Toronto Car Insurance Quotes

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) have 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.

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 side by side and find out if you could be getting a cheaper rate.

The average Toronto driver in 2021 pays about $2,201 per year for car insurance, or $183 per month, according to our RATESDOTCA INSURAMAP data. This is 46% more expensive than the Ontario average of $1,505 per year, or $125.42 per month, according to the Insurance Bureau of Canada (IBC).

The exact amount you will have to pay depends on multiple factors, including where in Toronto you live. As indicated in a recent study, auto insurance premiums are highest in North York and Scarborough, while drivers who live in midtown and the downtown core enjoy more affordable rates.

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 all kinds of factors that make claims more likely.

Toronto contains some of the busiest roads in Canada (Highway 401 is the busiest in North America!), and with more cars on the road, your chances of being involved in a collision go up.

On top of this, Toronto is a large city and the chance of your car being stolen, or broken in to, 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.

Car insurance is mandatory in Toronto and you must have valid insurance in order to operate a vehicle. If you get caught driving without insurance, the minimum punishment is a fine starting at $5,000. Many uninsured drivers immediately see their car impounded and licence suspended. Your future car insurance premiums will skyrocket too. To prevent this, always drive with car insurance.

There are optional endorsements and coverages you can add to your insurance policy, but every Toronto driver must have the following:

1. Third-party liability.
2. Direct Compensation Property Damage.
3. Statutory Accident Benefits.
4. Uninsured Automobile Coverage.

See our Ontario page for more information about mandatory auto insurance coverages in this province.

Every time you request a quote for car insurance, the insurer will ask a few questions to determine how much you should pay. Some of the factors that affect your rate in Toronto include:

• Your address. If you live in an area with lots of vandalism, theft or break-ins, you will have to pay more for coverage. Parking in a secure garage could help reduce this cost.
• Your age. Younger drivers, especially males under the age of 25, get in the most accidents and face the highest premiums. As you get older and develop experience, your rates decrease.
• Your annual mileage. More time on the road increases your chances of getting into a collision. If you can cycle or take the TTC to work instead of driving, you will save on auto insurance.
• Your driving history. If you have a long, clean driving record, insurance companies will want your business and offer the most competitive prices. Conversely, if you have multiple tickets, or have been found at-fault for an accident in the last few years, you can expect to pay more.

Learn more on how auto insurance rates calculated in Toronto, Ontario.

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).

InsuranceHotline.com shoppers save an average of $427 on their car insurance premium by comparing car insurance quotes from over 30 insurance companies in Canada.

If it fits your budget, increase your deductibles from $500 to $1,000 to save 5 to 10% on your Toronto car insurance.

A single annual payment can shave off administrative fees associated with monthly payments.

You can save anywhere from 5 to 15% off each policy when you bundle your home insurance and car insurance under the same insurance provider, which means you’re not only getting the cheapest Toronto car insurance, but the cheapest Toronto home insurance too. Simply select the bundling option when completing your home or auto quote to unlock these savings.

Save 10 to 20% when you insure all your vehicles under the same policy.

Let your insurer know if you have winter tires. A winter tire discount could save you about 5%.

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.

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.

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.

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.

In Toronto, you cannot pass streetcars when the doors are open and must stop behind the streetcar whenever it stops to let passengers board. If you are driving behind a streetcar, wait until the doors are closed and be sure there are no late stragglers attempting to board before you release your foot off that gas pedal. 

Drivers are required to give cyclists a minimum of one metre space when passing. If not obeyed, drivers can face a fine of $110 ($85 set fine, $5 court fee plus $20 victim surcharge fee).

Dooring is a real concern in Toronto. Before opening your door, make sure no cyclists are passing or risk a fine totalling $365 (up to $1,000 if you contest it) plus 3 demerit points upon conviction.

There is enough to distract you in a busy city without the addition of your phone. If you're caught distracted driving, you face fines of $490 to $1,000 plus three demerit points. If careless driving is also a factor, these fines climb to up to $2,000 with six demerit points plus a possibility of jail time and licence suspension. This can also escalate to dangerous driving, which holds jail terms of up to 10 years for causing bodily harm and 14 years for causing death.

Most local streets have a default speed limit of 50 km/hr when not posted. However, this decreases to 40 km/hr on local streets adjacent to schools, parks and in many neighbourhood communities.