Your Toronto Car Insurance Costs How Much?

A bunch of cars driving down the Gardiner Expressway with Toronto's skyline in the near distance

How much do you spend a year on auto insurance? If you live in Toronto, we bet it’s more than the provincial average of $1,505 reported by the Insurance Bureau of Canada (IBC). Way more. In fact, last year estimated the typical Toronto driver pays an average of $1,948 for their car insurance.

Ouch, that hurts, and prices have probably gotten worse.

Since the beginning of 2019, the Financial Services Regulatory Authority of Ontario (and its predecessor the Financial Services Commission of Ontario) approved auto insurance rate changes each quarter that suggest there is no relief forthcoming.

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A Year’s Worth of Approved Ontario Auto Insurance Rate Changes

Four times a year, the approved changes in rates are released and the following shows how rates have increased, industry-wide in Ontario, since the beginning of 2019.

Timeframe Average Increase # of Insurers Approved Representing % of Ontario Market*
Q4 2019 1.56% 21 40%
Q3 2019 2.60% 26 81%
Q2 2019 1.99% 18 46%
Q1 2019 2.70% 23 57%
* Based on premium volume

What Goes into Determining Your Toronto Car Insurance Rate?

What drives your Toronto car insurance rate? The reality is, it’s complicated as there are many factors that go into the premium you pay. For example, your driving record, insurance history, vehicle driven, and commute distance play a role as do other variables such as the age and experience of any additional drivers you have listed on your policy. But when the only thing different -- than say someone who lives in Peterborough, Ottawa, or London -- is the fact you live in Toronto, why do rates vary so?

It’s all about the likelihood of a claim. Insurance companies study statistical data on claims frequency (and severity), and if collectively, the city you live in is more likely to report insurance claims this added risk will be reflected in your premium. It’s an unfortunate reality of living in a big city with lots of people. Collisions, theft, break-ins, and even fraud all combine to make Toronto one of the most expensive cities in Ontario for insurance coverage.

Finding the Best Auto Insurance Rate in Toronto

Finding the best auto insurance rate in Toronto doesn’t have to be onerous. In just a few minutes at you can quickly compare car insurance quotes from more than 30+ companies. It’s as simple as that to find the cheapest rate for the coverage you need.

What’s more, there’s no need to wait until your policy comes up for renewal to make the switch to a better rate. In fact, there are a variety of times -- that have nothing to do with your renewal date -- when putting your current insurer’s rates to the test could earn you an A+ in saving money:

  • You move. Whether you're moving to Toronto, from Toronto, or within Toronto, your address factors into what you pay, and chances are your premiums will change.
  • You buy a new car. New or used, the vehicle you drive factors into your auto insurance rate. Whether it’s a car, truck, or SUV, when shopping for a new vehicle, keep in mind to shop for insurance too.
  • A ticket or at-fault collision drops off your record. Accidents and tickets happen to even the best drivers and when they do, you’ll pay the price for three years with a ticket and six years with an at-fault accident. When these types of things drop off your driving record and insurance history, however, a whole new world of lower rates are yours for the taking.
  • You get married. The company that provided you the best rate as a single person may not be the same company that provides you the best rate as a married duo now that your spouse’s driving and insurance history matter as well.
  • Your teen gets their driver's licence. Young, inexperienced drivers are always going to result in higher premiums no matter where in the province you live. However, some insurers are more teen-friendly than others.
  • You change jobs or retire. When your daily commute changes, your insurance could change too.

On the road or at home, there are plenty of times when your premiums could change and when they do another insurer other than your current one may be ready to step with a new cheaper price. Don’t let an opportunity to secure a lower auto insurance rate pass you by because you’re waiting for your policy to come up for renewal.