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Average Cost of Car Insurance in Canada (2026)

Updated

Average Car Insurance by Province

ProvinceAverage Annual PremiumAverage Monthly CostSystem Type
Ontario$1,600–2,400$133–200Private (regulated)
British Columbia$1,800–2,200$150–183Public (ICBC) + private
Alberta$1,500–2,000$125–167Private
Nova Scotia$900–1,200$75–100Private
New Brunswick$850–1,100$71–92Private
Newfoundland$1,100–1,400$92–117Private
PEI$800–1,000$67–83Private
Manitoba$1,200–1,500$100–125Public (MPI)
Saskatchewan$1,100–1,400$92–117Public (SGI) + private
Quebec$700–900$58–75Split (SAAQ + private)

Average Car Insurance by Age

Age GroupAverage Annual PremiumWhy
16–19$4,000–7,000+New driver, highest statistical risk
20–24$2,500–4,000Still considered high-risk
25–29$1,800–2,500Rates begin to drop significantly
30–39$1,500–2,000Lowest rates — experienced, stable
40–49$1,500–2,000Still in the “sweet spot”
50–59$1,500–2,100Steady rates
60–64$1,600–2,200Slight increase begins
65+$1,700–2,500Rates increase with age

Average Car Insurance by City

CityAverage Annual PremiumRank (Most Expensive)
Brampton, ON$2,800–3,5001 (most expensive)
Mississauga, ON$2,600–3,2002
Toronto, ON$2,400–3,0003
Scarborough, ON$2,400–3,0004
Vaughan, ON$2,300–2,8005
Edmonton, AB$1,700–2,2006
Calgary, AB$1,600–2,1007
Vancouver, BC$2,000–2,4008
Surrey, BC$1,900–2,3009
Ottawa, ON$1,500–1,90010
Winnipeg, MB$1,400–1,700
Montreal, QC$700–1,000Cheapest major city

How Gender Affects Insurance Rates

FactorDetail
OntarioGender-based pricing banned since 2013 — no impact
Alberta, Atlantic CanadaInsurers can use gender as a rating factor
BC, SK, MBPublic systems — rates based on driving record, not gender
General trendMales under 25 pay more in provinces where gender rating is allowed

Factors That Affect Your Premium (Ranked)

FactorImpactHow It Affects Cost
Driving recordVery highOne at-fault accident can increase rates 25–50% for 6 years
Age and experienceVery highUnder-25 drivers pay 2–3x more than 30-year-olds
LocationHighUrban cores (especially GTA) cost much more than rural areas
Vehicle typeHighSports cars and luxury vehicles cost 30–60% more to insure
Claims historyHighEach claim can increase premiums 10–25%
Annual mileageModerateLow-mileage discounts available (under 10,000 km/year)
Coverage levelModerateHigher deductible = lower premium; more coverage = higher premium
Credit scoreModerateUsed in AB, ON, Atlantic — good credit can save 10–15%
Marital statusLow–moderateMarried drivers often pay slightly less
Vehicle safety featuresLow–moderateADAS features can earn 3–10% discounts
Winter tiresLowOntario mandates a discount; other provinces may offer one

What Happens After an At-Fault Accident

Years Since AccidentPremium IncreaseNotes
Year 1+25–50%Worst impact
Year 2+20–40%Still elevated
Year 3+15–30%Gradual decline
Year 4–5+10–20%Continuing to drop
Year 6+Back to normalMost insurers remove the surcharge after 6 years

How Tickets Affect Insurance

Ticket TypePremium IncreaseDuration on Record
Minor speeding (1–15 over)5–10%3 years
Major speeding (30+ over)15–25%3 years
Distracted driving20–25%3 years
Running red light10–15%3 years
DUI / impaired driving50–100%+ (or policy cancellation)3–10 years
Careless driving25–50%3 years

How to Lower Your Car Insurance

StrategyPotential SavingsEffort
Compare 3–5 quotes10–30%Low
Increase deductible ($500 → $1,000)10–20%Low
Bundle home + auto5–15%Low
Ask about group rates (employer, alumni, professional)5–15%Low
Install winter tires3–5%Low
Take a defensive driving course5–10%Moderate
Use telematics/usage-based insurance10–25%Low
Pay annually instead of monthly5–10%Low
Drop collision/comprehensive on old cars20–40%Low
Maintain clean driving record15–30% (vs. at-fault)Ongoing
Reduce coverage on second vehicle10–20%Low

Minimum Required Coverage by Province

ProvinceMinimum LiabilityMandatory Coverages
Ontario$200,000Liability, accident benefits, uninsured motorist, direct compensation
BC$200,000ICBC basic: liability, accident benefits, underinsured motorist
Alberta$200,000Liability, accident benefits
Saskatchewan$200,000SGI basic: liability, personal injury
Manitoba$200,000MPI basic: liability, personal injury, property damage
Quebec$50,000 (property)SAAQ: bodily injury; private: property damage liability
Nova Scotia$500,000Liability, Section D benefits
New Brunswick$200,000Liability, accident benefits
PEI$200,000Liability
Newfoundland$200,000Liability, accident benefits

Most experts recommend $1–2 million in liability coverage. Minimum coverage may not be enough for a serious accident.