Ontario has the highest car insurance rate in Canada.
In addition to busy roads and tough weather conditions, Ontario also has a high rate of insurance fraud and distracted driving accidents.
According to The Humberview Group, the average cost of car insurance in Ontario can reach $1,920 per year, while the Canadian average for insurance premiums is only $1,320.
You are likely to own your car for many years, so buying car insurance is a long-term investment, and the cost of your insurance is one of the major consideration factors.
To make your life easier, here is a guide to cheap insurance rates that you can find in Ontario.
The Cheapest Car Insurance Companies in Ontario
To find cheap car insurance companies, you have to call the insurance companies you are interested in for a quote.
There are no two insurance packages that look exactly the same, and rates can vary a lot. Because every company has different insurance policies, coverage packages, and rates, you should always compare the insurance rates given to you before making a decision about which price is the cheapest for you.
There are 53 insurance companies in Ontario that offer car insurance.
Some of these companies include:
- AIG Canada
- Aviva Canada
- Desjardins Insurance
- Economical Insurance
- Halwell Mutual Insurance
- Jevco Insurance
- Intact Insurance
- Onlia Insurance
The good news is that Insurance Hero partners with many of these car insurance companies to find the best rates available based on your driving history, insurance record, vehicle, and personal information.
We compare car insurance prices for you using the information you provide us. All you have to do is review the rates provided and select which rate you want. We will then connect you with the insurance company that provides the cheapest rates according to your needs.
The Average but Good Car Insurance Companies in Ontario
Again, what you consider as an average car insurance company is subjective to your needs.
Insurance companies such as Hagerty Insurance might be what you should be considering if you want collector and classic car insurance.
On the other hand, comparing insurance quotes from Economical Insurance or Aviva Insurance might be worthy if you are an older driver, such as a retiree, own multiple vehicles that need insurance, or want to bundle up your car insurance policy with home insurance.
The best thing to do would be to look at the savings and discounts that different car insurance companies provide and decide which companies offer a balance of price and protection.
The Best Car Insurance Companies in Ontario
Best is subjective. What is the best insurance company for you might not be the best company for someone else.
The best car insurance company for you depends on your driving habits, location, vehicle, driving and insurance history, and a variety of other factors.
Each company also has its own way of calculating the risk you pose and the corresponding car insurance premium.
When considering the best car insurance companies in Ontario, you should think more about finding only cheap insurance rates.
Although price is definitely a factor you should consider carefully, you ultimately want to choose an insurance policy that can protect your vehicle and drivers in the event of an accident.
Here is a list of insurance companies that are considered some of the best in Canada.
- The Co-operators
- The Personal Insurance
- Intact Insurance
- Desjardins Insurance
- Aviva Canada
- TD Insurance
- Economical Insurance
- RSA Group
Remember, before you make any decision about purchasing car insurance, always get a quote and understand what the terms and conditions are.
How to Get Cheap Car Insurance Companies in Ontario
While car insurance in Ontario is not cheap, it is still possible to find affordable rates that suit your needs.
The best way to find cheap car insurance companies is to go on the internet and compare the insurance rates of different companies.
Most, if not all, insurance companies will offer services that allow you to receive quick insurance quotes through their website or by contacting an insurance representative.
You can tell them information about your driving record, personal information, and insurance history, and they will be able to help you find insurance policies that might be suitable for you.
Although insurance companies have standard insurance policy packages that you can choose from, and they will likely make recommendations on coverage options based on your situation, you can choose to customize your coverage to lower your costs.
You will be able to:
- Adjust deductible amounts.
- Alter coverage limits (although all insurance policies must have a minimum third-party liability coverage of $200,000).
- Add or remove the optional coverage that they recommend.
You can ask the insurance companies about the different car insurance discounts you may be eligible for, such as winter tire installations or driving school discounts.
Once you are satisfied with your insurance coverage plan, you can confirm your payment with the insurance company.
The make, model, and year of your vehicle also impact the car insurance premium you pay, so you can ask the insurance companies about their insurance rates based on the car you are considering. Some vehicles are significantly lower to insure than others.
Using a website such as Insurance Hero to help you compare car insurance rates can also help you find the companies that offer cheap insurance.
You will be able to compare different insurance rates without having to contact several insurance companies, and we guarantee to connect you with the lowest rates according to the information you give us.
Commonly Asked Questions About Car Insurance
1. Can I change insurance plans or companies at any time?
Generally, insurance policies are purchased in six-month or one-year terms, with the possibility to renew or switch to a different policy after. However, you can also change insurance plans or companies before your term is up. You might want a cheaper insurance plan, open a new policy, or transfer your policy to a different vehicle.
Regardless of the case, you will have to let your insurance company know about your intentions. There is no penalty for switching insurance companies or plans as many times as you want. However, you should be careful as you might have to pay termination fees. Some companies also provide discounts for longtime customers.
2. How do I know which insurance company is the best one for me?
Like we mentioned above, the term best is subjective, and there are many factors that determine your risk and car insurance premium. Whether you are looking for insurance for a specific purpose (i.e. high risk car insurance or collectors car insurance) or are interested in finding the cheapest insurance policies, you will have to do your research.
There are websites you can use, such as Insurance Hero, that can help you research and compare quotes based on the information you provide, but it is ultimately up to you to make the decision about what is the right fit for you.
3. What types of car insurance are there?
Besides your standard insurance coverage, which includes third-party liability, direct compensation, uninsured motorists, and accident benefits, there are many enhanced coverages. For example, specified perils, collision, all perils, and comprehensive.
You can also add additional coverages such as claim forgiveness, ticket forgiveness, damage to a non-owned vehicle, or loss of use for extra protection.
What Factors Determine Auto Insurance Rates in Ontario?
There are tons of different factors based on you and your vehicle that contribute to the insurance premium that you pay.
- Age – Young drivers are seen as riskier than older drivers because they have not been on the road for long and lack driving experience.
- The car you drive – Your vehicle heavily contributes to determining your auto insurance rates. If you have the same driving history as someone else but drive very different vehicles, your insurance premiums can vary a lot. Insurance companies will consider the size of your vehicle, safety features, vehicle age, value, and repair costs to determine an appropriate insurance rate.
- Your driving history – If you have a clean driving record, your auto insurance rates will be lower than if you have a history of multiple accidents such as collisions and traffic violations.
- Your location – The average auto insurance claims in your area will impact how much you pay because insurance companies use historic averages to estimate how likely you will get into an accident in that area.
- The amount of coverage and mileage – The more additional coverage you buy, the more expensive your insurance will be. Similarly, the more you drive and whether you use the vehicle as a commute or pleasure vehicle will impact your auto insurance rates.
How is Ontario’s Distracted Driving Law Impacting Car Insurance Rates?
According to Ontario’s distracted driving law, it is illegal to drive while:
- Using a phone or other hand-held device to text or dial.
- Using a device that is not hands-free to browse, watch videos, or play games.
- Using a non-voice command method to set GPS directions.
You are allowed to use a hands-free device, but it is best to avoid all distractions, even if you are at a red light, and park your vehicle if you need to access something on your device.
Ontario has a high number of distracted drivers. In 2020, Ontario recorded about 285 fatal road collisions which were just 19 less than 2019, despite fewer traffic volumes. 45 of those fatal collisions were a result of distracted driving.
If you are caught driving distracted, you will be fined, be subject to demerit points, and have your license suspended for up to 30 days based on how many distracted driving offences you already have.
As a result of the high number of accidents resulting from distracted driving, Ontario has some of the country’s most expensive insurance policies and the average annual insurance rate is significantly higher than the nation’s average.
A distracted driving conviction will be reflected in your Ontario driving record and insurance companies will use that information when calculating your risk.
Drivers with more distracted driving convictions will be considered higher risk drivers and will have to pay more for car insurance.
In Addition to Vehicle Repairs and Property Damage, What Else Will My Auto Insurance Policy Cover?
What your auto insurance policy covers is highly dependent on the type of insurance you have.
In the case of an injury resulting from an accident, your insurance policy can provide coverage for expenses relating to medical, rehabilitation, and attendant care up to a certain limit. For example, physiotherapy, chiropractic treatment, or a caretaker.
In addition, if you need time off work because of your accident, you may be eligible for weekly income replacement benefits of 70% of your gross income up to $400. You can also add additional income replacement benefits to increase your eligible claim amount.
Death and funeral benefits are also available to purchase for your insurance policy which provides coverage up to a limit for expenses incurred in the event you die from a car accident. Your spouse and dependents will also receive benefits up to a certain amount. You can increase the limits by purchasing more coverage.
If you have dependents that you care for or a home that you must upkeep but can no longer do so because of your car accident, you may also be eligible for caregiver benefits or housekeeping and home maintenance expense benefits.