Cheap Toronto Car Insurance Quotes
Toronto drivers saved an average of $922 in 2021 using InsuranceHotline.com
Jump straight to...
- How does Toronto auto insurance work?
- How to get the cheapest Toronto car insurance quote
- How much does Toronto car insurance cost?
- The cheapest car insurance in Toronto
- Comparing Toronto’s average car insurance premium against other Ontario cities
- Factors that determine your Toronto car insurance rate
- How to get cheap car insurance quotes in Toronto
- Frequently asked questions about Toronto car insurance
How does Toronto auto insurance work?
Vehicle owners in Toronto must adhere to auto insurance rules set by the province of Ontario. It is illegal to drive without a valid car insurance policy, which must include third-party liability, statutory accident benefits, DCPD, and uninsured automobile insurance. If desired, Toronto drivers can buy optional car insurance products over and above standard coverage.
Toronto insurance operates under a 'no-fault' system. After a collision, each driver deals with their respective insurance company, regardless of who is at fault in the accident.
It is important to note that Toronto auto insurance operates under a private insurance model. Toronto car owners must buy insurance from private companies. You can purchase insurance from brokers, agents or providers directly (also known as direct writers). Competition is good for Toronto drivers, as it helps to keep premiums down.
How to get the cheapest Toronto car insurance quote
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| Cheapest Rate | $1,973 |
| Average Rate | $4,285 |
| Savings: $2,312 (54%) | |
| Cheapest Rate | $1,852 |
| Average Rate | $2,927 |
| Savings: $1,075 (37%) | |
Toronto mandatory and optional auto insurance coverages
| Insurance type | Mandatory coverage | Optional/ Additional Coverage |
|---|---|---|
| Third-Party Liability | $200,000 minimum. Provides coverage in the event of a lawsuit resulting from an accident where you are at fault. | Coverage can be increased to $500,000, $1 million, or $2 million, with up to $2 million limit. |
| Direct Compensation-Property Damage (DC-PD) | Covers damage to your car, or loss of use of your vehicle, if someone else is at fault. Must involve another insured vehicle. | For additional vehicle coverage, including for when you are at-fault, consider collision coverage. |
| Uninsured Automobile Insurance | Provides up to $200,000 in coverage if you are injured or killed by an uninsured driver, or if your vehicle is damaged as a result of a hit-and-run by an unidentified, uninsured motorist. | Family Protection Coverage is an optional coverage that includes additional coverage of up to $1 million in the case of a hit-and-run by an uninsured motorist. |
| Statutory Accident Benefits | Provides coverage if you are injured in an accident, regardless of who is at fault. Covers medical expenses that aren’t covered by OHIP. | Coverage limits can be increased. |
| Collision Coverage (Also Upset Coverage) | Optional | Covers the costs of repairing or replacing your vehicle following a collision with another vehicle, an object, or property. |
| Comprehensive coverage | Optional | Covers damages caused by named perils identified under the Specified Perils coverage, as well as losses from other perils like falling or flying objects, theft, fire, hail, windstorms, missiles, and vandalism. |
| Specified Perils Coverage | Optional | Covers damages caused by named perils such as theft, attempted theft, explosions, natural disasters like fire, lightning, windstorm, hail, rising water, earthquakes, and other perils specified in your policy. Specified perils do not cover damages due to vandalism, breakage of glass, etc. |
| All-Perils Coverage | Optional | Combines collision/upset and comprehensive coverage. Also, provides additional protection if a household member or an employee steals your vehicle. |
| OPCF 20: Coverage for Transportation Replacement | Optional | Covers the cost of your transportation replacement and rental car insurance if you were to get into a car accident or if your vehicle is stolen. |
| OPCF 27: Liability for Damage to Non-Owned Automobile(s) | Optional | Covers if you damage a borrowed or rental vehicle. The coverage limit is usually around $25,000 to $50,000. |
| OPCF 39: Accident Waiver/Forgiveness | Optional | Protect your premium from rising when you have your first at-fault accident. |
| OPCF 16: Suspension of coverage | Optional | his allows you to suspend your insurance coverage for 30 days or more during periods when you aren't using the car. |
| OPCF 43: Waiver of depreciation | Optional | Ensures your insurance company won't factor in depreciation when settling a claim; you will receive the amount you initially paid for the car. |
| OPCF 44R: Family protection coverage | Optional | Ensures your costs are covered if you and your family are involved in an accident with a driver with less liability insurance than you. This endorsement will cover the remainder. |
| OPCF 13C: Limited glass | Optional | For a lower premium, you can limit or exclude any coverage for glass damage that might've been in your policy. |
| OPCF 40: Fire and theft deductible | Optional | Adds a deductible (an amount you must pay before your insurance company chips in funds) for a theft or fire damage claim. |
Recent annual car insurance savings unlocked by real Toronto drivers
Examples of real savings found through InsuranceHotline.com by drivers living in Toronto, Ontario
Savings: $197
Driver: Female, age 39, Toronto, ON
Driving: 2014 Chevrolet Cruze 4DR
Current Rate: $1,969
Cheapest Rate: $1,772
Insurance Company: Aviva
Savings: $265
Driver: Male, age 49, Toronto, ON
Driving: 2016 BMW 550
Current Rate: $2,912
Cheapest Rate: $2,647
Insurance Company: TD Insurance
Savings: $419
Driver: Male, age 21, Toronto, ON
Driving: 2012 GTI Hatchback 2DR
Current Rate: $2,946
Cheapest Rate: $2,527
Insurance Company: Economical Mutual
Savings: $538
Driver: Female, age 62, Toronto, ON
Driving: 2011 Nissan Sentra SE-R 4DR
Current Rate: $2,292
Cheapest Rate: $1,754
Insurance Company: Johnson Insurance
Savings: $202
Driver: Male, age 34, Toronto, ON
Driving: 2017 Honda Civic 4DR
Current Rate: $2,983
Cheapest Rate: $2,781
Insurance Company: belairdirect
Savings: $496
Driver: Female, age 31, Toronto, ON
Driving: 2016 Kia Optima EX 4DR
Current Rate: $2,304
Cheapest Rate: $1,808
Insurance Company: TD Insurance
How much does Toronto car insurance cost?
As of late 2021, the average premium paid by an Ontario driver was $1,555, which is still way below what a driver would pay in Toronto.
The average premium paid by Toronto drivers is $1,953 per year or $163 per month (as of December 2021), based on RATESDOTCA Insuramap data.
Auto insurance premiums depend on several factors, including your address in Toronto. Premium changes can also be a result of changes in your own circumstances, such as moving to a new location, purchasing a new vehicle or being issued a speeding ticket.
The cheapest car insurance in Toronto
Toronto's average auto insurance is the seventh highest in Ontario, and where you live greatly impacts your car insurance premium. If you've been hunting for the cheapest car insurance rate, you might have already noticed that the average rate for drivers living a postal code over is different from your area's average.
In 2021, 11 Toronto postal codes were competing for the cheapest premiums available for drivers and here is a list of postal code areas sorted by official city ward:
- Toronto Centre (M4X. M5B, M4Y, M5H, M5G)
- University-Rosedale (M4W, M5S, M7A)
- Spadina-Fort York (M4X, M5V, M5J)
- Average premium in 2021: $1,620
Car owners living in central downtown Toronto neighbourhoods end up paying an average of $1,620 every year. This could be due to the lower frequency of driving, as well as fewer accidents. Compared with their suburban counterparts, downtowners have access to alternative modes of transportation, like walking, biking, TTC, and taxis.
Another Toronto neighbourhood that boasts the second-lowest premiums is near the centre of Willowdale, a North York ward above Toronto's downtown core. Automobile owners living in this area are more car-reliant, which implies that their claims activity is likely higher than in the downtown core, but the difference is minor.
- Willowdale (M2N)
- Average premium in 2021: $1,652
Meanwhile, the western part of Toronto, with the fringes of some downtown wards included in the mix, has the third-lowest average premiums.
- University-Rosedale (M5T)
- Davenport (M6P, M6J, M6R, M6H, M6K)
- Parkdale-High Park (M6R, M6S, M6P)
- Spadina-Fort York (M5T, M6J, M6K,)
- Etobicoke-Lakeshore (M8Y, M8Z, M8X, M8W, M8V, M9B)
- Etobicoke Centre (M8X, M9B)
- Average premium in 2021: $1,684
Ontario automobile owners pay the most expensive premium compared with other provinces in Canada. The town or city you live in significantly impacts your insurance rates. Smaller, rural municipalities are considered low risk as opposed to urban centres. You may want to believe that Toronto, an attractive destination for many newcomers, would have the highest average auto insurance premium rate in Canada's most populous province, but that's not the case. Car insurance premiums are higher in the Greater Toronto Area, including the suburban areas surrounding Toronto.
For instance, the average annual car premium cost (as of December 2021) in Vaughan and Ajax is $2,178.71 and $2,104, respectively, while the average insurance cost in Toronto is $1,952 per year. Richmond Hill, Mississauga, Brampton and Pickering also have higher average car insurance premiums compared with Toronto. GTA drivers paid 70% more than those in rural Ontario, according to Ontario's car insurance regulator, the Financial Services Regulatory Authority of Ontario (FSRA). As of June 2022, rural drivers paid $1,282 for car insurance, while GTA residents paid $2,214 per year.
As for your best defence against rising car insurance prices? Regularly shopping around and comparing rates will ensure you're still getting the best deal on your auto insurance. However, your city isn't the only thing that impacts your rate (even if it is a major contributor). Your personal driving and insurance histories and the car you choose contribute to the premiums you're offered and are all things you can control.
| Region | As of June 2022 | As of Mar 2021 | As of Dec 2020 | As of June 2020 |
|---|---|---|---|---|
| Ontario | $1,659 | $1,651 | $1,665 | $1,664 |
| GTA | $2,214 | $2,223 | $2,246 | $2,252 |
| Other Urban | $1,564 | $1,564 | $1,573 | $1,566 |
| Rural | $1,282 | $1,289 | $1,295 | $1,286 |
Factors that determine your Toronto car insurance rate
Auto insurance companies consider many factors when calculating your premium rate, and no two drivers would have the same rate being offered. Here are some of the main factors that insurance companies consider when calculating car insurance rates in Toronto:
- Neighbourhood: Your postal code greatly influences your car insurance rates. If drivers in your neighbourhood are more likely to file claims, your rates will be higher. Claims activity is linked to driving behaviour, congestion in the area, and crime rates.
- Type of vehicle: A luxury car would cost more to repair or replace after an accident compared to a regular economy vehicle or SUV. Hence, the premium would be higher.
- Daily commute: The more time you spend on the road, the more likely you will get into an accident, resulting in a claim.
- Driving history and pattern: Your driving history impacts your car insurance premiums. Serious traffic convictions or at-fault accidents stay on your insurance record for at least six years, during which time you'll pay more for auto insurance coverage.
- Existing coverage: Toronto has mandatory and optional auto insurance coverage. If you choose to add optional coverage, your insurance premium is sure to rise.
- Discount eligibility: Your age, occupation, and alma mater are all potential sources of discounts. It is best to check with your insurance provider about discounts you're eligible for to ensure you get the best rate.
- Add-on drivers: If you have an add-on or secondary driver on your insurance, you'll pay more. The secondary driver's age and driving experience would also be considered.
- Bundle auto and home insurance: Your insurance provider might also ask you to bundle your insurance policies, such as home and auto, as an easy way to reduce your premium from 5-15%.
How to get cheap car insurance quotes in Toronto
Saving on car insurance is easier than you think. These 10 tips help ensure you’re getting the cheapest Toronto car insurance rate:
Shop around
InsuranceHotline.com shoppers in Toronto saved an average of $922* on their car insurance premiums by comparing car insurance quotes from over 50 insurance companies in Canada.
Increase deductibles
If it fits your budget, increase your deductibles from $500 to $1,000 to save 5 to 10% on your Toronto car insurance.
Lump sum payment
A single annual payment can help the insurance company reduce the administrative fees associated with charging and processing monthly payments.
Bundle all policies
You can save anywhere from 5 to 15% off each policy when you bundle your home and car insurance under the same insurance provider, which means you're getting the cheapest Toronto car insurance and the cheapest Toronto home insurance too. Simply select the bundling option when completing your home or auto quote to unlock these savings.
Insure all vehicles
Save 10 to 20% when you insure all your vehicles under the same policy.
Change tires seasonally
Let your insurer know if you have winter tires. A winter tire discount could save you about 5%.
Compare annually
Renewal time is the best time to save as you won’t have to pay a penalty for terminating your policy early. Compare rates annually and get rid of coverages you no longer need.
Use a telematics device
Allow your insurer to monitor your driving habits and they will reward you with a reduced rate, sometimes as much as 25% off the standard price.
Ask about discounts
You’re a savvy city-dweller, but don’t be afraid to ask about discounts you might be eligible for, including alumni and claims-free savings.
Driver’s education
Are you a new driver, or is your child almost ready to take the wheel? Consider an accredited driver’s education course to save on Toronto car insurance.
Car insurance in Toronto: things you should know
The rates car insurance companies charge in Toronto to insure the same car and driver can differ by hundreds and sometimes thousands of dollars, so it pays to shop around
Your key to savings is finding the car insurance company that offers you the cheapest available rate. Busy families don't have time to call the plethora of Toronto car insurance companies to get multiple quotes. This is why getting instant online Toronto car insurance quotes saves you time and money. Compare multiple quotes from over 50 trusted Canadian insurance companies in the same amount of time it takes to get just one quote.
*Shoppers in Toronto who obtained a quote on InsuranceHotline.com in 2021 saved a total of $922. Total savings represents the average savings multiplied by the number of shoppers who generated a quote in 2021.
Frequently asked questions about Toronto car insurance
Which car has the cheapest insurance in Toronto?
In Toronto, as with the rest of Canada, minivans and SUVs are generally cheaper to insure than smaller vehicles. Insurance companies look at repair costs, crash test ratings, and even the brightness of headlights when determining a vehicle's insurance risk. Replacement cost is a factor too, so in this respect, older cars score quite well.
According to internal data, the following vehicles are the cheapest to insure in Ontario:
1. Subaru Forester
2. Subaru Crosstrek
3. Subaru Outback
4. Tesla Model 3
5. Mazda CX-3
6. Mazda CX-5
7. Subaru Legacy
8. Honda Insight
9. Acrua RDX
10. Mazda CX-9
For further analysis, check out our recent article on the cheapest cars to insure in Ontario.
It is important to note the car you drive only comprises a portion of your insurance premium. Your driving history (number of tickets and at-fault accidents) has a much larger impact. A safe driver in a new sports car can still expect cheaper insurance than a dangerous driver in a modest SUV.
How can I find the cheapest car insurance in Toronto?
The best way to find the cheapest car insurance is by shopping around and comparing quotes by insurance providers. Insurance Hotline allows you to compare quotes to see multiple quotes side by side and determine if you could get a cheaper rate.
Who offers the cheapest auto insurance in Toronto?
Every insurance company analyses driver risk slightly differently. The company willing to offer the lowest premium is different for everyone, and the cheapest company for you will change as your driver profile changes. This is why it pays to shop around. Compare quotes on InsuranceHotline.com to see multiple quotes.
Why is Toronto car insurance so expensive?
Car insurance premium depends on the area you live in, driving patterns in that area, and claims frequency. The more likely you are to make a claim, the more an insurance company will charge for coverage. For Torontonians, the city is home to many factors that make claims more likely.
Toronto contains some of the busiest roads in Canada (Highway 401 is the busiest in North America), and your chances of a collision go up with more cars.
On top of this, Toronto is a large city and the chance of your car being stolen, or broken into, is higher than in less populated places.
Finally, insurance fraud is a real problem in the GTA, with some unscrupulous drivers participating in staged auto collisions or filing fraudulent claims to get unwarranted payouts.
If you are struggling with the cost of car insurance, read our 10 tips on getting the cheapest insurance in Toronto.
Why do Toronto car insurance rates change?
Toronto's insurance rates are decided by private insurers, who adjust their rates in response to the number and manner of claims they have been receiving. If there have been more collisions in your neighbourhood, you can expect your premiums to increase. In Ontario, rate changes are regulated by an independent body called the Financial Services Regulatory Body (FSRA).
