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 $1,824 annually according to 2023 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 multiple Canadian insurance providers in our network.

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 caused by uninsured drivers. The details of each are described below.

Third-party liability insurance 

Provides coverage if you’re found legally responsible for injuries or damages to other people or their property. Coverage includes:

• Bodily injury: Covers medical expenses, rehabilitation, and compensation for pain and suffering if you injure someone in an accident.

• Property damage: Pays for repairs or replacement if you damage someone else’s property, such as their vehicle, fence, or building.

• Legal fees: Covers legal costs if you’re sued as a result of an accident.

The minimum coverage required by law in Ontario is $200,000

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.

A standard policy also provides coverage that pays for caregiving costs, housekeeping and home maintenance expenses benefit, income replacement, and death and funeral benefits. However, the Ontario government has promised that by 2026, drivers will have the ability to remove these benefits to lower their insurance premium.

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.

• Direct compensation property damage coverage (DCPD): Ontario drivers are no longer required to carry DCPD coverage. While it is included in a standard car insurance policy, you can remove it by buying an endorsement (OPCF 49, Agreement Not to Recover for Loss or Damage from an Automobile Collision). DCPD pays for damage to your car if the other driver is found to be at fault for the accident. You collect benefits from your own insurer, even though someone else is responsible for the damage. If you choose to remove DCPD, you’re no longer entitled to having the at-fault driver pay for any losses and you won’t be able to sue for repairs.

• 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.

Option to remove direct compensation property damage (DCPD) 

The endorsement OPCF 49, Agreement Not to Recover for Loss or Damage from an Automobile Collision, allows you to remove DCPD coverage from your policy. You will not be reimbursed for any loss or damage to your vehicle that is caused by another driver.

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 the Greater Toronto Area and the Golden Horseshoe region. Our data confirms that claim. We examined car insurance quotes generated on our site and found that the top five Ontario cities with the cheapest insurance are mostly in Eastern Ontario: Embrun, Kemptville, Brockville, Perth, and Arnprior emerged as the cities with the cheapest insurance premiums.

Actuarial data indicates that incidents of theft and accidents happen to a lesser degree in smaller cities and rural areas. This pattern is also reflected in the data from the Financial Services Regulatory Authority of Ontario, the provincial car insurance regulator.

Average premiums in Ontario by region

Source: Financial Services Regulatory Authority of Ontario

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 the GTA 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.

In 2024, the cost of providing insurance is rising, which is why premiums have gone up. The rate hikes observed in 2023 and 2024 stand in contrast to the rate trends witnessed at the end of 2020 and 2021. During the peak of the Covid-19 pandemic, car insurance rates in Ontario declined for the first time in recent memory. The FSRA data below reflects the upward trend in rates since the era of compulsory quarantining.

So why are car insurance rates rising so sharply in Ontario? 

Auto theft is a significant contributor to rising auto insurance prices in Ontario. The cost of claims to replace stolen cars in Ontario was more than $1 billion in 2023, with the cost of claims increasing 524% of the course of five years, according to the Insurance Bureau of Canada. On average, it added about $130 to the average annual Ontario premium.

However, premiums on some cars have increased by even more than that.

Insurance companies price car insurance rates based on the amount of risk the driver and the car itself present.

Some cars are more likely to be stolen than others; therefore, insurance companies charge more for coverage on those cars. Some insurance companies have even adopted a policy of surcharging commonly stolen car models if the policyholder doesn’t add a GPS tracker for theft-recovery purposes.

The cost of repairing, replacing, and manufacturing vehicles is also increasing.

The primary reason is that car technology has become increasingly sophisticated, leading to higher repair costs and the need for specialized labor. Inflation has exacerbated the issue. In June 2022, the Consumer Price Index peaked at 8.1%, but the cost of repairing or replacing cars far exceeded that: the price of new cars increased by 12.1% and the cost of parts increased by 18%. It's been two years and the situation hasn't changed much.

Labour shortages and lingering supply chain challenges triggered during the height of the pandemic are ongoing issues.

North American car manufacturers cut production targets because semiconductors weren’t available. Semiconductors are used in infotainment systems and driver-assistance features. The millions of cars were expected to enter the market in 2021 were never produced, and automakers have not been able to make up the shortfall. In 2023, 1.06 million vehicles were cut from production schedules. The shortage of vehicles has only strengthened consumer demand, which in turn has driven up prices for insurers, too.