Car Deal Canada

Ontario Car Insurance

Photo of the Ontario flag on a map of Ontario

Car insurance is mandatory in Ontario, as it is across Canada. All drivers must have at minimum basic coverage to legally operate a vehicle. Beyond that legal requirement, car insurance provides important financial protection in the event of an accident. With car insurance, you have coverage that protects you, your vehicle, and your assets from potential damages and liability costs.

But buying car insurance is about more than just meeting the minimum legal requirements. The right policy with adequate coverage helps provide peace of mind that you and your car are covered. Finding the most affordable rates in Ontario can also help you save money every month on your premiums.

Getting the best car insurance coverage at the lowest rates takes some work. You need to understand how insurance companies determine your rates, shop around for quotes, and determine the right policy options for your situation. This guide will provide everything you need to know to find the ideal car insurance coverage at the best price.

Get Pre-Qualified in Under 60 Seconds

All Credit Approved and 0 Money Down Options Available

 

Why You Need Car Insurance in Ontario

Having car insurance is mandatory by law in Ontario. All vehicles on public roads must be insured under Ontario’s Compulsory Automobile Insurance Act. This means as a driver you are legally required to carry a minimum level of auto insurance coverage.

While it is the law to have car insurance, there are good reasons for this requirement. Car insurance protects you financially in case you are involved in an at-fault accident. It covers damage to other people’s property and injuries to other parties. Without insurance, you would be personally responsible for these costs which could amount to hundreds of thousands of dollars.

Car insurance also covers damage to your own vehicle in collisions so you aren’t stuck with costly repair bills. Additional coverages like comprehensive and collision insurance will pay for your car to be fixed or replaced if it’s damaged or written off due to an accident, theft, vandalism, weather events and more.

Having the right insurance ensures you can get your car back on the road and avoids any major disruptions to your daily transportation needs. It gives you peace of mind knowing you are protected if the unfortunate occurs while driving.

So while it may seem like an unnecessary expense, car insurance provides major financial safeguards that all drivers in Ontario need. Maintaining proper insurance isn’t just required but is essential to protect your finances as a motorist.

 

Factors That Affect Car Insurance Rates

There are a number of factors that insurance companies take into consideration when determining your car insurance rates in Ontario. Some of the main factors include:

 

Age

Younger drivers under 25 are considered high risk and typically pay the highest car insurance premiums. Rates start dropping for drivers once they reach 25 years old and continue to decrease as you get older. Senior drivers over 50 can qualify for discounts from some providers.

 

Driving Record

Your driving history and record of any accidents, traffic violations or driving offences will be reviewed by insurance companies. A clean driving record can help lower your rates, while tickets, at-fault accidents and DUIs will increase your premium.

 

Location

Where you live and park your vehicle at night plays a big role in insurance rates. Urban areas like Toronto and Ottawa tend to have higher premiums due to increased risks of accidents, vandalism and theft.

 

Type of Vehicle

The make, model, year and value of your vehicle impacts insurance costs. Vehicles that are more expensive to repair or replace typically cost more to insure. High-performance cars, modified vehicles and those frequently stolen will also mean higher premiums.

 

Average Cost of Car Insurance in Ontario

On average, Ontario drivers pay some of the highest car insurance rates in Canada. According to the Insurance Bureau of Canada (IBC), the average annual cost of car insurance in Ontario is $1,458, which works out to about $121 per month.

This is significantly higher than the national average, which is $1,316 per year or $110 per month. Ontario’s rates are second only to Alberta, where the average annual cost is $1,473.

In comparison, car insurance is considerably cheaper in provinces like Quebec, where the average annual premium is $793, and Manitoba, where it’s $1,082 per year. The lowest rates are found in Prince Edward Island, at just $860 annually.

There are several factors that contribute to the high cost of car insurance in Ontario compared to other provinces. These include a high rate of accidents and claims, expensive auto repair costs, high rates of auto theft and vandalism, large urban centers with lots of traffic congestion, and an abundance of luxury and sports cars that are more costly to insure.

While rates are high on average, the auto insurance market in Ontario is very competitive. This means there are opportunities for significant savings for drivers who comparison shop and look for discounts. However, it’s unrealistic to expect to pay as little for car insurance in Ontario as you would in lower-cost provinces like Quebec or Manitoba.

 

What’s Included in Car Insurance

There are several different types of coverage included in a standard car insurance policy in Ontario. The top three that every driver needs are:

 

Liability Coverage

Liability insurance is required by law in Ontario and covers you if you cause damage to someone else’s property or bodily injury to others. This includes both property damage and bodily injury to the other driver, passengers, or bystanders. The minimum liability coverage required in Ontario is $200,000. However, experts recommend getting at least $1 million in liability to protect your assets in the event of a serious accident.

 

Collision Coverage

Collision insurance covers damage to your vehicle if you collide with another car or object, like a tree or guardrail. This coverage pays to repair or replace your vehicle up to its current cash value. Collision coverage is optional but recommended for drivers with a car loan/lease.

 

Comprehensive Coverage

Comprehensive insurance covers your vehicle for non-collision damage including theft, vandalism, fire, hail, windstorms and more. Like collision, it will pay to repair or replace your vehicle up to its cash value. Comprehensive coverage is optional but highly recommended.

Together, these core coverages make up a standard car insurance policy in Ontario. They provide important protection for you and your vehicle. Speak to an insurance broker or agent to learn more about these coverages and what limits make sense for your situation.

 

Additional Car Insurance Coverage Options

In addition to basic coverage, there are several other options you may want to consider for your car insurance policy in Ontario:

 

Rental Car Coverage

If your vehicle is in the shop for repairs after an accident, rental car coverage pays for the cost of a rental car for you to use as a temporary replacement. This prevents you from being stuck without transportation during the repair process.

 

Ridesharing Coverage

If you drive for a ridesharing service like Uber or Lyft, this add-on coverage protects you during the periods when you have passengers or are en route to pick up riders. Without it, you may only have basic personal coverage that won’t apply during ridesharing.

 

Accident Forgiveness

Accident forgiveness prevents your rates from increasing after your first at-fault accident. This coverage protects your premium from spiking, which is important especially for new or young drivers more prone to accidents.

Consider which additional options fit your unique situation and driving needs. Adding the right extra coverage can provide important protection and peace of mind.

 

How to Get the Best Car Insurance Rates

There are several ways drivers in Ontario can try to get the best possible rates on their car insurance.

One of the most important things to do is comparison shop. Get quotes from multiple insurance providers before deciding on a policy. Look at the premiums along with the coverage options. Comparing rates will ensure you find the best value.

It’s also critical to maintain a good credit and driving record. Insurance companies view these as indications of how responsible and low-risk you are as a customer. Having a poor credit score or past tickets/accidents will lead to much higher premiums.

You can also adjust your deductible and coverage limits to potentially lower your costs. Raising your deductible from $500 to $1000 can make a significant impact on your premiums. Just be sure you can afford the higher out-of-pocket costs in the event of a claim. Likewise, reducing collision or comprehensive coverage can lower premiums.

Using these tips can help Ontario drivers get the cheapest possible car insurance rates for their situation.

 

Top Car Insurance Providers in Ontario

There are several major providers that offer car insurance in Ontario. While the rates and coverage options may differ, these companies have extensive experience in the Ontario auto insurance market.

 

Intact Insurance

Intact Insurance is one of the largest property and casualty insurers in Canada. They offer coverage options for both cars and homes in Ontario. With Intact, you can customize your policy online and choose additional coverage like accident forgiveness.

 

TD Insurance

Part of TD Bank Group, TD Insurance provides auto and home insurance to customers across Canada. TD focuses on usage-based insurance through their MyAdvantage program, which offers discounts for safe driving habits.

 

Wawanesa Insurance

Wawanesa is a Canadian-owned mutual insurance company providing auto and home insurance in Ontario for over 60 years. They have a reputation for competitive rates and quality customer service.

 

Belairdirect

Belairdirect provides online quotes and policies for auto, home, and travel insurance. They offer usage-based insurance plans to reward safe driving. Belairdirect is known for low rates and discount programs.

 

CAA Insurance

The Canadian Automobile Association (CAA) offers members access to car and home insurance across Ontario. CAA provides ways to customize your auto policy and potential savings for longtime members.

 

Getting Quotes From Car Insurance Companies

Getting quotes from multiple car insurance providers is the best way to find the lowest rates. Here are some tips for getting free quotes:

Online Quotes: Most car insurance companies have a form on their website where you can enter your basic information to get an instant quote. This is the fastest and easiest way to compare rates from multiple providers.

Phone Quotes: You can also call companies directly and speak to an agent to get quotes. This allows you to ask questions and get personalized service.

Insurance Agent: An independent insurance agent can provide quotes from multiple companies they represent. This option provides expert advice in choosing the right coverage.

To get accurate quotes, you’ll need to have the following information ready:

 

  • Your driving and insurance history
  • Vehicle year, make and model
  • Your driver’s license number
  • Information about all drivers in your household
  • Coverage types and limits you want

 

With quotes from 3-5 companies, you’ll be able to find the best rate for the coverage you need.

 

Switching Car Insurance Providers

There may come a time when it makes sense to switch car insurance providers. Perhaps your rates have increased significantly at renewal time or a major life event has occurred that will alter your coverage needs. Knowing when and how to switch companies can help ensure you continue to get the best car insurance rates.

The easiest time to switch insurers is when your current policy is up for renewal. In Ontario, auto insurance policies are typically for one year terms. About a month before your renewal date, start shopping around for quotes from other providers. Compare those rates to your current insurer’s renewal quote to see if switching makes financial sense.

You may also be able to switch mid-policy if certain criteria are met, such as moving or purchasing a new vehicle. Review your policy documents or call your provider to see if you qualify for a mid-term cancellation. Keep in mind you may have to pay fees or short rate penalties if you cancel before the renewal date.

When getting quotes for a new insurer, make sure you are comparing equivalent coverage limits and options. Provide the same details on drivers, vehicles, and usage as your current policy so it’s an apples-to-apples rate comparison. Significant savings can make the switch worthwhile.

Once you’ve found a much better rate with a new provider, start the cancellation process with your existing insurer. Be aware of any cancellation fees outlined in your policy documents. Confirm the date coverage will end and return any insurance cards or decals. Also contact your lienholder if you have a financed vehicle.

To initiate new coverage, contact the new insurer and provide all required information. Pay your first premium installment to bind coverage. You’ll receive proof of insurance documents reflecting the start date with your new provider. Make sure there is no lapse between policies to avoid penalties and ensure continuous protection.

 

Understanding Your Car Insurance Policy

Your car insurance policy is a legal contract between you and your insurance provider that lists the coverage options you’ve purchased. It’s important to understand what’s included in your policy so you know what you’re covered for in the event of an accident or claim.

Here are some key components of a car insurance policy that you should be familiar with:

 

Deductibles

The deductible is the amount you have to pay out-of-pocket towards a claim before your insurance coverage kicks in. For example, if you have a $500 deductible and file a claim for $2,000 in damages, you would pay $500 and your insurance company would cover the remaining $1,500. The higher your deductible, the lower your monthly premiums will be.

 

Liability Limits

Liability coverage pays for damage you cause to other people and their property in an accident. It’s broken into two parts – bodily injury liability and property damage liability. The limits represent the maximum payouts per accident. For example, 100/300/50 means:

 

  • $100,000 bodily injury coverage per person
  • $300,000 bodily injury coverage per accident
  • $50,000 property damage coverage

 

Higher liability limits mean more protection, but also higher premiums. The minimum liability limits in Ontario are $200,000.

 

Exclusions

Exclusions list situations that would not be covered by your policy, such as driving while intoxicated or using your vehicle for commercial purposes like delivering food or ridesharing. It’s important to review your policy’s exclusions so you understand what circumstances would not be covered.

Reading through your car insurance policy gives you a full understanding of your coverage, obligations, and limits. Don’t hesitate to contact your insurance provider if you have any questions.

 

Filing a Car Insurance Claim

If you get into an accident or your car is damaged or stolen, you’ll need to file an insurance claim with your provider. Here’s what you need to know about filing an auto insurance claim in Ontario:

Call your insurance provider as soon as possible after the incident occurs. They will walk you through the initial steps of the claims process. Provide details about what happened and get the claims process started.

Documents you’ll need to file a claim may include:

 

  • Police report if applicable
  • Photos of damage or accident scene
  • Repair estimates from auto shops
  • Receipts for expenses related to accident
  • Rental car receipts if using rental coverage

 

Your insurer will investigate the claim, review documentation and send an adjuster to inspect damage if needed. They will then determine if the claim is approved and keep you informed throughout the process.

For claims due to theft, vandalism or hit-and-run, you must inform the police within 24 hours in Ontario. The claims process may take longer if police are investigating.

Make sure to work closely with your insurer and provide all needed documentation in a timely manner to facilitate the claims process. This will allow you to get your claim approved and receive payment as quickly as possible.

 

Discounts to Help Lower Rates

There are a number of discounts you can take advantage of to help lower your car insurance premiums. Here are some common car insurance discounts to ask your provider about:

 

Bundling

Most insurance companies will offer a bundling discount if you have multiple policies with them, like home and auto insurance. Bundling your policies can save you 10-15% or more.

 

Good Student Discount

If you or another driver on your policy is a full-time high school or post-secondary student with good grades (usually a B average or higher), you may qualify for a good student discount.

 

Driver Training Courses

Completing an approved defensive driving course or driver training program can make you eligible for savings. Seniors can also get discounts by taking refresher driving courses.

 

Safety Features

Cars with anti-lock brakes, alarm systems and other safety features can earn you a lower rate on your policy.

 

Usage-Based Insurance

Some insurers offer usage-based insurance programs that use telematics or an app to monitor your driving.

Safe driving habits could qualify you for discounts based on your driving behaviour.

Ask your insurance provider which discounts you may already qualify for and what others may be available.

Taking the time to go through the discounts could save you hundreds of dollars per year.

 

High Risk Drivers

Drivers with poor driving records, a history of infractions, lapses in insurance coverage, or other factors that increase risk often face much higher car insurance rates. Insurance companies view them as a higher risk to insure, so they charge more for policies. Fortunately, high risk drivers do have options to find affordable coverage in Ontario.

One of the best options for high risk drivers is to shop around and compare quotes from several insurance companies. Some insurers specialize in higher risk drivers and offer more competitive rates. It’s important to get multiple quotes, as rates can vary widely between insurers for high risk drivers.

Consider a facility association plan, which is insurance of last resort for drivers unable to get a standard policy. Rates are higher but they ensure you have the legally required minimum coverage. Maintaining continuous coverage and avoiding further infractions for 3-5 years can help you eventually qualify for a standard insurance policy again.

Using a broker can help high risk drivers find the best options. Brokers have access to more insurance markets and can identify companies that offer better rates for your specific situation. They can provide guidance on steps to take to improve your record and lower insurance costs over time.

Adding your partner or spouse who has a clean driving record as a secondary driver on your policy can help lower insurance premiums. Defensive driving courses show commitment to safe driving and can earn you a discount. Payment plans can make insurance more affordable by allowing monthly installments.

For serious offenses, you may need to get a special high risk policy such as a facility association plan until you can eventually re-qualify for standard coverage. Consulting an insurance broker, maintaining continuous coverage, improving your driving record over time, and comparing rates are the best ways for high risk drivers to get the required coverage at the lowest possible cost in Ontario.

 

Conclusion

Car insurance isn’t the most exciting thing to think about, but it’s an essential part of protecting yourself and your car as you drive around Ontario. As we’ve discussed, the cost of car insurance can vary quite a bit based on your unique situation. While there are mandatory minimums, you may want to consider adding more coverage to properly safeguard yourself.

By reviewing all the factors that impact your rates, comparing quotes from multiple providers, and looking for available discounts, you can find the best value on the auto insurance coverage you need. With a better understanding of how car insurance works in Ontario, you can make smart decisions when purchasing a policy. That way you gain peace of mind knowing you and your vehicle are covered.

Don’t wait until the last minute to get car insurance or be afraid to shop around for a better deal. The insurance landscape is constantly changing in Ontario, so make sure you review your options regularly. Finding the right policy at the best price takes a bit of work, but it’s worth it to get quality coverage at an affordable rate.

Ontario Car Insurance Questions

The average cost of car insurance in Ontario is about $1,500 to $2,000 per year, or about $125 to $170 per month. However, costs can vary significantly depending on your driving record, vehicle, coverage limits, deductibles, and other factors. Getting quotes from multiple providers is the best way to find the lowest rate.

According to the latest rate studies, some of the cheapest car insurance companies in Ontario include:

 

– Wawanesa

– Economical

– Desjardins

– Intact

– Belairdirect

 

However, you should always compare rates from multiple providers as prices can vary a lot based on your personal profile. Discount insurers like Sonnet and Onlia also offer very affordable rates in Ontario.

The main factors that impact car insurance premiums in Ontario include:

 

– Driving record – tickets, accidents, claims history

– Type of vehicle – make, model, year

– Where you live

– Your age and driving experience

– Coverage types and limits

– Deductibles

– Discounts for which you qualify

– Many other personal factors

 

Getting quotes that are customized to your situation is the best way to find the lowest rate. Prices can vary hundreds or even thousands of dollars between insurance companies.

Ontario requires the following minimum auto insurance coverage:

 

– $200,000 Third Party Liability – Bodily Injury

– $200,000 Third Party Liability – Property Damage

– Statutory Accident Benefits

– Uninsured Auto Coverage

 

However, experts recommend getting higher liability limits of at least $1 million as well as collision and comprehensive coverage to properly protect yourself financially. The legally mandated minimums provide very limited protection.

In Ontario, your car insurance rates typically go up by 30-50% on average after an at-fault accident with a claim. Major accidents, impaired driving and other serious violations can increase your premiums by 100% or even more in some cases.

Some tips for reducing car insurance costs in Ontario include:

 

– Shop rates from multiple insurers

– Raise your deductibles

– Ask about discounts – bundle policies, winter tires, alumni associations, etc.

– Consider usage-based insurance

– Maintain a clean driving record

– Drive a safer, lower-cost vehicle

– Compare rates annually as new discounts/programs are introduced

 

Taking the time to find the best rate for your situation can save you hundreds of dollars per year.

Yes, you can get car insurance in Ontario on a G2 license. All major insurers offer coverage for G2 drivers. However, you should expect to pay higher premiums compared to a fully licensed driver as G2 drivers are still considered “high risk” with their limited experience behind the wheel. Maintaining a clean driving record helps minimize rate increases.

When applying for Ontario car insurance, you’ll need to provide:

 

– Your driver’s license

– Vehicle registration

– Bill of sale or proof of ownership

– Make, model and year of vehicle

– Your previous insurance history and claims

– Driving record

– Usage details – where car is kept, annual mileage, etc.

 

Having this information handy allows insurers to provide the most accurate quote possible tailored to your unique risk profile.

The process of getting car insurance in Ontario typically involves:

 

  1. Research companies and get quotes
  2. Select the best rate/coverage package for your needs
  3. Provide required documents to prove residency, license, vehicle ownership
  4. Pay first month’s premium
  5. Receive proof of insurance documents

 

As a new Ontario resident, you’ll be subject to higher rates at first due to lack of Canadian insurance history. Maintaining a clean record helps minimize increases. Bringing proof of prior insurance from your former country can also help secure a better rate if you were previously insured there.

The penalties for driving uninsured in Ontario include:

 

– Fine between $5,000 to $50,000

– Driver’s license suspension up to one year

– Up to 30 days jail time

– Future difficulty obtaining insurance due to lapse

– Personal liability for damages/injuries you cause

 

The significant fines, criminal charges and risk involved make it critical to maintain continuous auto insurance coverage in Ontario.

The most affordable vehicles to insure in Ontario tend to be:

 

– Sub-compacts: Honda Fit, Toyota Yaris, Nissan Versa

– Sedans: Honda Civic, Toyota Corolla, Hyundai Elantra

– Crossovers: Honda CRV, Subaru Crosstrek, Mazda CX-3

 

The combination of lower rates plus excellent injury protection and affordability make these practical models cheaper to insure overall.

Some of the most expensive vehicles to insure in Ontario include:

 

– Sports cars – Porsche, Ferrari, Lamborghini

– High-end luxury – Maserati, Rolls Royce, Bentley

– Performance cars – Dodge Charger, Ford Mustang GT

– Modified tuner cars – Subaru WRX, Mitsubishi Evo

 

In addition to extremely high vehicle value, insurers view these types of models as much higher risk on the road – leading to steep insurance rates.

 

Common car insurance discounts in Ontario include:

 

– Multi-vehicle

– Multi-policy

– Winter tire

– Defensive driver course

– Good student

– Group/employer

– Infotainment system discounts

– Usage-based insurance

– Automatic payment

– New vehicle

– Long-term customer loyalty

Usage-based insurance (UBI) uses a telematics device or mobile app to track your driving – including acceleration, braking, cornering and overall mileage. Safest drivers can save up to 25% with UBI programs from insurers like Desjardins, Aviva, Allstate and others by proving they are low risk.

Yes, you can insure rebuilt and salvaged vehicles in Ontario but coverage may be restricted. Most standard companies will only provide basic liability protection. You’ll need to use a specialty insurer like Facility Association to get physical damage coverage. Expect to pay higher premiums for these types of vehicles as well.

Ontario has reciprocal insurance agreements with:

 

– Quebec

– Manitoba

– Saskatchewan

– British Columbia

– Nova Scotia

– Prince Edward Island

 

Drivers from these provinces are treated the same as Ontario residents when determining insurance rates and coverage.

As soon as your Ontario car insurance policy lapses, your vehicle is no longer legally driveable. You must renew or set up coverage with a new provider immediately to avoid penalties. There is no grace period for driving uninsured. Some insurers offer short term policies to bridge gaps between regular policies.

Yes, Ontario allows “principal operator policies” where someone other than the main driver (like a spouse or family member) can take out a policy on a vehicle, even if the primary driver has a poor record or license issues. However, the listed principal operator must drive the vehicle most regularly. Misrepresenting this information can lead to denied claims and cancellation.

 

Why You Need Car Insurance in Ontario

Having car insurance is mandatory by law in Ontario. All vehicles on public roads must be insured under Ontario’s Compulsory Automobile Insurance Act. This means as a driver you are legally required to carry a minimum level of auto insurance coverage.

While it is the law to have car insurance, there are good reasons for this requirement. Car insurance protects you financially in case you are involved in an at-fault accident. It covers damage to other people’s property and injuries to other parties. Without insurance, you would be personally responsible for these costs which could amount to hundreds of thousands of dollars.

Car insurance also covers damage to your own vehicle in collisions so you aren’t stuck with costly repair bills. Additional coverages like comprehensive and collision insurance will pay for your car to be fixed or replaced if it’s damaged or written off due to an accident, theft, vandalism, weather events and more.

Having the right insurance ensures you can get your car back on the road and avoids any major disruptions to your daily transportation needs. It gives you peace of mind knowing you are protected if the unfortunate occurs while driving.

So while it may seem like an unnecessary expense, car insurance provides major financial safeguards that all drivers in Ontario need. Maintaining proper insurance isn’t just required but is essential to protect your finances as a motorist.

 

Factors That Affect Car Insurance Rates

There are a number of factors that insurance companies take into consideration when determining your car insurance rates in Ontario. Some of the main factors include:

 

Age

Younger drivers under 25 are considered high risk and typically pay the highest car insurance premiums. Rates start dropping for drivers once they reach 25 years old and continue to decrease as you get older. Senior drivers over 50 can qualify for discounts from some providers.

 

Driving Record

Your driving history and record of any accidents, traffic violations or driving offences will be reviewed by insurance companies. A clean driving record can help lower your rates, while tickets, at-fault accidents and DUIs will increase your premium.

 

Location

Where you live and park your vehicle at night plays a big role in insurance rates. Urban areas like Toronto and Ottawa tend to have higher premiums due to increased risks of accidents, vandalism and theft.

 

Type of Vehicle

The make, model, year and value of your vehicle impacts insurance costs. Vehicles that are more expensive to repair or replace typically cost more to insure. High-performance cars, modified vehicles and those frequently stolen will also mean higher premiums.

 

Average Cost of Car Insurance in Ontario

On average, Ontario drivers pay some of the highest car insurance rates in Canada. According to the Insurance Bureau of Canada (IBC), the average annual cost of car insurance in Ontario is $1,458, which works out to about $121 per month.

This is significantly higher than the national average, which is $1,316 per year or $110 per month. Ontario’s rates are second only to Alberta, where the average annual cost is $1,473.

In comparison, car insurance is considerably cheaper in provinces like Quebec, where the average annual premium is $793, and Manitoba, where it’s $1,082 per year. The lowest rates are found in Prince Edward Island, at just $860 annually.

There are several factors that contribute to the high cost of car insurance in Ontario compared to other provinces. These include a high rate of accidents and claims, expensive auto repair costs, high rates of auto theft and vandalism, large urban centers with lots of traffic congestion, and an abundance of luxury and sports cars that are more costly to insure.

While rates are high on average, the auto insurance market in Ontario is very competitive. This means there are opportunities for significant savings for drivers who comparison shop and look for discounts. However, it’s unrealistic to expect to pay as little for car insurance in Ontario as you would in lower-cost provinces like Quebec or Manitoba.

 

What’s Included in Car Insurance

There are several different types of coverage included in a standard car insurance policy in Ontario. The top three that every driver needs are:

 

Liability Coverage

Liability insurance is required by law in Ontario and covers you if you cause damage to someone else’s property or bodily injury to others. This includes both property damage and bodily injury to the other driver, passengers, or bystanders. The minimum liability coverage required in Ontario is $200,000. However, experts recommend getting at least $1 million in liability to protect your assets in the event of a serious accident.

 

Collision Coverage

Collision insurance covers damage to your vehicle if you collide with another car or object, like a tree or guardrail. This coverage pays to repair or replace your vehicle up to its current cash value. Collision coverage is optional but recommended for drivers with a car loan/lease.

 

Comprehensive Coverage

Comprehensive insurance covers your vehicle for non-collision damage including theft, vandalism, fire, hail, windstorms and more. Like collision, it will pay to repair or replace your vehicle up to its cash value. Comprehensive coverage is optional but highly recommended.

Together, these core coverages make up a standard car insurance policy in Ontario. They provide important protection for you and your vehicle. Speak to an insurance broker or agent to learn more about these coverages and what limits make sense for your situation.

 

Additional Car Insurance Coverage Options

In addition to basic coverage, there are several other options you may want to consider for your car insurance policy in Ontario:

 

Rental Car Coverage

If your vehicle is in the shop for repairs after an accident, rental car coverage pays for the cost of a rental car for you to use as a temporary replacement. This prevents you from being stuck without transportation during the repair process.

 

Ridesharing Coverage

If you drive for a ridesharing service like Uber or Lyft, this add-on coverage protects you during the periods when you have passengers or are en route to pick up riders. Without it, you may only have basic personal coverage that won’t apply during ridesharing.

 

Accident Forgiveness

Accident forgiveness prevents your rates from increasing after your first at-fault accident. This coverage protects your premium from spiking, which is important especially for new or young drivers more prone to accidents.

Consider which additional options fit your unique situation and driving needs. Adding the right extra coverage can provide important protection and peace of mind.

 

How to Get the Best Car Insurance Rates

There are several ways drivers in Ontario can try to get the best possible rates on their car insurance.

One of the most important things to do is comparison shop. Get quotes from multiple insurance providers before deciding on a policy. Look at the premiums along with the coverage options. Comparing rates will ensure you find the best value.

It’s also critical to maintain a good credit and driving record. Insurance companies view these as indications of how responsible and low-risk you are as a customer. Having a poor credit score or past tickets/accidents will lead to much higher premiums.

You can also adjust your deductible and coverage limits to potentially lower your costs. Raising your deductible from $500 to $1000 can make a significant impact on your premiums. Just be sure you can afford the higher out-of-pocket costs in the event of a claim. Likewise, reducing collision or comprehensive coverage can lower premiums.

Using these tips can help Ontario drivers get the cheapest possible car insurance rates for their situation.

 

Top Car Insurance Providers in Ontario

There are several major providers that offer car insurance in Ontario. While the rates and coverage options may differ, these companies have extensive experience in the Ontario auto insurance market.

 

Intact Insurance

Intact Insurance is one of the largest property and casualty insurers in Canada. They offer coverage options for both cars and homes in Ontario. With Intact, you can customize your policy online and choose additional coverage like accident forgiveness.

 

TD Insurance

Part of TD Bank Group, TD Insurance provides auto and home insurance to customers across Canada. TD focuses on usage-based insurance through their MyAdvantage program, which offers discounts for safe driving habits.

 

Wawanesa Insurance

Wawanesa is a Canadian-owned mutual insurance company providing auto and home insurance in Ontario for over 60 years. They have a reputation for competitive rates and quality customer service.

 

Belairdirect

Belairdirect provides online quotes and policies for auto, home, and travel insurance. They offer usage-based insurance plans to reward safe driving. Belairdirect is known for low rates and discount programs.

 

CAA Insurance

The Canadian Automobile Association (CAA) offers members access to car and home insurance across Ontario. CAA provides ways to customize your auto policy and potential savings for longtime members.

 

Getting Quotes From Car Insurance Companies

Getting quotes from multiple car insurance providers is the best way to find the lowest rates. Here are some tips for getting free quotes:

Online Quotes: Most car insurance companies have a form on their website where you can enter your basic information to get an instant quote. This is the fastest and easiest way to compare rates from multiple providers.

Phone Quotes: You can also call companies directly and speak to an agent to get quotes. This allows you to ask questions and get personalized service.

Insurance Agent: An independent insurance agent can provide quotes from multiple companies they represent. This option provides expert advice in choosing the right coverage.

To get accurate quotes, you’ll need to have the following information ready:

 

  • Your driving and insurance history
  • Vehicle year, make and model
  • Your driver’s license number
  • Information about all drivers in your household
  • Coverage types and limits you want

 

With quotes from 3-5 companies, you’ll be able to find the best rate for the coverage you need.

 

Switching Car Insurance Providers

There may come a time when it makes sense to switch car insurance providers. Perhaps your rates have increased significantly at renewal time or a major life event has occurred that will alter your coverage needs. Knowing when and how to switch companies can help ensure you continue to get the best car insurance rates.

The easiest time to switch insurers is when your current policy is up for renewal. In Ontario, auto insurance policies are typically for one year terms. About a month before your renewal date, start shopping around for quotes from other providers. Compare those rates to your current insurer’s renewal quote to see if switching makes financial sense.

You may also be able to switch mid-policy if certain criteria are met, such as moving or purchasing a new vehicle. Review your policy documents or call your provider to see if you qualify for a mid-term cancellation. Keep in mind you may have to pay fees or short rate penalties if you cancel before the renewal date.

When getting quotes for a new insurer, make sure you are comparing equivalent coverage limits and options. Provide the same details on drivers, vehicles, and usage as your current policy so it’s an apples-to-apples rate comparison. Significant savings can make the switch worthwhile.

Once you’ve found a much better rate with a new provider, start the cancellation process with your existing insurer. Be aware of any cancellation fees outlined in your policy documents. Confirm the date coverage will end and return any insurance cards or decals. Also contact your lienholder if you have a financed vehicle.

To initiate new coverage, contact the new insurer and provide all required information. Pay your first premium installment to bind coverage. You’ll receive proof of insurance documents reflecting the start date with your new provider. Make sure there is no lapse between policies to avoid penalties and ensure continuous protection.

 

Understanding Your Car Insurance Policy

Your car insurance policy is a legal contract between you and your insurance provider that lists the coverage options you’ve purchased. It’s important to understand what’s included in your policy so you know what you’re covered for in the event of an accident or claim.

Here are some key components of a car insurance policy that you should be familiar with:

 

Deductibles

The deductible is the amount you have to pay out-of-pocket towards a claim before your insurance coverage kicks in. For example, if you have a $500 deductible and file a claim for $2,000 in damages, you would pay $500 and your insurance company would cover the remaining $1,500. The higher your deductible, the lower your monthly premiums will be.

 

Liability Limits

Liability coverage pays for damage you cause to other people and their property in an accident. It’s broken into two parts – bodily injury liability and property damage liability. The limits represent the maximum payouts per accident. For example, 100/300/50 means:

 

  • $100,000 bodily injury coverage per person
  • $300,000 bodily injury coverage per accident
  • $50,000 property damage coverage

 

Higher liability limits mean more protection, but also higher premiums. The minimum liability limits in Ontario are $200,000.

 

Exclusions

Exclusions list situations that would not be covered by your policy, such as driving while intoxicated or using your vehicle for commercial purposes like delivering food or ridesharing. It’s important to review your policy’s exclusions so you understand what circumstances would not be covered.

Reading through your car insurance policy gives you a full understanding of your coverage, obligations, and limits. Don’t hesitate to contact your insurance provider if you have any questions.

 

Filing a Car Insurance Claim

If you get into an accident or your car is damaged or stolen, you’ll need to file an insurance claim with your provider. Here’s what you need to know about filing an auto insurance claim in Ontario:

Call your insurance provider as soon as possible after the incident occurs. They will walk you through the initial steps of the claims process. Provide details about what happened and get the claims process started.

Documents you’ll need to file a claim may include:

 

  • Police report if applicable
  • Photos of damage or accident scene
  • Repair estimates from auto shops
  • Receipts for expenses related to accident
  • Rental car receipts if using rental coverage

 

Your insurer will investigate the claim, review documentation and send an adjuster to inspect damage if needed. They will then determine if the claim is approved and keep you informed throughout the process.

For claims due to theft, vandalism or hit-and-run, you must inform the police within 24 hours in Ontario. The claims process may take longer if police are investigating.

Make sure to work closely with your insurer and provide all needed documentation in a timely manner to facilitate the claims process. This will allow you to get your claim approved and receive payment as quickly as possible.

 

Discounts to Help Lower Rates

There are a number of discounts you can take advantage of to help lower your car insurance premiums. Here are some common car insurance discounts to ask your provider about:

 

Bundling

Most insurance companies will offer a bundling discount if you have multiple policies with them, like home and auto insurance. Bundling your policies can save you 10-15% or more.

 

Good Student Discount

If you or another driver on your policy is a full-time high school or post-secondary student with good grades (usually a B average or higher), you may qualify for a good student discount.

 

Driver Training Courses

Completing an approved defensive driving course or driver training program can make you eligible for savings. Seniors can also get discounts by taking refresher driving courses.

 

Safety Features

Cars with anti-lock brakes, alarm systems and other safety features can earn you a lower rate on your policy.

 

Usage-Based Insurance

Some insurers offer usage-based insurance programs that use telematics or an app to monitor your driving.

Safe driving habits could qualify you for discounts based on your driving behaviour.

Ask your insurance provider which discounts you may already qualify for and what others may be available.

Taking the time to go through the discounts could save you hundreds of dollars per year.

 

High Risk Drivers

Drivers with poor driving records, a history of infractions, lapses in insurance coverage, or other factors that increase risk often face much higher car insurance rates. Insurance companies view them as a higher risk to insure, so they charge more for policies. Fortunately, high risk drivers do have options to find affordable coverage in Ontario.

One of the best options for high risk drivers is to shop around and compare quotes from several insurance companies. Some insurers specialize in higher risk drivers and offer more competitive rates. It’s important to get multiple quotes, as rates can vary widely between insurers for high risk drivers.

Consider a facility association plan, which is insurance of last resort for drivers unable to get a standard policy. Rates are higher but they ensure you have the legally required minimum coverage. Maintaining continuous coverage and avoiding further infractions for 3-5 years can help you eventually qualify for a standard insurance policy again.

Using a broker can help high risk drivers find the best options. Brokers have access to more insurance markets and can identify companies that offer better rates for your specific situation. They can provide guidance on steps to take to improve your record and lower insurance costs over time.

Adding your partner or spouse who has a clean driving record as a secondary driver on your policy can help lower insurance premiums. Defensive driving courses show commitment to safe driving and can earn you a discount. Payment plans can make insurance more affordable by allowing monthly installments.

For serious offenses, you may need to get a special high risk policy such as a facility association plan until you can eventually re-qualify for standard coverage. Consulting an insurance broker, maintaining continuous coverage, improving your driving record over time, and comparing rates are the best ways for high risk drivers to get the required coverage at the lowest possible cost in Ontario.

 

Conclusion

Car insurance isn’t the most exciting thing to think about, but it’s an essential part of protecting yourself and your car as you drive around Ontario. As we’ve discussed, the cost of car insurance can vary quite a bit based on your unique situation. While there are mandatory minimums, you may want to consider adding more coverage to properly safeguard yourself.

By reviewing all the factors that impact your rates, comparing quotes from multiple providers, and looking for available discounts, you can find the best value on the auto insurance coverage you need. With a better understanding of how car insurance works in Ontario, you can make smart decisions when purchasing a policy. That way you gain peace of mind knowing you and your vehicle are covered.

Don’t wait until the last minute to get car insurance or be afraid to shop around for a better deal. The insurance landscape is constantly changing in Ontario, so make sure you review your options regularly. Finding the right policy at the best price takes a bit of work, but it’s worth it to get quality coverage at an affordable rate.

Ontario Car Insurance Questions

The average cost of car insurance in Ontario is about $1,500 to $2,000 per year, or about $125 to $170 per month. However, costs can vary significantly depending on your driving record, vehicle, coverage limits, deductibles, and other factors. Getting quotes from multiple providers is the best way to find the lowest rate.

According to the latest rate studies, some of the cheapest car insurance companies in Ontario include:

 

– Wawanesa

– Economical

– Desjardins

– Intact

– Belairdirect

 

However, you should always compare rates from multiple providers as prices can vary a lot based on your personal profile. Discount insurers like Sonnet and Onlia also offer very affordable rates in Ontario.

The main factors that impact car insurance premiums in Ontario include:

 

– Driving record – tickets, accidents, claims history

– Type of vehicle – make, model, year

– Where you live

– Your age and driving experience

– Coverage types and limits

– Deductibles

– Discounts for which you qualify

– Many other personal factors

 

Getting quotes that are customized to your situation is the best way to find the lowest rate. Prices can vary hundreds or even thousands of dollars between insurance companies.

Ontario requires the following minimum auto insurance coverage:

 

– $200,000 Third Party Liability – Bodily Injury

– $200,000 Third Party Liability – Property Damage

– Statutory Accident Benefits

– Uninsured Auto Coverage

 

However, experts recommend getting higher liability limits of at least $1 million as well as collision and comprehensive coverage to properly protect yourself financially. The legally mandated minimums provide very limited protection.

In Ontario, your car insurance rates typically go up by 30-50% on average after an at-fault accident with a claim. Major accidents, impaired driving and other serious violations can increase your premiums by 100% or even more in some cases.

Some tips for reducing car insurance costs in Ontario include:

 

– Shop rates from multiple insurers

– Raise your deductibles

– Ask about discounts – bundle policies, winter tires, alumni associations, etc.

– Consider usage-based insurance

– Maintain a clean driving record

– Drive a safer, lower-cost vehicle

– Compare rates annually as new discounts/programs are introduced

 

Taking the time to find the best rate for your situation can save you hundreds of dollars per year.

Yes, you can get car insurance in Ontario on a G2 license. All major insurers offer coverage for G2 drivers. However, you should expect to pay higher premiums compared to a fully licensed driver as G2 drivers are still considered “high risk” with their limited experience behind the wheel. Maintaining a clean driving record helps minimize rate increases.

When applying for Ontario car insurance, you’ll need to provide:

 

– Your driver’s license

– Vehicle registration

– Bill of sale or proof of ownership

– Make, model and year of vehicle

– Your previous insurance history and claims

– Driving record

– Usage details – where car is kept, annual mileage, etc.

 

Having this information handy allows insurers to provide the most accurate quote possible tailored to your unique risk profile.

The process of getting car insurance in Ontario typically involves:

 

  1. Research companies and get quotes
  2. Select the best rate/coverage package for your needs
  3. Provide required documents to prove residency, license, vehicle ownership
  4. Pay first month’s premium
  5. Receive proof of insurance documents

 

As a new Ontario resident, you’ll be subject to higher rates at first due to lack of Canadian insurance history. Maintaining a clean record helps minimize increases. Bringing proof of prior insurance from your former country can also help secure a better rate if you were previously insured there.

The penalties for driving uninsured in Ontario include:

 

– Fine between $5,000 to $50,000

– Driver’s license suspension up to one year

– Up to 30 days jail time

– Future difficulty obtaining insurance due to lapse

– Personal liability for damages/injuries you cause

 

The significant fines, criminal charges and risk involved make it critical to maintain continuous auto insurance coverage in Ontario.

The most affordable vehicles to insure in Ontario tend to be:

 

– Sub-compacts: Honda Fit, Toyota Yaris, Nissan Versa

– Sedans: Honda Civic, Toyota Corolla, Hyundai Elantra

– Crossovers: Honda CRV, Subaru Crosstrek, Mazda CX-3

 

The combination of lower rates plus excellent injury protection and affordability make these practical models cheaper to insure overall.

Some of the most expensive vehicles to insure in Ontario include:

 

– Sports cars – Porsche, Ferrari, Lamborghini

– High-end luxury – Maserati, Rolls Royce, Bentley

– Performance cars – Dodge Charger, Ford Mustang GT

– Modified tuner cars – Subaru WRX, Mitsubishi Evo

 

In addition to extremely high vehicle value, insurers view these types of models as much higher risk on the road – leading to steep insurance rates.

 

Common car insurance discounts in Ontario include:

 

– Multi-vehicle

– Multi-policy

– Winter tire

– Defensive driver course

– Good student

– Group/employer

– Infotainment system discounts

– Usage-based insurance

– Automatic payment

– New vehicle

– Long-term customer loyalty

Usage-based insurance (UBI) uses a telematics device or mobile app to track your driving – including acceleration, braking, cornering and overall mileage. Safest drivers can save up to 25% with UBI programs from insurers like Desjardins, Aviva, Allstate and others by proving they are low risk.

Yes, you can insure rebuilt and salvaged vehicles in Ontario but coverage may be restricted. Most standard companies will only provide basic liability protection. You’ll need to use a specialty insurer like Facility Association to get physical damage coverage. Expect to pay higher premiums for these types of vehicles as well.

Ontario has reciprocal insurance agreements with:

 

– Quebec

– Manitoba

– Saskatchewan

– British Columbia

– Nova Scotia

– Prince Edward Island

 

Drivers from these provinces are treated the same as Ontario residents when determining insurance rates and coverage.

As soon as your Ontario car insurance policy lapses, your vehicle is no longer legally driveable. You must renew or set up coverage with a new provider immediately to avoid penalties. There is no grace period for driving uninsured. Some insurers offer short term policies to bridge gaps between regular policies.

Yes, Ontario allows “principal operator policies” where someone other than the main driver (like a spouse or family member) can take out a policy on a vehicle, even if the primary driver has a poor record or license issues. However, the listed principal operator must drive the vehicle most regularly. Misrepresenting this information can lead to denied claims and cancellation.

 

Why You Need Car Insurance in Ontario

Having car insurance is mandatory by law in Ontario. All vehicles on public roads must be insured under Ontario’s Compulsory Automobile Insurance Act. This means as a driver you are legally required to carry a minimum level of auto insurance coverage.

While it is the law to have car insurance, there are good reasons for this requirement. Car insurance protects you financially in case you are involved in an at-fault accident. It covers damage to other people’s property and injuries to other parties. Without insurance, you would be personally responsible for these costs which could amount to hundreds of thousands of dollars.

Car insurance also covers damage to your own vehicle in collisions so you aren’t stuck with costly repair bills. Additional coverages like comprehensive and collision insurance will pay for your car to be fixed or replaced if it’s damaged or written off due to an accident, theft, vandalism, weather events and more.

Having the right insurance ensures you can get your car back on the road and avoids any major disruptions to your daily transportation needs. It gives you peace of mind knowing you are protected if the unfortunate occurs while driving.

So while it may seem like an unnecessary expense, car insurance provides major financial safeguards that all drivers in Ontario need. Maintaining proper insurance isn’t just required but is essential to protect your finances as a motorist.

 

Factors That Affect Car Insurance Rates

There are a number of factors that insurance companies take into consideration when determining your car insurance rates in Ontario. Some of the main factors include:

 

Age

Younger drivers under 25 are considered high risk and typically pay the highest car insurance premiums. Rates start dropping for drivers once they reach 25 years old and continue to decrease as you get older. Senior drivers over 50 can qualify for discounts from some providers.

 

Driving Record

Your driving history and record of any accidents, traffic violations or driving offences will be reviewed by insurance companies. A clean driving record can help lower your rates, while tickets, at-fault accidents and DUIs will increase your premium.

 

Location

Where you live and park your vehicle at night plays a big role in insurance rates. Urban areas like Toronto and Ottawa tend to have higher premiums due to increased risks of accidents, vandalism and theft.

 

Type of Vehicle

The make, model, year and value of your vehicle impacts insurance costs. Vehicles that are more expensive to repair or replace typically cost more to insure. High-performance cars, modified vehicles and those frequently stolen will also mean higher premiums.

 

Average Cost of Car Insurance in Ontario

On average, Ontario drivers pay some of the highest car insurance rates in Canada. According to the Insurance Bureau of Canada (IBC), the average annual cost of car insurance in Ontario is $1,458, which works out to about $121 per month.

This is significantly higher than the national average, which is $1,316 per year or $110 per month. Ontario’s rates are second only to Alberta, where the average annual cost is $1,473.

In comparison, car insurance is considerably cheaper in provinces like Quebec, where the average annual premium is $793, and Manitoba, where it’s $1,082 per year. The lowest rates are found in Prince Edward Island, at just $860 annually.

There are several factors that contribute to the high cost of car insurance in Ontario compared to other provinces. These include a high rate of accidents and claims, expensive auto repair costs, high rates of auto theft and vandalism, large urban centers with lots of traffic congestion, and an abundance of luxury and sports cars that are more costly to insure.

While rates are high on average, the auto insurance market in Ontario is very competitive. This means there are opportunities for significant savings for drivers who comparison shop and look for discounts. However, it’s unrealistic to expect to pay as little for car insurance in Ontario as you would in lower-cost provinces like Quebec or Manitoba.

 

What’s Included in Car Insurance

There are several different types of coverage included in a standard car insurance policy in Ontario. The top three that every driver needs are:

 

Liability Coverage

Liability insurance is required by law in Ontario and covers you if you cause damage to someone else’s property or bodily injury to others. This includes both property damage and bodily injury to the other driver, passengers, or bystanders. The minimum liability coverage required in Ontario is $200,000. However, experts recommend getting at least $1 million in liability to protect your assets in the event of a serious accident.

 

Collision Coverage

Collision insurance covers damage to your vehicle if you collide with another car or object, like a tree or guardrail. This coverage pays to repair or replace your vehicle up to its current cash value. Collision coverage is optional but recommended for drivers with a car loan/lease.

 

Comprehensive Coverage

Comprehensive insurance covers your vehicle for non-collision damage including theft, vandalism, fire, hail, windstorms and more. Like collision, it will pay to repair or replace your vehicle up to its cash value. Comprehensive coverage is optional but highly recommended.

Together, these core coverages make up a standard car insurance policy in Ontario. They provide important protection for you and your vehicle. Speak to an insurance broker or agent to learn more about these coverages and what limits make sense for your situation.

 

Additional Car Insurance Coverage Options

In addition to basic coverage, there are several other options you may want to consider for your car insurance policy in Ontario:

 

Rental Car Coverage

If your vehicle is in the shop for repairs after an accident, rental car coverage pays for the cost of a rental car for you to use as a temporary replacement. This prevents you from being stuck without transportation during the repair process.

 

Ridesharing Coverage

If you drive for a ridesharing service like Uber or Lyft, this add-on coverage protects you during the periods when you have passengers or are en route to pick up riders. Without it, you may only have basic personal coverage that won’t apply during ridesharing.

 

Accident Forgiveness

Accident forgiveness prevents your rates from increasing after your first at-fault accident. This coverage protects your premium from spiking, which is important especially for new or young drivers more prone to accidents.

Consider which additional options fit your unique situation and driving needs. Adding the right extra coverage can provide important protection and peace of mind.

 

How to Get the Best Car Insurance Rates

There are several ways drivers in Ontario can try to get the best possible rates on their car insurance.

One of the most important things to do is comparison shop. Get quotes from multiple insurance providers before deciding on a policy. Look at the premiums along with the coverage options. Comparing rates will ensure you find the best value.

It’s also critical to maintain a good credit and driving record. Insurance companies view these as indications of how responsible and low-risk you are as a customer. Having a poor credit score or past tickets/accidents will lead to much higher premiums.

You can also adjust your deductible and coverage limits to potentially lower your costs. Raising your deductible from $500 to $1000 can make a significant impact on your premiums. Just be sure you can afford the higher out-of-pocket costs in the event of a claim. Likewise, reducing collision or comprehensive coverage can lower premiums.

Using these tips can help Ontario drivers get the cheapest possible car insurance rates for their situation.

 

Top Car Insurance Providers in Ontario

There are several major providers that offer car insurance in Ontario. While the rates and coverage options may differ, these companies have extensive experience in the Ontario auto insurance market.

 

Intact Insurance

Intact Insurance is one of the largest property and casualty insurers in Canada. They offer coverage options for both cars and homes in Ontario. With Intact, you can customize your policy online and choose additional coverage like accident forgiveness.

 

TD Insurance

Part of TD Bank Group, TD Insurance provides auto and home insurance to customers across Canada. TD focuses on usage-based insurance through their MyAdvantage program, which offers discounts for safe driving habits.

 

Wawanesa Insurance

Wawanesa is a Canadian-owned mutual insurance company providing auto and home insurance in Ontario for over 60 years. They have a reputation for competitive rates and quality customer service.

 

Belairdirect

Belairdirect provides online quotes and policies for auto, home, and travel insurance. They offer usage-based insurance plans to reward safe driving. Belairdirect is known for low rates and discount programs.

 

CAA Insurance

The Canadian Automobile Association (CAA) offers members access to car and home insurance across Ontario. CAA provides ways to customize your auto policy and potential savings for longtime members.

 

Getting Quotes From Car Insurance Companies

Getting quotes from multiple car insurance providers is the best way to find the lowest rates. Here are some tips for getting free quotes:

Online Quotes: Most car insurance companies have a form on their website where you can enter your basic information to get an instant quote. This is the fastest and easiest way to compare rates from multiple providers.

Phone Quotes: You can also call companies directly and speak to an agent to get quotes. This allows you to ask questions and get personalized service.

Insurance Agent: An independent insurance agent can provide quotes from multiple companies they represent. This option provides expert advice in choosing the right coverage.

To get accurate quotes, you’ll need to have the following information ready:

 

  • Your driving and insurance history
  • Vehicle year, make and model
  • Your driver’s license number
  • Information about all drivers in your household
  • Coverage types and limits you want

 

With quotes from 3-5 companies, you’ll be able to find the best rate for the coverage you need.

 

Switching Car Insurance Providers

There may come a time when it makes sense to switch car insurance providers. Perhaps your rates have increased significantly at renewal time or a major life event has occurred that will alter your coverage needs. Knowing when and how to switch companies can help ensure you continue to get the best car insurance rates.

The easiest time to switch insurers is when your current policy is up for renewal. In Ontario, auto insurance policies are typically for one year terms. About a month before your renewal date, start shopping around for quotes from other providers. Compare those rates to your current insurer’s renewal quote to see if switching makes financial sense.

You may also be able to switch mid-policy if certain criteria are met, such as moving or purchasing a new vehicle. Review your policy documents or call your provider to see if you qualify for a mid-term cancellation. Keep in mind you may have to pay fees or short rate penalties if you cancel before the renewal date.

When getting quotes for a new insurer, make sure you are comparing equivalent coverage limits and options. Provide the same details on drivers, vehicles, and usage as your current policy so it’s an apples-to-apples rate comparison. Significant savings can make the switch worthwhile.

Once you’ve found a much better rate with a new provider, start the cancellation process with your existing insurer. Be aware of any cancellation fees outlined in your policy documents. Confirm the date coverage will end and return any insurance cards or decals. Also contact your lienholder if you have a financed vehicle.

To initiate new coverage, contact the new insurer and provide all required information. Pay your first premium installment to bind coverage. You’ll receive proof of insurance documents reflecting the start date with your new provider. Make sure there is no lapse between policies to avoid penalties and ensure continuous protection.

 

Understanding Your Car Insurance Policy

Your car insurance policy is a legal contract between you and your insurance provider that lists the coverage options you’ve purchased. It’s important to understand what’s included in your policy so you know what you’re covered for in the event of an accident or claim.

Here are some key components of a car insurance policy that you should be familiar with:

 

Deductibles

The deductible is the amount you have to pay out-of-pocket towards a claim before your insurance coverage kicks in. For example, if you have a $500 deductible and file a claim for $2,000 in damages, you would pay $500 and your insurance company would cover the remaining $1,500. The higher your deductible, the lower your monthly premiums will be.

 

Liability Limits

Liability coverage pays for damage you cause to other people and their property in an accident. It’s broken into two parts – bodily injury liability and property damage liability. The limits represent the maximum payouts per accident. For example, 100/300/50 means:

 

  • $100,000 bodily injury coverage per person
  • $300,000 bodily injury coverage per accident
  • $50,000 property damage coverage

 

Higher liability limits mean more protection, but also higher premiums. The minimum liability limits in Ontario are $200,000.

 

Exclusions

Exclusions list situations that would not be covered by your policy, such as driving while intoxicated or using your vehicle for commercial purposes like delivering food or ridesharing. It’s important to review your policy’s exclusions so you understand what circumstances would not be covered.

Reading through your car insurance policy gives you a full understanding of your coverage, obligations, and limits. Don’t hesitate to contact your insurance provider if you have any questions.

 

Filing a Car Insurance Claim

If you get into an accident or your car is damaged or stolen, you’ll need to file an insurance claim with your provider. Here’s what you need to know about filing an auto insurance claim in Ontario:

Call your insurance provider as soon as possible after the incident occurs. They will walk you through the initial steps of the claims process. Provide details about what happened and get the claims process started.

Documents you’ll need to file a claim may include:

 

  • Police report if applicable
  • Photos of damage or accident scene
  • Repair estimates from auto shops
  • Receipts for expenses related to accident
  • Rental car receipts if using rental coverage

 

Your insurer will investigate the claim, review documentation and send an adjuster to inspect damage if needed. They will then determine if the claim is approved and keep you informed throughout the process.

For claims due to theft, vandalism or hit-and-run, you must inform the police within 24 hours in Ontario. The claims process may take longer if police are investigating.

Make sure to work closely with your insurer and provide all needed documentation in a timely manner to facilitate the claims process. This will allow you to get your claim approved and receive payment as quickly as possible.

 

Discounts to Help Lower Rates

There are a number of discounts you can take advantage of to help lower your car insurance premiums. Here are some common car insurance discounts to ask your provider about:

 

Bundling

Most insurance companies will offer a bundling discount if you have multiple policies with them, like home and auto insurance. Bundling your policies can save you 10-15% or more.

 

Good Student Discount

If you or another driver on your policy is a full-time high school or post-secondary student with good grades (usually a B average or higher), you may qualify for a good student discount.

 

Driver Training Courses

Completing an approved defensive driving course or driver training program can make you eligible for savings. Seniors can also get discounts by taking refresher driving courses.

 

Safety Features

Cars with anti-lock brakes, alarm systems and other safety features can earn you a lower rate on your policy.

 

Usage-Based Insurance

Some insurers offer usage-based insurance programs that use telematics or an app to monitor your driving.

Safe driving habits could qualify you for discounts based on your driving behaviour.

Ask your insurance provider which discounts you may already qualify for and what others may be available.

Taking the time to go through the discounts could save you hundreds of dollars per year.

 

High Risk Drivers

Drivers with poor driving records, a history of infractions, lapses in insurance coverage, or other factors that increase risk often face much higher car insurance rates. Insurance companies view them as a higher risk to insure, so they charge more for policies. Fortunately, high risk drivers do have options to find affordable coverage in Ontario.

One of the best options for high risk drivers is to shop around and compare quotes from several insurance companies. Some insurers specialize in higher risk drivers and offer more competitive rates. It’s important to get multiple quotes, as rates can vary widely between insurers for high risk drivers.

Consider a facility association plan, which is insurance of last resort for drivers unable to get a standard policy. Rates are higher but they ensure you have the legally required minimum coverage. Maintaining continuous coverage and avoiding further infractions for 3-5 years can help you eventually qualify for a standard insurance policy again.

Using a broker can help high risk drivers find the best options. Brokers have access to more insurance markets and can identify companies that offer better rates for your specific situation. They can provide guidance on steps to take to improve your record and lower insurance costs over time.

Adding your partner or spouse who has a clean driving record as a secondary driver on your policy can help lower insurance premiums. Defensive driving courses show commitment to safe driving and can earn you a discount. Payment plans can make insurance more affordable by allowing monthly installments.

For serious offenses, you may need to get a special high risk policy such as a facility association plan until you can eventually re-qualify for standard coverage. Consulting an insurance broker, maintaining continuous coverage, improving your driving record over time, and comparing rates are the best ways for high risk drivers to get the required coverage at the lowest possible cost in Ontario.

 

Conclusion

Car insurance isn’t the most exciting thing to think about, but it’s an essential part of protecting yourself and your car as you drive around Ontario. As we’ve discussed, the cost of car insurance can vary quite a bit based on your unique situation. While there are mandatory minimums, you may want to consider adding more coverage to properly safeguard yourself.

By reviewing all the factors that impact your rates, comparing quotes from multiple providers, and looking for available discounts, you can find the best value on the auto insurance coverage you need. With a better understanding of how car insurance works in Ontario, you can make smart decisions when purchasing a policy. That way you gain peace of mind knowing you and your vehicle are covered.

Don’t wait until the last minute to get car insurance or be afraid to shop around for a better deal. The insurance landscape is constantly changing in Ontario, so make sure you review your options regularly. Finding the right policy at the best price takes a bit of work, but it’s worth it to get quality coverage at an affordable rate.

Get Approved Today

See if you qualify in under 60 seconds

Ontario Car Insurance Questions

The average cost of car insurance in Ontario is about $1,500 to $2,000 per year, or about $125 to $170 per month. However, costs can vary significantly depending on your driving record, vehicle, coverage limits, deductibles, and other factors. Getting quotes from multiple providers is the best way to find the lowest rate.

According to the latest rate studies, some of the cheapest car insurance companies in Ontario include:

 

– Wawanesa

– Economical

– Desjardins

– Intact

– Belairdirect

 

However, you should always compare rates from multiple providers as prices can vary a lot based on your personal profile. Discount insurers like Sonnet and Onlia also offer very affordable rates in Ontario.

The main factors that impact car insurance premiums in Ontario include:

 

– Driving record – tickets, accidents, claims history

– Type of vehicle – make, model, year

– Where you live

– Your age and driving experience

– Coverage types and limits

– Deductibles

– Discounts for which you qualify

– Many other personal factors

 

Getting quotes that are customized to your situation is the best way to find the lowest rate. Prices can vary hundreds or even thousands of dollars between insurance companies.

Ontario requires the following minimum auto insurance coverage:

 

– $200,000 Third Party Liability – Bodily Injury

– $200,000 Third Party Liability – Property Damage

– Statutory Accident Benefits

– Uninsured Auto Coverage

 

However, experts recommend getting higher liability limits of at least $1 million as well as collision and comprehensive coverage to properly protect yourself financially. The legally mandated minimums provide very limited protection.

In Ontario, your car insurance rates typically go up by 30-50% on average after an at-fault accident with a claim. Major accidents, impaired driving and other serious violations can increase your premiums by 100% or even more in some cases.

Some tips for reducing car insurance costs in Ontario include:

 

– Shop rates from multiple insurers

– Raise your deductibles

– Ask about discounts – bundle policies, winter tires, alumni associations, etc.

– Consider usage-based insurance

– Maintain a clean driving record

– Drive a safer, lower-cost vehicle

– Compare rates annually as new discounts/programs are introduced

 

Taking the time to find the best rate for your situation can save you hundreds of dollars per year.

Yes, you can get car insurance in Ontario on a G2 license. All major insurers offer coverage for G2 drivers. However, you should expect to pay higher premiums compared to a fully licensed driver as G2 drivers are still considered “high risk” with their limited experience behind the wheel. Maintaining a clean driving record helps minimize rate increases.

When applying for Ontario car insurance, you’ll need to provide:

 

– Your driver’s license

– Vehicle registration

– Bill of sale or proof of ownership

– Make, model and year of vehicle

– Your previous insurance history and claims

– Driving record

– Usage details – where car is kept, annual mileage, etc.

 

Having this information handy allows insurers to provide the most accurate quote possible tailored to your unique risk profile.

The process of getting car insurance in Ontario typically involves:

 

  1. Research companies and get quotes
  2. Select the best rate/coverage package for your needs
  3. Provide required documents to prove residency, license, vehicle ownership
  4. Pay first month’s premium
  5. Receive proof of insurance documents

 

As a new Ontario resident, you’ll be subject to higher rates at first due to lack of Canadian insurance history. Maintaining a clean record helps minimize increases. Bringing proof of prior insurance from your former country can also help secure a better rate if you were previously insured there.

The penalties for driving uninsured in Ontario include:

 

– Fine between $5,000 to $50,000

– Driver’s license suspension up to one year

– Up to 30 days jail time

– Future difficulty obtaining insurance due to lapse

– Personal liability for damages/injuries you cause

 

The significant fines, criminal charges and risk involved make it critical to maintain continuous auto insurance coverage in Ontario.

The most affordable vehicles to insure in Ontario tend to be:

 

– Sub-compacts: Honda Fit, Toyota Yaris, Nissan Versa

– Sedans: Honda Civic, Toyota Corolla, Hyundai Elantra

– Crossovers: Honda CRV, Subaru Crosstrek, Mazda CX-3

 

The combination of lower rates plus excellent injury protection and affordability make these practical models cheaper to insure overall.

Some of the most expensive vehicles to insure in Ontario include:

 

– Sports cars – Porsche, Ferrari, Lamborghini

– High-end luxury – Maserati, Rolls Royce, Bentley

– Performance cars – Dodge Charger, Ford Mustang GT

– Modified tuner cars – Subaru WRX, Mitsubishi Evo

 

In addition to extremely high vehicle value, insurers view these types of models as much higher risk on the road – leading to steep insurance rates.

 

Common car insurance discounts in Ontario include:

 

– Multi-vehicle

– Multi-policy

– Winter tire

– Defensive driver course

– Good student

– Group/employer

– Infotainment system discounts

– Usage-based insurance

– Automatic payment

– New vehicle

– Long-term customer loyalty

Usage-based insurance (UBI) uses a telematics device or mobile app to track your driving – including acceleration, braking, cornering and overall mileage. Safest drivers can save up to 25% with UBI programs from insurers like Desjardins, Aviva, Allstate and others by proving they are low risk.

Yes, you can insure rebuilt and salvaged vehicles in Ontario but coverage may be restricted. Most standard companies will only provide basic liability protection. You’ll need to use a specialty insurer like Facility Association to get physical damage coverage. Expect to pay higher premiums for these types of vehicles as well.

Ontario has reciprocal insurance agreements with:

 

– Quebec

– Manitoba

– Saskatchewan

– British Columbia

– Nova Scotia

– Prince Edward Island

 

Drivers from these provinces are treated the same as Ontario residents when determining insurance rates and coverage.

As soon as your Ontario car insurance policy lapses, your vehicle is no longer legally driveable. You must renew or set up coverage with a new provider immediately to avoid penalties. There is no grace period for driving uninsured. Some insurers offer short term policies to bridge gaps between regular policies.

Yes, Ontario allows “principal operator policies” where someone other than the main driver (like a spouse or family member) can take out a policy on a vehicle, even if the primary driver has a poor record or license issues. However, the listed principal operator must drive the vehicle most regularly. Misrepresenting this information can lead to denied claims and cancellation.

Get Approved Today

See if you qualify in under 60 seconds