Car Insurance Toronto: Compare free quotes for 2024
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Car insurance in Toronto can be expensive. But we've got you covered.
In this guide, we'll tell you everything you need to know about Toronto car insurance: how it works, the mandatory coverage, costs, discounts, and how to get the cheapest car insurance in Toronto.
You can use our free comparator at the top of this page to compare the best car insurance Toronto quotes from Canada's top companies and secure your coverage today.
Car Insurance in Toronto: 5 Key Takeaways
- Car insurance in Toronto is mandatory by law.
- Fines range from $5,000 to $50,000 for driving without valid coverage.
- Toronto operates under a no-fault insurance system.
- The average annual car insurance premium in Toronto is $1,952.
- Driving record, vehicle type and location can affect the cost.
How does car insurance in Toronto work?
In Toronto, as in all cities across Ontario, it is mandatory by law for car owners to have auto insurance. Toronto operates under a no-fault insurance system. Drivers deal with their own insurance company regardless of fault in an accident.
The auto insurance industry in Toronto is privatized. It allows you to purchase policies from licensed insurance brokers, insurance agents or direct writers.
The Financial Services Regulatory Authority of Ontario (FSRA), formerly known as the Financial Services Commission of Ontario (FSCO), oversees Toronto's auto insurance rates and regulations. FSRA ensures that proposed insurance rates are reasonable, covering operating costs, future claims and company profits.
Watch out!
Driving without valid auto insurance can result in the suspension of your driver's license. What's more? It can lead to towing of your vehicle, with fines ranging from $5000 to $50,000.
What are the types of car insurance in Toronto?
Car Insurance Toronto: Mandatory Coverage
In Toronto, like all of Ontario, you must have the following coverages as a part of your car insurance policy:
| Coverage Type | Mandatory Coverage | Optional/Additional Coverage You Can Get |
|---|---|---|
| Third-Party Liability | Protects you by eliminating your insurer's ability to deduct depreciation from the value of your vehicle when settling a claim. Applies to new vehicles with fewer than 5,000 kilometres. | You can increase the coverage to $500,000, $1 million or $2 million. |
| Uninsured Automobile Insurance | Up to $200,000 in coverage in case you get injured or killed by an uninsured driver. Or if your vehicle gets any damage in a hit-and-run by an unidentified, uninsured motorist. | You can get optional Family Protection Coverage: an additional coverage of up to $1 million in a hit-and-run by an uninsured motorist. |
| Statutory Accident Benefits | Offers coverage if you get injured in an accident, no matter f who is at fault. Covers medical expenses that aren’t covered by OHIP. | Coverage limits can be increased. |
Car Insurance Toronto: Optional Coverage
Here is a comprehensive overview of optional coverages that you can consider to enhance your car insurance policy in Toronto.
- Collision Coverage (Also Known as Upset Coverage): Coverage for the costs of repairing or replacing your vehicle after a collision with another vehicle, an object, or property.
- Comprehensive Coverage: Covers costs from specific perils, along with damages incurred by additional risks such as objects falling or flying, theft, fire, hail, windstorms, missiles, and vandalism.
- Specified Perils Coverage: Coverage for damages from specified perils like theft, attempted theft, explosions, and natural disasters such as fire, lightning, windstorms, hail, rising water, and earthquakes.
- Direct Compensation-Property Damage (DC-PD): Protects against damage to your vehicle or loss of its use if another insured driver is at fault.
- All-Perils Coverage: Combines Collision/Upset and Comprehensive coverages. Adds extra security in case a household member or an employee steals your vehicle.
- OPCF 20: Coverage for Transportation Replacement: Covers expenses for transportation replacement and rental car insurance in the event of a car accident or if your vehicle is stolen.
- OPCF 27: Liability for Damage to Non-Owned Automobile(s): Coverage in case you damage a borrowed or rental vehicle. Coverage range: $25,000 to $50,000.
- OPCF 39: Accident Waiver/Forgiveness: Safeguards premiums from increasing after your first at-fault accident.
- OPCF 43: Waiver of Depreciation: Prevents insurer from deducting depreciation from the value of your vehicle when settling a claim. Applies to new vehicles with <5,000 kilometres.
- OPCF 44R: Family Protection Coverage: Protects you or a family member from injuries sustained in an accident, regardless of whether any of you are inside the vehicle at the time of the accident.
Good to know
Direct Compensation Property Damage (DCPD) coverage is no longer mandatory. As of January 1, 2024, you can opt out of DCPD by adding the OPCF 49 endorsement. When comparing car insurance quotes in Ontario, Direct Compensation-Property Damage (DCPD) coverage is typically included in your policy. However, you have the option to remove this coverage, which can result in a savings of approximately 10% on the cost of your policy. Make sure you mention this to your broker or insurer.
How much is car insurance in Toronto?
The annual rate for average car insurance in Toronto stands at $1,952, translating to approximately $163 per month. This figure is $424 higher than the provincial average of $1,528 per year in Ontario.
In terms of provincial rankings, Toronto ranks as the seventh most expensive city for drivers.
Why is car insurance expensive in Toronto?
The elevated average insurance expense in Toronto is because of factors such as the city's frequency of claims and crime rates. This is why drivers in Toronto incur higher insurance costs compared to their counterparts in smaller towns.
Which factors affect the cost of car insurance in Toronto?
No two people would pay the same monthly premiums for car insurance in Toronto since the cost depends on a lot of factors.
Factors you can control
- Driving record: This is one of the most important factors that insurance companies consider when calculating your premium. A clean driving record with no accidents or tickets will result in a lower rate.
- Vehicle type: The make, model and year of your car will also affect your insurance rate. Sports cars, high-performance vehicles and luxury cars are typically more expensive to insure than sedans or minivans.
- Mileage: The number of kilometres you drive each year will affect your rate, too. Drivers who drive fewer kilometres will typically pay less for insurance.
- Deductible: The deductible is the amount you have to pay out of pocket before your insurance company starts to cover the cost of a claim. Choosing a higher deductible can lower your premium, but it's important to choose an amount that you can afford to pay in case of an accident.
- Coverage: The type and amount of coverage you choose will also affect your premium. Liability insurance is the minimum requirement in Ontario, but you may also want to consider purchasing comprehensive and collision insurance.
Factors you can't control
- Age: Younger drivers typically pay more for car insurance than older drivers.
- Gender: In Ontario, gender is no longer a factor that insurance companies can consider when calculating your premium.
- Location: Where you live will also affect your insurance rate. Drivers who live in high-crime areas or areas with a lot of traffic congestion will typically pay more for insurance.
How much is car insurance in Toronto for a new driver?
The average cost for a first-time driver (1 year licensed) in Toronto can be around $354 per month. This can decrease by 10% upon transitioning to a G2 license and another 10% with a G license, assuming a clean driving record.
Car insurance in Toronto for a new driver is significantly higher than standard insurance rates.
Here are the reasons:
- Lack of experience: New drivers statistically pose a higher risk to insurance companies due to limited driving experience, which translates to higher premiums.
- Graduated Licensing System: Ontario's Graduated Licensing System categorizes new drivers (G1, G2) differently and insurance companies factor this into their pricing structure, leading to higher costs for these license holders.
How to get cheap car insurance in Toronto for new drivers?
- Compare Quotes: Use online comparison tools to get quotes from multiple insurers.
- Increase Deductibles: Choose a higher deductible to lower your premiums.
- Driver’s Training: Complete a driving course to qualify for discounts. Many insurers in Toronto and Ontario recognize the value of these courses and offer lower premiums to graduates.
- Choose a Cheaper Car: Opt for a car that’s less expensive to insure.
- Bundle Policies: Combine multiple insurance policies to get discounts.
- Reduce Coverage: Consider minimal coverage for older cars to save money.
- Maintain a Clean Record: Keep your driving record free of violations or accidents.
- Ask for Discounts: Check with insurers for any additional discounts you may qualify for.
What is the best car insurance in Toronto?
Here are some of the top providers in Canada that typically offer the best car insurance in Toronto.
| Car insurance companies in Toronto | Key Features | Best for | Our Rating | Personalized Quote |
|---|---|---|---|---|
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| Best for users looking for multiple options to choose from and affordable premiums | 4.9/5 | Get a free quote now |
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| Policyholders with problematic driving records | 4.8/5 | Get a free quote now |
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| Best for those looking for customized car insurance coverage and innovative support services | 4.8/5 | Get a free quote now |
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| Best for young drivers under the age of 25 | 4.8/5 | Get a free quote now |
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| Customers seeking flexibility and various discount options | 4.7/5 | Get a free quote now |
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| Best for customers looking for cheap car insurance Toronto options with streamlined claims process | 4.7/5 | Get a free quote now |
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| Drivers facing coverage challenges | 4.7/5 | Get a free quote now |
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| Ride-sharing service users and discount seekers | 4.6/5 | Get a free quote now |
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| Users desiring quick, online policy services | 4.6/5 | Get a free quote now |
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| Individuals seeking tailored insurance options | 4.5/5 | Get a free quote now |
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| Users seeking multiple quotes from top insurers | 4/5 | Get a free quote now |
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| Customers valuing community-driven service | 3.5/5 | Consult the Co-operators' website for a quote |
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| Customers seeking feature-rich auto insurance | 4/5 | Consult Allstate's website for a quote |
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| Individuals seeking online policy management | 4/5 | Consult Onlia's website for a quote |
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| Policyholders in need of emergency assistance services | 3.75/5 | Consult RBC's website for a quote |
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| Customers seeking distinct coverage add-ons | 4/5 | Consult Desjardins' website for a quote |
There is no single "best" option as the ideal company depends on various factors specific to your situation.
Here's why:
- Individual needs and priorities: What might be "best" for someone focused solely on the cheapest price might not be ideal for someone prioritizing extensive coverage or exceptional customer service.
- The constant fluctuation in rates and offerings: Insurance companies frequently adjust their rates and offerings, making it challenging to pinpoint a single best option at any given time.
You must, therefore, compare car insurance Toronto quotes from multiple companies. You can do that right here using our tool below or at the top of this page. It's essentially a free car insurance toronto calculator with actual premiums based on your unique needs. Get free personalized quotes instantly. It's online and 100% free.
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How to get the cheapest car insurance in Toronto?
Here are feasible ways to find cheap car insurance Toronto plans.
- Be a safe driver: Maintaining a clean driving record with no accidents or tickets is crucial. This is one of the biggest factors influencing your premium and a clean record translates to lower rates.
- Adjust your coverage: Evaluate your current coverage and see if any adjustments can be made. Consider increasing your deductible (the amount you pay out of pocket before insurance kicks in) in exchange for a lower premium. Choose a deductible you can comfortably afford in case of an accident.
- Bundle your insurance: If you own a home, bundling your car and home insurance with the same company can often lead to significant discounts of up to 25%.
Some other things you can do:
- Ask about discounts: Many insurance companies offer various discounts, such as good student discounts, low-mileage discounts, winter tire discounts and group discounts (e.g., through professional organizations). Inquire about available discounts and see if you qualify for any.
- Pay your premiums annually: While less common, some insurers might offer a discount for paying your entire premium upfront annually instead of monthly installments.
And don't just stick with your current provider. Use online comparison tools or contact different insurance companies directly to get quotes and compare their rates. This way, you can find the company that offers the best deal for your specific circumstances.
You can compare free car insurance quotes online right here using our free tool below and get the best deals on premiums now.
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