Cheap Toronto Car Insurance Quotes
Toronto drivers save $634* on average by comparing car insurance quotes on InsuranceHotline.com
Jump straight to...
- How to get the cheapest Toronto car insurance quote
- How does Toronto auto insurance work?
- Toronto mandatory and optional auto insurance coverages
- Compare Toronto car insurance premium against other Ontario regions
- How much does the cheapest Toronto car insurance cost?
- Where in Toronto has the cheapest car insurance?
- Factors that determine your Toronto car insurance rate
- How to get the cheapest car insurance in Toronto
- Frequently asked questions about Toronto car insurance
How to get the cheapest Toronto car insurance quote
Get multiple car insurance quotes in the time it takes to get just one
Enter Your Postal Code
Enter your postal code to begin!
Enter Driver Details
Tell us a little bit about your vehicle, driving & car insurance history.
Compare Your Quotes
Compare your car insurance quotes from more than 30 top insurance companies.
Pick Your Policy
Pick the insurance policy that's right for you to connect directly with the insurance professional of your choice.
We've got hundreds of 5 star reviews
2,245 reviews on TrustPilot. See some of the reviews here.
1 day 6 hours ago Curtis
1 day 9 hours ago Robert Clarkson
1 day 12 hours ago Vincenzina Perri
2 days 10 hours ago Keith
2 days 12 hours ago Dev
2 days 17 hours ago Georgia
2 days 18 hours ago Shirley Munro
2 days 20 hours ago Hoang Tran
2 days 22 hours ago Michael Benninger
3 days 4 hours ago Gene
3 days 6 hours ago D on
3 days 6 hours ago Robert
3 days 7 hours ago Remonia Thompson
3 days 8 hours ago Rich
3 days 8 hours ago Luis
3 days 9 hours ago Cedric Habbib
3 days 9 hours ago Brad Spencer
Content Manager
Updated On
April 24, 2025How 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, 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.
Changes to Ontario's auto insurance in 2024
Ontario is currently in the process of reforming how auto insurance works in the province. The goal of this is to reduce the amount of coverage drivers are forced to take out, and in turn, lower their premiums.
Some of the proposed changes include:
- Option to remove the caregiver benefit, housekeeping and home maintenance expenses benefit, income replacement benefit, and death and funeral benefits (benefits for medical, rehabilitation, and attendant care will remain mandatory, however).
- Making auto insurance companies the first payer for medical and rehabilitation benefits (at the moment, a person's private medical insurance is the first payer). This change is meant to streamline the claims process and lead to earlier resolution.
- Option to remove direct compensation for property damage (DCPD) coverage (in effect since January 2024).
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. |
| 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. |
| Direct Compensation-Property Damage (DC-PD) | Optional | DCPD is included in all standard insurance policies, but Ontario drivers can apply to remove it. DCPD pays to repair or replace your car if you're in a collision where the other driver is at fault. You lose this coverage by removing DCPD, as well as your ability to sue the other driver for repairs. |
| 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 | This 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. |
Cheap car insurance quotes 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
Savings: $265
Driver:Male, age 49, Toronto, ON
Driving: 2016 BMW 550
Current Rate: $2,912
Cheapest Rate: $2,647
Savings: $419
Driver:Male, age 21, Toronto, ON
Driving: 2012 GTI Hatchback 2DR
Current Rate: $2,946
Cheapest Rate: $2,527
Savings: $538
Driver:Female, age 62, Toronto, ON
Driving: 2011 Nissan Sentra SE-R 4DR
Current Rate: $2,292
Cheapest Rate: $1,754
Savings: $202
Driver:Male, age 34, Toronto, ON
Driving: 2017 Honda Civic 4DR
Current Rate: $2,983
Cheapest Rate: $2,781
Savings: $496
Driver:Female, age 31, Toronto, ON
Driving: 2016 Kia Optima EX 4DR
Current Rate: $2,304
Cheapest Rate: $1,808
Car insurance premiums in Toronto tend to be higher than in the surrounding areas, particularly rural and small urban areas. This is not surprising, as higher population density in large cities usually means more accidents and theft – which, in turn, means more claims, and consequently, higher premiums.
Out of the total quotes gathered by InsuranceHotline.com in the first quarter of 2024, 46% of those from Toronto had an annual premium between $2,000 and $5,000. By contrast, areas outside of Toronto (both urban and rural) had only 35% of quotes in this premium range. The difference is even more stark when we look at premiums below $2,000. In the first quarter of 2024, Toronto had 30% of quotes with a premium below $2,000, while the rest of the province had a whopping 54%. This indicates that, on average, drivers in Toronto pay more for their car insurance than anywhere else in Ontario.
Here’s the complete breakdown of the data:
| Annual premium range | Percentage of quotes in Toronto | Percentage of quotes in the rest of Ontario (outside of Toronto) |
|---|---|---|
| Below $1,000 | 4% | 23% |
| $1,000 - $2,000 | 26% | 31% |
| $2,000 - $3,000 | 20% | 18% |
| $3,000 - $4,000 | 15% | 11% |
| $4,000 - $5,000 | 11% | 7% |
| Over $5,000 | 23% | 10% |
This aligns with the data gathered by the Financial Services Regulatory Authority (FSRA), Ontario’s car insurance regulator. Here’s their breakdown:
| Region | As of Oct 2023 | As of Jun 2023 | As of Oct 2022 | As of Jun 2022 | As of Oct 2021 |
|---|---|---|---|---|---|
| Ontario | $1,796 | $1,737 | $1,673 | $1,658 | $1,645 |
| GTA | $2,391 | $2,323 | $2,241 | $2,223 | $2,208 |
| Other Urban | $1,711 | $1,652 | $1,588 | $1,574 | $1,564 |
| Rural | $1,404 | $1,353 | $1,305 | $1,295 | $1,285 |
Overall, car insurance premiums have been steadily rising in the past several years (since the end of the COVID-19 pandemic). According to the FSRA, GTA’s annual premium rose 8% in the span of two years – from $2,208 in October of 2021 to $2,391 in October of 2023.
As for your best defence against increasing 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.
How much does the cheapest Toronto car insurance cost?
Though most premiums in Toronto range from $1,000 to $5,000 per year (as of the first quarter of 2024, according to our data), some individuals are able to score premiums below $1,000. The lowest annual premium scored in the first quarter of 2024 on InsuranceHotline.com was $351 – by a female driver who is 72 years old and drives a 2018 Toyota Yaris hatchback.
As shown in the table above, however, only about 4% of Torontonians enjoy annual premiums below $1,000, making this policyholder an outlier.
What was it then that allowed this person to score such a low premium? For starters, they used InsuranceHotline.com to compare car insurance rates. Having insurers compete for the lowest price leads to cheap quotes. Give it a try yourself, if you don’t believe us.
Secondly, this person belongs to an age group that is statistically less likely to get into an accident and file a claim. They also drive a vehicle with a low-to-medium CLEAR (Canadian Loss Experience Automobile Rating) ratings across all categories. The lower the CLEAR rating, the less likely a vehicle is to have a claim filed for it. CLEAR doesn’t just account for accidents – it accounts for everything, including theft. So, if your vehicle is more likely to get stolen (for instance, if you own the 2020 Honda CR-V, which is the most stolen car in Ontario as of 2024), then its CLEAR rating will be higher, resulting in more expensive premiums for the driver.
Other factors that probably have contributed to this policyholder’s lower premium include location, coverage, driving record, claim history and driving experience. It’s reasonable to assume, based on how low the premium is, that this person has a clean driving record (meaning no traffic tickets or other infractions), decades of driving experience and few to no claims filed in the past five years. Their coverage could also be minimal, with a high deductible.
Gender is another factor that can affect one’s premium, as women tend to get into fewer accidents than men. This mainly applies to young drivers, however – those in their 20s and early 30s. So, even though this driver is a woman, her age likely played a small role in determining her premium (or no role at all).
Many of these factors are unfortunately outside of the driver’s control, but not all of them. There are ways to get cheap car insurance, regardless of your situation.
Where in Toronto has the cheapest car insurance?
According to InsuranceHotline.com’s records, drivers were able to secure the cheapest car insurance rates in the following parts of Toronto:
| FSA/District | Annual premium | Driver’s age | Driver’s gender | Driver’s vehicle (year, make and model) |
|---|---|---|---|---|
| M6C - York (Humewood-Cedarvale) | $351 | 72 | Female | 2018 Toyota Yaris LE 4DR Hatchback |
| M4S - Central Toronto (Davisville) | $504 | 57 | Female | 2009 Toyota Corolla LE 4DR |
| M6G - Downtown Toronto (Christie) | $521 | 52 | Male | 2000 Volkswagen Jetta GLS 1.8T 4DR |
Why FSA and district matter. FSA, or Forward Sortation Area, is the first three characters of your postal code. It designates your district or neighbourhood within the city. It's one of several factors car insurers consider when calculating premiums. Location matters because it can determine the probability of something happening to your vehicle. For instance, some areas have a high likelihood of car theft. Others have high traffic congestion, which results in more car accidents. High numbers in both cases can increase premiums in your area (both for you and your neighbours).
Why age and vehicle matter. Toronto is a congested city with plenty of car theft, which is why it tends to have some of the highest premiums in the province. However, other factors can offset this, such as age and vehicle. For instance, the individuals above are all over 50 years old, which puts them in the ‘experienced driver’ category. Experienced drivers are less likely to suffer car accidents, and thus, are less likely to file a claim. The individuals listed above also own vehicles with low CLEAR ratings – older vehicles at that, which typically don’t cost as much to repair or replace as newer ones. Low CLEAR ratings and low repair and replacement costs mean lower premiums.
Why gender (sometimes) matters. Young men (aged 20 to 30) statistically get into more accidents than young women. As a result, men pay higher premiums. However, this factor does not affect older, more experienced drivers – especially those over 50. That's why it's unlikely that gender has played a role in reducing the above-listed premiums.
Other factors. Other factors that might’ve helped these individuals secure cheap premiums include a clean driving record and few to no claims in the past five years. Both factors indicate that the driver is unlikely to get into an accident or file a claim in the future.
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 the cheapest car insurance in Toronto
Saving on car insurance is easier than you think. These 10 tips help ensure youre getting the cheapest Toronto car insurance rate:
Shop around
InsuranceHotline.com shoppers in Toronto saved an average of $1,286* 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 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 from January to December 2023 saved an average of $634 per year. The average savings represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by InsuranceHotline.com.
Frequently asked questions about Toronto car insurance
Here are some of the most common questions we get about car insurance in Toronto.
How can I find the cheapest car insurance quotes 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.
Which companies offer the cheapest car 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 a body called the Financial Services Regulatory Body (FSRA).
Latest articles:
