less populated, often rural, areas? Actuarial data suggests that thefts and accidents are less common in smaller cities.

Okay, sure, location plays a big part in determining your premium. But so does your personal driving history.

If you have a short driving and insurance history — or a long one that's mired with driving convictions — your postal code won't prevent you from getting slapped with a high premium.

On LowestRates.ca, drivers from very small Ontario towns have gotten quotes that rival what the average driver in Toronto pays, sometimes even twice that.

It just goes to show that being a good driver pays off in the long run.

Trends in Ontario car insurance rates.

Auto insurance rates in Canada are regulated at the provincial level. When they change in Ontario one of the main reasons is that insurance providers have successfully lobbied the regulator, the Financial Services Regulatory Authority of Ontario (FSRA).

Insurance providers recommend rate increases to cover their own costs. For example, in 2022, many providers reflect that the cost of repairing or replacing vehicles is increasing. The technology in cars is also more expensive and inflation, labour shortages and supply chain challenges are also driving up costs.

Increasing rates in 2022 are a contrast to rate trends at the end of 2020 and 2021, when, during the height of the Covid-19 pandemic, car insurance rates in Ontario went down. This was in part because of savings that insurance providers offered when drivers' habits changed significantly. At the time, the Insurance Bureau of Canada projected that the savings would total about $600 million for Canadian drivers.

Reduced car insurance rates marked a significant change and came after many years of steady increases. Specifically, in every quarter between April 2018 and July 2020, rates went up

This upward trend is reflected in the table below, based on FSRA data.

FSRA highlighted several factors that may have contributed to the consecutive rate increases:

• Distracted driving accidents.

• Rising claims costs caused by modern cars, which have sensors, touchscreens and computers built-in, making them more expensive to repair.

• Insurance fraud.

In 2022, rates are beginning to climb again. Insurance companies reported that they're up against high loss ratios. Translation: they're spending more on claims than they're taking in from premiums.

Beyond rate decreases that took place during the height of the pandemic, government-led attempts to curb price increases have been ineffective.