What are the best car insurance in Toronto ?

James Rodriguez James Rodriguez  updated on 2022-02-17

You want to know more about car insurance in Toronto? Where to find the best deals? What coverage is mandatory or not?

Perfect, just read this guide, you'll learn everything you need to know about car insurance in Toronto!

How does car insurance work in Toronto ?

In Toronto, from the moment you own a vehicle, you must insure it through a private insurer, and 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 are covered for, the optional guarantees chosen, the period of coverage.

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

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

  • 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 detail which of the different coverages are mandatory or not.

What are the different car insurances in Toronto?

In Toronto, there are several insurance 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
  • The contents of your vehicle

There are a few conditions:

  • You must not be responsible for the accident
  • It must have taken place in Toronto
  • Another vehicle must be involved
  • The other vehicle must be insured by 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.

The table below shows you which car insurance coverage is mandatory in Toronto :

Insurance typeRequired
Public insuranceNo
Third-party liabilityYes
Accident benefitsYes
Direct Compensation Property DamageNo
Uninsured automobilistYes
Car insurance Toronto

What are the optional auto insurance coverages in Toronto?

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

Collision car insurance in Toronto

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 Toronto

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 Toronto

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 Toronto

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 Toronto?

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

OptionsExplicationsAvailability in Toronto
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 premiumYes
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 insurance

How much is car insurance in Toronto?

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

The price of car insurance in Toronto is based on several factors:

  • Age
  • Sex
  • Your driving record, i.e. your driving history
  • The place where you live: it won’t be the same thing if you live in a 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 example? Roadside assistance? Same as before, this impacts your premium.

Car insurance quotes Toronto

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 IBC, the average car insurance premium in Ontario is $1,500, we can guess that in Toronto, it is higher than the average premium in this province. In Toronto, drivers pay approximatively $2,000 per year, Toronto is one of the most expensive city in Canada when it comes to car insurance.

How can I find the cheapest car insurance in Toronto ?

In Toronto, the price of car insurance is more expensive than in other part 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.

To find cheap car insurance in Toronto you must:

  • Compare all the deals online to see what is the best car insurance for you
  • Know exactly what coverage you should take depending on your car, your age, where you live etc.

Why car insurance in Toronto so expensive?

Car insurance in Toronto is really expensive, why is that? We have a few ideas:

  • The roads are really busy, this causes collision, accidents.
  • There are more theft than in the countryside, more vandalism.
  • Another reason could be fraud, some drivers are claiming without having any incidents.

To summarize, Toronto is a big city, so there are more accidents, more thefts, therefore there are more claims. So premiums are higher because car insurance companies must must compensate for losses.

What are the best car insurance in Toronto?

Here are the best car insurance in Toronto:

Insurance companyCoverageDiscounts
  • CAA’s Antique and Classic Cars Coverage
  • CAA Connect telematics
  • All basics are provided
  • Discounts available
  • Max 15% discount if you use CAA telematic program
  • CAA connect
  • All basics coverages are available
  • Interesting optional coverages : accident forgiveness
  • Many discounts available
  • Hybrid discount, electric discount
  • Less than 30 years old discount
  • **Multi vehicle discounts
  • All basics coverages are available
  • Interesting optional coverages : accident forgiveness
  • Many discounts available
  • Hybrid discount
Average car insurance price

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

Toronto auto insurers offer many discounts to save money on your insurance. Here are some of the best 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 snows in Toronto! 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 Toronto.
  • Low mileage
  • Antitheft discount: Adding security to your vehicle

9 ways to get cheap car insurance in Toronto

Here 9 tips so save on your car insurance in Toronto!

  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!
  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 right coverages! 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.
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