How to buy car insurance online in Canada

If you want to own and operate a vehicle in Canada, you need a valid car insurance policy in place. Car insurance varies across Canada, with each province having its own rules about how car insurance works and level of coverage you need. However, the different ways you can buy car insurance and the information you need to give your provider is generally the same, no matter where you live.

Technology has made life easier for all of us and that extends into auto insurance. Within in minutes you can compare quotes from Canada's top auto insurance companies all from your computer or mobile device. You simply need to provide some basic information about your vehicle, driving history, insurance history and basic personal identifiable details. This will give you access to multiple insurance quotes where you can seek to identify your lowest rate.

Once you've decided on a quote you can then proceed to request more information about the auto insurance quote provided by connecting with the insurance broker who represents the rate shown. If the rate being offered is from an insurance company directly (also known as a direct insurer) you will be able to proceed with finalizing the purchasing of the policy online through their portal.

Comparing car insurance quotes online and shopping the market is really only available to Canadian's living in private insurance markets like Ontario. Learn more below on how shopping for insurance varies by province.

There are two different types of car insurance offered in Canada. Depending on which province you live in, you will buy car insurance from either a public or private insurer.

Public Car Insurance

The British Columbia, Manitoba and Saskatchewan governments each run a public insurance system. Every resident in these provinces needs to purchase their basic car insurance from a Crown Corporation. The base policies typically include the minimum third-party liability ($200,000 in those three provinces) and accident benefits that compensate you if you’re injured. For further insurance coverage, residents of these provinces can purchase add-ons through the public insurance system or through a private car insurance company – typically, whichever offers the best car insurance rate.

Private Car Insurance

Car insurance in Alberta, Ontario, Atlantic Canada and the territories offer private car insurance solutions. The advantage is residents can compare the best car insurance rates for their entire policy, compared to those in provinces with public car insurance systems. However, when looking at the cheapest car insurance provinces, while BC is the most expensive, Ontario is right behind them. 

PRO TIP:

Quebec car insurance runs on a hybrid system, which is part public, part private. Its public insurance system offers drivers accident benefits (compensates you if you’re injured), but not third-party liability. For all additional coverage, drivers need to purchase private car insurance.

If you live in BC and walk into a bank to renew your car insurance, you would deal with a direct writer. The direct writer would sell you a basic policy through ICBC. They could then offer additional coverage, like comprehensive and collision, either with ICBC or the bank's own insurance company. You choose whichever one makes most sense for you.

If you live in PEI and buy a new car at a dealership, the dealership would call either an insurance broker or agent to help you get insurance. A broker would offer you multiple quotes from various insurance companies, whereas the agent would typically just offer one quote for the company they work for.

Suppose you're looking for Ontario car insurance quotes. In that case, you could go to a bank and work with a direct writer or visit an insurance company and get one quote from an agent. Alternatively, you can call an independent brokerage and get the best car insurance rate from their extensive list of insurance companies.