What is the cheapest car insurance in Canada?

Rates vary hugely by province. In private-market provinces, Belairdirect, Intact, and TD Insurance often have competitive rates. Always compare 3-5 quotes — rates can vary by $500-1,500+ for the same driver.

How much is car insurance in Canada?

The average is about $1,700-2,000/year nationally. Ontario averages $1,900-2,200, Alberta $1,500-1,800, BC $1,800-2,100 (ICBC), and Quebec $700-900 (cheapest, public system).

How can I lower my car insurance?

Bundle home and auto, increase your deductible, maintain a clean driving record, ask about group discounts, shop around annually, install winter tires (some provinces give discounts), and consider usage-based insurance.

Best Car Insurance in Canada 2026 | Compare Rates

Best Car Insurance Companies Canada 2026

Private Market Provinces (ON, AB, NS, NB, PE, NL)

Company	Best For	Provinces	Online Quote	Rating
Intact	Largest insurer, bundling	All private	✅	A+
Belairdirect	Online-first, competitive rates	ON, QC, AB, NB, NS	✅	A+
TD Insurance	TD customers, bundling	All private	✅	AA-
Aviva	Multi-vehicle discounts	ON, AB, Atlantic	✅	A+
Economical (Definity)	Competitive rates	ON, AB, Atlantic	✅	A
Wawanesa	Western Canada	AB, MB, BC, SK	✅	A
Sonnet	100% online, fast quotes	ON, AB, QC	✅	A+ (Economical)

Public Insurance Provinces

Province	Provider	Type	Average Yearly
BC	ICBC	Public monopoly (basic)	$1,800-2,100
SK	SGI	Public (basic) + private (optional)	$1,100-1,400
MB	MPI	Public monopoly	$1,200-1,500
QC	SAAQ	Public (injury) + private (damage)	$700-900

Average Car Insurance Rates by Province

Province	Annual Average	Monthly Average	Rating
Ontario	$2,000-2,200	$167-183	Most expensive
BC	$1,800-2,100	$150-175	High
Alberta	$1,500-1,800	$125-150	Above average
Atlantic provinces	$900-1,200	$75-100	Moderate
Manitoba	$1,200-1,500	$100-125	Moderate
Saskatchewan	$1,100-1,400	$92-117	Moderate
Quebec	$700-900	$58-75	Cheapest

Factors That Affect Your Rate

Factor	Impact	What You Can Control
Driving record	Very high	✅ Drive safely
Age / experience	High	❌ Time-based
Location (postal code)	High	⚠️ Moving is extreme
Vehicle type	High	✅ Choose lower-risk car
Coverage level	Medium	✅ Adjust deductible
Credit score (some provinces)	Medium	✅ Improve credit
Annual kilometres	Medium	✅ Work from home? Lower km
Claims history	Very high	✅ Avoid minor claims
Bundling (home + auto)	Medium	✅ Bundle policies

How to Save on Car Insurance

Tip	Estimated Savings
Compare 3-5 quotes annually	$200-800/year
Bundle home + auto	5-15% discount
Increase deductible ($500 → $1,000)	10-15% savings
Winter tire discount (ON, QC)	2-5%
Usage-based / telematics	5-25%
Group/alumni/employer discounts	5-15%
Pay annually (not monthly)	Avoid monthly fees
Clean driving record	Lowest tier rates
Dashcam (some insurers)	5%
Electric vehicle discounts	Varies

Coverage Types Explained

Coverage	What It Covers	Required?
Third-party liability	Damage/injury to others	✅ Yes (minimum $200K, recommended $2M)
Accident benefits	Your own injuries	✅ Yes (mandatory in most provinces)
Uninsured motorist	Hit by uninsured driver	✅ Yes (usually mandatory)
Collision	Your car in an accident	❌ Optional (recommended for new cars)
Comprehensive	Theft, fire, weather, vandalism	❌ Optional (recommended)
All perils	Collision + comprehensive combined	❌ Optional

Recommended Coverage by Car Age

Car Age	Collision	Comprehensive	Deductible
New (0-3 years)	✅ Yes	✅ Yes	$500
Mid-age (4-7 years)	✅ Yes	✅ Yes	$1,000
Old (8+ years)	⚠️ Consider dropping	✅ Keep	$1,000+
Under $5K value	❌ Drop	⚠️ Consider dropping	—

New Driver Rates

New Driver Profile	Approximate Annual Cost
16-year-old (Ontario)	$5,000-8,000
18-year-old (G2)	$3,500-5,500
25-year-old (new license)	$2,500-3,500
New to Canada	$2,000-3,500

Tips for New Drivers

Tip	Impact
Be added to parent’s policy	30-50% cheaper than own policy
Take driver training course	5-10% discount
Start with an older, cheaper car	Lower insurance category
Build clean record for 3+ years	Rates drop significantly

How to Get Quotes

Method	Process	Time
Online (Sonnet, Belairdirect)	Enter details, instant quote	5-10 minutes
Comparison sites (LowestRates, Kanetix)	Submit once, multiple quotes	10 minutes
Insurance broker	Broker shops multiple companies	1 day
Directly (call each insurer)	Individual quotes	30+ min each

Recommendation: Use an online comparison tool, then call your top 2-3 picks to negotiate.

How to get the best car insurance rate in Canada

1. Shop every renewal: Insurance loyalty is not rewarded. Rates change annually and competitors may price you significantly better than your current insurer.

2. Bundle home + auto: Most insurers offer 10–20% discounts for combining home and auto coverage. This is often the single easiest way to reduce auto premiums.

3. Consider telematics: Usage-based programs (Intact myDriving, Desjardins Ajusto, Sonnet My Drive, Allstate Drivewise) monitor driving habits and can reduce premiums 10–30% for low-mileage and safe drivers. Ideal for occasional drivers and retirees.

4. Increase your deductible: Raising collision deductible from $500 to $1,000–$2,000 can reduce premiums 10–15%. Only do this if you have emergency savings to cover the higher deductible if needed.

5. Review your coverage annually: As your vehicle ages and depreciates, collision and comprehensive coverage becomes less valuable relative to premium cost. Many advisors suggest dropping collision when the vehicle’’s value falls below $5,000–$7,000.

Frequently asked questions

Which car insurance company is best in Canada? Intact Insurance is Canada’’s largest P&C insurer and consistently ranks well for claims service. Desjardins is strongest in Quebec. TD Insurance and RBC Insurance offer competitive rates with Big Six bank bundling. Online-only insurers (Sonnet, Belairdirect) are competitive for straightforward risk profiles. The “best” insurer depends on your specific risk profile, province, and vehicle — comparison is essential.

Is it cheaper to pay car insurance monthly or annually? Annually — most insurers charge 2–5% extra for monthly payment processing. Paying annually (or setting up pre-authorized annual payment) avoids this surcharge and ensures uninterrupted coverage.