How much is car insurance in Toronto?
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Jessica Ho
If you own and drive a car in Toronto, you know auto insurance is a must. With all the talk about rising rates in Ontario, you might be wondering – how much does car insurance actually cost in Toronto? Here, we explore the average rate city-wide and break it all down, so you can better understand your car insurance quote.
Key takeaways on Toronto car insurance costs
- According to data from Ratehub.ca, car insurance in Toronto costs about $2,044 per year.
- Car insurance companies quote you based on risk – the more risk presented, the more expensive your coverage will be. Various factors are looked at, including your age, gender, driving history, and more.
- There are a few steps you can take to ensure you’re paying the best price out there (with the most important one being to compare personalized car insurance quotes across the market).
How much is car insurance in Toronto?
Using our Toronto auto insurance comparison tool, we found that drivers here pay approximately $2,044 annually for car insurance. This estimate is based on a hypothetical profile: a 40-year-old male with a G license and a clean driving record – who has been building an insurance history since age 18. The quote also reflects an average for three of the most popular vehicles in Toronto, including a sedan, SUV, and truck: the 2024 Honda Civic ($2,775), the 2024 Toyota RAV4 ($1,943), and the 2024 Ford F-150 ($1,415).
Keep in mind that rates can differ greatly based on your own individualized profile, so be sure to compare Ontario car insurance quotes for yourself. For instance, we chose three base models for comparison purposes, but upgrading to a premium vehicle can increase your rate due to higher replacement costs.
The Financial Services Regulatory Authority of Ontario (FSRA) reported an average auto insurance rate of $1,927 across the province in June 2024. Compared to our number, Toronto drivers pay approximately 6.1% more for coverage.
The average cost of car insurance in Toronto, compared
We also compared quotes across 11 more popular cities in Ontario, using the same driver’s profile – with the only difference being location. Below is a graph and table showing a breakdown of all the numbers.
The average cost of car insurance in Ontario by city
| City | Car quote | SUV quote | Truck quote | Average quote | Toronto comparison |
|---|---|---|---|---|---|
| Barrie | $1,417 | $983 | $896 | $1,099 | -46.2% |
| Brampton | $2,530 | $1,764 | $1,577 | $1,957 | -4.3% |
| Hamilton | $1,982 | $1,383 | $1,252 | $1,539 | -24.7% |
| Kitchener | $1,481 | $1,019 | $925 | $1,142 | -44.1% |
| London | $1,465 | $1,035 | $944 | $1,148 | -43.8% |
| Markham | $2,252 | $1,553 | $1,385 | $1,730 | -15.4% |
| Mississauga | $2,051 | $1,429 | $1,283 | $1,588 | -22.3% |
| Oshawa | $1,664 | $1,166 | $1,056 | $1,295 | -36.6% |
| Ottawa | $1,341 | $907 | $832 | $1,027 | -49.8% |
| Toronto | $2,775 | $1,943 | $1,415 | $2,044 | - |
| Vaughan | $2,051 | $1,429 | $1,283 | $1,588 | -22.3% |
| Windsor | $1,615 | $1,128 | $1,028 | $1,257 | -38.5% |
Out of these cities, Toronto proved to have the most expensive car insurance at an annual average of $2,044 – with insurance for a sedan being especially high at $2,775. The only city even close to this was Brampton with an annual average of $1,957. This doesn't come as a surprise as both cities are known for its more dangerous driving conditions due to congested roads, as well as an increase in auto theft and fraud.
Other cities saw averages much lower than Toronto. Ottawa, for one, proved to have the cheapest average at $1,027 – a whole 49.8% less than that of Toronto. Areas that followed in the lower range also include Barrie ($1,099), Kitchener ($1,142), and London ($1,148).
Driver insights from our Toronto users
Below are a few key statistics we gathered from our users in Toronto who compared auto insurance quotes with us in 2024:
- 40 years old
Average driver age
in Toronto (2024)
- 87%
Have a full license
in Toronto (2024)
- 13 km
Average daily commute
in Toronto (2024)
Factors that impact your car insurance quote in Toronto
In general, the higher your risk profile, the more expensive your car insurance rate will be in Toronto. And of course, opting for more coverages will also increase your rate as the added protection doesn’t come without a cost. Here are some of the main factors insurance companies look at when determining your quote:
Age – The younger you are, the more expensive your insurance will be. This is because insurance companies see you as high-risk with less driving experience. At the same time, however, elderly drivers may see increased premiums due to obvious reasons.
Gender – While it may not be fair, males tend to see slightly increased premiums compared to females. This is because statistically speaking, men are more likely to get into accidents, and insurance companies need to accommodate for the heightened risk.
Location – Those who live in busier areas will inevitably pay higher premiums due to the increased likelihood of an accident. Plus, crime hotspots will also lead to more expensive coverage due to factors like car theft and insurance fraud.
Vehicle type – The more expensive it costs to repair or replace your vehicle, the more expensive your coverage will be – so don’t expect to pay the same rate for a brand-new Tesla Model Y if you’re replacing your 10-year-old Toyota Corolla. Plus, vehicles on the highly stolen list are also subject to increased insurance costs because of the added risk.
Driving history – Insurance companies also look at your driving record to determine your rate, and infractions such as tickets and accidents will inevitably have a negative impact. So practicing safe driving is one of the best ways to ensure your premium stays low.
Driving activity – On top of that, insurers look at how much you drive too – more driving equates to more risk. If you have an hour commute to the office each day, expect to pay more than another policyholder who only takes their car out on the weekends.
License class – Getting your full license in Toronto shows insurers you’re more experienced and will, therefore, lower your rate. It’s a good idea to do so as soon as possible, especially if you’re a young driver who’s already facing an unfavourable premium.
Coverage types & amounts – As mentioned, adding more coverages (such as loss of use insurance or accident forgiveness insurance) will lead to a higher rate. Plus, if you extend your coverage limits or select a lower deductible, you can also expect your premium to go up.
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How to get the cheapest car insurance in Toronto
While there are some factors you can’t control, there are still many steps you can take to ensure you’re paying the cheapest price possible for auto insurance in Toronto. This includes the following:
Reduce your driving – Living in a big city means that public transportation is more accessible, so consider reducing your driving to not only lower your gas bill but also your insurance bill. Again, insurers quote you based on risk level, and less driving surely means you’re less likely to make a claim.
Consider usage-based insurance – Also known as telematics, this can be a great option if you want to make sure you’re being rewarded for either safe driving or less driving. Insurers track your driving behaviour with a device or an app which is then reflected in your car insurance premium – usually with a decrease in price.
Bundle insurance products – P&C insurance companies offer a variety of product lines, and getting more than one product from your insurer can help boost your savings. For instance, you can bundle your auto insurance with anything from home insurance, condo insurance, and tenant insurance to motorcycle insurance, boat insurance, and more.
Compare car insurance quotes – Last but not least, comparing car insurance quotes is one of the best ways to save on your coverage. This is because insurers all calculate quotes differently, and you won’t know which one offers the best deal until you shop the entire market. With Ratehub.ca, you can compare personalized rates from Toronto’s top providers in just a few minutes.
The bottom line
We found that drivers in Toronto pay about $2,044 each year for auto insurance in 2024, but you could be entitled to a cheaper rate. Insurers quote each driver differently based on individualized risk factors – so in order to uncover your cheapest premium, you need to shop the market. As always, we recommend starting your online journey by comparing quotes with us today!