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Car Insurance Ontario: Compare Rates

Car insurance in Ontario is mandatory for all vehicles, and we have some of Canada’s strictest insurance regulations and most expensive insurance premiums. 

According to the Financial Services Regulatory Authority of Ontario (FSRAO), the annual average insurance premium in Ontario is $1,664.

By law, all vehicles registered in Ontario must at least have the mandatory car insurance coverage of:

  • Third-party liability coverage of a minimum of $200,000.
  • Accident benefits to recover from collision injuries.
  • Uninsured motorist coverage of minimum $200,000 for accidents by an uninsured driver.
  • Direct compensation coverage for damages if someone else is at fault.

Drivers can also choose among the optional insurance coverage available, which includes:

  • Collision insurance coverage.
  • Comprehensive car insurance coverage.
  • All perils.
  • Specified perils.

You can find car insurance through private insurance companies, but the insurance rules and rates are monitored by the FSRAO.

Car insurance is important because it protects you and your vehicle from losses and damages if you get into an accident on the road.

Since there are many insurance companies available, it can be confusing and stressful to find the perfect package that meets your needs and saves you money. That is why Insurance Hero is here to help you compare rates and find the perfect policy for you.

Below, we will discuss the different car insurance rates available in Ontario based on different categories. We will also discuss cheap insurance rates and how to get them for different groups of people.

Overall: Best Car Insurance Rates Ontario

Best is subjective. There are many factors that can affect the price you pay on insurance premiums. Some of these factors include:

  • Vehicle make, model, and year.
  • Age and location.
  • Driving and insurance history.
  • Coverage amount.
  • How much mileage you drive each year.

The type of car insurance you buy will also determine the amount of insurance you pay. The different car insurance types that Insurance Hero offers include:

  • Collectors and classic car insurance.
  • High risk car insurance.
  • Usage based insurance
  • Insurance for young drivers.
  • Uber and ride sharing insurance.
  • Commercial car insurance.

Each of these types of car insurances can have premiums that vary by a little or a lot, so it is best to ask for quotes to figure out the exact amount of premiums you will be paying each year and what the best option is for you.

Cheapest: Lowest Car Insurance Rates Ontario

While insurance is expensive in Ontario, you can still have cheap insurance rates if you shop around and do your research.

If you are driving in a rural area, such as Oshawa or St. Thomas, or an area that has a relatively low rate of theft and accidents, you will find that your car insurance rates will generally be cheaper. On the other hand, if you find yourself driving in a big city such as Downtown Toronto or Richmond Hill, you might find that your insurance premiums will be significantly higher.

Here is a list of cities and towns in Ontario that have some of the cheapest car insurance, including the estimate for average insurance rate:

  • Kingston, Napanee, Port Hort, Cobourg, and Brockville – $1,103 per year.
  • Cornwall, Petawawa, and Russel – $1,107 per year.
  • St. Thomas – $1,124 per year.
  • Sarnia – $1,159 per year.
  • Sudbury – $1,165 per year.
  • Grimsby and Waterdown – $1,192 per year.
  • Ottawa – $1,213 per year.
  • Kitchener – $1,341 per year.
  • Windsor – $1,412 per year.
  • London – $1,509 per year.

These areas have car insurance rates that are below the provincial average for insurance premiums which is estimated to be $1,664 per year by the FSRAO.

However, your location is not the only deciding factor for cheap car insurance. Like we mentioned, your driving history, age, vehicle model, and other factors all play a role in determining just how cheap or expensive your insurance premiums will be.

Vehicle: Car Insurance Rates Ontario by Model

The year, make, and model of your vehicle has a substantial impact on the price of the insurance premiums you pay. If the model of your car is to be less likely to be involved in a car accident or be stolen, then your insurance premium will be lower.

Insurers also consider the quality of your car, how old your car is, whether it is a new or used vehicle, the safety and handling features, the size of your car, and the repair and replacement costs to determine your insurance premium.

If you are buying an older or used vehicle, the general rule is that the older the car is, the cheaper it will be for an insurance company to ensure. However, vintage or collector vehicles might have insurance premiums that are higher because they are significantly harder and pricier to replace or repair.

The Insurance Bureau of Canada (IBC) has an annual report of the effects of collisions and other claims for different cars based on their model, make, and year.

Here are some of the most popular vehicles that have cheap insurance based on the vehicle model, listed in order from the cheapest to more expensive:

  • Kia Sorento
  • Mazda CX-5
  • Hyundai Tucson
  • Hyundai Kona
  • Toyota Corolla
  • Kia Forte
  • Honda CRV
  • Honda Civic
  • Hyundai Elantra
  • Toyota RAV4

Here are some of the cheapest insurance rates for the most economically priced vehicles, listed in order of the cheapest to more expensive premiums:

  • Chevrolet Spark LS
  • Nissan Micra
  • Mitsubishi Mirage
  • Hyundai Accent 5-Door
  • Kia Rio 5-Door
  • Toyota Yaris Hatchback
  • Hyundai Venue
  • Hyundai Elantra
  • Kia Forte
  • Mazda 3 Sedan

How Do I Get Low Car Insurance Rates Ontario

While Ontario has some of the most expensive car insurance rates in the entire country, there are many ways you can lower your insurance premium each year.

  • Buy the right coverage – do your research on what each type of insurance coverage provides you, and select only the coverage that you need.
  • Drive responsibly – the fewer accidents you get into, the cheaper the insurance rates are.
  • Pay your premiums on time every month – just like a credit card, paying on time can save you money on late fees and lower your premiums.
  • Bundle up your insurance – if you are also looking for home insurance, life insurance, or other types of insurance, you can ask your provider what discounts are available for bundling up your coverage.
  • Equip the proper safety measures – adding winter tires and alarm systems make your vehicle significantly safer to drive and can lower your insurance premium.
  • Take a driving course – taking an accredited driving course/defensive driving course can help improve your driving abilities and significantly reduce your insurance premiums.
  • Use one insurance company – most companies give discounts to loyal customers, so sticking to one insurance company will help you save money over the years.
  • Look at your location – areas that are more dangerous to drive in with higher chances of accidents and theft will generally have more expensive insurance premiums.
  • Look at your payment frequency – certain insurance companies offer a small discount if you pay your premiums upfront annually rather than monthly.
  • Add new cars to an existing policy – if you have other vehicles that are already insured, you can add a new car to your existing insurance policy and get cheaper insurance and with multi-vehicle discounts.
  • Increase your deductible – the more you pay for your claims, the lower your insurance premium will be.

Commonly Asked Questions About Car Insurance

1. Why does Ontario have some of the most expensive car insurance rates?

Insurance fraud in Ontario is one of these factors. Ontario’s weather, such as snowstorms, windstorms, tornados, and floods, makes it costly for the insurance industry to cover losses and damages. The amount of inflation, expensive vehicles, and distracted drivers also contribute to the expensive insurance rates.

2. How much is insurance in Ontario

FSRAO estimates that the average insurance price in Ontario is $1,664 annually. You can view rate changes here.

3. What factors affect insurance?

Your age, location, driving history, vehicle, driving experience, and coverage amounts contribute to your insurance rate.

4. What is the cheapest insurance policy available?

The cheapest insurance policy available is third-party liability insurance coverage, although it is strongly recommended that you purchase more than just liability insurance.

5. Can your insurance premium change?

Your insurance premium can increase depending on the number of claims you have filed and who was at fault. Similarly, there are many ways to lower your insurance premium based on your safe driving skills, insurance record, discounts, and more.

6. Does the colour of your vehicle impact the rate of your insurance premium?

Contrary to popular belief, insurance companies will not use the colour of your vehicle as a factor in determining your insurance premium. However, insurance companies might look at the cost of making repairs or replacements to the model and colour of your car as a factor of determining your insurance rates.

Who Has the Cheapest Online Car Insurance

To find the cheapest online car insurance rates, you have to shop around and compare the different prices and policies offered.

Insurance policies are typically offered as a six-month or one-year package. Once you have entered your vehicle, personal, and driving information, you will be able to compare the insurance premiums to find the cheapest online insurance for your driving needs.

Below are insurance companies with some of the cheapest insurance rates in Ontario:

  • Allstate
  • Aviva
  • Belairdirect
  • Canadian Auto Association (CAA)
  • Desjardins Insurance
  • Economical
  • Intact
  • Jevco
  • RBC Insurance
  • SGI
  • Sonnet
  • TD Insurance
  • Travelers

The good news is that Insurance Hero partners with many of these insurance companies to compare insurance premium rates to find you the cheapest policy available based on your information.

Who Has the Cheapest Car Insurance for Seniors

As you age, the risk of accidents increases, which means the cost of insurance also increases. 

While people who are in their 50s and 60s are seen as some of the safest drivers, your premiums will start to rise again once you reach your 70s and 80s.

However, senior citizens can receive discounts on their car insurance, such as accident-free driving discounts or retiree discounts.

Some insurance companies will provide these senior discounts starting at the age of 55, however, it does vary by the insurance company, and you should always do your research before making a purchase.

It is hard to determine exactly which insurance companies provide the cheapest car insurance for seniors.

The good news for seniors is that age is not the only defining factor for car insurance. As usual, your driving history, how much you drive, the deterioration of your vision and hearing, health conditions, medication, and your vehicle all contribute to your annual insurance premium as you age.

Your best bet to finding cheap insurance that works for you is to shop around and ask different companies for quotes on their different coverage policies.

How Can I Get Super Cheap Car Insurance

Besides driving responsibly and paying your premiums on time each month, there are other ways you can get super cheap car insurance in Ontario. The main method is to shop around and compare prices.

Regardless of which insurance policy you decide to purchase, research and due diligence are always important for making the right choice for you. 

Our goal is to provide you with the cheapest insurance rates available based on your driving needs and vehicle.

We partner with the top insurance providers in Ontario, such as Travelers, Aviva, Jevco, Economical, RSA, Intact, and more, to provide you with the protection you need based on the model of your vehicle, your driving history, personal information, and insurance coverage needs.

While insurance rates are affected by the same information for every company, and the premise of insurance is the same, each insurance company calculates the risk of accidents differently. This means that the insurance rates of each company will be slightly different.

Using Insurance Hero can help you compare the different car insurance rates available to find the best policy for you without spending a fortune on the safety of you and your passengers.


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