Car Insurance Ontario

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Get Ontario’s Cheapest Auto Insurance Rates!

Affordable Ontario Car Insurance Quotes made Fast and Easy!

Finding affordable, auto insurance in Ontario can be difficult and very time-consuming. We specialize in standard auto insurance in Ontario, helping you get the best rate, with minimal effort. Compare multiple quotes in minutes, it’s that easy!

How finding the cheapest auto insurance in Ontario works:

Enter Driver Details

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

Compare your Quotes

Compare car insurance quotes online to find the best coverage for the lowest price.

Choose your Policy

Pick the auto insurance policy you want and purchase coverage!

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

Direct Compensation Property Damage, or DCPD, is mandatory insurance coverage under the Ontario automobile policy, OAP 1. You can call this the “no-fault” insurance coverage on your car insurance policy.

The purpose of DCPD coverage is to cover damage to your own 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 happen 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 own 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 victim of a hit and run, or in a not-at-fault incident where DCPD coverage cant 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, or hitting an animal on the road and more.
Comprehensive – Comprehensive insurance covers everything under specified perils but also includes coverage for vandalism, falling or flying objects and missiles.
All Perils – All Perils auto insurance coverage is a combination of both collision and comprehensive coverages, with an extra layer of added protection.

How is Auto insurance calculated in Ontario?

Car insurance in Ontario is calculated by using data from a driver’s history or driving infractions, at-fault accidents, tickets, suspensions, lapses in coverage, and driving experience. Also, the vehicle, and its intended use, also comprise a rateable component of the overall auto insurance premium. Insurance premiums may vary depending on the company and its eligibility criteria.

Why is car insurance so expensive in Ontario?

Car insurance in Ontario, Canada is expensive because of population density, insurance fraud, and the rising cost of living (inflation). This creates an environment where auto insurance companies charge more for insuring drivers that reside in the province of Ontario.

How to get the cheapest car insurance in Ontario?

Finding the cheapest car insurance in Ontario involves getting as many insurance quotes from as many companies as possible. The only way to find the most affordable car insurance is to exhaust your search efforts. Remember, what one company may deem the “cheapest” isn’t always the cheapest!

Get the Best Car Insurance in Ontario

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

However, special 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 in finding 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.

Get Quotes from the Best Auto Insurance Companies in Ontario.

Finding the cheapest car insurance in Ontario can be a tedious and time-consuming task. Finding the lowest rate requires getting auto insurance quotes from as many insurance companies as possible. By covering all your bases, the chance of missing a more affordable quote is reduced!

Your questions about car insurance in Ontario answered:

The cost of car insurance in Ontario varies depending on the driver and the company. It’s difficult to come up with an average for every risk profile since auto insurance premiums are determined by many factors. Companies rate drivers based on driver experience, history of traffic tickets, accidents, suspensions, lapses, usage, and safety standards of the vehicle being insured. Also, keep in mind that auto insurance companies charge different prices, and those prices can fluctuate on a quarterly basis.

Auto insurance companies calculate your premium by:

Assessing the driver risk profile, i.e. traffic tickets, at-fault accidents, and driver’s license moving violations.
The subject of insurance (a type of vehicle)
How you use the vehicle: i.e. business or personal use, commuting, kilometers driven
Territory (Postal Code)
Regulatory change
Changing economic and market forces

As you can see many factors determine the calculation of your auto insurance premium. Even though an average cost for Ontario car insurance could be obtained with statistics, it wouldn’t be a fair or accurate, reflection of what you might have to pay. The best thing is to contact an Ontario insurance broker directly for a quote.

In order to find the best auto insurance Broker in Ontario, consider the following factors:

Find an insurance brokerage that’s able to provide car insurance quotes from ALL auto insurance companies. This means that the Broker has distribution agreements with many insurance companies and is allowed to sell their product. The more car insurance companies the broker represents the better your chances of securing the cheapest price. However, price is not the only thing to consider!
An Insurance Broker should always try and find the best and most affordable car insurance for you. Insurance brokers call this remarketing which involves searching for a better price with comparable insurance coverage on policy renewal or when a traffic violation, accident, or anything else falls off your driving record that could save you money off your auto insurance premium.
You also want an insurance broker that’s going to ensure that any claim you have will be handled fairly. A good insurance broker should be proactive about your insurance claim and address issues and concerns with you and your claim adjuster. Remember, an Insurance Broker works for you rather than an insurance company and usually makes a positive difference to the settlement of your claim.
Finding the best auto insurance broker involves shopping around for an Insurance broker that will offer you more than just the best insurance coverage for the best cost. Auto insurance in Ontario is very expensive, which makes cost the number one factor when considering the insurance brokerage you choose. But some Ontario drivers want more than just cheap insurance from their insurance provider and insurance broker.

Additional things people may be looking for in an Ontario insurance brokerage:

Customer service
Flexibility
Competence
Specialization
Options
Advocacy
Transparency

You may be looking for the most competent or someone that can treat you with the utmost customer service and peace of mind. After all, insurance is about having peace of mind.

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 comes off his record in August 2015. If Mr. Smith cancelled his policy when that ticket comes 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 the best insurance auto company for Ontario drivers hinges on three things:

Licensed drivers in your household
The reputation of the auto insurance company
The reputation of the insurance brokerage

Licensed Drivers in your Household

When it comes to choosing the best car insurance company for Ontario drivers, price isn’t the only factor to consider. Although auto insurance in Ontario can be very costly, even to the point where car insurance becomes unaffordable, there are other things than the price that need consideration before committing to one company.

Auto insurance companies need to know if other licensed drivers living in your household, might have access to and use the vehicle you’re trying to insure. They need to know this information so they can price the auto policy accordingly and also add special restrictions or limitations if needed.

If a licensed driver in your household proves they have their own insurance, this would usually satisfy the insurance company. However, if the risk profile of any “other” driver in the household doesn’t meet the eligibility criteria of the auto insurance company that’s underwriting the risk, then further steps are taken by the company. That is to say, the auto insurance company will require that the “other” driver/drivers be eligible (meet underwriting guidelines and rules) even though “other” drivers might have their own separate auto insurance. In this case, the “other” driver is usually excluded from the auto policy being underwritten.

Having to exclude a member of your household from driving your vehicle/vehicles can be a deal-breaker for some people. The thought that insurance coverage would be denied should an excluded driver use a vehicle, for emergency purposes or not, can make people feel insecure or uncomfortable. So what can someone do if they find themselves in this position?

If you don’t want to exclude a licensed driver who lives in your household, you can always choose an auto insurance company that will allow licensed drivers, who have their own auto insurance, and don’t meet the eligibility requirements of the underwriting insurance company, not to be excluded from the policy. This can only be possible if the company that is underwriting your policy is affiliated with the auto insurance company of the “other” driver. For example, if you have a standard auto policy through Intact, and need to insure your son or daughter with Jevco, Intact won’t request that your child be excluded since Intact is the parent company of Jevco. The same can be said about other auto insurers and their parent companies. If you don’t want to exclude a member of the household from driving your vehicles, then the best car insurance company may be one where exclusion isn’t required!

Reviews of the Ontario Car Insurance Company

Reading and paying attention to reviews will help you make an informed decision.

When assessing the reputation of an auto insurance company in Ontario, feedback normally stems from how well they handle claims. This is no surprise as the insurance product itself is intangible, and the only way to get a meaningful opinion is to exercise a claim and judge how well the company administers it.

Some positive things to look for in a car insurance company are claim guarantees, operating hours, cost, and overall customer service.

Use websites like the Better Business Bureau, social media, and internet forums such as Reddit or Disqus for reading reviews. Also, ask friends and family for their experience and suggestions.

Reviews of the Car Insurance Brokerage

Although an insurance brokerage is separate from an auto insurance company, it’s still advisable to seek out reviews about the company. Google reviews are a great resource for company reviews!

The same method for assessing the quality of the insurance company can also be used for insurance brokerages. However, keep in mind that insurance brokers don’t typically handle claims. There are exceptions to this, usually seen in standard auto insurance, but for high risk auto insurance, all claims are administered and dealt with by the insurance company.

Although insurance brokers don’t administer auto claims, they certainly should help you through the process. Look for an insurance broker that stands behind its customers and is not afraid to challenge the insurance company on your behalf. That’s what you pay them to do!

The style or business philosophy is another important thing to consider when choosing the best auto insurance brokerage. Insurance brokerages come in all sizes and specialties. There are niche or specialty brokers and also general insurance brokerages that handle any type of clientele. However, when it comes to auto insurance you want a brokerage that knows its stuff! Insurance brokerages that specialize in auto insurance typically have access to ALL auto insurance companies in Ontario. This means that you won’t miss out on a quote from an insurance company that the broker may not deal with!

Choosing the best auto insurance company can be a subjective exercise, depending on your personal requirements. Although you may have different requirements and expectations, certain aspects can never be ignored. Customer service, market access, competent claims handling, and choosing an insurance broker that understands and specializes in the high-risk auto insurance market, all are important factors that will help you in your search for the best insurance company.

A car accident stays on your record for as long as you have auto insurance. Even if you were a driver who got into an accident under someone else’s auto policy, it will still show on your record. However, auto insurance companies in Ontario are not allowed to rate at-fault accidents that exceed six years.

Some auto insurance companies in Ontario offer better rates if you have been accident-free for over six years. So, even though they cannot rate you for at-fault accidents for that time period, auto insurance companies reward drivers with lower rates for being accident-free for six years and over.

If you’ve received your car insurance renewal and noticed that your car insurance went up, even though you didn’t have any accidents or traffic convictions, the reason is simply:

1: your auto insurance company increased their rates – car insurance companies regularly change their rates, typically every three months if needed.

2: additional premium was charged for the cost of inflation. The cost to repair or replace a vehicle typically goes up, as inflation goes up. The auto insurance premium reflects this increase in price.

Once you’ve graduated with a G2 driver’s license you will begin generating a premium on the respective auto insurance policy, whether as an occasional or principal driver.

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.

How to make Car Insurance in Ontario Cheaper

Shop Around

Car insurance companies in Ontario update their rates on a continuous basis. 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 if 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 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

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 take blame into consideration. This is simply false as the fault determination rules of Ontario clearly 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

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 you possibly can 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, while other brokerages may deal with insurance products that are more general in scope. But what does that mean for you, and how will this help you get cheap car insurance in Ontario? Since auto insurance rates in Ontario are regulated, a quoted price for car insurance should be the exact same throughout any insurance brokerage that provides that quote.

What car insurance laws apply to Ontario drivers?

Auto insurance in Ontario is governed by many laws and statutes. The following are just some of the laws that are relevant to auto insurance in Ontario.

Insurance Act of Ontario
Compulsory Automobile Insurance Act
Motor Vehicle Highway act of Ontario
Repair and Storage Liens Act
Criminal code of Canada
Fault Determination Rules of Ontario

The auto insurance industry in Ontario is heavily regulated. Not only is car insurance in Ontario highly regulated, but also a legal requirement to drive on roads and highways!

The Financial Regulatory FRSA, formerly the financial services commission of Ontario, (FSCO) is a provincial body whose main focus is to provide regulatory services for the protection of the consumer.

The legislative mandate of the FSRA is as follows:

Improve public confidence in the auto insurance industry
Regulate and supervise the auto insurance sector
Combat fraud and other deceptive behaviour
Promote education and knowledge
Promote transparency and full disclosure
Gather and evaluate statistical trends and developments

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.
There are many factors that 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 is the reasoning 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.

How are car insurance premiums calculated in Ontario?

Calculating car insurance premiums is an actuarial science, whereby actuaries who work for insurance companies come up with statistical data to show the cost to insure a vehicle. Actuaries work closely with insurance Underwriters who review, accept or decline the risk. Actuaries, Underwriters, and Marketing departments work together to come up with their own pricing models and business philosophies. Auto insurance rates are then proposed to regulatory bodies for approval before offerings to the consumer public can be made. Each car insurance company differs in business philosophy and the prices they charge reflect this, so it’s important to shop around as much as you can when purchasing auto insurance in Ontario.

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 that 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. 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.

Do I have to add my child to my car insurance in Ontario?

Section 1.4.1 of the Ontario Automobile Policy states, that all drivers that live in the same household must be disclosed to the insurance company. This would include licensed drivers of all classes. In practice, the insurance company is notified about your child’s driver’s license, the conditions, and the class of license and possibly does a background check to confirm details. Normally, a child with a “beginners” or G1 is on the policy but not generating an extra cost or premium. Once our child graduates with a G2 driver’s license they will start to generate a premium on your policy or a policy of their own. Your child may also be excluded from the policy if he or she does not meet the underwriting requirements of the auto insurance company.

Does a G2 driver need car insurance in Ontario?

A class G2 driver’s license requires auto insurance before you can drive by yourself. Most auto insurance companies will require that every licensed driver in the household be disclosed, even though a G1 licensed driver is not formally added to the policy.
Once you’ve graduated with a G2 driver’s license you will begin generating a premium on the respective auto insurance policy, whether as an occasional or principal driver.

How to get Car Insurance in Ontario?

The three main distribution channels for car insurance in Ontario are:

Insurance Broker: an insurance broker is an intermediary who sells and distributes the product and services of more than one insurance company. An insurance Broker may have distribution agreements with many auto insurance companies, which would open the door to multiple car insurance quotes. It’s a no-brainer that the more options you can select from the higher the chance a cheap or more affordable option can present itself. The most important factor in securing an affordable car insurance quote is to find an Insurance Brokerage with as many distribution agreements with Insurers as possible. The more distribution agreements an Insurance brokerage has with Insurance companies the better the chance of you securing a lower rate. The more insurance companies you can get a quote from the better your chance of getting a cheaper car insurance quote. This applies anywhere in Canada not just in Ontario or Toronto. Shop till you drop and know that insurance brokerages are not created equally. That is, don’t assume that any insurance broker can provide the same insurance rate as any other broker.

Insurance Agent: an Insurance agent sells and services auto insurance, mainly from one company. Insurance agents are usually employed by Direct Writer insurance companies, which means they can sell directly to the consumer public as employees of the insurance company. Essentially there is no “middleman” between the insurer and the insured. A good example of a direct writing insurance company could be TD Insurance, RBC Insurance, and Allstate Insurance, just to name a few

Independent Insurance Agent: an independent Insurance agent is very similar to an Insurance agent but works as an independent contractor. From a legal business structure, independent insurance agents are separate from the insurance company they represent. Although an independent insurance agent is a separate legal entity from the insurance company, they typically sell the insurance products of one company. A good example of this would be State Farm Insurance or Desjardin.