Find the cheapest car insurance quotes in Ontario

Alexandre Desoutter Alexandre Desoutter  updated on 2020-11-09


You want to know how much is car insurance in Ontario and what are the mandatory car insurance coverages in Ontario?

You’ve come to the right place !

In this guide, we will tell you everything you need to know about car insurance in Ontario: cover features, tips to save money as well as cheapest car insurance companies for your car in Ontario.

Let’s dive in!

How does car insurance work in Ontario?

In Ontario, from the moment you own a vehicle, you must insure it through a private insurer. In Ontario, you purchase your policy from a private company. Your insurer will give you a certificate of automobile insurance, which must be renewed each year. This insurance certificate indicates the level of protection for which you have opted, the optional guarantees chosen, the period of coverage.

Driving without auto insurance is punishable by fines ranging from $ 5,000 to $ 15,000. Your driver’s license may be suspended and your vehicle may be seized.

Ontario works with a no-fault system, it means that you have to deal first with your insurance company for your claims, regardless of whether or not you’re at fault. Two case study:

  • You’re at fault : your insurance company won’t pay anything unless you took the optional coverages : collision, comprhensive depending on the claim.
  • You’re not at fault : your insurance will pay under the DCPD coverage.

Let’s see in details what are the different coverages mandatory or not.

What are the different car insurance in Ontario?

In Ontario, there are several car coverages that are mandatory by law:

Third-party liability

This insurance is compulsory and covers you for:

  • Material damage and bodily injury caused to others by your fault
  • The minimum mandatory amount is 200 000 $

Statutory accident benefits coverage

This insurance provides protection for bodily injury and:

  • Covers you if you are injured in an accident regardless of who is at fault
  • Covers the medical staff involved in the accident: medical care, rehabilitation and auxiliary care services
  • Covers income replacement.

You must be insured for at least an amount of:

  • 65,000 $ for non-disabling injuries
  • 1,000,000 $ for critical disabling injuries

You can decide to increase your car insurance amount to :

  • 130 000 $ for non-disabling injuries
  • 2, 000,000 $ for critical disabling injuries

Here are details of this protection :

  • Income replacement : 70% of your gross income up to $400 per week.
  • Caregiver Benefits: Up to $250 per week for the first dependant
  • Death and Funeral Benefits: Up to $25,000 payout to the spouse

Direct Compensation-Property Damage (DC-PD)

This car insurance covers you for :

  • Damage to your vehicle
  • Contents in your vehicle.

There are a few conditions :

  • You must not be responsible for the accident.
  • It must have taken place in Ontario
  • Another vehicle must be involved
  • The other vehicle must be insured by a licensed insurer
  • Your insurance provider pays to repair your car.

Uninsured automobile insurance

This insurance applies if you or someone in your vehicle is either injured or killed by an uninsured driver, or by a hit-and-run driver.

This little table recapitulates well which car insurance coverage is mandatory in Ontario.

Car insurance coveragesRequired ?
Public insurance No
Third-party liabilityYes
Accident benefitsYes
Direct Compensation Property DamageYes
Uninsured automobilistYes
CollisionNo
ComprehensiveNo
Car insurance coverages mandatory in Ontario

What are the optional auto insurance coverages in Ontario?

Here are all the options you can add to your car insurance to be best protected:

Collision car insurance in Ontario

This auto insurance protects you in the event of a collision of your vehicle with an object, which can also be the rollover of your vehicle. This insurance covers property damage caused by this accident. For example, if you hit a traffic sign, you will be covered by collision insurance. This coverage is not mandatory.

Comprehensive car insurance in Ontario

This insurance protects you for anything that is not collision or upset, as the name suggests, therefore for anything that is vandalism, glass breakage, theft, fire. If you park your vehicle on the street and when you come back, one of the windows has been broken, you will be able to use this insurance if you have subscribed to it. It is possible to make car insurance estimates to see how much you want to be insured up to.

Specified Perils Auto Insurance in Ontario

It covers you for risks that you have specified in the contract. For example, you can mention glass breakage but not include vandalism, theft but not include fire.

All-risk car insurance in Ontario

This insurance is a combination of all other insurances: collision, payout and collision free. The deductible is the same for all damages. You will thus be protected for all incidents beyond your control (vandalism, theft, fire) but also for incidents resulting from a road accident, collision with an object, or the overturning of your vehicle.

What are the other options that you could add to your car insurance in Ontario ?

Here are the options you could add to your car insurance in Ontario, most of the car insurance companies propose this :

OptionsDetailsAvailability in Ontario
Leased vehiculeYour rental vehicle will be insured in the same manner as your insured vehicle(s).Yes
Accident ForgivenessYour first accident won’t increase your car insurance premium Yes
Replacement value for total lossAlso known as replacement value, your insurer will compensate you based on the purchase value of the vehicle without taking depreciation into account.Yes
Alternate Transportation BenefitsAlso known as loss of use of the vehicle, this covers the cost of rentals, transportation, cabs that you had to take during the period when you were unable to use your vehicle.Yes
Emergency roadsideif you are out of gas, stuck, have a cracked wheel, the road assistance is there for it. Yes
Options you can add to your car inusurance

How much is car insurance in Ontario?

In Ontario, there are a number of factors to consider when determining the price of your car insurance.

The price of car insurance in Ontario is based on several factors such as:

  • Your age
  • Your sex
  • Your driving record, i.e. your driving history
  • Your permanent address: it won’t be the same price if you live in a crowded city or in the countryside.
  • The type of vehicle you drive: depending on the vehicle you drive, your premium will increase or not. If it is a really a model that can be easily stolen, your premium will get higher. If you drive one of the most stolen cars, it is quite sure that your premium will tend to be higher.
  • The use you make of your vehicle: are your journeys to and from work daily, for example? Do you use your vehicle for business purposes?
  • The number of people insured on your car insurance and their driving level
  • The date you obtained your driver’s license
  • Third party liability: did you choose 1 000 000 $ third party liability? More? Less? This changes your premium a lot.
  • The optional coverage : did you add accident forgiveness for exemple? Roadside assistance? Same, this impacts your premium.

Car insurance quotes Ontario

On average, a woman aged 35, married, living in Toronto, taking out Belair Direct insurance will pay approximately $177 per month for car insurance (Mandatory/Collision/Comprehensive).

According to the BAC (bureau assurance Canada), the average car insurance premium in region is 125 $ per month

Where can I find the cheapest car insurance premium in Ontario?

In Toronto, the price of car insurance is more expensive than in some provinces of Ontario. The most determining factor is not necessarily the size of the city but rather the number of claims made per capita to an insurer:

  • Toronto : 2 500 $ / year
  • Mississauga : 2 200 $ / year
  • London : 1 400 $/year
  • Ottawa : 1 100 $ / year

Toronto is therefore the most expensive city in terms of car insurance, size doesn’t necessarily matter because you can see that Ottawa is in last place while it is the second largest city in Ontario. When we say Toronto, we are takjing about Toronto and its suburbs. For ewample, Brompton car insurance are really expensive.

What are the best discounts offered by car insurances in Ontario?

Ontario auto insurers offer many discounts to save money on your insurance. Here are some of the best discounts known:

  • Young driver discounts
    Many insurers offer discounts for young drivers because the insurance premium for young people is quite high.
  • Group discount
    You can benefit from a discount if you are part of a group, this can be members of an association, employees of the same company etc.
  • Discount for experienced drivers
    You can get a discount if you have a good driving record and are over 50 years old.
  • Discount for combined policies
    You can get a discount by combining your car and home insurance for example, the discount is often between 5 and 15%.
  • Discount for winter tires
    It’s snowing in Ontario! That’s why insurers often offer a discount if you add snow tires to your vehicle.
  • Retiree discount
    You may be eligible for a 15% discount on Accident Benefits
  • Renewal Discount
    Your loyalty can be rewarded by some insurers, if for example you have been with them for many years without having caused any accidents. You may also be eligible for other discounts depending on the auto insurers in Ontario:
  • Low mileage
    Adding security to your vehicle

9 ways to get cheap car insurance in Ontario

Here 9 tips so save on your car insurance in Ontario:

  1. Bundle your policies : you could easily get a discount if you buy car and home insurance at the same insurer.
  2. Shop and compare to get the best deal. Never auto renew.
  3. Choose the right amount of deductible: if you choose a low deductible, your car insurance premium will go high. So choose high deductible if you want to lower your car insurance premium.
  4. Choose the coverage you need. For example, if you drive a really old car, maybe you should’t have a very complete car insurance.
  5. Pay annually: this will avoid to pay the rate fees to pay monthly.
  6. Security-device: you should install safety devices on your car, you could enjoy discounts!
  7. Have a good driving record: the best you drive, the lower you’ll pay.
  8. Install a telematic device: this tool will register your driving behavior and your car insurance premium will be adapt to your kind of driving. So, if you’re a safe driver, and you want to save money on your car insurance, go for it!
  9. Don’t hesitate to use the discounts we have just listed, depending on your situation. For example, if you’re a student, you will find interesting discounts for you.