How Much Is Car Insurance In Ontario

Similar to most other countries and provinces, car insurance is mandatory in Ontario as well. But unlike other Canadian provinces, the rates are pretty high here. Since car insurance is a legal mandate, you might want to know what exactly influences the rates and how you can get a cheaper deal. 

Also, if you’re looking for the best insurance specialists who can guide you through all the jargon, check out Surex. This article will take you through the rates of auto insurance premiums in Ontario and how different factors influence them.

What Should Every Auto Insurance Policy In Ontario Include

You do have a choice in terms of the insurance add-ons. But when it comes to the central insurance policy, certain things are legally required to be included.

  • Third-Party Liability Insurance: Liability insurance covers the victim’s expenses in case you are at fault in an accident. According to Ontario law, you should have a minimum coverage of $200,000.
  • Uninsured Motorist Coverage: This policy will be beneficial if the at-fault driver does not have enough liability insurance to pay for your expenses. It will also come in handy in hit-and-run cases.
  • Statutory Accident Benefits Coverage: This benefit will cover your expense for bodily injuries even if you are at fault.
  • Direct Compensation & Property Damage Coverage: This policy will cover your car’s damage if the accident was someone else’s fault. Moreover, it will also pay for the damaged possessions inside the car.

What Is The Average Car Insurance Premium In Ontario

As of 2020, the average car insurance cost in Ontario is approximately $1634 annually. Ontario drivers generally pay annual car insurance ranging from $1300 to $1800. Note that the exact rates will depend on various factors.

Factors Influencing Car Insurance Rates In Ontario

Here is a list of all the factors that determine car insurance rates in Ontario:

1. Gender 

A male in Ontario pays a higher premium. This is because men are considered to be high-risk drivers by insurers in Canada. They are expected to have riskier driving habits and therefore get involved in more numbers of accidents than females.

2. Age 

Age is also an essential factor when it comes to insurance rates in Ontario. Older drivers are expected to have more driving experience. Hence, their auto insurance costs less. Young drivers are considered high risk. Hence, drivers in the age range of 18-25 generally pay for higher car insurance.

Moreover, even if you add a family member to the policy who belongs to that age group or has a record of reckless driving, your insurance cost will go up.

3. Location

Generally, people from urban areas pay more for insurance. This is because urban areas are expected to be more crowded, which leads to higher chances of accidents. Also, locations that are more prone to criminal activities like theft and vandalism or natural calamities like earthquakes and floods add to your insurance cost.

4. Driving History 

When evaluating the cost of insurance, an insurance provider calculates the risk they’ll be taking on if they choose a particular customer.  A huge part of this risk factor depends on the driver himself. Hence, having a clean driving record is crucial to qualify for cheap auto insurance. If there are a lot of accidents blotching your driving record, it will add to the insurance cost.

However, when it comes to driving records, only your driving experience in Canada is considered. Your performance or experience in other countries is deemed invalid in this case.

5. Vehicle 

The vehicle you drive also impacts your insurance premium. Luxury or sports cars have higher insurance rates because it generally costs more to replace their parts and repair damages as compared to a simple car. On the other hand, budget cars that have higher safety ratings qualify for cheap insurance.

6. Deductible

A deductible is part of your claim amount that you have to pay for the insurance provider to pay for the rest. Since deductibles reduce the risk on your insurer’s part, they agree to offer you cheaper insurance.

7. Driving Frequency

The more you drive, the higher the chances of accidents. Hence, drivers who seldom hit the road are subject to lower insurance rates. 

How To Get Discounts On Your Car Insurance

Although Ontario has high car insurance rates, certain hacks can help you get a cheaper insurance policy:

1. Installing Anti-Theft Devices

Anti-theft devices reduce the chances of your car being stolen which in turn reduces the risk on your insurer’s part. Hence, with this added layer of safety, you qualify for a cheaper insurance rate.

2. Winter Tires

Winter tires are particularly important for Ontario. Thanks to a new law, Ontario now allows drivers to qualify for additional discounts for using winter tires when it’s snowy.

3. Adding An Experienced Driver To Your Insurance 

This benefit is a blessing for young drivers who are charged higher by insurance companies. If you had an experienced driver on the insurance, it will be assumed that the car is shared. Hence, you will comparatively spend less time behind the wheels. This will help you qualify for a discount on your policy. This benefit is a blessing for young drivers who are charged higher by insurance companies.

4. Buy Multiple Insurance From The Same Insurer 

People generally need various kinds of insurance for complete safety. This includes life insurance, health insurance, home insurance, etc. Getting multiple insurances from the same company will improve your relationship with the insurer and increase your chances of getting cheaper rates. To retain customers and reward loyal ones, companies sometimes offer discounts to their long-time customers.

Average Car Insurances Rates In Popular Ontario Cities

Ontario is Canada’s second-largest province. To help you understand the rates better, we have listed down the average insurance rates for a few popular Ontario cities.

  • Ottawa: $1150 annually
  • London: $1400 annually
  • Mississauga: $2000 annually
  • Hamilton: $1600 annually


You do not have a say in the cost of car insurance. The rates are pre-decided and not subject to your opinion. But by practicing safe driving, you will not only protect yourself but also increase your chances of qualifying for cheaper insurance. Plus, building a long-term relationship with a reputed insurance provider also helps you receive hassle-free insurance at the best deals.

Tom Brown
Tom Brown is an automotive market enthusiast living in the United States. He holds a diverse background in automotive marketing and enjoys utilizing that to produce insights into the inner workings of the industry.