Finding The Cheapest Auto Insurance In Ontario

Car insurance is a legal requirement in Ontario, with vehicle owners needing to be insured to drive on provincial roadways. The average cost of car insurance in Ontario is $1,737 annually, or $145 per month, according to the Financial Services Regulatory Authority of Ontario (FSRAO). However, rates can vary by $1,000 per year or more, depending on your city, with the Greater Toronto Area being the most expensive region and rural areas being the most affordable.

There are several ways to get cheaper car insurance in Ontario, including:

- Comparing quotes from multiple providers

- Bundling home and auto insurance policies

- Taking driver training courses

- Installing winter tires

- Increasing your deductible

- Driving less

How to get the cheapest car insurance in Ontario

Compare Quotes from Different Insurers

Ontario has a highly competitive auto insurance market, so insurers are always trying to give you the best deals. Comparing rates and shopping around to see which insurance provider fits your auto protection needs at a reasonable price is a great way to save money.

Increase Your Deductible

The deductible is what you must pay out of pocket if you file a claim. The more you agree to pay, the lower your premium will be.

Bundle Home and Auto Insurance

If you bundle your home and auto insurance under the same insurance company, you can save 5% to 15% off both policies. This is also called a multi-line discount.

Take Driving Lessons

Completing a government-approved course will give you a break on insurance. Accredited driving lessons make you a safer driver and let you earn discounts on auto insurance in Ontario.

Reconsider Your Coverage

Review your coverage each year and cancel any add-ons you no longer need. For example, cancelling your collision coverage would make economic sense if you drive an older car and buying a new one would be more cost-effective.

Pay Annually

If you can pay your premiums annually rather than monthly, you can often save a bit. Some insurance companies offer a discount on the payment of annual premiums upfront.

Drive Less

The less you drive, the more you save. If you commute to work via car, switching to transit can slash your premiums. If you don't drive as much as you used to, call your insurance company and let them know.

Install a Dash Cam

Even though it will not lead to direct savings, a dashboard camera can help settle disputes related to collisions, indirectly saving you money by proving who caused it. It can also help protect you if fraudsters target you.

Mandatory auto insurance in Ontario

Auto insurance is mandatory in Ontario, and drivers must carry a basic auto insurance policy with four different coverages. The Financial Services Regulatory Authority of Ontario (FSRA) regulates auto insurance in the province and ensures that rate increases are justified.

Third-party liability

Third-party liability insurance is mandatory in Ontario and covers financial compensation if you cause an accident that results in car damage or someone getting hurt or killed. The minimum coverage required is $200,000, but you can increase it to $1 million or $2 million for more protection.

Statutory Accident Benefits

Statutory Accident Benefits provide coverage for medical, rehabilitation, and funeral expenses if you are injured or killed in an accident, regardless of who is at fault. It also includes income replacement of 70% of your gross income, up to $400 per week. You can increase the coverage limits for additional protection.

Direct Compensation-Property Damage (DC-PD)

DC-PD insurance covers damage to your car or loss of use of your vehicle if someone else is at fault in an accident. This coverage is mandatory in Ontario but can be removed from your policy if you choose to opt out. However, removing DC-PD coverage means you cannot sue for vehicle damage.

Uninsured Automobile Insurance

Uninsured Automobile Insurance protects you if you are injured or killed by an uninsured driver or if your vehicle is damaged as a result of a hit-and-run. It provides up to $200,000 in coverage and is mandatory in Ontario. You can also add Family Protection Coverage as an optional extra, which provides up to $1 million in additional coverage in the case of a hit-and-run by an uninsured motorist.

Optional car insurance in Ontario

While there is a minimum level of car insurance that is mandatory in Ontario, there are also optional types of car insurance that drivers can choose to take out. These can provide additional peace of mind and greater protection in the event of an accident.

The main types of optional car insurance coverage in Ontario include:

• Collision or upset coverage: This covers damages to an insured vehicle that is involved in a collision with another vehicle, trailer, or other object, including the ground, and any object in or on the ground.
• Comprehensive coverage: This covers the cost of repairing or replacing your vehicle from damage not caused by a collision. This includes incidents such as fire, theft, natural disasters, and more.
• Specified Perils Coverage: This covers losses caused by a specific event, such as fire, theft or attempted theft, certain natural disasters, explosion, civil disturbance, and various other perils.
• All-Risk (All Perils) Coverage: This combines Collision or Upset and Comprehensive coverages. It also covers loss or damage caused by theft by someone who lives in your home or has access to your vehicle.
• Coverage Against Uninsured Drivers and Hit & Runs: This covers you and your family against injury or death by an uninsured or hit-and-run driver, and against damage to your vehicle by identified, uninsured drivers.

In addition to these main types of optional coverage, there are also a number of other optional add-ons that drivers in Ontario may want to consider. These include:

• Increased Third-Party Liability Coverage: Drivers can choose to increase their Third-Party Liability coverage beyond the legally required minimum of $200,000. This can provide additional protection in the event of an accident.
• Income Replacement Benefits: This optional coverage can increase the amount of income replacement up to $1,000 per week in the event that someone is unable to work due to an auto accident.
• Medical, Rehabilitation and Attendant Care Benefits: While basic coverage is provided for medical, rehabilitation, and attendant care expenses, there is an option to increase this coverage for both non-catastrophic and catastrophic injuries. This can be important as many healthcare expenses may not be covered by basic insurance or health insurance.
• Dependent Care Benefits: This optional benefit is not provided in standard auto policies. It covers dependent care costs up to $75 per week and $25 for each additional dependent. This is only available to individuals who were employed at the time of the accident and are not receiving a caregiver benefit.
• Indexation for Inflation: This optional benefit, which is not provided in standard auto policies, provides for an inflation adjustment for other benefits purchased to ensure that benefits increase at the same rate as inflation.

When considering optional insurance coverage, it is important for auto owners in Ontario to evaluate their risk exposure and budget. By selecting the right optional coverages, drivers can maximise their security and safety on the road.

Average cost of car insurance in Ontario

The average cost of car insurance in Ontario varies depending on the source. According to RATESDOTCA, the average Ontario car insurance premium is $1,744 annually or $145 monthly. The Financial Services Regulatory Association of Ontario estimates the average to be $1,796 annually or $149.67 monthly. Meanwhile, the General Insurance Statistical Agency reports that Ontario drivers paid an average of $1,662 annually or $139 monthly in 2022. Despite the discrepancies, Ontario consistently has the highest car insurance premiums in Canada.

The cost of car insurance in Ontario is calculated based on several factors, including the age, make and model of the car, driving history, age, gender, and marital status of the driver, location, vehicle usage, insurance coverage chosen, and discounts.

To get the cheapest car insurance in Ontario, it is recommended to compare rates between insurers, take bundled policies, ask for a higher deductible, request group discounts, pay annually, maintain a clean driving record, consider usage-based insurance, take driving courses, and choose the necessary coverage.

Ways to get the cheapest car insurance in Ontario

Car insurance in Ontario is privatized, with rates fluctuating often, so it's important to compare quotes to get the best deal. Here are some ways to get the cheapest car insurance in Ontario:

Compare Quotes

The easiest way to save money is by comparing auto insurance quotes from different providers. If you're buying a new car, you can also compare quotes for different vehicles to see which one is the cheapest to insure.

Increase Your Deductible

Opting for a higher deductible will lower your insurance premium. The deductible is the amount you must pay out of pocket if you file a claim before your insurance carrier covers the remaining expenses.

Bundle Home and Auto Insurance

Bundling your home and auto insurance with the same company can save you anywhere from 5% to 15% on your premiums. This is also called a multi-line discount.

Take Driving Lessons

Accredited driving lessons will make you a safer driver and may earn you discounts on your auto insurance. Taking a defensive driving course can also make you eligible for lower rates.

Choose the Right Coverage

Review your coverage each year and cancel any add-ons you no longer need. For example, if you drive an older car, it may make economic sense to cancel your collision coverage and opt for a new vehicle instead of paying for repairs.

Pay Annually

Paying your insurance premiums annually rather than monthly can often result in savings. Some insurance companies offer a discount for paying annual premiums upfront.

Drive Less

The less you drive, the lower your insurance rates will be. If you can switch from commuting by car to using public transit, you may be able to slash your premiums.

Safety Features

Installing approved anti-theft devices or safety features on your car can lead to insurance discounts. Check with your insurance provider to see which devices are eligible for a discount.

Frequently asked questions