In Canada, having auto insurance is a compulsory requirement if you’re operating a vehicle. Given the fact that there are more than 26 million registered automobiles, it comes as no surprise that car insurance is mandatory. This vital insurance provides essential liability and medical protections for motorists, passengers, and other road users.
Each province has its own standards, with some opting for a public system, others for a private system, and Quebec for a hybrid one. In this article, readers will learn about car insurance costs, top insurance providers, and tips for saving money on their policy.
Our 2024 Ranking of Canada’s Best Car Insurance Providers
LowestRates: Many Quotes in One Place
LowestRates.ca is a comparison tool that allows users to obtain auto insurance quotes from multiple top insurers in Canada with a single submission. The platform partners with CAA, SGI Canada, Zenith Insurance Company, Pembridge, Gore Mutual Insurance Company, and many more. Users can also compare mortgage rates and credit cards after insuring their vehicles.
LowestRates.ca offers options for high-risk drivers, new drivers, students, secondary drivers, and more. Our team obtained quotes from nine insurers through their site with a single submission for a 2018 Toyota Yaris driven by a 33-year-old man in Ontario, ranging from $70.58 to $166.67 per month.
Onlia: Online Car Insurance Made Easy
Onlia car insurance provides excellent coverage with a digital approach. Users can customize their policies online without having to speak with a car insurance broker or agent. Onlia offers many endorsements, including Family Protection, increased accident benefits, and automobile price guarantee. Users can see how much each option adds at each step of the way.
Onlia also has an endorsement to cover users while they carry paying passengers.
Economical: Excellent Coverage Even for High-Risk Drivers
Economical is a leading special risk provider that offers customizable coverage to policyholders. The company provides 24-hour emergency service and insurance to protect against lawsuits, third-party liability, medical expenses, vehicle repairs, theft, and lost wages. Auto insurance brokers can easily compare products and insurance rates to find the right policy for cars, vans, trucks, or SUVs.
My Choice: Compare Quotes with a 2-Minute Form
My Choice is a Toronto-based company that offers personally-tailored insurance quotes with information transparency. Users can get instant quotes from six insurers with a 2-minute form. Our team obtained instant quotes ranging from $76.92 to $184.33 for a 38-year-old man in Ottawa with a 2018 Toyota Yaris. Additional brokers followed up by email. On-page options let buyers quickly change deductibles and recalculate rates.
Pafco: Insurance for the Hard-to-Insure
Pafco Insurance Company specializes in personal insurance for drivers who cannot qualify for coverage through traditional providers. A knowledgeable independent broker works with users to find the right policy that fits their needs. Pafco is a subsidiary of Allstate Canada and is available in Ontario, Quebec, Nova Scotia, New Brunswick, and Alberta. A policy with Pafco can help users improve their record for later, especially if they struggle because of convictions, accidents, or lapses in coverage.
Optimum: Custom Build Your Plan with Many Endorsements
Optimum car insurance is available through a network of car insurance brokers, providing expert advice and competitive pricing. Users can customize coverage with the endorsements that make sense to them, with liability coverage available for up to $2 million. Discounts are available for drivers over 40, retirees, occasional student drivers, and people who bundle multiple vehicles or home and auto insurance. Coverage is also available for commercial vehicles, classic cars, ATVs, snowmobiles, motorcycles, and RVs.
Promutuel Insurance: Auto Coverage from a Quebecois Mutual Association
Promutuel Insurance is a 100% Canadian insurer based in Quebec that focuses on easy-to-buy and manage digital policies. The company offers quality auto coverage with many discounts available, including insurance for motorcycles, snowmobiles, ATVs, motorhomes, and scooters.
TD: Popular Insurance from a Big Five Bank
TD car insurance is a popular option for auto insurance, with options for accident forgiveness, a depreciation waiver, and Grand Touring insurance if users drive across Canada or the U.S. Users can save on their insurance rates by bundling car and home insurance, insuring multiple vehicles, or switching to an electric or hybrid. The TD MYAdvantage app lets safe drivers save up to 25% by analyzing how they drive.
RBC: Great Emergency Roadside Assistance
RBC car insurance offers many options beyond basic mandatory coverage, such as Family Protection, Waiver of Depreciation, and accident forgiveness. The Satellite Program is a standout endorsement that provides emergency roadside assistance if users ever need their vehicle towed, a flat tire fixed, or a battery jump. RBC also provides assistance if users run out of fuel, lock their keys inside, or get their vehicle stuck.
Aviva: Options for Ride-Sharing Services
Aviva car insurance offers quality coverage with many helpful endorsements, including transportation replacement, minor conviction protection, disappearing deductible, and accident waiver. Aviva also offers ride-sharing insurance for people who use their personal vehicles for paying passengers. Discounts are available for retirees, policyholders who stay claims-free, and for bundling policies.
How to Get a Car Insurance Quote?
When looking for car insurance, there are a few factors that insurers will want to know to provide a quote. Here are some of the key factors to keep in mind:
The Vehicle You Drive
The type of vehicle you drive is an important factor in determining your car insurance rate. A brand new Jeep Wrangler will be more expensive to insure than a 20-year-old Toyota Corolla.
Where You Drive
Your location also plays a role in determining your car insurance rate. Drivers in rural Ontario, for example, will typically pay less than those in Toronto or Ottawa.
How Much You Drive
The amount you drive can impact your car insurance rate. A long commute to work could result in more expensive insurance.
About You and Your Driving Record
Your personal information and driving record are also important factors. If you have a history of infractions or accidents, you will likely pay more than a similar driver with a clean record.
About Other Regular Drivers
If other regular drivers, such as a spouse or teenage son, will be using the vehicle, this can also impact your car insurance rate.
Good to Know
If you need help getting started, a comparison tool can be a useful resource. The tool at the top of this page can help you sort out your options and compare cheap car insurance quotes in seconds.
How Much is Car Insurance?
When it comes to car insurance, the cost largely depends on the province you live in. According to the Insurance Bureau of Canada, the average cost of car insurance ranges from $717 in Quebec to $1,832 in British Columbia per year. However, these are just averages and your vehicle choice, age, driving record, and location can all affect the final cost of your car insurance.
For Example
Let’s take a look at a couple of examples to see how these factors can affect the cost of car insurance. Becky, a 45-year-old driver in Ottawa, is looking for insurance for her 2018 Tesla 3. She has a clean driving record and drives 12 to 16,000 km a year. She gets a quote for a comprehensive plan with $2 million liability coverage and a $500 deductible for $153.75 per month or $1,845 annually. On the other hand, Kamau, a 28-year-old driver in Mississauga, is shopping for car insurance quotes on his 2022 BMW 330e 4DR. One leading provider quotes him $336.83 per month or $4,041.96 annually. This quote is more than double Becky’s due to his location, his more expensive vehicle, and 4 demerit points on his record for exceeding the speed limit.
Which Province has the Cheapest Car Insurance in Canada?
According to data from the Insurance Bureau of Canada, Quebec is the cheapest province to insure your car in, with an average annual car insurance premium of just $717. This is thanks to its hybrid insurance model that only requires drivers to purchase third-party liability coverage. In most other provinces, the mandatory minimum is $200,000, but in Quebec, it requires only $50,000. Rounding out the top three provinces for cheap car insurance are Prince Edward Island at $816 and New Brunswick at $867.
Which Province has the Most Expensive Car Insurance in Canada?
On the other hand, British Columbia is the province with the most expensive car insurance, with average car insurance premiums reaching $1,832 per year. BC car insurance is a monopoly with a public model. The fully-private models in Ontario and Alberta are the next most expensive at $1,528 and $1,514, respectively.
If you’re curious about the prices in your province or territory, you can click on your location to check. Knowing which provinces have the cheapest and most expensive car insurance can help you make informed decisions when it comes to purchasing car insurance.
How much is insurance for a new driver?
New drivers typically pay higher auto insurance premiums than experienced drivers due to their higher risk of being involved in accidents. In Ontario, the cost of insurance for a driver under 25 can range from $3,000 to $7,000, according to an online auto insurance broker.
However, there are ways for new drivers to bring down their premiums. Here are a few tips:
- Maintain a clean driving record.
- Take a driving safety class to be eligible for a discount of up to 15 or 20% off your premiums. Check with your province for a list of government-approved driving schools.
- Obtain a full unrestricted driver’s licence as soon as possible. In Ontario, this is the G License, available at 18. In Alberta and British Columbia, it is a Class 5 license.
- Students can save by maintaining good grades.
- Wait until your 25th birthday to see your premiums come down.
By following these tips, new drivers can reduce the cost of their auto insurance premiums and save money.
How to Get the Cheapest Car Insurance?
Watch Out!
Before diving into ways to get the cheapest car insurance, it’s important to remember that cheap insurance today might not be cheap tomorrow. It’s essential to shop wisely and weigh the coverage needed. When involved in an accident without the necessary coverage, the cheapest car insurance rate won’t matter.
Top Tips for Saving on Car Insurance
Here are some tips to help drivers save on car insurance:
Avoid Traffic Violations
Having a clean driving record means lower premiums. Increased car insurance rates might be the most painful part of a speeding ticket.
Bundle Insurance
Most providers will give a discount for having multiple policies of bundling car and home insurance policies through them.
Call Your Insurer
An insurance agent or broker can help weigh coverage options to get a cheaper car insurance quote. Drivers won’t know if they don’t ask.
Don’t Overbuy
Only carrying the coverage and endorsements that drivers need can save them serious money.
Discounts
Membership in an alumni or professional association often qualifies drivers for a group discount. It’s always worth asking.
Higher Deductibles
Increasing the deductible can lower rates. Even if it costs more when making a claim, the cost savings quickly pay for themselves.
Install Safety Features
Adding safety features that reduce risk will help to drop premiums. Installing an anti-theft system, backup camera, or other safety features can help drivers save on car insurance.
Loyalty Discounts
Some insurers offer discounts for staying with them for several years. If not, they may give perks like diminishing deductibles, which decrease the deductible for every year held a policy.
Park Inside
Leaving the vehicle in a garage protects it from weather damage and reduces the chances of it being stolen. Many insurers will share those savings with drivers through cheaper rates.
Pay Annually
If drivers can swing the larger bill, paying for a year of insurance at once may get them a 5-7% discount off their insurance rates.
Review Every Year
When it’s time to renew car insurance, setting aside some time to get insurance quotes is essential. Another insurer may have a better deal. If not, it might be the right time to drop an endorsement from the policy to save.
Take a Class
Passing a driver training class can save drivers on premiums, especially if they are new drivers.
Telematics Apps
Many car insurance companies in Canada give discounts for agreeing to install and use an iPhone or Android app that tracks driving habits. Drivers can save big by following the speed limit, not using the phone while driving, and avoiding sudden braking and quick acceleration.
Compare
Different providers sometimes quote very different insurance rates. Getting a few quotes before committing to a new insurance policy is always a good idea.
By following these tips, drivers can save money on car insurance while still ensuring they have the coverage they need.
Keep Reading About Car Insurance
For those seeking more information about how car insurance works, HelloSafe’s comprehensive auto insurance guide provides answers to common questions. Additionally, readers can explore other articles on the website to further their understanding.
HelloSafe’s commitment to journalistic standards is evident through the work of editor-in-chief and head of press relations, Alexandre Desoutter. With a background in journalism and a degree from Sciences Po Grenoble, Alexandre oversees the editorial staff to ensure that the company’s editorial line is maintained and accurately reflected in published articles.
To guarantee the highest quality of information, Alexandre has implemented a system of systematic double-checking of all articles published by the HelloSafe ecosystem. This commitment to accuracy and expertise ensures that readers can trust the information provided by HelloSafe.
If readers have questions or concerns about car insurance or any related topics, HelloSafe’s team of experts is available to provide guidance and support.
Frequently Asked Questions
Top-rated Car Insurance Companies in Canada for 2024
There are several car insurance companies in Canada that are rated highly for 2024. These include:
- TD Insurance
- Intact Insurance
- Aviva Canada
- Desjardins Insurance
- Co-operators Insurance
Insurance Company with the Highest Customer Satisfaction Rating in Canada
According to recent surveys, Sonnet Insurance has the highest customer satisfaction rating in Canada. They offer a user-friendly digital platform that allows customers to manage their policies online.
Car Insurance Expected to Increase in Ontario in 2024?
There is no clear indication that car insurance rates will increase in Ontario in 2024. However, it is always a good idea to compare rates from different insurance companies to ensure you are getting the best deal.
Finding the Best Car Insurance in Canada
To find the best car insurance in Canada, it is recommended that you compare rates and coverage from different insurance companies. You can also check with your provincial insurance regulator to see if there are any complaints or issues with a particular company.
Best Home and Auto Insurance Companies in Ontario
Some of the best home and auto insurance companies in Ontario include:
- Belairdirect
- Allstate Insurance
- RBC Insurance
- State Farm Insurance
- Economical Insurance
Insurance Company Known for Paying Claims Promptly and Fairly in Canada
There are several insurance companies in Canada that are known for paying claims promptly and fairly. These include:
- Intact Insurance
- Aviva Canada
- TD Insurance
- The Co-operators Insurance
- Desjardins Insurance
It is important to note that each insurance company may have different policies and procedures when it comes to filing and processing claims.
