No single company has the lowest car insurance rates in Ontario. 

All insurers look at the same basics—things like your driving history, how much you drive, the car you own, and where you live. The difference is how each company weighs those details. Some are set up to attract certain types of drivers more than others.

What this means for you: the cheapest insurance isn’t the same company for everyone. And since prices change often, the only real way to find the best rate you qualify for is to compare actual quotes. 

FSCO, the Financial Services Commission of Ontario, was replaced in 2019 by the Financial Services Regulatory Authority of Ontario (FSRA). This agency regulates insurance companies, insurance agencies, and insurance brokers in the province of Ontario to ensure consumer protection while fostering a competitive insurance market. Its regulatory responsibilities include: 

• Licensing of insurers, agents, and brokers
• Review and approval of proposed auto insurance rates
• Handling of consumer complaints
• Oversight of business practices in the insurance industry

Comprehensive and collision insurance aren’t legally mandatory in Ontario. That said, most drivers need both types of insurance. If you have an auto loan or lease, your lender likely requires you to carry both types of coverage—and even if you own your car outright, physical damage coverage is key to protecting your finances in the event of a crash or other major loss. If you can’t afford to replace your car out of pocket, you likely need this coverage on your car insurance policy. 

Statutory accident benefits coverage is mandatory in Ontario and helps to pay for the insured’s expenses if they or a household member are injured in a motor vehicle collision. This coverage is no-fault insurance, meaning that it applies regardless of who is found at fault for the crash. 

Starting July 1, 2026, Ontario law will only require drivers to carry medical, rehabilitation, and attendant care accident benefits coverage. All other statutory accident benefits—including income replacement, non-earner benefits, caregiver benefits, and death and funeral benefits—will be optional as of July. 

Ontario has some of the highest car insurance rates of any Canadian province, thanks to a high overall cost of living and steep auto repair costs—but car insurance makes up a moderate percentage of household spending compared with other costs. According to the Consumer Price Index, passenger vehicle premiums in Ontario made up 2.11% of overall household spending, on average, in 2025, which is close to the national average of 2.10%. 

Other provinces, such as Alberta, British Columbia, Manitoba, and Newfoundland and Labrador, saw higher spending on auto premiums. By contrast, households in Nova Scotia, Quebec, and Saskatchewan spent a lower percentage of their overall expenditures on car insurance in 2025. 

Insurance companies in Ontario base car insurance premiums on a few basic factors, all of which are used to estimate the overall risk that a particular driver will need to make a claim on their policy: 

• The type of vehicle you drive: Vehicles with more claims than the industry average may see higher rates. 
• Where you live: Vehicles garaged in postal codes with high crime rates or dense traffic could carry steeper premiums. 
• Your age, gender, and marital status: Young people, men, and single drivers are generally classed as a higher driving risk than older, female, or married drivers. 
• Your driving record: Past accidents, tickets, claims, training, and the number of years you’ve held a license can all influence your risk profile. 
• The number of kilometres you drive each year: Those who drive frequently or for long distances may pay higher premiums as a result. 

In addition to these risk factors, your premiums will depend on the coverage you select, the deductible you choose, and the insurance company you choose to buy from. 

Car insurance rates vary based on a wide variety of personal factors, but they’re generally lowest in smaller cities and rural areas with less dense traffic and lower rates of vehicle theft leading to costly claims. Drivers in places like Ottawa, Windsor, Kitchener, London, and smaller towns like Cornwall, North Bay, and Sarnia may see some of the lowest premiums in the province, especially compared with the GTA. 

A deductible is the amount you agree to pay when filing an auto insurance claim. Once you’ve paid your deductible, the insurance company will cover the rest of your costs (up to your policy’s limit). It’s a form of risk-sharing that ensures drivers won’t file many small claims, thus keeping the overall cost of coverage down. Deductibles apply to various forms of physical damage coverage for auto insurance. 

We compare quotes from a panel of trusted Canadian insurers so you can see your options side by side and choose the best fit. Once you select a policy, it's underwritten and backed by that insurer directly—and our team is here to help you through the process from start to finish.

Our life and health insurance works differently; those policies are underwritten by Securian Canada and distributed through PolicyMe.

Once you complete your online quote, you can expect a call from a licensed advisor within the next 48 hours. They’ll review your coverage, answer any questions you may have, and help you finalize your policy.

Yes, a short call with a licensed advisor is part of the PolicyMe car insurance process to review your quote, confirm your coverage, and make sure everything is set up correctly before you finalize your policy.

Your insurance company will handle your car insurance claim directly, including claim decisions, repairs, and payments. As your broker, PolicyMe is here to support you through the process; our advisors can answer questions, help you understand next steps, and advocate on your behalf if you need assistance.