The average cost of car insurance in Ontario is approximately $2,000–$2,200 per year, although your actual premium depends on factors such as your driving record, age, vehicle and the coverage you choose. While Ontario remains one of Canada’s more expensive provinces for auto insurance, many drivers can lower their premiums by comparing quotes, maintaining a clean driving record, bundling policies, or enrolling in a usage-based insurance program.
Key Takeaways
- Ontario remains one of Canada’s most expensive provinces for auto insurance.
- Your driving record, location, vehicle, annual mileage, and insurance history all affect your premium.
- Comparing quotes from multiple insurers can help you find better value.
- Bundling home and auto insurance and participating in usage-based insurance programs may reduce your premium.
- Reviewing your policy annually helps ensure you’re not paying for coverage you no longer need.
By the Numbers (2026)
Rather than simply looking at the average premium, it’s helpful to understand what is driving insurance costs today.
| 2026 Ontario Auto Insurance Snapshot | |
| Average annual premium | Approximately $2,000–$2,200 |
| Ontario rate increase approved for 2025 filings | Approximately 5.5% average (FSRA) |
| Average bodily injury claim | Continues to be among the highest in Canada |
| Vehicle theft | Ontario remains one of Canada’s highest vehicle theft regions despite improvements from recent prevention initiatives |
| Repair costs | Continue to rise because of advanced vehicle technology, supply-chain costs and higher labour rates |
What Determines Car Insurance Rates?
Insurance companies use many factors to estimate the likelihood of future claims. Although every insurer has its own pricing model, most consider similar information.
These factors typically include:
- Your driving record
- Claims history
- Age and driving experience
- Where you live
- Vehicle make and model
- Annual kilometres driven
- How you use your vehicle (commuting, business or pleasure)
- Coverage selections and deductibles
- Insurance history and payment record
Why does where you live matter?
Urban areas generally experience more collisions, thefts and vandalism than rural communities. As a result, drivers living in higher-risk postal codes often pay higher premiums.
Not necessarily. If you’re not at fault, your premium may not increase because of that claim alone. However, insurers also consider overall claims trends in your area, along with your personal driving history, when determining future premiums.
How Can You Lower Your Car Insurance Premium?
Although some rating factors can’t be changed, there are several practical ways to reduce your insurance costs over time.
Compare quotes regularly
Insurance companies assess risk differently. Comparing quotes at renewal may help you find better value without sacrificing coverage.
Maintain a clean driving record
Avoiding speeding tickets, distracted driving convictions and at-fault accidents helps you qualify for better insurance rates.
Bundle your insurance policies
Many insurers offer discounts when you combine your home, condo or tenant insurance with your auto insurance.
Consider usage-based insurance
If you drive fewer kilometres or demonstrate safe driving habits, a telematics program may qualify you for additional savings.
Choose a vehicle with lower insurance costs
Vehicles with strong safety ratings and lower theft rates are often less expensive to insure. Here is a list of the top picks of safest cars for 2026.
Review your policy every year
Life changes—including moving, retiring, changing jobs or paying off your vehicle—may affect the coverage you need. Reviewing your policy annually helps ensure you’re receiving all available discounts.
Expert Tip: Don’t compare insurance based on price alone. A lower premium may also mean higher deductibles or reduced coverage. Always compare the coverage, limits, deductibles and available discounts before making a decision.
Common Questions About Ontario Car Insurance
What is the average cost of car insurance in Ontario?
Most Ontario drivers pay approximately $2,000 to $2,200 per year, although premiums vary significantly depending on individual risk factors.
Why is Ontario car insurance expensive?
Ontario premiums reflect many factors, including vehicle theft, repair costs, fraud prevention efforts, medical benefits, litigation costs and regional claims experience.
Yes. Maintaining a clean driving record, comparing quotes, bundling policies, choosing a lower-risk vehicle and increasing your deductible (if appropriate). isure also offers services, such as telematics discounts, where good driving can help you save even more! https://isure.ca/telematics-insurance/
Does my credit score affect auto insurance in Ontario?
Unlike some provinces, insurers in Ontario generally cannot use your credit score to determine auto insurance premiums.
Bundle All of Your Policies for Maximum Savings! Speak with an isure broker to find out how.
Protect Your Budget with the Right Coverage
Car insurance isn’t one-size-fits-all. While the average premium provides a useful benchmark, your individual rate depends on your driving history, vehicle, location and coverage needs. The best way to avoid overpaying is to review your policy regularly and compare your options. Let an isure broker help you find the best rate for you —from comparing quotes from multiple insurance companies, explaining available discounts, and helping you find the coverage that fits both your needs and your budget. Whether you’re purchasing your first policy or shopping for a better rate at renewal, professional advice can help ensure you’re getting the best value.
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