Compare cheap car insurance quotes in Ontario
In less than five minutes, compare personalized car insurance quotes from Ontario's top providers – your lowest rate is just a few steps away.
Recent Ontario car insurance quotes from Ratehub.ca
Thousands of drivers across the province come to Ratehub.ca weekly, looking to uncover savings for their next car insurance policy. Here are a few sample quotes Ontario users received from us recently – last updated October 18, 2024. To find out how much (or how little) you could be paying, take advantage of our free auto insurance quote comparison tool today.
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Is car insurance mandatory in Ontario?
Matt Hands, VP, Insurance
Car insurance in Ontario – as well as the rest of Canada – is required by law. It's there to protect you financially from all different driving-related incidents, such as liability claims, medical needs, and vehicle damage. Without it, you could see a fine anywhere between $5,000 to $50,000, your license may be suspended, and your car could be impounded.
How does car insurance work in Ontario?
Ontario runs on a no-fault auto insurance system. This doesn't mean that you'll never be found at fault for a driving incident. Instead, it means that drivers look toward their own insurance companies for compensation after an accident, regardless of fault.
Auto insurance in the province is provided by private insurance companies, but the Financial Services Regulatory Authority of Ontario (FRSA) is there to ensure rate increases are substantiated. The agency exists to protect consumer rights and review complaints when insurers aren't following the rules.
Recent Ontario auto insurance news: 2024 budget changes
Earlier this year, the Ontario government announced a few proposed changes to the province's auto insurance system as part of the 2024 budget. This includes allowing consumers to opt out of certain accident benefits and making insurers pay out medical and rehabilitation claims before other health plans are accessed.
As the government has yet to provide more details, it’s difficult to determine the full impact of such a shift. While removing coverages may reduce premiums for some, it can also expose others to greater financial risk – the potential savings won’t necessarily translate into decreased rates across the board. Mandating insurers to pay out claims first can also do exactly the opposite, making insurance more expensive.
While there is no definitive timeline for all these changes, it's important to continue to stay informed about Ontario's auto insurance system. Only time will tell as to whether drivers here will catch a break from the extensive premiums, but in the meantime, be sure to take matters into your own hands by comparing car insurance quotes across all different providers.
Standard types of car insurance in Ontario
In Ontario, a basic auto insurance policy comes with four different coverages – let's take a look at the minimum requirements you need to carry.
Third-party liability
Accident benefits
Uninsured motorist
Direct compensation for property damage (DCPD)
Optional types of car insurance in Ontario
Along with the four basic coverages, you can also increase your protection with optional add-ons – here's a quick overview of common choices for Ontario drivers.
Collision
Comprehensive
Specified perils
All perils
Emergency roadside assistance
Endorsements (Ontario Policy Change Forms)
Are you getting the best price for Ontario auto insurance?
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The average cost of car insurance in Ontario
According to the Financial Services Regulatory Authority of Ontario (FSRA), Ontario's average annual auto insurance premium as of June 2024 was $1,927. Drivers in the GTA saw an average of $2,543 while those in rural areas paid an average of $1,521. We decided to take it a step further and break down the average cost of car insurance in the province based on our own user data.
Last updated in October 2024 – quotes are representative of the average monthly rate Ratehub.ca users received and expressed an interest in within the last 30 days.
Average monthly quote by age and gender
Average monthly quote by Ontario city
Average monthly quote by vehicle make
Factors that impact your Ontario car insurance quote
Aside from your coverage options and your policy limits, there are many individualized factors auto insurance companies look at when calculating your quote. Here are a few you should be aware of, plus some interesting Ratehub.ca user statistics from October 2024.
Age
The younger you are, the more expensive your auto insurance will be. Based on our data, the average Ontario driver comparing quotes is 38 years old.
Gender
Males tend to face higher auto insurance premiums than females. Our Ontario user demographic breakdown is about 63% male and 37% female.
Location
High-risk areas come with high-rate insurance. Our Brampton users see the most expensive rates, with the average being $571 per month.
Vehicle type
Cars that cost more to replace, cost more to protect. Based on our average rates, the Dodge/Ram Grand Caravan is one of the cheapest vehicle to insure.
Driving history
Getting ticketed doesn't just hurt your record – it can also hurt your insurance. According to our Ontario data, 7% of users have a conviction.
Driving behaviour
The more you drive, the more your insurance rate drives up too. On average, our Ontario users commute 15 km each day.
License class
Insurers value experience, so fully-licensed drivers receive the cheapest car insurance rates. 89% of our Ontario users have their G license.
Vehicle use
Business-use cars are more expensive to insure than pleasure-use ones. 92% of our Ontario users come to us to insure a pleasure-use vehicle.
How to get cheap car insurance in Ontario
- Shop and compare
You won't know which Ontario insurer offers the cheapest premium until you shop around – thankfully, comparing quotes is free with us.
- Bundle your policies
Insuring multiple products (e.g. car, house, condo, boat) under one provider is a great way to rack up some savings.
- Get a multi-car discount
If you own more than one car, insuring them together under one policy, instead of purchasing coverage separately, can lead to substantial savings.
- Track your driving
Tracking your driving with usage-based insurance (or telematics) is ideal for safe, low-range drivers – you'll be rewarded for exhibiting good habits.
- Keep a clean record
Traffic convictions and at-fault accidents inevitably lead to higher rates. So stay safe on the road to maintain your cheap insurance.
- Install winter tires
Ontario winters don't always come with the safest driving conditions – some insurers offer a discount for installing the right tires.
- Increase your deductible
Your deductible is the amount you'll be paying before your insurer provides the rest. Higher deductibles lead to cheaper auto insurance.
- Get a group rate
It never hurts to ask about group discounts. Many providers offer lower rates for corporation members and special alumni.
The inflation of auto insurance in Ontario
According to the Consumer Price Index from Statistics Canada, auto insurance premiums for passenger vehicles increased by 3.8% nationwide year-over-year in September 2024. Ontario drivers, on the other hand, saw a 6.1% increase. To combat the added cost, make sure you shop the market with us today.
learn more about inflationHow Ratehub.ca users are saving on Ontario auto insurance
When comparing car insurance quotes with us, opting for usage-based insurance and auto-home bundling are two additional steps you can take to ensure you're getting the cheapest rate possible. Here's what we found when looking at Ratehub.ca Ontario user data from October 2024.
48% of Ontario users opt-in for telematics – When exhibiting safe driving habits, drivers can save between 10 to 30% by participating in a telematics (or usage-based insurance) program. Keep in mind, however, that you may also see a surcharge in Ontario if you're deemed a risky driver.
33% of Ontario users opt-in for auto-home bundling – Every P&C insurer offers its own version of a bundling discount (typically up to 25% off), so be sure to opt-in if you're also looking for property coverage. And the savings aren't just limited to your car policy – you'll see a discount on your home insurance too.
48%
of Ratehub.ca users opt-in for auto and home bundling.
33%
of Ratehub.ca users opt-in for telematics.
The best car insurance companies in Ontario
The best auto insurance provider for yourself will be the one that meets all your coverage needs for the lowest rate possible, so be sure to research all your options carefully. Here's a quick overview of some of the top car insurance companies across Ontario.
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