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average car insurance rates in OntarioWithout a doubt, car insurance rates represent the highest insurance cost for Canadians. Car insurance cost is significantly higher than the cost of house insurance, and it’s even higher than most life or health insurance premiums. However, car insurance rates vary significantly across Canada. For example, the average car insurance rates in Ontario are $1,920 per year, but annual insurance premiums are only $912 in Quebec and $1,092 in Nova Scotia.

Well, annual car insurance premiums in Ontario can be compared to a few things…

  • 1,222 medium coffees at Tim Hortons
  • 640 single fares for adults or 960 single fares for seniors policyholders in Toronto
  • One flight from Toronto to Sydney, 3 flights from Montreal to Vancouver or 8 flights between Calgary and Edmonton
  • Tanking approx. 25 times

Why car insurance rates in Ontario are so high?

Despite the fact that there have been government-led initiatives to reduce car insurance rates in Ontario, they continue to be the highest in the Country. There a number of reasons for this, but the main ones are that Ontario has:

  • Sufficient space for insurance fraud; and a high level of claims payouts
  • Highest population density
  • The worst roads
  • High rate of vehicle theft

Average car insurance rates in Ontario compared to the rest of Canada

When you look at the data we compiled at InsurEye and presented on the visual overview, you can see what the average cost of car insurance is in various Canadian provinces (only provinces with enough data points are represented on the chart).

Average Car Insurance cost in Ontario


Car insurance premiums in Ontario – what affects the rates

There are a lot of factors that play a role in car insurance rates in Ontario, such as e.g. location, car make and year, driving experience, driving history,
age, marital status, level of coverage, additional benefits. The ones with the largest impact in the cost of car insurance are driving history/tickets and age. Also gender is considered when calculating your car insurance rates.

Gender: The attached chart shows how gender impacts car insurance rates – on average, women pay slightly less than men; and this is based on accident history. Although it’s important to note that women don’t have less accidents than men, their accidents tend to be less costly.

Average Car Insurance cost in Ontario - Men and Women

Driving History: A driver’s history is a factor that greatly impacts car insurance rates. On average, drivers with a clean driving record in Ontario pay $1,812 per year; whereas those with more than two violations in the last three years, or a license suspension in the last six years, pay $3,252 per year, which is almost double the amount. Searching for high-risk vehicle insurance? We can help.

Average Car Insurance cost in Ontario - Driving History

How to Reduce the Car Insurance Rates in Ontario

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The good news is that there are dozens of ways to reduce your car insurance costs; and they range from buying your insurance in a bundled package with your home insurance, to completing a driving course, to customizing your protection options and deductibles. The best way to lower the average car insurance costs in Ontario is for individual drivers to do what they can to reduce their car insurance costs.

Our Periodic Table of Car Insurance Savings will guide you through all the possible options you have to save on your car insurance in Ontario. Hopefully we’ll be able to help you put a dent in the average car insurance rates in Ontario from the current rate of $1,920 per year.