Cheap Car Insurance Ontario

Compare quotes from over 30 insurance providers to get the cheapest rates in Ontario

Different types of insurance in Ontario

Before you shop around for car insurance, it is important to understand the different types of insurance in Ontario.

This coverage will pay for damages caused by the other party involved in an accident that is your fault. Ontario drivers must have a minimum amount of $200,000 in coverage, however because accident damages can add up quickly, many drivers choose to carry policies with $1-$2 million or more in coverage.

 

Third-Party Liability insurance will cover costs related to property damage, medical bills, death and funeral expenses, and loss of income as a direct result of the accident.

This insurance provides benefits to you and your family after an accident if you sustain injuries or are killed in the accident. This coverage can pay for things such as permanent disability if you are unable to return to normal work activities, payment of medical costs, funeral expenses, expenses for rehabilitation services, or survivor benefits if you are killed in the accident.

Uninsured Motorist coverage is just that – coverage that pays for damages that are caused by a driver who does not carry any auto insurance on their vehicle, or for damages that exceed the amount of coverage that the person is carrying. Since many people choose to have on the required amounts of coverage and many times accidents exceed that limit, this insurance is very beneficial.

One of the best coverages available to drivers, direct compensation and property damages coverage pays for your injuries and repairs after an accident if you are not at fault, while regular liability only pays for the other party’s damages. Without this coverage you could be left with thousands of dollars in car repairs or property damage with no help covering the costs.

 

When registering your vehicle in Ontario you will need to show your “Pink” card. This card serves as proof of insurance. The card must be kept inside of the vehicle at all times and shown when you are stopped by a law enforcement officer. It must also be brought forth to the Minister of Transportation each year when renewing your vehicle registration. Without this card you will not be able to register your vehicle.

No-fault insurance is a term you will become familiar with if you’re looking for car insurance. Ontario is a no-fault province, meaning if you are injured or your car is damaged in an accident, your own insurance company must handle your claim, no matter which party is the cause of the accident. You will not need to contact the driver who is at fault for compensation in Ontario because of the no-fault laws that are in place. If there are passengers in your car who are injured, each person that has insurance through an agency will need to contact their own insurance company for coverage. If the passengers don’t have a car insurance policy, your insurance company may handle the claim for them. The other car involved must also contact their respective insurance company to file a claim.

What factors impact your car insurance rates?

It’s important to be prepared when shopping for insurance. You should understand what factors affect your rates.

Where you live will help determine your premiums. Those who live in a bigger city like Toronto or Montreal where traffic is heavier can expect to pay more than those in a more rural area like Cobourg.

Young drivers who are at a higher risk of being in an accident will face higher premiums. Once you gain more experience, usually after six years, your premium should decrease as long as you keep a clean driving record.

In Ontario, your insurance company will reward you for having a clean record. Those who are involved in an at-fault accident will face higher premiums as a result.

The type of car you drive will affect your premium. This is related to the cost of repair and replacement parts. Generally speaking, the more expensive the car, the more expensive your insurance will be. For example, small sports cars are typically more expensive to insure than a minivan.

The more mileage you have on your car, the higher your premium will be.

Your premium will rely on the deductible and amount of coverage you choose. Generally speaking, a higher deductible will mean a lower monthly payment.

How do you get cheap insurance in Ontario?

If you’re a new driver, it is recommended to take a driver’s education course for various reasons. Not only will you be a better driver but your insurance provider will also offer you a lower premium as a result. You will be deemed a safer driver if you’ve been trained by professionals.

With so many factors contributing to your insurance rates, it is important to do prior research to determine where you can find the best value. As there are so many car insurance companies to choose from, make sure to collect and compare multiple quotes before making your decision.

Before choosing a policy, be sure to carefully consider what you really need. While it is always better to be safe than sorry, it is also important not to pay for coverage that isn’t necessary.

If you’re a new driver, it is recommended to take a driver’s education course for various reasons. Not only will you be a better driver but your insurance provider will also offer you a lower premium as a result. You will be deemed a safer driver if you’ve been trained by professionals.

If your household consists of multiple drivers and vehicles, it will be most cost effective to put them all on one policy.

When you use the same insurance company for both your home and auto insurance policies, you will receive a lower premium as a thank you from your provider. Insurance companies like to reward their loyal customers.

There are many discounts available whether you belong to a large corporation, you’re a school alumnus, in the military, and otherwise. You can also be rewarded with cheaper rates for having optional accessories such as winter tires or anti theft devices. Insurance companies will see these as being risk averse.

Explore cities in Ontario:

Most expensive cities for Ontario car insurance

  1. Brampton – $2,494
  2. Vaughan – $2,128
  3. Mississauga – $2,086
  4. Richmond Hill – $2,033
  5. Toronto – $1,948
  6. Markham – $1,943
  7. Pickering – $1,714
  8. Whitby – $1,673
  9. Hamilton – $1,670
  10. Ajax – $1,651

Least expensive cities for Ontario car insurance

  1. Brockville – $1,016
  2. Cornwall – $1,016
  3. Kingston – $1,017
  4. Cobourg – $1,018
  5. Napanee – $1,018
  6. Port Hope – $1,018
  7. Petawawa – $1,024
  8. Kenora – $1,048
  9. Belleville – $1,066
  10. Trenton – $1,066

Ontario insurance rates compared

  1. British Columbia – $1,680
  2. Ontario – $1,445
  3. Alberta – $1,251
  4. Newfoundland & Labrador – $1,132
  5. Manitoba – $1,080
  6. Northwest Territories – $978
  7. Nunavut – $963
  8. Saskatchewan – $936
  9. Nova Scotia – $842
  10. New Brunswick – $819
  11. Yukon – $812
  12. Prince Edward Island – $796
  13. Quebec – $661

Is car insurance mandatory in Ontario?

Yes, it is required by law for every driver in Ontario to have car insurance. While the mandatory requirements for car insurance vary by province, in Ontario, drivers must have a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, which covers costs that exceed provincial health care should the driver be injured in a crash. If your car isn’t insured you are at the risk of facing a fine starting at $5000 at first conviction. With so many private insurance companies in Ontario, you can shop around and compare in order to find the best rate.

How much is the average insurance cost in Ontario?

In Ontario, the average cost of car insurance is $1505 ($125 monthly). While this is a good starting point, your rate will also vary based on a wide variety of factors including the type of car you drive, where you live, your driving record, and otherwise. 

How do I choose the right coverage?

With so many factors being considered, choosing a car insurance policy can be an overwhelming process if you don’t know exactly what you need. Everyone in Ontario is required to have a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, however some drivers may wish to have added coverage for peace of mind. This is recommended as the minimum requirements leave drivers with a thin level of protection and a high potential of out-of-pocket expenses should an accident occur. While $200,000 may seem like alot, you might be surprised when you see the costs that can result from serious collisions. It is always better to be safe than sorry and as a result many drivers opt for additional coverage such one or two million in third-party liability as well as comprehensive and collision coverage. 

Before choosing a policy, be sure to carefully consider what you will be comfortable paying in the event of an accident or if you can afford to replace or repair your vehicle due to theft, natural disasters, vandalism, or otherwise. It might be worth paying a higher premium now in order to save down the road.

Do I need insurance if I’m an Uber driver or I drive for another ride-sharing service in Ontario?

If you drive for a ride share service such as Uber or Lyft, you will receive commercial insurance through your company while you are providing the service, however, you are still required to have your own insurance for when using your vehicle for personal uses. You will still need to comply with the mandatory insurance requirements in Ontario which includes a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, which covers costs that exceed provincial health care should the driver be injured in a crash.

In Ontario, Uber provides two million dollars of liability coverage and uninsured/underinsured motorist coverage. They will also provide drivers with contingent collision and comprehensive coverage but only if the same coverage is included on the driver’s personal policy. Uber also insures drivers in Ontario when they’re on the clock, but have yet to accept a trip. Lyft has similar offerings.

When getting your insurance, it is crucial that you let your insurance company know that you will be using your vehicle for commercial purposes. This way, if anything were to occur, you will have coverage regardless of whether you were working or not. 

While many assume that insurance companies will charge higher rates for Uber drivers, this is not always the case. If they do, the extra premium you face will still be less expensive than the bills you’d have to pay out of pocket after an accident.

What is short term insurance?

Short-term car insurance can mean coverage for a rental car. It can mean temporary insurance while you transport a recently purchased vehicle. It can even mean a policy that only lasts six months – instead of a traditional insurance policy that lasts one year. Short-term insurance policies are useful for people that want to drive a friend’s car, borrow a family member’s car, or test drive a vehicle that they are interested in purchasing.

Compare car insurance quotes

Enter your postal code and compare rates from over 30 insurance providers!

Driver Resources

Everything you need to know about parking tickets in Ontario

What you need to know about driving without insurance

Benefits of Driver’s Ed