Comparing car insurance rates from 30+ insurers
It’s no secret that car insurance rates in some Canadian provinces, such as Ontario and Alberta, are extremely high.
The secret to finding cheap car insurance in these provinces is to compare auto insurance rates from as many insurers as possible. Some websites compare rates from just a few providers, but claim they will save you thousands of dollars. We are transparent about the insurers we work. We search for the cheapest car insurance rates across 30 insurance companies – see above (varies by province). This is, by far, more than the most other websites out there. Give it a try and start saving today.
Typical car insurance premiums in Canada
The chart above illustrates the average auto insurance premiums across Canada. Typically the province of Ontario is characterized by the highest auto insurance rates. Quebec, as a rule, has more affordable car insurance premiums since the health part of the insurance (e.g. bodily injuries) is covered by the government. Not all provinces allow customers to choose from a variety of insurers. Three provinces have crown companies being the only source of vehicle insurance:
– BC with ICBC: Insurance Company of British Columbia: Link
– MB with MPI: Manitoba Public Insurance: Link
– SK with SGI: Saskatchewan Government Insurance: Link
Ideas for getting cheap car insurance rates
There are numerous way to get cheaper car insurance rates. We have collected for you many idea in the overview below.
Parking insurance policy New
60-80% of estimated savings
Looking to reduce car insurance rates during the COVID-19 pandemic? If
you have more than one vehicle in your household or do not need your current car, consider
switching to a parking insurance policy. Remember, you are not allowed to drive when covered
with parking insurance – your vehicle is covered against theft and fire damage only.
Bundle
5-10% of estimated savings
Getting both car insurance and home insurance from the same insurance
provider is often rewarded with a considerable insurance rate reduction.
Multiple-Cars-Discount
5-10% of estimated savings
Does your family have more than one vehicle? Discuss multiple-car
bundle insurance with your provider today – that can save you some money.
Professional Associations and Memberships
20-40% of estimated savings
Certain professions (such as CPA – Chartered Professional Accountant,
CFA – Chartered Financial Analyst) receive discounts with some carriers. This offer sometimes
extends to the spouses of such professions too.
CAA Member
5% of estimated savings
Your CAA membership comes with insurance discounts and is notable for
its cheap auto insurance. If you have a CAA membership, compare their rates with your current
plan.
Pay-As-You-Drive
5-30% of estimated savings
Don’t drive often and/or drive with extreme caution? In exchange for
having your driving behaviour and mileage tracked through an app or device, you can save a lot
with pay-as-you-drive insurance.
Winter Tires
5% of estimated savings
Winter tires do more than keep you safe. They can get you a discount
on your auto insurance too. Ask if your provider offers this discount.
Anti-Theft System
5-15% of estimated savings
Your CAA membership comes with insurance discounts and is notable for
its cheap auto insurance. If you have a CAA membership, compare their rates with your current
plan.
Senior Drivers
40-65% of estimated savings
Being a senior means you typically have more experience as a driver.
You could qualify for a senior’s discount.
Other ways to get cheap car insurance include choosing your make and model wisely, improving your driving record, taking additional driving courses, storing your car in a private garage, reducing your driving distance to work, shopping around annually before renewing your policy, and adjusting your insurance coverage as your life circumstances change.
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What you must know about Car Insurance in Canada
Your Postal Code
Choose your future home wisely. Your postal code will strongly impact your car insurance rates. In some extreme cases it can double them. For example, Brampton, Ontario is known to have very high car insurance rates.
Your Driving Record
The first violations will increase your car insurance rates by 25% to 40%. If you are considered a high-risk driver, your premiums will double or triple. It may take up to 20 years to fully erase your bad driving history.
Students and Alumni
Some schools and post-secondary institutions provide insurance
discounts with carriers they have partnered with, and those partnerships don’t end when you
graduate. Student and alumni discounts are a great way to save on car insurance for young
drivers.
Occasional Driver
If you only need to drive occasionally, get added to the primary
driver’s insurance as the second driver. It is important though not to mislead an insurance
company – don’t drive as the second driver, if you are the main car user.
Professional Associations and Memberships
If you are a member of an association or group,
such as a CPA (Chartered Professional Accountant), you may get discounts with certain
carriers.
CAA Member
CAA provides insurance discounts to its members across various
insurance types including chap auto insurance.
Direct Insurers vs Brokers
A broker shops the market for you while a direct insurer works for
just one insurance company. If you favour a certain insurance brand, speak to their direct
insurance agent to get the best deal on their products.
Welcome and New Client Discount
New to the insurance company? They may welcome your business by giving
you a welcome discount.
Pay-As-You-Drive
Some carriers will allow occasional drivers to get a policy based on
how often they drive. Driving less can save you a lot of money on premiums.
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How to get cheap car insurance for newcomers to Canada?
If you are new to Canada and have just received a driver’s license, the key question that will determine your auto insurance rates is if the carrier will acknowledge your previous driving experience abroad.
Insurers fall into two different categories when it comes to out-of-country driving experience:
Those that require you to start from scratch: Some carriers will not acknowledge any previous driving experience that took place outside of Canada; they will view you as a first-time driver without a driving record.
Those that will continue your driving record: Some companies will consider your previous experience and will offer you a rate based on how long you have been driving, no matter where you got your on-road experience. Check with a broker to see which companies consider previous out-of-Canada experience so you can reduce your chances of a denial and increase your chances of getting the best possible rate.
Here are more tips on getting car insurance if you are new to Canada:
Which car has the cheapest insurance?
Car insurance rates differ among aspects, such as the make, model, and year of your vehicle. The following cars (as per InsuranceHotline) are cheaper to insure than others.
- Volkswagen Jetta
- Volkswagen Golf
- Toyota Camry
- Hyundai Accent
- Chevrolet Cruze
- Mazda Mazda3
- Hyundai Elantra
This is determined based on the frequency of accidents and other claims (e.g. theft, etc.) associated with these models.
How is car insurance is calculated?
Car insurance rates are calculated based on a number of factors that reflect the risk associated with you getting into an accident where an insurance company has to pay a claim. These factors include:
- Driving profile (age, gender)
- Driving history (past claims, types of accidents you have been involved in, driving behaviour)
- Vehicle make and model
- Coverage required (lability, collision, comprehensive, all perils, medical benefits)
- Your location (e.g. some areas such as Brampton ON stand out based on a higher number of accidents)
In addition to the data associated with you and your policy, there are also general themes that impact car insurance, such as increasing claims costs. Additionally, an insurance company may apply with a regulator for a rate increase based on its past claims costs. These approvals take place on a quarterly basis and can be reviewed here e.g. for Ontario car insurance rates with FSCO.
Why car insurance is so expensive?
Car insurance in Canada (especially in Alberta, British Columbia, and Ontario) is among the most expensive in the world. There are several reasons for this, such as:
- High claim insurance costs since cars are becoming more and more expensive (more electronics, features, etc.).
- High level of insurance fraud such as people trying to reimburse fake expenses.
- Harsh driving climate (e.g. car accidents in winter due to ice and snow).
Despite a common myth that insurance companies can raise car insurance rates as they want, all car insurance rate increases must be approved by government authorities. The regulator will permit rate changes only if an insurer can justify its reasons for the request (e.g. increased claim costs).
Is car insurance mandatory in Canada?
Yes. Unlike home insurance (unless you have a mortgage), car insurance is mandatory in Canada. Driving without valid car insurance is a serious offense and will reflect badly on your driving history, making it difficult for you to get cheap car insurance in the future.
Depending on how you purchased your car (such as paid in full versus leasing it), you may be required to purchase additional insurance coverage. For example, if the car is leased you are required to get comprehensive coverage.
Why car insurance is mandatory in Canada?
Car insurance is mandatory in Canada in order to protect all the parties involved in an accident. Unlike home insurance where an accident impacts mostly the homeowner, a car accident might impact multiple parties, and parties who are not involved can actually suffer more damage/injuries from the accident than the driver who was at fault. Mandatory coverage means there is a warranty that, in case of an accident, some financial protection is available. Provincial laws dictate minimal amounts of such coverage (e.g. $200,000 in Ontario) but it is highly recommended to get more extensive coverage such as e.g. $1,000,000 – $2,000,000 in liability.
Who can drive my car under my insurance?
Any person who has a valid driving license can drive your car but the rules can slightly vary from province to province. In Ontario and Alberta, for example, car insurance covers a vehicle, not a driver. It is your risk, if you allow somebody to drive your car and this person got involved into an accident. Your car insurance will pay for it but your car insurance rates will likely increase. In British Columbia you can lend your car to an occasional driver up to 12 days in a year, but you are recommended to get an Unlisted Driver protection.
It is important to remember that if somebody regularly drives your car, you need to add them as an occasional driver on your policy.
Auto Insurance by Province