Ontario is home to millions of registered vehicles. Regardless of their size, all registered vehicles in Ontario must have auto insurance. Being the most populous province, it’s not surprising that Ontario has some of the highest car insurance rates in the country. The wide range of insurance costs is due to many factors. Let’s take a closer look at insurance rates across the province and some of the factors that go into these record-high rates.
What is the Average Monthly Cost of Car Insurance in Ontario?
As with everything else in Ontario, insurance is expensive. On average, Canadian insurers are paying out as much in claims as they’re earning in revenue. According to the Financial Services Regulatory Authority of Ontario (FSRA), as of October 2025:
- The average private-passenger premium in Ontario is about $2,164/year, or approximately $180.00/month.
- For the GTA, the average annual private-passenger premium in Ontario is much higher: $2,810/year, or approximately $234.00/month.
Why Have Auto Insurance Costs Increased in Ontario?
Insurance fraud, increasingly severe weather, and a handful of secondary factors have raised insurance costs in Ontario over the last two decades. However, the auto insurance industry has seen premiums decline over the past few years.
During 2020–2021, Ontario saw the most significant short-term decrease in auto insurance premiums in over a decade. Fewer vehicles and fewer collisions meant fewer claims—leading to short-term premium relief. Rates temporarily dropped because:
- More people worked from home and drove significantly less
- Some drivers reduced optional coverage to save money
- Fewer new drivers were on the road due to significant DriveTest backlogs
However, from 2022 through 2025, Ontario auto insurance rates have steadily increased, driven by higher claim costs, inflation, supply-chain delays, and a surge in vehicle theft across the province.
Drive with Confidence
Request your free car insurance quote now and get the coverage you deserve.
What are the Top 10 Cities with the Highest Average Car Insurance Premiums?
As of mid-2025, the cities in the Greater Toronto Area (GTA) have the highest average car insurance premiums in Ontario, driven by high vehicle theft rates and traffic congestion.
- Brampton (approx. $3,802/year, approx. $316.00/month)
- Scarborough (a district within Toronto, approx. $3,180/year, approx. $265.00/month)
- Vaughan (approx. $3,259/year, approx. $271.00/month)
- Richmond Hill (approx. $2,491/year, approx. $207.00/month)
- Mississauga (approx. $3708/year, approx. $309.00/month)
- Etobicoke (a district within Toronto, approx. $3,227/year, approx. $268.00/month)
- Toronto (approx. $2,888/year, approx. $240.00/month)
- Innisfil (approx. $2,269/year, approx. $189.00/month)
- Markham (approx. $2,900/year, approx. $241.00/month)
- Newmarket (approx. $2,275, approx. $189.00/month)
What are some Key Factors Affecting Car Insurance in Ontario?
- Vehicle Theft: High rates of auto theft are a major contributor, with Toronto, Brampton, Mississauga, Vaughan, and Markham ranking among the costliest cities for auto theft in Ontario.
- Accident and Infraction Rates: Cities like Brampton and Kingston have consistently had higher rates of accidents and driving infractions than the provincial average.
- Traffic Congestion: Greater population density and traffic congestion in urban areas increase the likelihood of collisions, leading to higher rates.
- Insurance Fraud: The prevalence of insurance fraud and staged collisions in certain regions also drives up costs for all drivers there.
- Location: Rates are generally lower outside of the Greater Toronto Area (GTA) due to lower traffic congestion, fewer accidents, and reduced rates of auto theft and insurance fraud.
- Driver Profile: Your personal driving record, age, and the type of vehicle you drive significantly impact your final premium so that rates may vary from the averages listed.
Want to know more about how insurance premiums are calculated? Read our blog for a complete understanding of the process.
What are People in Ontario Asking About Car Insurance?
What are Some Ways You Can Save on Your Insurance Premiums in Ontario?
There are many ways to save money on auto insurance. Here are a couple of options:
- Shop Around: Comparing prices is one of the easiest ways to save on insurance.
- Choose the Right Car: Certain models cost more to repair, especially newer vehicles. So, choosing to purchase a slightly older vehicle with modern safety features can help you save on premiums.
- Raise Your Deductible: A higher deductible means that you will pay less in insurance premiums.
- Telematics: Look into telematics, or usage-based insurance (UBI), to help save money. Insurers can use this information to personalize your insurance premiums, saving you money.
- Invest in Winter Tires: Having winter tires can save you 3-5% on premiums. While it is not much, winter tires can help save you from costly claims related to winter driving.
- Bundle Policies: A great way to save is to bundle your home or rental policy with your car insurance.
- Find Other Ways to Commute: Using public transit or carpooling can help lower your insurance premiums. Not driving during peak traffic times will help reduce the risk of claims.
- Pay your Insurance on Time: If you are late with a payment, your rates will increase when it is time to renew your policy.
- Drive Safe: Being a defensive/safe driver reduces the chances of any accidents or infractions that would lead to claims. Traffic tickets negatively impact your insurance rates for years afterward.
Bundle All of Your Policies for Maximum Savings!
Speak with an isure broker to find out how.
What does car insurance cover in Ontario?
Basic car insurance in Ontario typically covers the following: high injury claims, high accident rates, auto theft, fraud, and rising
- Third-party liability: If you injure someone or damage their property
- Accident benefits: medical expenses, income replacement, rehabilitation
- Direct compensation for damage to your vehicle if you’re not at fault
Will my insurance go up after an accident in Ontario?
Your insurance may go up after an accident if you are found at fault. However, if you have accident forgiveness or were not at fault, your rates may not increase. The impact also depends on your driving history and insurer.
How Much Does Car Insurance Cost for New Drivers in Ontario?
New drivers in Ontario typically face annual premiums ranging from $3,000 to $6,000 for standard coverage.
How is Car Insurance Calculated in Ontario?
Car insurance in Ontario is calculated depending on various factors:
- Age
- Vehicle type
- Location (postal code)
- Licensing stage
- Driving history
Why is Car Insurance Expensive in Ontario?
Car insurance in Ontario is expensive due to costly injury claims, high accident rates, auto theft, fraud, and rising costs in vehicle repair and medical costs. This is especially true in heavily populated areas like cities.
Car Insurance in Ontario: What is the Takeaway?
Auto insurance rates are determined by many factors, such as your driving record, how much you drive, and where you live. The simplest way to lower what you pay is to shop around to see if you can get a lower price for the coverage you need. Luckily, Ontario’s private auto insurance market offers a sizeable selection of insurance companies to choose from. We can help you find a policy that’s both affordable and offers the right amount of protection. Please speak with one of our isure representatives to help you secure the most competitive rates in your Ontario city!
Understanding auto insurance can feel like learning a new language. Read more
When researching car insurance, finding the correct information can sometimes Read more
Canadian insurance companies have been increasing their prices across the Read more
