How Much Does Car Insurance Cost in Canada? (2026 Guide)
How much does car insurance cost in Canada?
As of August 2026, car insurance in Canada costs an average of $100–$170/month, or between about $1,200 and $2,000 per year, for a single adult with a single vehicle.
Ontario has the highest average car insurance costs in Canada at $172/month, while Quebec has the lowest at just $87/month. The table below compares average monthly car insurance rates across Canada, based on average cost data from Statistics Canada:
* “Impacts of rising costs and claims on personal automobile insurance profitability and consumers in Canada,” Statistics Canada, April 2025.
Drivers in British Columbia, Manitoba, and Saskatchewan buy auto insurance through a public plan, while Quebec residents use a hybrid model with public and private insurance combined. If you live in a province with public auto insurance, you can estimate your car insurance costs using online tools:
- British Columiba: Autoplan Insurance Estimator (ICBC)
- Manitoba: Insurance Rate Calculator (MPI)
- Saskatchewan: Vehicle Registration and Insurance Calculator (SGI)
Costs vary significantly based on location, age, vehicle, and coverage level. You’re likely to see quotes on the higher end of the spectrum if:
- You live in an urban center
- You drive an expensive or high-powered car
- You’re under 25 years old or have limited driving history
- You have an at-fault accident, ticket, or insurance claim from the past 7 years
- You opt for a policy with lots of extra add-ons, endorsements, and enhanced coverage
Average car insurance cost in Ontario
Ontario’s car insurance rates are the highest in the nation thanks to rising auto repair and healthcare costs.
As of August 2026, the average cost of car insurance for a single driver in Ontario is $180–$200/month, or $2,160–$2,400/year. Rates may be higher or lower based on rating factors such as driving experience, driving history, vehicle type, and location.
Average cost by city
The table below compares average car insurance rates across Ontario based on real quotes pulled from up to 15 carriers in each location. While drivers in rural areas typically pay lower premiums, auto theft hotspots like Brampton and urban centers that see dense traffic often drive up the cost of coverage.
* Monthly average for full coverage for 45-year-old drivers with clean records. The two-car household includes a 2021 Ford F-150 XLT Supercrew 4WD and a 2019 Honda Civic Sport; the one-car household includes a 2019 Honda Civic Sport.
Keep in mind that insurance costs are variable, relative, and location-specific. Ontario has the highest average auto insurance costs in Canada, while neighbouring Quebec has the lowest costs, on average. While $100–$200 per month for car insurance is normal across Canada, a premium of $100/month is statistically low in Ontario, while $200/month is high for Quebec.
Average cost by age
Ontario drivers under age 25 can expect to pay $350/month or more for car insurance, with higher rates for teens without a G license.
** Figures represent the difference between quotes for single 45-year-old male drivers and the same coverage with a 17-year-old female driver added to the policy.
Average cost by driving record
Drivers can expect to pay $50/month more for car insurance in Ontario after a single driving conviction and as much as $150/month more after an at-fault accident claim.
Adult drivers with limited driving and insurance history, including immigrants new to Canada, may pay over $500/month for auto insurance while building their driving record.
Why are car insurance premiums going up?
If you feel like the cost of car insurance is putting a bigger strain on your budget these days, you’re not alone. Statistics Canada reports that car insurance premiums in Canada rose by an average of 8.7% in 2024, following multiple years of steady increases.
Why does car insurance cost so much more today? Several factors are at play:
- Vehicle theft is out of control: Insurers are paying out billions of dollars on auto theft claims each year. In Ontario alone, auto theft claim costs rose by a massive 524% between 2018 and 2023, with no end in sight to the skyrocketing theft trend.
- New cars cost more to fix: The increasing technological complexity of new vehicles, which are often equipped with computer-powered safety systems and other costly tech, means that every physical damage claim costs insurance companies more than in past years.
- Inflation is driving up repair costs: The rising cost of vehicle repairs has outpaced general inflation, with repair and maintenance costs up by 8.1% in Ontario compared with the general inflation rate of 3.3%.
- Personal injury lawyers are pushing costly lawsuits: In Alberta, Ontario, and other provinces that mix no-fault insurance with a tort-based system that allows drivers to sue for damages, personal injury lawyers advertise aggressively. This can draw consumers into lawsuits that place heavy costs on their insurance providers and drive up premiums for everyone.
As these and other market forces put increased financial pressure on insurers, auto insurance is nearing unprofitability for many Canadian insurance companies. The rising premiums you may see on your renewal notice may be your insurance provider’s attempt to keep their business viable in a difficult market.
“Car theft is driving higher insurance costs, definitely. In Ontario, we have seen a huge rise in car insurance theft claims. Within the last year there was a study and over a billion dollars was paid out in car theft claims across Canada.” —Reza Aziz
What factors affect car insurance costs?
Car insurance companies in Canada base your premium on a range of factors, from demographic information to specific coverage selection. In the industry, we call these cost-influencers “rating factors.”
You can influence four of these rating factors through the choices you make when you shop for car insurance. The rest are largely out of your control, but important to understand when you’re comparing quotes.
1. The type and amount of coverage you choose
The biggest factor affecting how much your car insurance costs is how much you buy and what type of coverage it is.
You’ll always pay for the minimum mandatory coverage required by law in your province. In Ontario and most other provinces, that includes third-party liability coverage, accident benefits coverage, and uninsured automobile coverage. It’s then up to you whether to add on optional coverage like collision or upset, comprehensive, or all-perils coverage.
On average, shoppers who got car insurance quotes from PolicyMe saw their rates go up by:
- 37% when adding collision coverage
- 34% when adding comprehensive coverage
- 78% when adding all perils coverage
- 5% when adding endorsements like rental car coverage and accident forgiveness to an all perils policy
2. The deductibles you select
Any physical damage coverage on your car insurance policy—including collision, comprehensive, all perils, specified perils, or direct compensation property damage (DCPD) coverage—comes with a deductible. That’s the dollar amount you agree to cover out of pocket in order for your insurer to pay the rest of the cost to repair your car (up to your policy’s limits).
Choosing your deductibles is a key part of the car insurance shopping process. The higher your deductible, the more you’ll pay in the event of a covered loss, but your car insurance premiums will be lower in exchange for the risk you take on. A low deductible, on the other hand, can make your coverage more useful if you’re willing to pay a little more each month.
3. The vehicle you drive
Insurance companies in Canada use the CLEAR (Canadian Loss Experience Automobile Rating) system to track the frequency and severity of auto insurance claims associated with each unique vehicle make and model. Your car’s CLEAR rating, along with its overall value, influences what you’ll pay to insure it.
CLEAR index scores compare the overall cost of insurance claims connected to a given vehicle to average claim costs for all vehicles.
- A good CLEAR rating is below 81, indicating a lower rate of claims than the average for all vehicles
- An average CLEAR rating is between 81 and 120, indicating a rate of claims near the average for all vehicles
- A bad CLEAR rating is over 120, indicating an above-average rate of claims compared to other vehicles
CLEAR ratings are given for four coverage types: collision, comprehensive, DCPD, and accident benefits claims. Each vehicle also receives a theft frequency rating.
You can look up your vehicle’s CLEAR ratings using IBC’s How Cars Measure Up database. We analyzed CLEAR data to identify five popular 2021 models with the lowest combined CLEAR ratings across all four coverage types:
The cheapest cars to insure typically include small and mid-sized SUVs and pickup trucks with excellent safety ratings, low CLEAR index scores, and moderate cash value. Luxury vehicles and vehicles with a high theft frequency may be the most expensive to insure.
4. The insurance company you buy from
Every Canadian insurance company calculates auto insurance premiums differently, using proprietary algorithms and underwriting processes. While provincial governments regulate auto insurance rates, individual insurers are free to adapt their pricing structures to attract and reward certain driver profiles (e.g., drivers with no at-fault accidents, young drivers, or drivers seeking to bundle auto and home insurance).
Your profile will earn you different rates from every auto insurer, which is why shopping around is so important.
5. How you shop
Many insurers in Canada offer small discounts for customers who request auto insurance quotes online and purchase insurance products through a website or online broker rather than a traditional agent.
On the other hand, working with a broker could help you maximize the car insurance discounts you’re eligible for, since brokers may have inside knowledge of which savings programs any given insurer offers.
When you get car insurance quotes with PolicyMe, we compare options across providers and recommend the best coverage for your profile. We break down what’s included and why it matters, so you can feel confident you’re getting the right protection at the best price.
6. Whether you bundle your home and auto insurance
Bundling home and auto insurance could reduce the cost of both policies by up to 20%. If you own both a home and a car, purchasing home and auto insurance from the same company can streamline claims, improve administrative processing times, and save thousands of dollars over the life of your policies.
Insurers offer multi-line discounts because customers who buy multiple types of insurance from the same provider are more likely to be stable, loyal customers. You can compare bundled home and auto insurance quotes in Ontario with PolicyMe’s digital platform or a local broker of your choice.
For drivers who don’t own their home, many insurers offer the option to bundle auto and tenant insurance for a lower rate.
Other factors
In addition to the choices you make when shopping for car insurance, insurance companies analyze:
- Your age, gender, and marital status: Older drivers, women, and married applicants typically pay slightly lower car insurance rates due to their perceived lower risk.
- How and how much you drive: Insurers will ask about your annual kilometres driven, the length of your commute, and the type of driving you do (e.g., pleasure, commute, or business).
- Your driving record: You must report any at-fault accidents or driving violations like speeding tickets within a given time period (usually 3–7 years).
- Where you live: Insurers will consider risks like vehicle theft and traffic crash rates in your postal code.
- Where you keep your car: Some insurers may ask where you keep your car; a private garage is the safest place to keep your vehicle and will earn you the lowest insurance rates.
- The type of vehicle you drive: Insurers analyze loss statistics associated with vehicles of the same age, make, and model to determine how much to charge you. You may be able to earn a discount if you have an anti-theft device or winter tires installed.
- Your insurance history: Maintaining auto insurance coverage over many years with minimal or no claims shows prospective insurers that you’re a safe bet; a short insurance history or a record of multiple car insurance claims could raise red flags.
Can usage-based insurance really give me a lower rate?
Usage-based telematics discounts for car insurance can save you a significant amount on auto insurance premiums, but they’re not without risks and tradeoffs.
The promise: In theory, usage-based insurance can match your insurance rates more closely with how you actually drive rather than vague demographic factors. If you’re a safe driver, this could promise major savings.
The reality: Most insurers offer a 5–15% activation discount just for opting into a UBI program, but this discount is often temporary. Once the program has collected enough data to issue a discount or surcharge, your car insurance premium could go down by 15–35% if the app detected safe driving habits—or it could go up by as much as 30%.
Your choice: Think about your own driving habits, driving conditions in your area, and your overall tolerance for data sharing. Ask before you sign up whether the program issues both discounts and surcharges, or discounts only.
“It’s important to be completely honest when providing information for your auto insurance quote. Failing to disclose accidents, tickets, or other details may result in a lower initial quote, but the price will likely increase once the insurance company reviews your driving record.” —Adam Seguin, Licensed Insurance Advisor
Why do car insurance prices vary so much?
The cost of car insurance can vary significantly between insurance providers, as well as over time, due to a number of factors.
- Insurers use different underwriting models: Underwriting is the process by which insurers estimate the risk of insurance claims associated with a given applicant. Each company does it a little differently.
- Risk tolerance varies between carriers: Each car insurance provider in Canada is looking for different business. Some may focus on attracting “high-value” customers who are likely to be loyal, reliable clients and purchase multiple insurance products; others might be chasing the business of high-risk younger drivers who will pay higher premiums out of necessity.
- Everyone’s insurance needs are different: Your price depends in large part on the insurance coverage you need. A new vehicle or inexperienced drivers might necessitate a higher level of coverage, thus driving up the cost of insurance.
How to compare car insurance costs
To find the best rate, compare costs and coverage from at least three different Ontario insurers when getting car insurance.
A 2023 study by the Financial Services Regulatory Authority of Ontario (FSRAO) found that only two-thirds of drivers in Ontario compare quotes from multiple providers when shopping for insurance. That means one in three could be missing out on savings without even realizing it. Don’t be one of them.
How can I save on car insurance?
You can save on car insurance by shopping regularly, raising your deductible, and bundling home and auto insurance if you own your home.
Your auto insurance policy is an essential expense, but it shouldn’t overburden your budget. If the bill feels like it’s getting too high, a few strategies may help you reduce your overall insurance costs:
- Comparison shop on a regular basis: Auto insurance providers in Ontario may adjust their pricing once or twice a year. You should be shopping on the same schedule to make sure your price keeps pace with market changes.
- Adjust deductibles thoughtfully: A higher deductible could reduce unnecessary expenses, but be cautious—if your deductibles are too high, your comprehensive and collision coverage could become effectively useless.
- Bundle insurance if you can: Homeowners may save money with a home and auto insurance bundle. If you own a home and a car, get bundled quotes to find the best price for both insurance policies.
- Maintain a clean driving record: A single at-fault driver violation could raise your rates for years to come, so drive defensively with your insurance premium in mind.
If you’re a new driver in Ontario, you can reduce your auto insurance costs by completing a driver training course, choosing a car with strong safety features, and keeping your deductibles higher while you’re still inexperienced.
FAQ: How much does car insurance cost?
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.