Auto Insurance Companies In Canada: How Many Exist?

There are several auto insurance providers in Canada, each offering different coverage options, benefits, and discounts. The top insurance providers in Canada include Manulife, Canada Life, Sun Life Financial, Desjardins, and IA Financial Group. Smaller insurers include subsidiaries of banks, such as CIBC Insurance and TD Insurance.

Some of the biggest car insurance companies in Canada include Aviva Canada, Belairdirect, CAA Insurance Company, Co-Operators Insurance, Desjardins, Economical Insurance, Gore Mutual Insurance Company, and Intact.

When choosing an auto insurance company in Canada, it is important to consider factors such as coverage options, price, customer service, and overall reputation.

Customer satisfaction and reviews

Customer reviews of car insurance companies in Canada are often skewed, as people tend to leave reviews only after a poor customer service experience or if a claim was denied. For example, Intact Insurance, Canada's largest auto insurer, has a 3.9-star rating on Google with 658 reviews, but many 1-star reviews declare it to be the "worst insurance company". Critical reviews often cite issues such as being dropped for multiple tickets, repair shop delays, and being asked to pay a deductible for a claim. However, these situations are not necessarily unique to or within the control of the insurance company in question.

Another major car insurance provider, Aviva Canada, has also received negative reviews, with customers complaining about issues such as taking too long to get a new car and dissatisfaction with settlement offers. Once again, these negative reviews represent customers' frustration with situations that are not necessarily unique to the company.

Google reviews can be useful for understanding potential worst-case scenarios, but it is important to also consider third-party data and customer satisfaction surveys to get a more accurate picture of the best car insurance companies in Canada.

The consumer insights company J.D. Power conducted the most recent Canadian Auto Insurance Satisfaction survey in 2019. The study found the insurers with the highest overall customer satisfaction to be The Co-Operators in Ontario and Atlantic Canada, tying with the Alberta Motor Association in Alberta, and The Personal in Quebec.

Other highly-rated providers in the J.D. Power survey include RBC Insurance, Economical Insurance, and Optimum General Insurance. The Co-Operators is also known for its exceptional customer service and community involvement, offering a wide range of insurance products and various coverage options.

The Personal offers a range of insurance discounts and savings, such as savings for insuring multiple cars, having a clean driving record, and loyalty savings. Additionally, The Personal app allows customers to get photo-based estimates on their auto claims, file and track claims, and get a personalized premium based on their driving habits.

RBC Insurance also offers unique additional coverage options, such as a disappearing deductible and loss-of-vehicle-use coverage. They also offer insurance for motorcycles, motorhomes, trailers, ATVs, snowmobiles, boats, and collector cars.

When choosing a car insurance company in Canada, it is important to consider various factors such as coverage options, price, customer service, and overall reputation. Comparing quotes from multiple companies, asking about available discounts, considering the level of coverage, and bundling policies can help ensure that customers get the best value and protection for their needs.

Discounts and savings opportunities

Canada has a multitude of auto insurance companies, and the number of discounts and savings opportunities available to drivers is just as impressive. Whether you're a new or experienced driver, a student, or a retiree, there are many ways to save on your auto insurance premium.

Bundling Insurance

One of the most effective ways to save on auto insurance is to bundle it with other types of insurance, such as home or renters insurance. By combining multiple insurance products with a single provider, you can often receive a discount on one or both policies. For example, tenants who bundle their car and renters insurance can benefit from lower premiums.

Multi-Vehicle Insurance

Insuring multiple vehicles under the same policy can lead to significant savings. Many insurance companies offer discounts for families with multiple vehicles or households with licensed family members driving separate cars. This type of discount can apply whether the additional vehicles are personal cars, motorcycles, or even RVs.

Loyalty and Renewal Discounts

Insurance companies value customer loyalty, and they often express their appreciation through loyalty and renewal discounts. These discounts increase the longer you remain with the same insurance company, providing an incentive to maintain your policy with them. However, it's important to note that if you switch insurance providers, you may lose the loyalty discount you had accrued.

Private Parking

Where you park your car can impact your insurance premium. Insurance companies view parking on the street as riskier than parking in a private garage or driveway, as vehicles parked on the street are more susceptible to damage or theft. Therefore, if you have access to private parking, be sure to inform your insurance company to take advantage of this discount.

Winter Tires

Equipping your vehicle with winter tires is not only a safe decision but also a financially savvy one. In Ontario, auto insurance companies are mandated to offer a 5% discount on premiums if drivers install winter tires by a specified date, typically November 1 or December 1.

Good Driving Rewards

Safe driving habits can lead to substantial savings on your auto insurance. Many insurance companies offer usage-based insurance programs or telematics-based discounts, where your driving behaviour is monitored, and good driving habits are rewarded. These programs often track factors such as distance driven, speeding, driving at risky hours, distracted driving, acceleration rates, and hard braking.

Student Discounts

Students who can demonstrate good academic performance may be eligible for discounts on their auto insurance. This applies to both high school and full-time college or university students below the age of 25. Additionally, students who take a government-approved driver training course can benefit from reduced insurance rates, as they are seen as lower-risk drivers.

Retiree Discounts

Retirees who have been retired for at least six months with no additional income other than their pension can often receive discounts on their auto insurance. This discount is usually applied as a percentage reduction on the insurance coverage premium.

Green or Eco-Friendly Vehicles

Driving a hybrid or electric vehicle can result in savings on your auto insurance. Insurance companies recognize and reward environmentally conscious choices, helping you save on both gasoline and insurance costs.

Short-Distance Commute

If your commute to work is relatively short, typically less than 5km one way, you may be eligible for a discount on your insurance premium. Most accidents occur during the daily commute, so a shorter commute distance is seen as a lower-risk factor by insurance companies.

Anti-Theft Devices

Installing an anti-theft device in your vehicle can provide additional savings on your insurance. After-market anti-theft devices can offer savings of up to 5%, while satellite-based systems can result in discounts of up to 15%.

Other Discounts

There are numerous other discounts available, including increased deductible discounts, accident forgiveness, and discounts for safety features such as automatic emergency braking. Additionally, insurance companies often provide savings for customers who pay their premiums annually or consistently on time.

Remember, the availability and percentage of discounts may vary among insurance companies, so it's always a good idea to compare quotes and speak to an insurance broker to find the best deals and ensure you're getting all the discounts you're entitled to.

Coverage options

Mandatory Coverage

In Canada, certain types of auto insurance coverage are mandatory by law. These can vary by province, but some common types of mandatory coverage include:

• Third-party liability insurance covers losses if your vehicle causes injury, death, or damage to other people and their property. The minimum coverage limit is typically $200,000 but can vary depending on the province.
• Accident benefits cover the cost of medical treatments, rehabilitation, income replacement, and funeral expenses for you, your passengers, and other drivers or pedestrians involved in an accident, regardless of who is at fault. This type of coverage is mandatory in all provinces except Newfoundland and Labrador.
• Uninsured automobile/motorist coverage protects you if you or your passengers are injured or killed by an uninsured driver or in a hit-and-run incident. It also covers damage to your vehicle.
• Direct compensation property damage (DCPD) is applicable in certain provinces and covers damage to your vehicle and its contents if you are not at fault in an accident with another insured vehicle.

Optional Coverage

In addition to mandatory coverage, there are several optional coverage options that drivers can choose to add to their auto insurance policy. These may include:

• Collision insurance covers the cost of repairing or replacing your vehicle if you are at fault in a collision with another vehicle or object. This type of coverage is optional in most provinces but is mandatory in Saskatchewan and Manitoba.
• Comprehensive insurance covers the cost of repairing or replacing your vehicle due to damage or loss not caused by a collision. This can include fire, theft, vandalism, natural disasters, and other non-collision incidents.
• Specified perils coverage protects against losses from specific hazards listed in the policy, such as theft, hail, fire, or windstorm damage.
• All-perils coverage combines collision and comprehensive coverage and also includes protection for all other incidents beyond your control. This type of coverage is mandatory in Manitoba and Saskatchewan.
• Rental car coverage provides protection for damage to rental cars or "non-owned" vehicles. This coverage is typically optional and comes at an additional cost.
• Roadside assistance is often offered as an optional add-on and can provide assistance in case of a flat tire, battery issues, or other emergencies.
• Accident forgiveness keeps your premium from increasing after your first at-fault accident.
• Depreciation coverage ensures you receive the full value you paid for your car if it is declared a total loss.

It is important to note that the availability and specifics of these coverage options may vary depending on the insurance company and the province in which you reside. It is always a good idea to review your policy carefully and understand the coverage options available to you.

Company reputation

When it comes to choosing an auto insurance company, it's essential to consider various factors, including the company's reputation and customer satisfaction. While reviews and testimonials can provide valuable insights, it's crucial to remember that people often leave reviews after negative experiences, which may not accurately represent the company's overall service. Therefore, it's recommended to use third-party data and surveys, such as the J.D. Power Canadian Auto Insurance Satisfaction Survey, to gain a more objective understanding of a company's reputation.

In the 2019 J.D. Power survey, The Co-Operators was ranked as the top insurer in Ontario and Atlantic Canada, sharing the top spot in Alberta with the Alberta Motor Association, while The Personal secured the highest ranking in Quebec. These companies were recognised for their high overall customer satisfaction.

Another notable company, belairdirect, a subsidiary of Intact Insurance (Canada's largest auto insurer), stands out for its excellent customer service. Customers praise belairdirect for its user-friendly online platform and mobile app that enables them to manage their policies and track claims conveniently.

Additionally, The Personal, a subsidiary of Desjardins (one of Canada's largest insurance companies), has earned a five-star rating in the J.D. Power customer satisfaction survey. The company offers a comprehensive standard policy, various optional add-ons, and a user-friendly mobile app for filing and tracking claims.

When considering company reputation, it's worth noting that some insurers are known for their unique discounts and affordable premiums. For instance, Co-operators offers rewards for safe driving habits and bundling discounts, making it an attractive option for new drivers. Similarly, Desjardins offers a range of add-ons and discounts for secure parking, winter tires, and good student grades.

In summary, when evaluating the reputation of auto insurance companies in Canada, it's advisable to rely on third-party data and surveys rather than solely relying on customer reviews. The Co-Operators, Alberta Motor Association, The Personal, belairdirect, and Desjardins have all earned recognition for their customer satisfaction, competitive pricing, and comprehensive services.

Digital capabilities

Canada's auto insurance sector is witnessing a wave of digital innovation, with InsurTech startups and digital tools revolutionising the industry. This digital transformation is driving operational agility and enabling insurers to meet evolving customer needs and market expectations.

• Digital Proof of Insurance: Some provinces in Canada, including Ontario, Newfoundland, Alberta, Nova Scotia, and Labrador, now accept digital proof of insurance. This digital version of the physical pink insurance card can be stored on smartphones and other digital devices, making it easier for drivers to provide proof of insurance. While not mandatory, it offers a convenient alternative to the traditional paper slip.
• Mobile Apps: Auto insurance companies are developing mobile apps that allow customers to access their policies and track their claims on the go. These apps also enable digital proof of insurance, which can be shared with other drivers listed on the policy.
• Digital Customer Engagement: Auto insurers are focusing on enhancing digital customer engagement through user-friendly websites and mobile apps. By providing easy access to information and services, insurers aim to improve customer satisfaction and reduce the need for customers to contact call centres.
• Digital Transformation Platforms: Platforms like EY Nexus enable insurers to rapidly innovate and launch new products, services, and even new brands. By leveraging curated ecosystems of partners, insurers can access new technologies and scale their businesses efficiently.
• Advanced Digital Tools: Auto insurance companies are investing in advanced digital tools, such as process automation, blockchain, and advanced analytics. These tools streamline various functions, including marketing, distribution, underwriting, claims, finance, and accounting.
• Value-Added Digital Services: While many insurers offer foundational digital capabilities, those that provide value-added services set themselves apart. These could include features like automatic updates, digital validation tools, and personalised digital experiences.

Frequently asked questions