Economical Car Insurance Review (2026)

Economical Insurance: The basics

• Founded: 1871 (155 years in business)
• Parent company: Definity Financial Corporation
• Underwriting companies: Definity Insurance Company, Definity Insurance Company of Canada
• Website: https://www.economical.com/en/home
• Phone number: 1-800-607-2424
• Availability: Nationwide (except British Columbia, Manitoba, and Saskatchewan)
• Car insurance products: Auto, snowmobile/ATV, motorcycle, and motorhome/camper insurance

What does Economical car insurance cover?

In Ontario, all Economical car insurance policies include coverage required by provincial law that pays for: 

• Other drivers’ medical bills and vehicle repairs if you’re found at fault in an accident 
• Your own legal costs if you’re sued due to an at-fault accident
• Medical, rehabilitation, attendant care, caregiver, and funeral costs for you and your family regardless of fault 
• Income replacement regardless of fault 
• Your own medical bills and vehicle repairs if you’re struck by an uninsured or unidentified at-fault driver
• Repairs to your vehicle if it’s damaged by an identified at-fault driver

^{* As of July 2026, mandatory accident benefits are limited to medical rehabilitation, and attendant care benefits. All other SABS, including income replacement, are optional.}  

^{** DPCD coverage may be waived by signing OPCF 49.}

Optional Economical car insurance coverages and endorsements

In addition to the core coverage required by provincial law, Economical offers the following optional and recommended coverages and endorsements:

^{* Family protection coverage, or OPCF 44R, is not mandatory in Ontario but is included by default in all Economical policies.}

Other optional coverage and endorsements, including all standard Ontario Policy Change Forms (OPCFs), are available through Economical, but they’re not advertised publicly. Instead, Economical encourages customers to find a local broker to discuss available coverage options for their vehicle(s). 

Economical car insurance discounts

Economical offers at least seven distinct discounts for auto insurance: 

• Bundled home and car insurance: Customers who purchase an Economical home insurance policy along with their vehicle insurance are eligible for potential discounts. 
• Conviction-free driver: If you remain free of driving convictions for a certain number of years, Economical may reward you with a discounted premium. 
• Accident-free driver: Maintaining continuous insurance with no at-fault accidents for a certain number of years could earn you a discount. 
• Renewal discounts: Economical may offer a loyalty discount upon renewal to customers who keep their Economical policy for a certain number of years. Renewal discounts may increase over time. 
• Experienced driver: Young drivers with limited on-road experience typically cost more to insure, but experienced drivers can earn discounts from Economical. 
• Installed anti-theft device: If you install an approved theft deterrent or vehicle recovery system, such as TAG, in your insured vehicle, Economical may issue a discount on the comprehensive portion of your premium. 
• Multi-vehicle discount: Customers who insure more than one car, van, or SUV with Economical may be eligible for a discounted rate. 

Like coverage options, Economical discounts are not advertised in depth. Customers are encouraged to consult a licensed broker to see which discounts are available in their area. 

How much does Economical car insurance cost?

Economical insurance quotes are only available through a local broker, so it’s difficult to obtain public information on Economical’s average rates. To estimate the cost of car insurance through Economical, you can request auto insurance quotes through an Economical broker in your area. 

Like other property and casualty insurance companies in Canada, Economical bases car insurance costs on risk calculations that take into account: 
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• Driver age and experience
• Driving history
• Vehicle type, age, and safety features
• Amount and type of coverage
• Insurance history
• Location factors like traffic patterns, crime rates, and climate risk

The Economical car insurance claims process

If you need to file an auto insurance claim with Economical, here’s what you can expect the process to look like: 

1. Respond to the incident: If you’re in an accident, remain at the scene, ensure everyone is safe, and contact the authorities if necessary. For auto theft, contact the police. 
2. Document everything: Take note of the date and time of any damage to your vehicle, as well as details about physical damage, injuries, and more. Exchange insurance information with any other parties involved in the incident. 
3. Call to file a claim: You can only file a claim with Economical by phone using the emergency lines listed above. 
4. Work with your claims professional: Economical will take the lead and send your information to a Definity Repair Partner or, if you choose, to an independent shop of your choice. If you need a rental car and it’s covered by your policy, your Economical representative will set it up. 
5. Receive payment: For claims requiring vehicle repairs, Economical typically pays your repair shop directly, while you only pay the deductible you’re responsible for. In cases of auto theft, your claims representative will determine the amount you’re owed and send a cheque to cover your loss. 

If your Economical car insurance claim involved a motor vehicle accident for which you were found partially or fully at fault, your insurance premium will go up at your next policy renewal. Your premium may also increase after other claims, although the impact to your policy may be smaller for claims where you were not at fault. However, if you previously had an accident-free discount, you may lose this discount after certain claims.

How to file a Economical car insurance claim

You can only file a car insurance claim with Economical by calling the 24-hour emergency line at 1-800-607-2424 or 1-888-875-8088 (Quebec).

Is Economical good for claims?

Economical conducts their own customer surveys to evaluate customer satisfaction with the claims process. A 2023 survey of over 4,000 Economical customers reported 79% overall customer satisfaction with auto repairs completed by Definity Repair Partners. Plus, all body, parts, and paint repairs completed by a Definity Repair Partner are subject to a lifetime guarantee. 

To compare that finding with real-world stories, we turned to Reddit to see what anonymous users of that forum had to say about their auto claims experience with Economical and its parent company, Definity. Both customers and industry insiders suggest that Economical and Definity’s recent business decisions, including demutualization, may be impacting response times and customer satisfaction.
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Economical car insurance vs. other providers

Here’s how Economical compares to other major Canadian car insurance companies.

^{* Average monthly premium for an all perils policy for two drivers and two vehicles.} 

Is Economical car insurance right for you?

Economical car insurance may be a good option for you if you prefer to work with a local broker and receive competitive quotes through your Economical representative. 

Economical is Definity Financial’s broker-led personal insurance option, a counterpart to Sonnet’s direct-to-consumer digital insurance model. For those who prefer working with a local broker, it may be a good option as a trusted source for personal and commercial insurance across Canada.

FAQ: Economical car insurance

This article is for general information only and is not insurance or legal advice. Examples and any sample quotes or rate ranges are illustrative and do not constitute an offer or guarantee of coverage, price, or eligibility. Actual coverage, discounts, and premiums depend on your individual circumstances and the insurer provider; if there is any discrepancy, your policy and insurer documentation govern. For advice about your situation, speak with one of our licensed insurance professionals.