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Car Insurance in Canada

Car insurance in Canada

Car Insurance in Canada

Car insurance in Canada is a mandatory requirement for all drivers, and understanding the basics is essential for a safe and legal driving experience. In Canada, auto insurance is regulated at the provincial and territorial levels, leading to variations in coverage and rates. Typically, policies cover liability, accident benefits, uninsured motorist coverage, and property damage. The cost of insurance is influenced by factors such as driving history, location, vehicle type, and coverage limits.

To find the best rates, it’s advisable to compare quotes from different insurers. Additionally, certain provinces have public insurance systems, while others rely on private insurers. Familiarizing yourself with the specific regulations in your province ensures compliance with local laws and optimal protection on the road.

Private Or Public Car Insurance

Click your province to learn more about their rules and regulations


Avg. $1,400/year

Avg. $1,168/year

Avg. $897/year

Avg. $1,737/year

Avg. $816/year


Avg. $1,809/year

Avg. $1,229/year

Avg. $1,099/year

Avg. $802/year

Things to Consider When Choosing Your Car Insurance

Coverage Assessment

Evaluate your coverage needs, including liability, collision, and comprehensive options, tailored to your vehicle and financial situation.

Deductibles and Limits:

Decide on deductible amounts and policy limits that align with your budget and potential expenses in case of an accident.

Discounts and Incentives:

Explore available discounts, such as multi-policy or safe driver incentives, maximizing opportunities for premium reductions.

Claim Process and Customer Service:

Research the insurer’s claims process and customer service reputation, ensuring a smooth experience during stressful situations.

Financial Stability:

Choose a financially stable insurer to guarantee fulfillment of obligations and long-term coverage reliability.

Shop Around and Review:

Obtain quotes from multiple insurers, comparing rates and coverage options. Regularly review your policy to align with any life changes or evolving needs.

Auto Insurance

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Auto Insurance FAQ

The cost of car insurance in Canada depends on various factors like your location, driving history, vehicle type, coverage amount, and more. On average, Canadians pay around $1,500 per year for car insurance. However, rates can range from as low as $800 to over $4,000 annually. The most expensive cities for car insurance are Brampton, Vaughan, and Markham in Ontario. Comparing quotes from multiple providers is the best way to find the cheapest rate.

There are several standard types of car insurance coverage available from Canadian providers. Required minimum coverage includes third-party liability and accident benefits. Optional coverage includes collision, comprehensive, all perils, loss of use, rental reimbursement, and more. Add-ons like roadside assistance and glass coverage are also available. Review the coverage options to choose the right protection for your vehicle.

Yes, auto insurance is mandatory in all Canadian provinces and territories. Drivers must carry a minimum level of coverage, which includes third-party liability and accident benefits. The required minimum limits vary slightly by province. Driving without mandatory coverage can lead to fines, license suspension, vehicle impoundment and other penalties.

Insurers in Canada consider various factors to calculate your auto insurance premiums. Key rating factors include your driving record, claims history, vehicle type, location, annual mileage, driving experience, and more. Optional coverage selections and deductible amounts also impact your total premium. Comparing quotes helps find the best rate based on your risk profile.

Most Canadian auto insurers offer common discounts to help lower your premiums. These include multi-vehicle discounts, multi-policy discounts for bundling home and auto policies, winter tire discounts, good driver discounts, and more. Some providers also offer discounts for safety features like airbags and anti-theft devices. Ask your insurer which discounts you may qualify for.

The best ways to save on car insurance are to shop around, ask for discounts, raise your deductibles, limit coverage to essentials, maintain a good driving record, choose a lower-risk vehicle, bundle home and auto policies, limit mileage driven, and pay annually instead of monthly. Comparing quotes regularly also helps find the lowest rate over time.

When applying for auto insurance, you’ll need to provide your driver’s license, vehicle registration, proof of insurance history if transferring a policy, and contact/identification details. You may also need a driver’s record abstract, your vehicle’s make, model and VIN, and usage details like annual mileage. Notify your insurer of any changes that could impact your policy or premium.

If you’re involved in an accident, take photos and exchange information with other involved parties. Notify your insurer promptly to start a claim, either through their mobile app, online, or by phone. Provide details about the incident and follow your insurer’s instructions for next steps like vehicle repairs, rental reimbursement, medical treatment and more.

If you have an auto loan or lease on your vehicle, lenders typically require you to carry full coverage insurance, which includes collision and comprehensive. This protects their financial interest in your vehicle by covering damage repairs and replacement in case it’s totaled. Review your loan terms to confirm required coverage amounts.

The top auto insurance providers in Canada based on market share include Intact Insurance, Desjardins, Aviva, RSA, Wawanesa, TD Insurance, Co-operators, and more. But the cheapest and best insurer for you depends on your location, driving profile, and coverage needs. Get quotes from multiple companies to compare rates.

An insurance broker is an intermediary who shops the auto insurance market on your behalf. They compare quotes from multiple insurers to find you competitive pricing and coverage options. Brokers have access to specialty markets that offer niche insurance products. There is no cost to use a broker, as they earn a commission from the insurer.

Car insurance policies generally take effect immediately or within 1-3 days after purchase if paying online or over the phone. Coverage may take longer if additional underwriting review is needed. Provide the effective date you need coverage to start when obtaining quotes to ensure it begins on time. Avoid lapses between old and new policies.

Yes, it’s possible to insure a vehicle under someone else’s name in Canada, even if they aren’t a listed driver. This may make sense for parents insuring a child’s car or spouses insuring each other’s vehicle. However, unlisted drivers usually cannot make policy changes or file claims. Both parties should be aware of the arrangement.

In most provinces, accidents and claims typically impact your auto insurance rates for 6 years from the date of occurrence. Major violations stay on your record for 3-5 years. Maintaining a clean driving record helps keep premiums low after an incident. Check provincial guidelines for how infractions impact your driving record over time.

Your auto insurance declaration page, also called the cover page or policy schedule, summarizes key details of your coverage. This includes the types and amounts of insurance provided, deductible amounts, covered drivers and vehicles, policy period, premium cost, insurer contact information, and more. Review it carefully to ensure your policy meets your needs.

All provinces and territories require minimum third-party liability coverage and accident benefits. It’s recommended to carry at least $1 million in third-party liability, $200,000 in accident benefits, and full coverage if financing your vehicle. Additional coverage for collision, comprehensive and perils can also be purchased. Increasing deductibles helps lower premium costs.

Requiring drivers to carry auto insurance protects victims of collisions from financial losses. Mandatory coverage ensures all drivers have a minimum level of third-party liability insurance to cover injuries to others or damage to their property. This provides accident victims with a source of compensation without having to pursue legal action.

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