Ontario has the highest car insurance premiums in Canada — a product of mandatory accident benefits, high fraud rates, and a no-fault insurance system that limits insurer ability to deny claims.
Average Car Insurance Rates Ontario 2026
Driver Profile
Average Annual
Average Monthly
Clean record, 35+ years
$1,500-2,000
$125-167
Average driver
$1,800-2,400
$150-200
Young driver (under 25)
$4,000-6,000
$333-500
New driver (G2)
$3,500-5,500
$292-458
At-fault accident (recent)
$3,000-5,000
$250-417
Cheapest Insurance Companies Ontario
Company
Best For
Notable Feature
Belairdirect
Online shoppers
No broker fees
Sonnet
Tech-savvy drivers
Fast online quotes
TD Insurance
TD customers
Banking discounts
CAA Insurance
CAA members
Member discounts
Intact Insurance
Multi-vehicle
Large network
Aviva
Bundling
Home + auto discounts
The Co-operators
Clean records
Loyalty rewards
Economical
Good drivers
Usage-based savings
How to Get Cheaper Car Insurance
Biggest Savings Factors
Factor
Potential Savings
Good driving record
40%+
Higher deductible
10-30%
Bundle home + auto
5-15%
Pay annually vs monthly
3-5%
Multiple vehicles
5-15%
Winter tires
2-5%
Usage-based insurance
10-25%
Available Discounts
Discount
Typical Savings
How to Get
Multi-vehicle
5-15%
Insure 2+ cars
Multi-policy
5-15%
Bundle home + auto
Good driver
5-25%
Clean record 3-6 years
Loyalty
2-10%
Stay with insurer
Winter tire
2-5%
Install by Dec 1
Student
5-15%
Good grades, driving course
Professional
2-10%
Some professions qualify
Group rate
5-15%
Employer, alumni, association
Telematics
5-25%
App monitors driving
Retiree
5-10%
Age 55+
Cost Factors You Control
Deductible Impact
Deductible
Premium Impact
$500
Highest premium
$1,000
~10% lower
$2,000
~20% lower
$2,500
~25% lower
Tip: Higher deductible if you can afford out-of-pocket repairs.
Coverage Choices
Coverage
Required?
To Save
Liability
Yes ($200k min)
Can’t remove
Accident benefits
Yes
Can’t remove
Uninsured motorist
Yes
Can’t remove
Collision
No (if no loan)
Remove if car old
Comprehensive
No (if no loan)
Remove if car old
When to Drop Collision/Comprehensive
Vehicle Value
Collision Worth It?
Under $3,000
Probably not
$3,000-$7,000
Maybe
Over $7,000
Yes
Financed/leased
Required by lender
Factors That Affect Your Rate
What Insurers Consider
Factor
Impact
Your Control
Driving record
Very high
Yes
Location (postal code)
High
Somewhat
Age & experience
High
No
Vehicle type
Medium
Yes
Annual mileage
Medium
Yes
Claims history
High
Somewhat
Credit (in some provinces)
Medium
Yes
Gender
Low-Medium
No
Marital status
Low
No
Most Expensive Areas (Ontario)
Location
vs. Ontario Average
Brampton
+30-50%
Scarborough
+20-40%
Toronto downtown
+15-35%
Mississauga
+15-30%
Markham
+10-25%
Ottawa
Average
London
-10-15%
Hamilton
-5-10%
Rural Ontario
-20-30%
Compare Insurance Options
Online vs Broker
Channel
Pros
Cons
Online direct
Lowest prices, instant
Limited advice
Broker
Shops multiple companies
May cost more
Bank
Bundle discounts
Limited options
Group plan
Pre-negotiated rates
Limited choices
Best Way to Compare
Step
Action
1
Get 3-5 quotes same day
2
Compare same coverages
3
Check reviews/complaints
4
Ask about all discounts
5
Review policy details
Usage-Based Insurance (UBI)
How It Works
Program
Company
Savings
My Drive
TD
Up to 25%
Sonnet
Sonnet
Up to 20%
Ajusto
Desjardins
Up to 25%
Automerit
CAA
Up to 20%
OnStar
Various
Up to 15%
What’s Monitored
Factor
How It Affects Rate
Hard braking
Excessive = higher
Rapid acceleration
Excessive = higher
Speeding
Higher = higher
Time of driving
Night = higher
Kilometres driven
More = higher
Good driver? UBI can save 10-25%.
Car Insurance for Young Drivers
Why It’s Expensive
Factor
Impact
Lack of driving experience
Very high risk
Higher accident rates
Statistics
No claims history
Unproven driver
How to Save
Strategy
Savings
Stay on parents’ policy
30-50%
Take driving school
5-10%
Maintain good grades
5-15%
Drive an older, cheaper car
Significant
Graduate licensing quickly
Lower rates at G
Build clean record
Rates drop at 25+
Tips by Situation
Just Got Your G2
Tip
Why
Stay on parent’s policy
Much cheaper
Drive a safe, older car
Lower premiums
Take accredited course
Discount applies
Avoid tickets/accidents
Build clean record
New to Ontario
Tip
Why
Get driving history letter
Proves experience
Contact current insurer
May have Canadian affiliate
Shop multiple quotes
Varies by company
Expect higher initial rates
Lack of Canadian record
After an At-Fault Accident
Timeline
Rate Impact
Year 1
+25-100%
Year 3
+10-50%
Year 6
Returns to normal
Tip: Accident forgiveness add-on prevents first hike.