What is the Best Car Insurance in Ontario for 2023?
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Shopping for car insurance in Ontario? It's quick and easy to get insured today.
Did you know that comparing online car insurance quotes can save you hundreds?
Continue below to learn how car insurance works in Ontario. See how to compare policies and how to get the best rates.
How does car insurance work in Ontario?
Ontario requires drivers to have auto insurance. Unlike some provinces though, insurance is offered entirely on the private market. Additionally, Direct Compensation for Property Damage coverage is required. DCPD means that if you are in a no-fault accident in Ontario, your insurer is responsible for paying the claim.
Quality insurance coverage is valuable because the cost of a car accident in Canada can be substantial. The costs of property damage and serious injury add up quickly. For this reason, most insurers offer policyholders the option of buying at least $2 million in liability coverage.
Ontario mandates that drivers in the province have four types of coverage:
- liability
- accident benefits
- uninsured auto insurance
- Direct Compensation for Property Damage
This largely protects drivers from the financial liability of injuring someone else or their property.
Here’s how each mandatory coverage works:
| Insurance type | What it covers |
|---|---|
| Liability insurance | Liability insurance covers injury to others and property damage. |
| Accident benefits | Accident benefits cover medical expenses for drivers, passengers and pedestrians. It also covers income replacement for missed work stemming from an injury sustained in an automobile accident. |
| Uninsured auto insurance | Uninsured auto insurance covers a policyholder if they are hit by an uninsured driver or are the victim of a hit-and-run. Usually, the other driver’s insurance would usually be responsible for paying since the other driver is at fault. In this case, since there isn't another insurer, the policyholder's insurance pays instead. |
| DCPC insurance | Direct Compensation for Property Damage covers damage to a policyholder's vehicle following a collision as long as they are not at fault. It saves time and prevents policyholders from having to deal with the other driver's insurance. |
Beyond what is required, car insurance companies also offer optional coverage and endorsements. Whereas mandatory coverage primarily covers medical needs and a driver’s liability to others, optional coverages offer greater protection for one’s own vehicle and finances. After all, for many people, their car or SUV is their most valuable asset after their home.
Here’s how each optional coverage works:
| Insurance type | What it covers |
|---|---|
| Collision or Upset | Collision or Upset is coverage for when a vehicle hits an object or other vehicle. |
| Specified perils | Specified perils policies cover specifically selected risks or perils. Examples include theft, vandalism and damage from flood, hail, wind and fire. It is like an à la carte selection for the desired protection. |
| Comprehensive | Comprehensive car insurance covers all perils and collision insurance. |
Endorsements include add-ons like accident forgiveness, a waiver of depreciation, family protection coverage, loss of vehicle use coverage and rate increase protection if you commit a minor traffic violation. They may make sense for you depending on your financial situation, risk profile and the value of your vehicle
Good to know
Not sure what options to pick? Your broker or agent will be able to help you weigh cost savings and the additional protection of endorsements.
How to get car insurance quotes in Ontario?
Try the comparison tool at the top of this page to compare rates and purchase car insurance. Drivers in Ontario can get car insurance through a broker, agent or directly from an insurer. There are many options, but here are some of Ontario’s largest and best car insurance companies:
- Allstate
- Aviva
- CAA
- Co-operators
- Desjardins
- Economical
- Gore Mutual
- Northbridge
- TD Insurance
- Travelers
- RBC
- RSA Canada
- Wawanesa
When you request a car insurance quote, you will need:
- The vehicle’s make and model
- Your VIN (vehicle identification number)
- Your Social Insurance Number
- Driver’s license
- Your previous insurance (if any)
Good to know
Insurers may ask you who else will drive the vehicle, where you’ll regularly drive and how much. They will look at your driving record. Demerit points, speeding tickets, previous accidents and insurance gaps will mean higher quotes.
When purchasing insurance it is important to compare because companies sometimes give very different rates. You should consider if you want to add collision or upset and comprehensive coverage in addition to the mandatory insurance. Beyond that, there are many endorsements to enhance your car insurance policy. If you have a new vehicle you might like a waiver of depreciation which reimburses you for the purchase value of your new vehicle if it is declared a total loss in the first 24 months you have it.
What is the cheapest car insurance in Ontario?
No single insurer can claim to offer the cheapest car insurance. Car insurance rates are determined by a driver’s risk profile. Where you live, your vehicle's make and your driving history all affect how much you will pay.
The best way to get cheap car insurance is by comparing offers. Don't buy car insurance from the first company you ask for a quote from. By asking for three car insurance quotes you will be able to weigh your options and see what a fair rate is for you.
Ready to find a cheap auto policy in Ontario? Get a car insurance online quote today:
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How much is car insurance in Ontario?
Unfortunately, Ontario is the second-most expensive province for car insurance in Canada coming in second only to British Columbia’s car insurance rates. Canadian Underwriter reports that the average cost of car insurance in Ontario in 2021 was estimated at $1,598 per year. That works out to $133 per month.
For example
Depending on where you live in Ontario, your rates could be much higher or lower than that:
- In 2021, Vaughn was the highest at $2,179.
- Toronto, Mississauga and Brampton came in right around the average at $1,953, $1,971 and $1,976 respectively.
But! averages only tell us how relatively expensive or inexpensive rates are in a given area. You will need to get a personalized car insurance quote that considers your vehicle and profile to know how much car insurance will cost you. Our team pulled a few sample quotes from two popular insurers to demonstrate how much things can change from person to person.
- In the table below, driver A in Brampton got a quote for more than twice driver B in London Ontario. Coverage is similar except that driver A has a new vehicle that she's financing, single and added a waiver for depreciation.
| Driver | Female, 32, Single | Female, 32, Married |
|---|---|---|
| Vehicle | 2022 Toyota Rav4 LE 4DR AWD | 2012 HYUNDAI TUCSON GL 4DR 2WD |
| Lives in | Brampton, Ontario | London, Ontario |
| Drives | 15,000km per year | 10,000km per year |
| Coverage |
|
|
| Month per month | $372.75 | $170.34 |
| Cost per year | $4,473 | $2,044.08 |
How to get cheaper car insurance in Ontario?
We all want lower car insurance premiums. Here are 8 great tips to do it in Ontario:
- Tip 1: Ask for discounts. You may qualify for a lower rate just for being a university alumnus or working for a specific company.
- Tip 2: Raise your deductible. While a $500 deductible sounds better than one that's $1,000, it is not always the case. You can come out ahead with the higher deductible because the savings will make up the difference after just a couple of years.
- Tip3: Park off the street. Parking in a garage is less risky for your car and the insurer. It saves you money.
- Tip 4: Get that car alarm. Installing approved security features can help lower your premiums.
- Tip 5: Maintain a good driving record. Demerit points, previous claims and accidents will drive up your future rates.
- Tip 6: Install a telematics app. Driving with your insurance company's mobile app can save you as much as 25%. It records your speed and how hard you brake and accelerate to determine your insurance rate.
- Tip 7: Pay in full. Paying annually instead of monthly will usually earn you a discount.
- Tip 8: Bundle home and auto insurance. Add a home insurance policy or multiple vehicles under the same household to save.
Finally, the best way to save and get the best car insurance rates in Ontario is to compare! You can get started now:
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What is the minimum car insurance required in Ontario?
The Financial Services Commission of Ontario regulates car insurance policies in the province. It requires drivers and insurers to meet the following insurance minimums:
| Benefit | Minimum required |
|---|---|
| Third-party liability | $200,000 |
| Attendant care, medical and rehabilitation for minor injuries | $3,500 |
| Attendant care, medical and rehabilitation for non-catastrophic injuries | $65,000 |
| Attendant care, medical and rehabilitation for catastrophic injuries | $1 million |
With that said, we don’t recommend getting the lowest car insurance policy. Automobile accidents can easily exceed these amounts. Should you be in an accident that causes more than $200,000 in property damage and you only have a policy that covers the mandatory minimum, you could be liable to pay costs beyond that. It’s not hard to imagine a situation that costs more than that.
Let’s take a look at an example:
Keep in mind
Philip is driving in on the 401 at the end of a long day at work. Traffic is heavy and he’s tailgating the car in front of him. When traffic stops suddenly, he doesn’t have time to break. He rear-ends the vehicle in front of him starting a chain reaction that also damages the two cars in front of the one he struck.
Fortunately, no one is seriously injured, but his insurance determines that he is 100% at fault for the collision. He’s damaged three vehicles, not including his own. Two are considered a total loss and the third requires serious repairs.
Philip’s mandatory third-party liability insurance covers the damage up to $200,000, but Philip is required to cover what is left out of pocket.
To make matters worse, he doesn’t have comprehensive coverage, so the insurance won’t pay to replace his own vehicle.
In some ways, Philip came away lucky in the accident above. If someone in the cars in front of him were to have suffered a catastrophic injury he could be in more serious legal and financial jeopardy.
Good to know
Need car insurance for less than the standard one-year contract? Temporary car insurance can be a solution. It is however not available in Ontario. Another option for low car insurance rates would then be the pay-as-you-go insurance. With the help of an electronic device, it tracks your mileage and adjust your rate based on how often you drive and how many kilometres.
How much is car insurance in Ontario for a new driver?
Unfortunately, insuring a young driver in Ontario can be very expensive. Drivers under 25 years old can expect to pay much more than older, more experienced drivers. The car insurance broker Surex puts the number at an eyewatering $3,000 to $7,000. New drivers are more expensive to insure because they’re statistically more likely to make a claim than older drivers.
Luckiiy, there are a few ways for young drivers to get cheaper rates in Ontario:
- Being listed as a secondary driver on a parent or partner’s policy is cheaper than being the primary driver on your own.
- Passing a driving safety class can knock 15-20% off your insurance rates. The Ontario Ministry of Transportation maintains a list of government-approved driving schools.
- Get a full G driver's license as soon as possible.
- Maintaining a clean driving record.
- Full-time students may be eligible for a discount for getting good grades.
- Drive a safer and less expensive vehicle. A five-year-old Toyota Corolla will almost certainly cost less than a brand new 2-door sporty coupe or luxury SUV.
How long does it take to get car insurance in Ontario?
Getting car insurance in Ontario is fast and easy to do. You can fill in an application online with an insurance provider like Onlia, pay and be ready to drive in a half an hour. Calling or visiting an insurer or broker is similarly quick. You'll be able to come out of a meeting with insurance that same day.
Expert advice
Be sure to have your driver's license, vehicle identification number and payment information on hand to expedite the process.
To get started comparing the best rates and car insurance companies in Ontario, try our tool now:
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How to cancel car insurance in Ontario?
Cancelling a car insurance policy isn’t difficult, but the exact process can depend on who your insurer is. You’ll want to check your policy and reach out to the representative who sold you the policy.
Be aware that most car insurance policies in Ontario run for a year. If you cancel during that year you may have to pay a cancellation fee. Some drivers will prefer to wait to replace their insurance until their policy expires to save.
Watch out!
Don’t let your coverage lapse without having something in place to replace it. Car insurance is mandatory in Ontario. A gap without car insurance can trigger higher premiums when you restart insurance. Line up your replacement policy before you cancel the old one.
Who can drive my car under my insurance in Ontario?
Car insurance covers the vehicle, not the driver. This means that you may lend your vehicle to someone else. This means it’s fine to let a friend who is in town for the weekend as long as they are licensed to drive. One important thing to keep in mind is that violations they commit in your vehicle will affect your car insurance rates.
If the person borrowing your car does not have a license, never received your permission or uses the vehicle illegally (to commit a crime or drive while drunk), then the insurance will not cover them for accidents that they commit. It’s important to only lend your car to someone for whom you are willing to be responsible.
Good to know
If someone regularly borrows your car you should add them as a secondary driver to your policy. Have multiple drivers in your home? They should be on your policy.
Download the OCF auto insurance claim forms
Finally, when you are involved in an accident in Ontario you may need to submit auto insurance claims forms. These OCF forms are provided by the Financial Services Regulatory Authority of Ontario. For your convenience, here are the most requested forms:
- OCF-1: Application for Accident Benefits
- OCF-2: Employer's Confirmation Form
- OCF-3: Disability Certificate
- OCF-5: Permission to Disclose Health Information
- OCF-23: Treatment Confirmation Form
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