Which Ontario cities have the most expensive auto insurance?

It’s no secret that auto insurance is pricey in Ontario, but which cities are topping the list? Let’s take a deeper look.

The most expensive cities for car insurance in Ontario, ranked

Based on our analysis, the top 5 most expensive cities for auto insurance in Ontario are Toronto, Brampton, Markham, Mississauga, and Vaughan.

Methodology: We gathered quotes using our auto insurance rating tool from the top 12 cities in Ontario where we have the highest number of users. The quotes were based on three of the province's top-selling vehicles – a sedan (2024 Honda Civic), an SUV (2024 Toyota RAV4), and a truck (2024 Ford F-150) – and then averaged out to provide an overall comparison.

Driver profile: Each quote is representative of a G-licensed, 40-year-old male with a clean driving record and a clean claims history. The driver has also been building his insurance history since he was 18 years old.

Toronto ranks first with an average quote of $2,044, followed closely by Brampton at $1,957. Notably, all cities in the top five are major urban centers within the Greater Toronto Area. Interestingly, despite being a major urban centre, Ottawa ranks last among the 12 cities with an average rate of $1,072 – nearly 50% lower than the cost of coverage in Toronto.

The average cost of car insurance in Ontario, compared

To compare the cost of coverage in major cities against the rest of Ontario, the Financial Services Regulatory Authority of Ontario (FSRA) releases data bi-annually on average auto insurance premiums for different regions. Here are the findings as of June 2024:

With the provincial average at $1,927, GTA drivers face a steep increase of 32%. In contrast, other urban areas see a modest 4.4% reduction while rural drivers benefit from significantly lower rates – paying 21.1% less than the average province-wide.

Note that the GTA average of $2,543 is significantly higher than the quotes in our analysis. This discrepancy makes sense as our analysis is based on a single hypothetical driver profile used to compare auto insurance costs across different Ontario cities. Younger drivers with less experience – along with those who have accidents or claims on record – can expect much higher premiums.

Why is car insurance so expensive in GTA cities?

There are a few factors that contribute to such an increase in costs when it comes to auto insurance in major cities. Insurance companies quote customers based on their risk profile – the more likely you are to make a claim, the higher your premium will be. Living in a major city puts you in a hotspot for claims due to the increase in stolen vehicles, traffic congestion, and insurance fraud.

Stolen vehicles

The stolen vehicle epidemic isn’t anything new in Ontario (as well as the rest of Canada). Claims for theft topped $1.5 billion nationwide in 2023 while Ontario alone saw costs exceeding $1 billion for the first time. The province also saw a 524% increase in costs within the last five years (from 2018 to 2023). 

According to another report from the Insurance Bureau of Canada, Toronto, Brampton, Mississauga, Vaughan, and Markham topped Ontario’s list of the costliest cities for auto theft in 2023. It’s no surprise that these five cities match the same five cities from our analysis for the areas with the most expensive car insurance rates. 

Learn more: How stolen vehicle trends impact your auto insurance

Traffic congestion

The more populated a city is, the more drivers there will be on the road – which leads to more traffic congestion. Insurers will then quote drivers living in these congested areas at a higher price due to the increased likelihood of motor vehicle-related incidents.

With over 2.9 million residents, Toronto currently tops the list of the most populated cities in Ontario. The other leading cities for costly car insurance are also up there in population: Mississauga (3rd), Brampton (4th), Markham (7th), and Vaughan (8th).

Auto insurance fraud

Fraud in the auto insurance industry is also a significant contributor to rising premiums in major urban areas. Common types of fraud include selling fake insurance, staging accidents, and exaggerating claims. In regions with higher crime rates – and therefore, more instances of insurance fraud – coverage tends to be more expensive.

According to a survey by the FSRA, nearly 75% of Ontarians with coverage believed that auto insurance fraud is prevalent in the province. Plus, over 40% were worried about falling victim while 56% claimed not to know enough about the issue to protect themselves.

Driver demographics

Lastly, the demographics of the driver population can also affect average rates in each city. While these factors primarily increase rates on an individual basis, they can also drive up the overall city-wide average.

For example, newcomers to Ontario often choose to live in major urban cities. According to Statistics Canada, nearly half (46.6%) of Toronto’s population were immigrants in 2021. In neighbouring cities like Markham, Brampton, and Mississauga, immigrants made up more than half of the population.

This group is often disproportionately affected by higher auto insurance rates due to a lack of driving history or approved record (as it may be from another country) – two key factors insurance companies consider when calculating quotes. Similarly, areas with a high number of young drivers may see higher averages due to their minimal driving experience.

How to get cheaper car insurance in Ontario’s major cities

While moving to a different city for cheaper car insurance probably isn’t ideal, there are still many steps you can take to lower your rate. Some obvious ones include increasing your deductible, bundling coverage products, and keeping a clean driving record, but here are a few tips specific for drivers who live in major cities:

Install anti-theft devices – Due to the high theft rates across major Ontario cities, many insurers are offering discounts for drivers that install specific prevention devices, such as TAG. Some insurers have even gone as far as increasing rates if you decline to do so.

Store your car on private property – As another theft prevention measure, parking your car on secured private property – and especially in a private garage – can help decrease the cost of your auto insurance in a major city.

Drive less – With such accessible public transportation systems in major cities like Toronto, driving less not only helps you save on gas but can also help lower your insurance rate substantially. The less you drive, the less likely it’ll be for you to make a claim – and therefore, insurers can quote you for less.

Opt for usage-based insurance – While major cities like Toronto and Brampton are often known for more aggressive driving conditions, usage-based insurance (also known as telematics) allows your rate to be based on your own driving behaviour – and less so the habits of those around you.

Compare car insurance quotes – Auto insurance in Ontario is a free market system in which you can shop around for the best rate. By simply comparing multiple quotes from different insurers through us, you’ll be surprised at how much you can save – it only takes a few minutes to shop the market, and the peace of mind is worth the effort.

The bottom line

While Toronto, Brampton, Markham, Mississauga, and Vaughan rank among the most expensive areas for auto insurance in Ontario, there are still steps you can take to lower your premium. Some factors – such as higher crime rates and population density – may be beyond your control, but comparing personalized quotes with us can help you find savings today.

Also read

• The average cost of auto insurance in Ontario by age
• Are electric cars more expensive to insure?
• The top 10 stolen vehicles in Canada