How Much is Car Insurance in Ontario? – Top 5 Places to Get

Last updated: July 2026

Car insurance is mandatory for drivers in Ontario, and it can be one of the biggest ongoing costs of owning a vehicle. The exact amount a driver pays depends on where they live, their driving history, age, licence class, vehicle, annual mileage, coverage choices, deductibles, discounts, and insurer pricing.

As a general benchmark, Ontario’s insurance regulator, the Financial Services Regulatory Authority of Ontario, reported an average annual private-passenger auto insurance premium of $2,164 as of October 2025 on its average premium in Ontario page.

However, that number is only a provincial average. Some drivers pay much less, while new drivers, high-risk drivers, luxury-vehicle owners, and drivers in expensive postal-code areas may pay significantly more.

This article explains how much car insurance costs in Ontario, what coverage is legally required, what affects premiums, where to compare quotes, and how Ontario drivers may be able to lower their rates.

Quick Answer: How Much is Car Insurance in Ontario?

Car insurance in Ontario commonly costs around $2,000 to $3,000 per year for many drivers, but the actual price can be lower or higher depending on personal risk factors and coverage choices.

FSRA’s latest published average shows:

Ontario area	Average annual premium
Ontario overall	$2,164
GTA	$2,810
Other urban areas	$2,076
Rural areas	$1,740

The Greater Toronto Area is often more expensive because of traffic density, collision frequency, repair costs, theft risk, and claims activity. Rural areas often have lower average premiums, although vehicle type, driver profile, and coverage limits still matter.

Drivers can also compare marketplace estimates from sites such as Rates.ca Ontario car insurance, but quote-site averages may differ from FSRA’s regulator data because each source uses different data, quote profiles, and time periods.

Is Car Insurance Mandatory in Ontario?

Yes. A driver must have valid auto insurance to legally operate a vehicle in Ontario. The Insurance Bureau of Canada explains Ontario’s minimum mandatory auto insurance requirements on its mandatory auto coverages by province page.

At minimum, Ontario drivers need:

Mandatory coverage	What it generally does
Third-party liability	Helps cover injury or property damage claims if the driver is legally responsible
Accident benefits	Provides certain benefits if someone is injured in an automobile accident
Uninsured automobile coverage	Helps protect against uninsured or unidentified motorists

The minimum third-party liability coverage in Ontario is $200,000, but many drivers choose higher limits, such as $1 million or $2 million, because serious claims can exceed the minimum.

What Does a Standard Ontario Auto Insurance Policy Include?

A standard Ontario auto insurance policy includes legally required protection and optional coverages that drivers can add depending on their needs.

FSRA explains the main parts of a standard policy on its standard auto insurance policy page.

Coverage type	Mandatory or optional?	Simple explanation
Third-party liability	Mandatory	Protects against claims from others if the driver is legally responsible
Accident benefits	Partly mandatory, partly optional from July 2026	Helps with certain injury-related costs after an accident
Uninsured automobile coverage	Mandatory	Helps if an uninsured or unidentified driver is involved
Direct Compensation Property Damage	Included, but drivers may elect not to claim it	Covers vehicle damage in certain not-at-fault Ontario accidents through the driver’s own insurer
Collision or upset	Optional	Covers damage to the driver’s own vehicle from a collision or rollover
Comprehensive	Optional	Covers certain non-collision losses such as theft, fire, vandalism, falling objects, or weather-related damage
Specified perils	Optional	Covers only specific listed risks
All perils	Optional	Combines broader vehicle protection, subject to policy wording

Drivers should read their policy carefully and ask a licensed agent or broker to explain exclusions, deductibles, limits, and optional benefits.

Important 2026 Ontario Auto Insurance Update

From July 1, 2026, Ontario accident benefits changed for new policies. FSRA explains on its statutory accident benefits coverage update page that medical, rehabilitation, and attendant care benefits remain mandatory, while other accident benefits become optional.

This matters because some drivers may see quote options that appear cheaper if they reduce optional accident benefits. Lower premiums can be attractive, but reducing benefits may also reduce financial protection after an accident.

Before removing or reducing optional accident benefits, a driver should consider:

• whether they have workplace disability coverage
• whether they have private health insurance
• whether they have dependants
• whether they are self-employed
• whether they could manage income loss after an accident
• whether they regularly carry passengers
• whether they want stronger protection for caregiving, housekeeping, or income replacement needs

For many households, the cheapest policy is not always the best policy.

How Much is Car Insurance in Ontario Per Month?

Using FSRA’s October 2025 Ontario average of $2,164 per year, the average monthly cost works out to about $180 per month. In the GTA, the average of $2,810 per year works out to about $234 per month.

Area	Annual average	Approximate monthly cost
Ontario overall	$2,164	$180
GTA	$2,810	$234
Other urban areas	$2,076	$173
Rural areas	$1,740	$145

These are averages only. A new driver, G2 driver, high-risk driver, or driver with an expensive vehicle may receive quotes far above these numbers.

Why Is Car Insurance So Expensive in Ontario?

Ontario car insurance is expensive because insurers price policies based on expected claims costs, accident risk, repair costs, theft risk, fraud risk, injury claims, litigation costs, and market conditions.

FSRA explains on its market conditions and auto insurance rates page that inflation, auto parts, labour costs, more vehicles on the road, and auto theft can all influence premiums.

Common reasons Ontario premiums are high include:

Cost driver	Why it matters
Vehicle theft	Stolen vehicles increase insurer claims costs
Repair inflation	Parts, sensors, labour, and technology make repairs more expensive
Traffic density	More vehicles can mean more collisions
Injury claims	Accident benefits and liability claims affect costs
Postal-code risk	Some areas have higher claims frequency
Severe weather	Flooding, hail, and storms can increase damage claims
Legal and settlement costs	Complex claims can increase insurer costs
Vehicle technology	Cameras, sensors, and electric components can be costly to repair

This is why two drivers with similar cars may still receive very different quotes.

What Factors Affect the Cost of Car Insurance in Ontario?

FSRA lists several major factors on its what determines your auto insurance rate page.

Factor	How it can affect your premium
Driving record	Tickets, at-fault accidents, and convictions usually increase premiums
Years licensed	New and inexperienced drivers often pay more
Age	Younger drivers, especially teenagers and drivers under 25, often pay more
Vehicle type	Expensive, high-theft, luxury, or high-repair-cost vehicles may cost more
Location	Urban and high-claims areas often cost more
Annual mileage	More driving usually means more risk
Use of vehicle	Commuting, rideshare, business use, or delivery use may affect pricing
Coverage limits	Higher liability limits and optional coverage usually increase premiums
Deductible	A higher deductible may lower the premium but increases out-of-pocket cost after a claim
Insurance history	Gaps in insurance or prior cancellations may affect quotes
Discounts	Bundling, winter tires, telematics, alumni/group discounts, and multi-vehicle discounts may reduce premiums

Drivers should compare quotes using the same coverage limits and deductibles so they are comparing like-for-like.

Comprehensive vs Third-Party Liability Coverage in Ontario

Third-party liability and comprehensive coverage are not the same thing.

Coverage	Required?	What it protects
Third-party liability	Yes	Protects against claims from others if the driver causes injury or property damage
Comprehensive	No	Protects the driver’s own vehicle from certain non-collision risks such as theft, fire, vandalism, falling objects, and weather damage

Third-party liability is about responsibility to other people. Comprehensive coverage is about protecting the driver’s own vehicle from selected non-collision losses.

A driver with a newer or financed vehicle may want comprehensive coverage. A driver with an older low-value car may decide the extra cost is not worth it, depending on the vehicle’s value and their ability to replace it.

Collision vs Comprehensive Coverage

Collision and comprehensive coverage are both optional, but they protect against different risks.

Coverage	Common example
Collision	The driver hits another car, a pole, a guardrail, or rolls the vehicle
Comprehensive	The vehicle is stolen, vandalised, damaged by fire, hail, falling branches, or certain weather events

Some lenders or leasing companies may require collision and comprehensive coverage. Drivers who finance or lease a vehicle should check their loan or lease agreement before reducing coverage.

What Is Direct Compensation Property Damage in Ontario?

Direct Compensation Property Damage, often called DCPD, can cover damage to the insured vehicle in certain not-at-fault accidents in Ontario. It is called “direct compensation” because the driver normally claims through their own insurer instead of chasing the at-fault driver’s insurer.

FSRA explains DCPD on its standard auto insurance policy page and notes that, effective January 2024, Ontario drivers may elect not to claim this coverage.

Opting out may reduce the premium, but it can also create a major coverage gap. A driver who opts out may not be covered for vehicle damage in certain situations, even if they were not at fault. Drivers should speak with a licensed insurance professional before removing DCPD.

How Much is Car Insurance for a G2 Driver in Ontario?

There is no single official price for a G2 driver in Ontario. G2 insurance can be expensive because many G2 drivers are younger or less experienced, and insurers consider driving experience when setting rates.

A G2 driver’s price may depend on:

Factor	Why it matters
Age	Younger drivers usually pay more
Years licensed	Less experience usually means higher risk
Driver training	Approved training may help reduce rates
Vehicle	Sports cars, luxury cars, and high-theft vehicles cost more
Listed driver status	Being a secondary driver may cost less than being the main driver
Location	GTA areas often cost more
Driving record	Tickets and accidents can raise premiums
Household policy	Being added to a family policy may be cheaper than buying a separate policy

A G2 driver should compare quotes before buying a vehicle because insurance can change the real cost of ownership.

How Much is Car Insurance for a New Driver in Ontario?

New drivers in Ontario usually pay more than experienced drivers because they have less insurance and driving history. A new driver may be a teenager, a newcomer to Canada, someone who recently received a licence, or someone restarting coverage after a long gap.

A new driver may reduce costs by:

• completing an approved driver training course
• being added as a secondary driver where appropriate
• choosing a practical, low-theft, lower-repair-cost vehicle
• avoiding tickets and at-fault accidents
• asking about telematics or usage-based insurance
• comparing quotes from brokers, direct insurers, and digital marketplaces.

Newcomers to Ontario may also want to keep any international driving experience documents available, as some insurers may consider prior experience depending on their rules.

Top 5 Places to Get Car Insurance in Ontario

The best car insurance company in Ontario depends on the driver. A company that is cheap for one person may be expensive for another because insurers use different rating models.

The following options are useful places to compare quotes, buy coverage, or speak with insurance professionals.

1. Onlia

Onlia is a digital insurance provider offering online car insurance quotes in Ontario. It may suit drivers who want a fast online quote process, digital policy management, and the option to bundle home and auto insurance.

Onlia can be a good fit for:

• drivers who prefer online quotes
• people who want a digital buying process
• drivers comparing direct-to-consumer options
• households looking at home and auto bundling

Before buying, drivers should compare the quote with at least two or three other options and check coverage limits, deductibles, optional benefits, and cancellation terms.

2. Sonnet

Sonnet Insurance is an online insurance provider offering car, home, tenant, and condo insurance. It may suit drivers who prefer to quote and manage insurance online without visiting a physical office.

Sonnet can be a good fit for:

• online-first customers
• drivers who want a quick quote process
• people interested in bundling car and home insurance
• customers looking for digital policy access.

Drivers should make sure the quote includes the level of accident benefits, liability, collision, comprehensive, and deductibles they actually want.

3. Billyard Insurance Group

Billyard Insurance Group is an insurance brokerage that helps customers compare auto insurance options. A brokerage can be useful for drivers who want a licensed professional to compare multiple insurers rather than contacting each insurer separately.

Billyard Insurance Group may suit:

• drivers who want broker support
• households with more complex insurance needs
• people insuring multiple vehicles
• drivers who also need home, business, or specialty insurance
• customers who prefer advice before choosing coverage

A broker can help explain the differences between policies, but drivers should still ask about fees, insurer options, coverage limits, and renewal terms.

4. Surex

Surex is an online insurance marketplace that lets customers compare car insurance quotes from multiple providers. It may suit drivers who want to compare several options in one place.

Surex may be helpful for:

• drivers who want quote comparison
• customers looking for broker-assisted online service
• people comparing bundle discounts
• drivers who want to check whether their current renewal is competitive.

When using any comparison marketplace, drivers should confirm that each quote uses the same liability limit, deductible, accident benefits, collision, comprehensive, and optional endorsements.

5. belairdirect

belairdirect offers car and home insurance with online tools, app-based policy management, and customizable coverage options. It may suit drivers who want a direct insurer with digital features and optional usage-based or app-supported services.

belairdirect may be useful for:

• drivers who want direct insurer access
• customers who like app-based insurance management
• households interested in bundling
• drivers comparing telematics or safe-driving discount options
• people looking for customizable coverage.

As with any insurer, the cheapest belairdirect quote may not be the best if it removes important protection or uses a higher deductible than the driver can afford.

Other Places to Compare Car Insurance in Ontario

Ontario drivers should not stop at one quote. They can also compare with banks, credit unions, employer or alumni group plans, independent brokers, direct insurers, and comparison websites.

Useful comparison options include:

Option	Best for
Direct insurers	Drivers who already know what coverage they want
Insurance brokers	Drivers who want advice and multiple insurer access
Online marketplaces	Fast comparison across several providers
Group insurance programs	Alumni, union, professional, or employer discounts
Existing home insurer	Bundling home and auto insurance
Current insurer renewal	Negotiating or checking loyalty discounts

FSRA’s getting an auto insurance quote information is useful for understanding consumer rights when requesting quotes.

How to Get Lower Car Insurance Rates in Ontario

Ontario drivers may be able to reduce premiums by changing risk factors, comparing quotes, and using discounts. FSRA provides practical tips on its how to save on auto insurance page.

Saving method	How it may help
Compare quotes before renewal	Insurers price risk differently
Increase deductibles carefully	Higher deductibles may lower premiums
Bundle home and auto	Multi-policy discounts may apply
Install winter tires	Ontario insurers must offer a winter tire discount
Choose a lower-risk vehicle	Some cars cost less to insure
Reduce optional coverage on older cars	Collision or comprehensive may not be worth it for low-value vehicles
Maintain a clean driving record	Fewer tickets and accidents usually help
Ask about telematics	Safe-driving programs may offer discounts
Update annual mileage	Lower mileage may reduce risk
Ask about group discounts	Alumni, employer, union, or association discounts may apply
Pay annually if affordable	Some insurers charge less than monthly payment plans
Avoid mid-term cancellation	Cancelling before renewal may trigger fees

Drivers should be careful not to reduce protection only to save a small amount. The right goal is affordable coverage that still protects against realistic financial risks.

Should You Choose the Cheapest Car Insurance Quote?

Not always. The cheapest quote may have a high deductible, low liability limit, reduced accident benefits, no collision, no comprehensive coverage, or important exclusions.

Before choosing the cheapest policy, compare:

Item to check	Why it matters
Liability limit	Serious claims can exceed the legal minimum
Accident benefits	Lower benefits may reduce protection after injury
DCPD election	Opting out can create a vehicle-damage gap
Collision coverage	Important for newer, leased, or financed vehicles
Comprehensive coverage	Useful for theft, fire, vandalism, and weather damage
Deductible	A high deductible means more out-of-pocket cost
Rental car coverage	Helpful if the vehicle is being repaired
Accident forgiveness	May help protect rates after a first at-fault accident
Exclusions	Some uses, drivers, or situations may not be covered

A cheap policy is only valuable if it still covers the risks the driver cannot afford to pay themselves.

What Information Do You Need for a Car Insurance Quote?

To get an accurate Ontario car insurance quote, prepare:

• driver’s licence details
• date first licensed
• vehicle make, model, year, and VIN
• address where the vehicle is kept
• daily commute distance
• annual mileage estimate
• driving history
• claims history
• ticket or conviction history
• names of all household drivers
• current insurance details
• desired coverage and deductibles
• winter tire details
• anti-theft device details
• home insurance details if bundling

Providing accurate information is important. Incorrect details can affect the quote, claim eligibility, or policy validity.

Does Where You Live Affect Car Insurance in Ontario?

Yes. Location is one of the biggest factors in Ontario car insurance. Drivers in areas with more traffic, theft, collisions, and claims often pay more.

This is why a driver in the GTA may pay more than a similar driver in a rural area. FSRA’s average premium table shows a clear difference between GTA, other urban, and rural averages.

Drivers moving within Ontario should update their insurer because a change of address can change the premium. This is especially important when moving between Toronto, Brampton, Mississauga, Ottawa, Hamilton, London, Windsor, smaller towns, or rural communities.

Does the Type of Car Affect Insurance in Ontario?

Yes. The car itself can significantly affect the premium.

Insurers may consider:

Vehicle factor	Why it matters
Theft rate	Frequently stolen vehicles cost more to insure
Repair cost	Expensive parts and labour increase claims costs
Safety rating	Safer vehicles may reduce injury risk
Vehicle value	Higher-value vehicles cost more to replace
Engine power	Performance vehicles may be rated as higher risk
Technology	Cameras, sensors, and ADAS features can increase repair costs
Parts availability	Hard-to-source parts can raise repair costs

A driver should check insurance quotes before buying a vehicle. A car that looks affordable on the purchase price may be expensive to insure.

For readers comparing vehicle ownership costs more broadly, Business IN Canada’s article on how much it costs to own a car in Canada can help with budgeting beyond insurance.

What About Used Cars and Insurance?

Used cars may be cheaper to insure than new cars, but not always. A used vehicle can still have high insurance costs if it is frequently stolen, expensive to repair, modified, imported, or involved in higher claim rates.

Before buying a used car, compare:

• insurance quotes
• accident history
• safety certification needs
• repair costs
• theft risk
• financing or lien status
• tax and registration costs

For used-vehicle buyers, Business IN Canada also has related information on used car tax in B.C., which is useful for readers comparing provincial vehicle costs across Canada.

Is Car Insurance Cheaper If You Drive Less?

It can be. Annual mileage and vehicle use are rating factors. A driver who works from home, drives occasionally, or has a short commute may pay less than someone who drives long distances every day.

Drivers should tell their insurer if their annual mileage or vehicle use changes. For example, switching from daily commuting to occasional use may lower the premium. However, the information must be accurate.

Can Winter Tires Lower Insurance in Ontario?

Yes. Ontario insurers must offer a discount for installing winter tires. The exact discount and proof requirements can vary by insurer.

Drivers should ask:

• what dates the tires must be installed
• whether all four tires are required
• whether receipts or photos are needed
• whether the discount applies automatically at renewal
• whether tire storage records count as proof

Winter tires can help reduce insurance costs and improve winter driving safety.

Can Telematics Lower Car Insurance in Ontario?

Telematics, also called usage-based insurance, uses driving behaviour data to help price insurance. Depending on the insurer, it may consider braking, acceleration, cornering, speed, mileage, and driving time.

Telematics may help safe drivers save money, but drivers should understand what data is collected and whether poor driving can increase premiums. Before joining a program, ask how the discount works, whether the rate can go up, and how long the data is used.

What If You Cannot Find Car Insurance in Ontario?

Ontario has consumer-protection rules designed to help eligible drivers access auto insurance. FSRA explains that its “Take-All-Comers” guidance requires auto insurance providers to give eligible Ontario consumers access to timely quotes and the lowest rates available for their circumstances.

Drivers who believe an insurer, agent, or broker is not following the rules can review FSRA’s auto insurance consumer information and, if needed, use FSRA’s complaint process.

High-risk drivers may need to work with a broker or the Facility Association market if they cannot get standard coverage.

Final Thoughts

Car insurance in Ontario is expensive, but drivers can often reduce costs by comparing quotes, choosing the right vehicle, maintaining a clean driving record, asking about discounts, and reviewing coverage before renewal.

The most important point is to compare carefully. A low quote may look attractive, but it should still include the protection the driver needs. Ontario drivers should check liability limits, accident benefits, DCPD, collision, comprehensive coverage, deductibles, and exclusions before buying.

For most drivers, the best approach is to get at least three quotes from a mix of direct insurers, brokers, and comparison marketplaces, then compare the policies side by side.

FAQs on How Much Car Insurance is in Ontario

How much is car insurance in Ontario per month?

Based on FSRA’s October 2025 average of $2,164 per year, the average Ontario premium works out to about $180 per month. In the GTA, the average of $2,810 per year works out to about $234 per month.

Why is Ontario car insurance so expensive?

Ontario car insurance is expensive because of repair inflation, vehicle theft, traffic density, accident frequency, injury claims, legal costs, weather damage, and insurer claims experience.

What is the minimum car insurance in Ontario?

Ontario’s minimum mandatory auto insurance includes third-party liability, accident benefits, and uninsured automobile coverage. The minimum third-party liability limit is $200,000, although many drivers choose higher limits.

Is comprehensive insurance mandatory in Ontario?

No. Comprehensive coverage is optional. It protects against certain non-collision losses such as theft, fire, vandalism, falling objects, and weather damage.

Is collision coverage mandatory in Ontario?

No. Collision coverage is optional, but it may be required by a lender or leasing company if the vehicle is financed or leased.

How much is insurance for a G2 driver in Ontario?

There is no single official G2 insurance price. G2 drivers often pay more because they usually have less driving experience. Age, vehicle, location, driver training, household policy status, and driving record all affect the quote.

What is the cheapest car insurance company in Ontario?

There is no single cheapest company for everyone. One insurer may be cheaper for an experienced driver, while another may be cheaper for a new driver, student, senior, or family with multiple vehicles. Comparing quotes is the best way to find the lowest suitable rate.

Does credit score affect car insurance in Ontario?

Ontario auto insurance pricing rules differ from some other markets, and drivers should ask insurers or brokers what information is used in their quote. The main factors typically include driving record, location, vehicle, licence history, use of vehicle, coverage, and deductible.

Can I lower my Ontario car insurance by increasing my deductible?

Yes, increasing the deductible may lower the premium, but it also means paying more out of pocket after a claim. Drivers should only choose a deductible they can afford.

Do winter tires reduce car insurance in Ontario?

Yes. Ontario insurers must offer a winter tire discount. The amount and proof requirements vary by insurer.

Should I remove DCPD coverage to save money?

Drivers should be very careful before removing DCPD. It may reduce the premium, but it can also leave the driver without coverage for vehicle damage in certain not-at-fault accidents. Speak with a licensed insurance professional before opting out.

How often should I compare car insurance quotes?

Drivers should compare quotes at least once a year before renewal, and whenever they move, buy a new vehicle, add a driver, get married, start working from home, retire, or change annual mileage.

Are online car insurance quotes accurate?

Online quotes can be useful, but the final premium may change if driving history, vehicle details, address, coverage choices, or claims information are updated during underwriting.

What is the best place to get car insurance in Ontario?

Good places to compare include direct insurers such as Onlia, Sonnet, and belairdirect, brokerages such as Billyard Insurance Group, and comparison platforms such as Surex. The best option depends on the driver’s profile and coverage needs.

Can I drive without insurance in Ontario?

No. Driving without valid insurance in Ontario can lead to serious penalties, fines, licence consequences, vehicle impoundment, and major future insurance difficulties.