Compare Car Insurance Prices 2024: Get Free Quotes
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Our articles are written by experts in their fields (finance, trading, insurance etc.) whose signatures you will see at the beginning and at the end of each article. They are also systematically reviewed and corrected before each publication, and updated regularly.
Discover the methodologyDid you know that even one traffic violation can raise your car insurance price by 5-10%? Further violations and accident claims can increase your premiums even more. Additionally, several other factors influence the cost of your car insurance.
But what exactly are Canadians paying for car insurance, and how can you manage your premiums effectively?
This article explores car insurance prices across Canada. From the average costs and how premiums are calculated to tips on finding the best policy, this guide covers all you need to know.
Car Insurance Prices: 5 Key Takeaways
- The main factors determining premiums are the driver, the vehicle and the type of insurance coverage.
- The cheapest car insurance prices are found in Quebec and Prince Edward Island
- The most expensive premiums are in Ontario and Alberta.
- Provinces with public car insurance systems are typically lower in premiums.
- Car insurance price calculators simplify shopping around to find the best premiums for you.
How much does car insurance cost in Canada?
Car insurance prices in Canada vary greatly depending on the extent of the chosen car insurance, the individual(s) to be insured as well as the vehicle itself. This is because underwriters consider numerous factors that all contribute to perceived risk and any subsequent premiums paid by an insured will reflect that risk.
For example, an individual with multiple at-fault claims will indicate that there is a higher risk that they will be in another car accident when compared to someone who has a clean claim record. As such, the car insurance cost paid by the former will likely be higher than for the latter. Higher risk equals higher car insurance prices.
An individual’s claim history is not the only factor that an insurance company will consider.
Factors that decide car insurance price
Car insurance companies will also review an application and take into consideration the following factors when determining car insurance costs.
- Age and gender of all individuals to be insured on the policy
- Claim and other traffic violation history
- Length of time the insured individual(s) has held a licence
- If any extra driving courses have been taken
- If the driver(s) uses telematics to track driving habits
- Residence
- The make, model and year of the insured vehicle
- What the vehicle is used for (commute, work etc.)
- Where the vehicle will be parked overnight
- If the vehicle is financed, leased or paid off
- If anti-theft tracking devices are used
- The choice of coverage
- Optional add-ons
As can be seen, navigating all these factors to predict car insurance costs in Canada is difficult. Fortunately, HelloSafe’s online car insurance comparison tool helps you compare coverage and costs with just a few clicks. Get free personalized car insurance quotes online right here.
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How does Canadian auto insurance differ from province to province?
The biggest difference in car insurance between the provinces in Canada has to do with public and private insurance systems. The reason for this is that a certain level of car insurance is required by Canadian law and provinces regulate these requirements independently.
Some provinces control the mandatory coverage and offer it via government-run insurance systems. Others simply regulate the standard coverage offered by private insurers.
Public car insurance
British Columbia, Manitoba and Saskatchewan all operate their government-owned car insurance providers through which motorists must purchase the basic mandatory coverage as required by law. These providers include:
- Insurance Corporation of British Columbia: The ICBC provides the mandatory coverage required by all BC motorists called Autoplan. This policy can, however, be purchased through licensed brokers.
- Manitoba Public Insurance: MPI offers Manitoba motorists legally required coverage under the Autopac insurance plan.
- Saskatchewan Government Insurance: SGI operates the mandatory auto insurance program where motorists pay for basic auto damage insurance when they register their vehicles.
Private car insurance
In Newfoundland & Labrador, Prince Edward Island, Ontario, Alberta, New Brunswick, Quebec and Nova Scotia, private companies are allowed to provide the mandatory car insurance required by Canadian law. Often referred to as standard auto insurance policies, these basic car insurance plans will be regulated by each province’s Financial Services Regulatory Authorities.
Comparing car insurance prices between provinces
Comparing car insurance prices between provinces is therefore not a straightforward undertaking. In broad strokes, however, public insurance systems offer less choice in terms of coverage and car insurance prices, whereas the private car insurance system allows you to shop around for the best deal.
Furthermore, while the private system does allow flexibility of choice, public insurance coverage will likely be cheaper since government-run insurance providers do not operate for profit.
What is the average car insurance price throughout Canada?
Despite the wide array of insurance systems, providers, plans and factors influencing premiums, we can still roughly compare average car insurance prices. By using online car insurance price calculators, keeping all variables the same and only changing locations, we can view average car insurance costs between provinces.
The following table shows car insurance prices from Ontario to British Columbia and everywhere in between. Note that the actual car insurance cost will vary for individuals, the provider and any number of variables applicable. The car insurance prices shown are for mandatory coverage only, for a 35-year-old female with a clean claim record and no prior traffic violations, driving a 2020 Honda Accord EX 4DR.
| Province and Territories | Monthly car insurance price |
|---|---|
| Alberta | $181.28 |
| British Columbia | $143.54 |
| Manitoba | $151.50 |
| New Brunswick | $104.75 |
| Newfoundland and Labrador | $125.08 |
| Northwest Territories | $84.38 |
| Nova Scotia | $132.83 |
| Nunavut | $76.25 |
| Ontario | $286.08 |
| Prince Edward Island | $58.08 |
| Quebec | $47.75 |
| Saskatchewan | $103.37 |
| Yukon Territories | $73.67 |
*The prices mentioned are subject to change as car insurance premiums are highly based on individual factors, coverage needs, and local legislation.
Further car insurance price comparisons
As proven above, the average car insurance price varies greatly between provinces but further comparisons can be made. For example, considering car insurance prices in Ontario and Quebec, the prices can range anywhere between $597 to $2,805 depending on the insurance provider themselves and the differences between someone’s details and the vehicle insured.
The table below highlights various realistic situations and shows how car insurance prices change depending on the driver, vehicle, location and insurance provider.
| Insured individual | Residence | Insured vehicle | Type of Coverage | Insurance provider | Car insurance premium |
|---|---|---|---|---|---|
| A 28-year-old female with 1 prior at-fault claim but no traffic violations | Toronto, Ontario | 2010, Jeep Wrangler X 4WD | Third-party liability; All perils | TD Insurance | $182.00/month |
| A 40-year-old female with a clean record and no traffic violations | Montreal, Quebec | 2015, Alfa Romeo 4C 2DR Coupe | Third-Party Liability only | CAA Quebec | $49.75/month |
| 40-year-old female with a clean record and no traffic violations | Ottawa, Ontario | 2017, Audi A4 2.0T 4DR | Third-party liability; Collision and upset | Economical Insurance | $233.75/month |
Comparing car insurance doesn’t have to be difficult and HelloSafe’s car insurance calculator helps speed up the process.
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What are the different types of car insurance?
While the price of car insurance is heavily influenced by the driver and the vehicle itself, the biggest contributing factor to premium fluctuations will always be the actual type of auto insurance cover. The more comprehensive the coverage, the more expensive the insurance.
Therefore, understanding what type of coverage exists and comparing that to what you need will affect your overall car insurance price. The following breakdown might help you understand a few of the different types of car insurance.
- Liability insurance: Third-party insurance is a legal requirement throughout Canada and offers protection for property damage or injuries caused to others where you are at fault.
- Collision and upset: Will insure against damage caused to your vehicle as a result of a car accident or collision with a stationary object. It will also cover any repairs needed if your car rolls over.
- Comprehensive cover: Excluding collision and upset, comprehensive cover will protect you if damages occur to your vehicle when you are not at fault. This includes damage from weather, fire, theft, explosion, vandalism and falling/flying objects.
- All Perils: All Perils is one of the most comprehensive, and therefore most expensive options, where protection is provided for nearly all damage under one umbrella policy and one deductible.
- Waiver of depreciation: As long as the vehicle is <5 years old this coverage will replace your vehicle with the same or comparable model if it is deemed a total loss as a result of a valid claim.
- Uninsured motorist coverage: This additional auto insurance will provide coverage if you are in a no-fault collision with another driver who does not have insurance.
Good to know
The more comprehensive the auto coverage, the higher your car insurance prices will be. The same is true if you add on optional add-ons that extend your cover while driving abroad or when driving rental cars.
How to lower your car insurance price?
While they might not be obvious there are several ways in which you can lower your car insurance costs. The following tips include the most effective choices that you can take to slash costs and pay lower premiums.
- Drive a cheap car: Driving a cheap car that is less likely to be stolen reduces the risk of theft and an insurer’s liability which lowers the price. Cheaper cars are usually more affordable to repair and replace which further reduces costs for an insurer and your premium.
- Own your car outright: If you own your car outright then a provider cannot require you to purchase comprehensive coverage which lowers your premium.
- Agree to use telematics: Telematics is used by insurance companies to monitor your driving habits via a mobile app. If you maintain good driving habits, your car insurance premiums will reduce significantly.
- Avoid traffic violations: Avoiding traffic violations also proves to insurers that you are less of a liability on the road, reducing costs.
- Maintain a good claim record: Keeping a clean claim record from at-fault collisions will help you lower car insurance costs over time.
- Have a bigger deductible: The higher your car insurance deductible, the lower your insurance premiums. If you don’t drive a lot you can use high deductibles to drop your overall premiums.
- Shop around: Lastly, don’t hesitate to compare car insurance prices from numerous providers all at once. Finding the policy with the best rates is a surefire way to maintain low auto insurance premiums.
The best way to compare car insurance quotes online and get the top deals is by using the HelloSafe tool below. Compare free quotes from the best car insurance companies in Canada and save big now.
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