Car Insurance Ontario

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GET CHEAP ONTARIO CAR INSURANCE QUOTES

Car insurance in Ontario, Canada can be an expensive proposition. Finding affordable auto insurance can be time-consuming, tedious and frustrating. Let us do the shopping for you to save you time and money!

We specialize in automobile insurance in Ontario, helping you get the best rate, with minimal effort. Compare multiple quotes in minutes, it’s that easy!

At Car Insurance Ontario we:

  • Have access to all insurance markets
  • Are customer-centric in our sales and service approach
  • Have over 20 years of industry experience
  • Tech-driven, human-centred brokerage
  • Are dedicated to delivering unmatched value
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ONTARIO MANDATORY AND OPTIONAL CAR INSURANCE COVERAGES

Liability Insurance Coverage

Legal liability coverage is mandatory car insurance coverage in Ontario! Protection from third-party legal liability is required by law in Ontario, as in most other Provinces.

Liability coverage protects you and anyone insured under the auto insurance policy, should you cause bodily harm or property damages to innocent third parties, while in use or operating of the vehicle.

$200,000 is the minimum liability coverage required, however, most insurers and brokers will offer no less than 1 million dollars of liability protection.

Accident benefits insurance coverage is a “no-fault” benefit. This means, just like vehicle property damages, you would need to claim from your insurer for injuries sustained in a motor vehicle accident.  Although accident benefits are technically not insurance, they serve to provide financial assistance in the form of defined monetary amounts to injured first-party claimants.

Accident Benefits Coverage in Ontario includes:

  • Income Replacement Benefit
  • Medical Rehabilitation and Attendant Care Benefit
  • Caregiver Benefits
  • Housekeeping and Home Maintenance
  • Death and Funeral Benefits
  • Dependant Care Benefit
  • Indexation

Direct Compensation Property Damage – DCPD

As of January 2024, Direct Compensation Property Damage, or DCPD, is no longer mandatory insurance coverage under the Ontario automobile policy, OAP 1.   DCPD is the “no-fault” portion of your auto insurance coverage in Ontario.

The purpose of DCPD coverage is to cover damage to your vehicle, loss of use (rental coverage), and contents up to a limit.  Coverage for contents is based on ACV, actual cash value, and would respond only if you didn’t have property insurance, or elected to have contents covered under your auto policy.  Some people may decide to have contents covered through a habitational policy so that a claim settlement can be made on a replacement cost basis.

Coverage under DCPD can occur only if the following conditions are met:

  • The accident must have happened in Ontario
  • At least another vehicle in the accident must have a valid Ontario auto insurance policy, signatory, to the DCPD Undertaking, or be licensed to write auto insurance business in Ontario
  • You are partially or wholly not responsible for the accident

Uninsured Motorist Coverage Ontario

Uninsured motorist covers any amounts you or other insured persons have legal recourse for bodily injury, physical vehicle damages, and death caused by an uninsured or unidentified motorist, up to certain limits.

For damages to your vehicle, the loss of use of your vehicle, and also the contents in your vehicle the uninsured motorist coverage offers indemnity from your insurer, up to $25,000.

Uninsured motorist coverage is subject to a mandatory $300 deductible, wherein the insurance company will try and recoup the losses, along with your paid deductible, directly from the at-fault third party by way of subrogation or possibly through a court order.

To claim under the Uninsured motorist coverage the other driver must be not at fault.

Optional Loss Coverages

Optional loss coverages in Ontario are comprised of four types of auto insurance coverages:

  • Collision – Collision insurance covers the physical damages to your vehicle. Typically, this coverage is applied to motor vehicle accidents when the driver is at fault, a hit-and-run victim, or in a not-at-fault incident where DCPD coverage can’t be applied.
  • Specified Perils -Specified perils car insurance coverage is similar to comprehensive coverage but with fewer insured perils. It includes fire, theft, rising water, hitting an animal on the road and more.
  • Comprehensive – Comprehensive insurance covers everything under specified perils but also includes coverage for vandalism, Hail, falling or flying objects and missiles.
  • All Perils – All Perils auto insurance coverage combines both collision and comprehensive coverages, with an extra layer of added protection.

OPCF – Ontario Policy Change Forms

OPCF (Ontario Policy Change Form) forms are endorsements or riders that modify the standard Ontario Automobile Policy (OAP 1) to provide additional coverage or change the terms of the auto insurance policy. Complete list of OPCF endorsements.

HOW TO GET CHEAP ONTARIO CAR INSURANCE

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Provide info about the vehicle, driving, and insurance history.

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WAYS TO REDUCE THE COST OF ONTARIO CAR INSURANCE

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Shop Around

Car insurance companies in Ontario update their rates continuously. Shop for the best rate and make it a habit!

Bundle Home and Auto

Discounts of 20% or higher for insuring your home and auto with the same insurance company.

Increase Deductible

Increasing your deductible brings down your premium because you’re willing to take on more risk, and at the same time, take some risk away from the insurer.

Switch Vehicle Type 

Some vehicles are more expensive to insure than others.  You can save some money by choosing a vehicle that costs less to insure!

Reduce Coverage

reducing auto insurance coverage is usually not a good idea, but if your risk tolerance can handle it then this option is sometimes available to you.

Group Insurance

Some insurance companies offer group insurance discounts to members/employees of the group. Take advantage when eligible!

Switch Company

Car insurance rates change monthly from one insurance company to the other. This can present a savings opportunity for you. 

Drive Cautiously

It is no surprise that driving according to the law and minimizing traffic infractions /accidents can dramatically decrease your auto insurance premium. 

HOW CAR INSURANCE RATES IN ONTARIO ARE CALCULATED

To understand how car insurance premium is calculated for each policyholder, an understanding of the factors that go into the total premium requires explanation.

The total auto insurance premium comprises pure premium, loading, acquisition costs and expense loading. All these factors combined form the total car insurance premium.

auto insurance premium breakdown factors

Pure Premium

The portion of the total premium needed to pay the expected losses, not including expenses.

Loading

An additional charge to reflect a hazard not considered in the basic rate for the class of insurance being rated.

Acquisition Costs

The cost of acquiring the customer and collecting the premium. It also covers the cost of operation and some taxes. An example would be Broker and Agent commissions.

Expense Loading

The cost of producing and maintaining the policy by the insurer.

All these factors combined dictate how an insurer will price their product. Each insurer will vary in price, making one insurer more or less expensive than the other. This is why shopping around when looking for auto insurance is important.

HOW INDIVIDUAL CAR INSURANCE RATES ARE CALCULATED

Once the insurer has established the price of the premium, they will then assess your driving experience, behaviour and the intended use of the automobile to determine a final price.

Individual factors that affect auto insurance premiums include:

  • Type of vehicle
  • Use of the vehicle (commercial or personal)
  • Driving infractions
  • Claims history
  • Drivers on the policy
  • Where you live
  • Coverage amount
  • Eligible discounts

All these factors, including the specific pricing for each insurer, are combined to come up with the final premium price.

How Does Car Insurance Work in Ontario?

Car insurance in Ontario is a legal requirement to operate a vehicle. In particular, liability coverage is what is required by law, with a set, minimum limit of $200,000.  However, most insurance companies and brokerages in Ontario will not insure anyone for less than one million dollars in liability coverage. 

The Insurance Act of Ontario also outlines other mandatory auto insurance coverages such as:

Accident Benefits – coverage for injuries

Direct Compensation Property Damage (DCPD) – the “no-fault” portion of coverage. As of January 2024, Direct Compensation Property Damage coverage is no longer mandatory.

Uninsured Motorist Coverage – coverage for not-at-fault accidents, when the other driver is uninsured

Car insurance in Ontario can be an expensive proposition, especially in bigger metropolitan areas such as Toronto, Mississauga, and other cities within the greater Toronto, area.

Auto insurance in Ontario is governed by a “no Fault” legal system where claims for damages and injuries are paid by your own insurance company, regardless of who’s “at Fault”.  Exceptions do apply for catastrophic injuries.

The term “no-fault” insurance causes a lot of confusion amongst Ontario drivers, as it denotes a sense that car accidents or claims in Ontario do not consider blame.  This is simply false as the fault determination rules of Ontario dictate.

The main goal of No-Fault insurance stems from the historical, inadequacies that the previous system generated.  The litigious and cumbersome process left claimants without timely settlements, unpaid medical treatments, or damaged property left unrepaired or replaced.

Therefore the aim of No-Fault Auto Insurance in Ontario is to:

  • Reduce lengthy claim investigations
  • Substantially less subrogation (ability to sue)
  • Less litigation
  • Insured would deal with their own insurance company regardless of fault
  • Speedier settlements

TYPES OF CAR INSURANCE IN ONTARIO

Commercial

Commercial, Business, Fleet, Trucking Insurance.

Ride/Car Share

Car and Ride Sharing, Uber, Lyft, Turo Insurance

High Risk

High Risk, Non-Standard Auto Risk, Facility, DUI

Garage

Garage Auto Insurance, Dealer, Service, Business

ESSENTIAL COVERAGE ASPECTS WHEN SHOPPING FOR ONTARIO CAR INSURANCE

Shopping for the best auto insurance company depends on your requirements. Every auto insurance company is slightly different, in terms of price and underwriting guidelines. One company could be a better fit than others.

However, particular importance is usually given to the following factors:

Cost

The cost of car insurance is probably the number one reason someone chooses one company over another. Finding the best auto insurance can mean different things to different people. For example, some people may choose a company for having a better reputation or claims handling record. Cost isn’t always the primary focus!

Insurance Coverage

Many auto insurance companies in Ontario will offer similar products, but that doesn’t mean they are the same. Paying close attention to the policy wordings, limitations, restrictions, and exclusions will put you in a better position to find the best auto insurance coverage for you or your family.

Customer Service

Customer service is an important consideration when buying car insurance. Picking a company that you know is better at handling claims, or with more convenient service hours, may sway your decision toward one company over the other.

Drivers in the Household

Consideration for other drivers in the household is another reason why some drivers may choose one company over another. A perfect example is when an auto insurance company may want to exclude a member of your household from your auto policy, for not meeting eligibility guidelines.

Ontario Car Insurance FAQs:

Frequently asked questions regarding auto insurance in Ontario, Canada

How can I get affordable car insurance in Ontario?

Finding affordable car insurance in Ontario requires extensive and exhaustive shopping around.  Shopping for cheap car insurance from as many insurance brokerages as possible is the only way to find the cheapest rate for you.  Every insurance brokerage has a set of distribution agreements with Insurance companies to sell their products.  Not every brokerage has the same distribution agreements compared to others. Some insurance brokerages, for whatever reason, may choose to specialize or stand out in a particular niche market.

What’s the average cost of car insurance in Ontario?

The average cost of car insurance in Ontario depends on a full range of possibilities. The range can be $700 to over $10,000 per year, for full auto insurance coverage in Ontario.
Many factors are considered when generating an auto insurance quote. The following are the main factors for determining the cost of your car insurance in Ontario:
Your driving record: This would include traffic tickets, accidents, claims, driver’s license violations, driver’s license class, and driving experience.
Your postal code: the area in which you operate the vehicle and where the vehicle is garaged
Make and Model of Vehicle: Auto Insurance companies in Ontario use the CLEAR system to rate how likely injuries and the extent of physical damages are to arise from specific makes and models of vehicles in a car accident. The statistics are gathered through the ISB which are then used to formulate auto insurance premium costs charged by insurance companies.

The average cost of car insurance in Ontario per month can be as low as $58 to as high as $833 or more a month. Ontario is by far the most expensive Province to purchase auto insurance. Greater population density compared to other provinces in Canada, and the frequency of auto claims tied to a larger driver population are the reasons for such high car insurance costs in Ontario. Insurance fraud is also a big factor that inflates auto insurance prices in Ontario. Recently, as of June 8, 2019, the Financial Services Commission of Ontario (FSCO) will be replaced with the Financial Services Regulatory of Ontario (FSRA) whose main focus regarding auto insurance is combating fraud and white-collar crime.

Who has the cheapest car insurance in Ontario?

Finding the cheapest car insurance in Ontario is an exercise of shopping and comparing quotes from as many auto insurance providers as possible. There is no singular, insurance company that offers the “cheapest” car insurance on a standard basis.
From an insurance business model, you can argue that direct writer insurance companies are cheaper than companies that use a broker distribution channel to sell their products since they cut out the middleman.
Independent insurance brokers are “middlemen” or intermediaries who are paid a small commission on the premium charged to you. Although direct writer insurance companies may be cheaper, they may not offer the

What is the cheapest car to insure in Ontario?

The cheapest vehicle to insure in Ontario tends to be pickup trucks. The bulk of your auto insurance premium comes from Accident Benefits and Liability coverage.
Accident Benefits and Liability tend to generate the bulk of your auto insurance premium. They reflect the likelihood, frequency, and severity of injuries or property damage, which specific make and model of vehicle has statistically shown to cause in a motor vehicle accident.
Some factors to consider:

Age of the Vehicle – Many drivers tend to believe that the older a vehicle is, the less expensive it is to insure. This could be further from the truth. New and safer technologies have surpassed older vehicles, resulting in fewer injuries caused by motor vehicle accidents. For example, introducing “crumple zones” allows vehicles to absorb more impact, instead of the driver and occupants, making vehicles safer than ones that do not have this design feature.

Size and Weight of the Vehicle – You don’t need to be a physicist to know that a heavier and larger vehicle will cause more impact force than a lighter and smaller vehicle. In a motor vehicle accident, the heavier and larger vehicle tends to have less vehicle damage, and also a reduction of the chances of injuries. If there are injuries there’s a reduction in the severity of the injury, as well. In my experience pickup trucks tend to be the cheapest to insure. But of course, the easiest way to get a proper comparison is to contact an insurance broker or agent and have them quote the vehicle you’re interested in.

Your questions about car insurance in Ontario answered:

Lowering your car insurance in Ontario can be achieved by the following:

  • Increase your deductible – increasing your deductible will lower your car insurance premium. The savings are small but still a way to save a bit of money. The higher you make your deductible the more you’re contributing to the loss, therefore shifting risk exposure from the insurance company to yourself.
  • Reduce Insurance Coverage – Although reducing insurance coverage isn’t the best choice, it may be necessary so that car insurance can be affordable. Most people decide to remove collision, all perils, or comprehensive coverages if they feel the vehicle is “too old”. However, this isn’t always a good move. First-party damage coverages have their uses irrespective of a vehicle’s age and the cost is nominal compared to the bulk of your car insurance premium. An example would be if your vehicle was damaged by a hit-and-run driver, there would be no coverage for your damages even though it’s not your fault. For the “No-fault” coverage under your auto policy to cover you for damages, there must be another valid policy in force. If that driver fled the scene and you had no 1st party coverages you would be out of pocket. Your insurance company will not be able to assist you, which might include towing charges, impound charges, not to mention the damages to your vehicle.
  • Improve your Driving record – This is a no-brainer and can substantially affect the cost of your car insurance. Try not to get traffic tickets, driver’s license violations, and At-Fault accidents as these factors are used in the calculation of your premium. Accidents stay on your Motor vehicle record for five years and three years for traffic violations (parking tickets and camera red light infractions do not count).
  • Combine Insurance policies under one company – most insurance companies will offer substantial discounts for having habitational and auto insurance under one carrier. Discounts up to 20% or more may be offered if you combine your home and auto under one company. Even combining multiple vehicles under one policy can offer discount savings of 10% or more!
  • Special Discounts, Group insurance, and Affinity associations – Some companies offer special discounts for employees of certain group insurance customers. Group insurance is usually purchased by an employer to assist employees in cost savings. If you are a member of a professional organization, affinity group, or even alumni, there may be discounts available to you. Always ask your insurance representative if they offer special discounts to take advantage of these cost savings.
  • Shop around Monthly for Cheaper Car insurance

Car insurance prices change frequently so taking advantage of this opportunity could also save you some money. Getting car insurance quotes every month will certainly generate different rates as insurance companies submit underwriting and price changes to their governing bodies.

Auto insurance quotes are usually valid for 30 days which is another indication that car insurance prices are always changing.

  • Switching insurance companies during the term of the contract can come with reluctance and skepticism as a financial penalty (short-rate cancellation) is charged for breaking the auto insurance contract. However, there are times when the cost savings of switching insurance companies outweigh the short-term cancellation penalty.

Keep track of your tickets and At-Fault Accidents:

It’s important to keep track of when your convictions and other infractions fall off your driving record so that you can shop around for better rates and insurance coverage.  You may be very surprised how much your car insurance premium can change based on one speeding ticket or At-Fault accident dropping off your record.  It also can mean the difference between qualifying for the standard or non-standard auto insurance market.

Keep track of when your driving violations drop off your record and get auto insurance quotes every time your record improves.  Auto insurance companies are constantly applying new rates and rules to their underwriting criteria each month, making it possible to get cheaper car insurance from another company. 

But what if you’re already locked into a 6-month or 12-month policy? Breaking your auto policy contract will generate a short-rate cancellation fee, which lessens in dollar amount the longer you’re into the policy term.  Many policyholders wait until the renewal period to switch insurance carriers, fearing the financial penalty of breaking the insurance policy contract. However, sometimes it makes financial sense to break the contract!

Here is an example:

  • Mr. Smith pays $5,000 a year to insure his vehicle.
  • The policy term runs from May 2015 to May 2016
  • Mr. Smith has a speeding ticket that came off his record in August 2015.  If Mr. Smith cancelled his policy when that ticket came off, he would incur a cancellation fee penalty.
  • The cancellation fee is $400.00
  • Mr. Smith shops around for the same insurance coverage and discovers that because his speeding ticket has dropped from his record he now qualifies for standard market rates and was quoted $2,000 for an auto policy of comparable coverage, starting August 2015 to August 2016.
  • Although he was charged $400.00 for cancelling his policy, he ultimately saved close to $1,600.00.  That’s a HUGE saving!

Don’t let a cancellation fee discourage you from switching insurance companies as there could be a cost savings opportunity by breaking the contract!

Finding cheap car insurance in Ontario requires an exhaustive shopping effort. If the price is the main consideration for seeking auto insurance then you need to get quotes from everywhere. This includes insurance brokerages, Direct writer insurance companies, insurance agencies, etc. Not all car insurance brokerages and agencies in Ontario have the same products and distribution agreements with insurers. This means that there could be a cheaper option for you, with another company or agency. Spend the time to get as many quotes from as many auto insurance providers, as possible! 

According to Rates.ca, Hawkesbury Ontario has the lowest car insurance rates among all cities in Ontario. The average car insurance premium for a driver in Hawkesbury is on average $956.00 per year. (2020)

The cheapest vehicle to insure in Ontario tends to be pickup trucks. The bulk of your auto insurance premium comes from Accident Benefits and Liability coverage.

Accident Benefits and Liability tend to generate the bulk of your auto insurance premium. They reflect the likelihood, frequency, and severity of injuries or property damage, that a specific make and model of vehicle has statistically shown to cause in a motor vehicle accident.

Some factors to consider:

Age of the Vehicle – Many drivers tend to believe that the older a vehicle is, the less expensive to insure. This could be further from the truth. Older vehicles have been surpassed by new and safer technologies which result in fewer injuries caused by motor vehicle accidents. For example the introduction of “crumple zones” allows vehicles to absorb more impact, instead of the driver and occupants, making vehicles safer than ones that do not have this design feature.

Size and Weight of the Vehicle – You don’t need to be a physicist to know that a heavier and larger vehicle will cause more impact force compared to a vehicle that is lighter and smaller. In a motor vehicle accident, the heavier and larger vehicle tends to have less vehicle damage, and also a reduction of the chances of injuries. If there are injuries there’s a reduction in the severity of the injury, as well. In my experience pickup trucks tend to be the cheapest to insure. But of course, the easiest way to get a proper comparison is to contact an insurance broker or agent and have them quote the vehicle you’re interested in.

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