Best Car Insurance in Ontario

Individual provincial and territorial regulations determine the necessary level of coverage that must be obtained to operate a car legally. However, third-party liability insurance is mandated throughout Canada, with an Ontario-set minimum requirement of $200,000. In addition to liability, you are legally required to have uninsured motorist coverage, statutory accident benefits coverage, and direct compensation-property damage (DC-PD) coverage in Ontario.

Third-party liability coverage

This safeguards you in the event that, while driving, you cause harm to others or their property. In Ontario, the required minimum is $200,000. This helps cover any associated expenses, such as legal or settlement costs, medical bills and more.

Uninsured motorist coverage

This covers the cost of any injuries you and your relatives experience in a collision with an uninsured driver. If it is possible to identify the uninsured motorist, it may also cover any damages to your vehicle. If not, you will have to depend on collision or comprehensive insurance to cover the repair costs.

Accident benefits coverage

This coverage covers costs not included in provincial coverage, like rehabilitation, attendant care and income replacement if you are hurt in an accident, regardless of fault. It may even be able to pay for funeral costs. Moreover, the coverage of this kind of insurance may also include damages for harm done to pedestrians, cyclists, and other passengers.

Direct compensation-property damage (DC-PD) coverage

If another driver caused the collision (so you are not at fault), DCPD may pay for your vehicle’s damage and damaged contents and any loss of use while it is being repaired.

Penalties for driving without insurance vary by province. They can include a fine, a suspension of your licence for up to a year, and impounding of your vehicle.

Ontario follows a no-fault insurance system, where drivers must go through their insurance company regardless of who is at fault in an accident. If you are in a collision without insurance, you will be held responsible for any damages, as it is uncommon for one person to be entirely at fault. Additionally, you will be unable to sue for any accident benefits, which cover lost income and medical expenses.

Without insurance, the owner’s insurance premium will increase if you borrow someone’s car and get into an accident. Furthermore, driving without insurance can have long-term consequences, such as limiting your ability to acquire or obtain reasonably priced insurance.

What is a no-fault car insurance system?

In Canada, no-fault car insurance refers to a system where your insurance company will cover your claim, regardless of whether you are at fault. Each province in Canada has a no-fault insurance system with varying degrees of coverage. Some provinces permit individuals to sue for damages, whereas others, such as Quebec, do not. The no-fault system is generally viewed positively because it helps to avoid delays in claim payments and access to medical care.

Third-party liability insurance. It is mandated throughout Canada, with a minimum requirement of $200,000 for Ontario motorists, but it is encouraged to have at least $1,000,000 in liability insurance to cover accident-related injuries and property damage.

To be eligible for car insurance in Canada, you must meet certain requirements, including being a resident of Canada, possessing a valid driver’s licence, and using the car for personal use. Additionally, you cannot have been found guilty of auto insurance fraud within the past 10 years, and you must be truthful with your insurance company about important details such as your residence, the car being insured, and any modifications made to it. It is worth noting that previous losses or convictions may make it difficult to find an insurance provider willing to cover you, but options such as Facility Insurance or insurance companies specializing in high-risk drivers are available to you.

The Financial Services Regulatory Authority of Ontario (FSRA), formerly known as the Financial Services Commission of Ontario (FSCO), is responsible for regulating auto insurance in Ontario. As an agency of the Ministry of Finance, FSRA oversees all insurance regulations and has the authority to approve or reject requests for car insurance rate changes. 

Auto insurance in Ontario is a privately-operated industry, which means that you buy your policy from a private company. Car insurance providers may apply to increase or decrease their rates at any time throughout the year. If an insurer experiences a rise in payouts due to car accidents, they may apply for a rate increase to help cover their costs. This is why it is vital to compare quotes to obtain the most affordable rate.

Once you meet the provincial requirements, it’s up to you to decide what coverage you get for your car. In general, buying coverage like comprehensive or collision insurance for new or costly vehicles is worthwhile. Basically, you want extra insurance coverage on your vehicle if you know you can’t buy it new again or if repairs would be expensive to cover. You can discuss removing your extra coverages with your insurer once your car ages and its depreciation value has reduced considerably.

As for liability coverage, while the minimum is $200,000, insurance companies often recommend policyholders have at least $1 million in coverage. However, damages can easily exceed $1 million if you are found to be at fault for an accident that results in a serious injury to another person. Or, you run an even higher risk if there are multiple injuries to several people involved in the same accident, as they must share the same third-party liability limit. This means you’d be left on the hook for covering any amount that exceeds your policy limit. This is one of the major reasons some insurance companies advise increasing policy limits to $2 million, especially since the cost to increase is typically minimal. 

Furthermore, if you’re leasing or considering a loan for your car, your lender may also require you to buy extra insurance. Lenders want to protect their loan and investment in the event that you are involved in an accident and have to write off your vehicle. 

The following are additional coverage types for optional auto insurance, each accompanied by a summary to assist you in determining whether to add any of them to your policy to provide protection against loss or damage.

Specified perils coverage:

The following insurable perils are included in this insurance optional coverage: fire, theft or attempted theft; lightning, wind, hail, or rising water; earthquake; explosion; riot or civil unrest; falling or forced landing of an aircraft or components of an aircraft; or the stranding, sinking, burning, derailment or collision of any kind of transport in, or upon which an insured vehicle is being carried on land or water.

Collision coverage:

This insurance covers losses incurred when a covered vehicle collides with an object or rolls over. The term “object” refers to anything in or on the ground, as well as another vehicle, including a trailer connected to the insured vehicle.

Comprehensive coverage:

This coverage covers losses included under “specified perils,” falling or flying objects, missiles, and vandalism. However, it does not include losses covered by collision coverage. 

All perils coverage:

This combines both collision and comprehensive coverage. It also includes damage or loss if a resident of your house steals a car that is protected under your insurance coverage. It also insures you in the event of vehicle theft from an employee who drives, services or repairs it. For example, if a mechanic at the repair shop stole it.

Coverage for transportation replacement (OPCF 20)

This insurance policy covers the expenses of your transportation replacement and rental car insurance in case your vehicle is stolen or you are involved in a car accident. 

Liability for damage to non-owned automobile(s) (OPCF 27)

It covers any damages caused to a borrowed or rental vehicle, usually up to a coverage limit of $25,000 to $50,000. 

Accident waiver/forgiveness (OPCF 39)

This coverage safeguards your premium from increasing in the event of your first at-fault accident.

Waiver of depreciation (OPCF 43)

This insurance coverage provides protection by preventing your insurance company from reducing the value of your vehicle due to depreciation when settling a claim. It is designed for new vehicles that have less than 5,000 kilometres on them.

Family protection coverage (OPCF 44R)

This coverage provides protection if you or a family member sustains injuries, regardless of whether the accident happens while you or your family members are in the vehicle.

A variety of factors influence your auto insurance rate in Ontario. The most common factors that insurance providers consider when determining your rate are:

1. Your licence level. Drivers with G1 or G2 licences pay more than those with full G licences.
2. Your driving record and experience. Insurance providers consider your history of accidents and claims, as well as your driving experience.
3. Your claims history. Having a history of claims can increase your premiums.
4. Your location. Living in densely populated areas or high-crime neighbourhoods can raise your insurance rates.
5. Your vehicle. Your car’s make, model, and year, as well as its safety rating, theft potential, and accident risk, will be taken into consideration.
6. Your vehicle usage. Driving for business or long commutes can increase your insurance premiums.
7. Your age, gender, and marital status. Younger drivers, males, and single individuals tend to pay higher rates because they are considered higher risk.
8. Your insurance provider. Different insurance providers offer varying rates, discounts, and incentives.
9. Additional drivers. Adding a secondary driver to your policy can increase your rates, as their driving history and other factors will be taken into account.

Driver’s education. Completing an accredited driver’s education program can lower your rates, especially for new drivers.

Yes. Various factors, such as your driving history, age, and others, can affect your eligibility for car insurance. When deciding whether to insure you, insurance companies will consider how many traffic infractions or accidents you’ve had in the past five to seven years. Although some insurance companies may deny coverage to drivers with poor driving histories, other companies specialize in offering coverage to high-risk drivers. Therefore, it is recommended to keep looking for an insurance provider willing to offer coverage despite your driving history.

It’s important to remember that while some individual insurance companies can deny coverage in extreme cases, it is against the law to drive without insurance in Ontario. As long as your license is valid, you are eligible for car insurance, even if you are considered a high-risk driver. Therefore, if an insurance company denies you coverage, they must provide you with legitimate reasons for the denial in writing. Contact the Financial Services Commission of Ontario (FSCO) if you believe you have been denied coverage for reasons that violate Ontario’s Insurance Act, such as your credit history, physical or mental disability, location, or being new to the country.

As of January 2023, Ontario had the third-highest rate for auto insurance in Canada, with it sitting at a little under $2,300 annually, according to Insurance Business Canada.

Although comparing car insurance quotes can help you find the best car insurance in Ontario, there are other ways to save money on your premiums. Here are some tips:

1. Bundle policies: Combining auto insurance with other insurance policies, such as home, RV, cottage, or business insurance, can result in up to 15% savings on each bundled policy.
2. Increase your deductible: By increasing your deductible from $500 to $1,000, you could see up to 10% savings on your policy.
3. Pay annually: Paying annually instead of monthly can save you from paying additional administration fees for the 11 extra monthly payments.
4. Review your policy regularly: Review your coverage regularly and remove any coverages you no longer need to save money on your insurance.
5. Multi-vehicle discounts: Insuring multiple cars with the same insurance company could result in up to 15% savings.
6. Install winter tires: By installing winter tires, you can save up to 5% on your Ontario car insurance.
7. Choose a safe car: Vehicles with high crash-test scores, anti-theft devices, dash cams, and advanced safety features may lead to lower car insurance rates.
8. Take a driver’s education course: Taking accredited driver’s education courses can significantly reduce your premiums, especially for young drivers.
9. Pay on time and drive responsibly: Insurers appreciate responsible customers who pay on time and keep their driving records clean. This can lead to lower premiums over time.

Ask about usage-based auto insurance: Installing a telematics device that monitors your driving habits can result in premium adjustments of up to 10%.

Sure, you can get a separate insurance policy for each of your vehicles. You may want to do this if you own several vehicles. Then again, obtaining separate insurance policies for every vehicle is generally more expensive than getting multi-car insurance, which covers several vehicles under a single policy. 

However, you may need multiple insurance policies for a few reasons, including the following:

• You own a classic or luxury vehicle that requires a custom policy.
• You have a young or high-risk driver driving one of your vehicles.
• One vehicle is used for commercial purposes only.

What is a multi-car insurance policy?

Depending on the insurance provider, a multi-car (or multi-vehicle) insurance policy works by insuring multiple vehicles under a single policy and can help save the policyholder up to 15%. However, each vehicle insured by your multi-car insurance will still require its own coverage.

Each licensed individual living under your roof is eligible to be added to your multi-car insurance policy, including your spouse, children, and even a roommate. Plus, the same effective and expiration dates will apply to all vehicles insured by this policy, making it simpler to remember when monthly or yearly payments are due.

A multi-car policy covers more than just automobiles, too. Generally, you may extend your multi-car insurance to insure up to five vehicles at a time, including RVs, motorbikes, boats, and snowmobiles.

Why should you opt for multi-car insurance instead of two separate policies?

Opting for a single insurance policy that covers all the drivers and vehicles in your household is often a more practical financial decision than buying two separate policies. This approach lets each household member enjoy tailored coverage while simultaneously taking advantage of the discounts associated with bundling car insurance policies. 

The only stipulation with multi-car insurance is that you must buy enough coverage to meet the minimum requirements of your province or territory of residence. You could save up to 20% by purchasing a multi-car insurance policy.

In addition to being cost-effective, multi-car insurance policies offer the added convenience of having just one insurance bill and renewal date to keep track of. It’s important to note that multi-car insurance is a viable option for families of any size, regardless of whether it’s just you and your partner or you have several relatives living with you. And while it typically provides coverage for household members, it may even extend to those who reside in different locations, such as your teenage child who lives in a college dorm for part of the year.

Yes. You are absolutely allowed to purchase two car insurance policies for the same vehicle. But your insurance provider won’t cover the same vehicle more than once. As a result, you would need to acquire the second policy from a separate company if you wished to do so. Also, you would need to pay for each policy separately.

However, while buying two auto insurance plans is permitted in Canada, you cannot file the same claim with two different carriers. As such, you should never buy two policies with the intention of getting reimbursement from both insurance companies. Any attempt to do so could end up with not only your coverage being cancelled but charges for insurance fraud, which, if convicted, could land you up to 14 years in jail. As such, most people stick to one auto insurance policy with an occasional exception for specialty vehicles, such as classic or vintage cars.

When you share a home with your significant other, is it better to include them in your existing auto insurance plan or have them purchase their own separate coverage? 

Chances are good that your insurance provider will suggest you add them to your coverage if they live in your home and drive your car. Being covered under the same auto insurance plan is often the most affordable option for couples. Despite the increase in insurance premiums when adding a second driver, it still remains cheaper than paying for two separate policies. Plus, if you each own a vehicle, you may even qualify for a multi-car discount.

However, even if you live together, there may be a few reasons to keep your policy separate, depending on your situation. You could see a significant increase in insurance costs on either policy if you or your partner have a bad driving record, and you may find it more cost-effective to keep the two policies instead. Also, if either of you owns a classic or luxury vehicle, adding yourself or your partner to the other’s policy could lead to a significant increase in premiums as well.

The only part of car insurance that’s standard across Canada is the requirement of third-party liability insurance; however, even that differs in mandatory policy limits. As every province is different, so are their requirements for car insurance. 

For example, Alberta, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, and P.E.I. have private insurance, while public insurance is available in Saskatchewan, Manitoba, and B.C. Private insurance companies compete for clients while the government runs public insurance. Lastly, Quebec has a hybrid of both.

Mandatory coverage for each province

British Columbia

• Third party liability $200,000
• Inverse liability 
• Enhanced accident benefits
• Underinsured automobile 
• Basic vehicle damage 

Saskatchewan

• Third party liability $200,000
• Physical (vehicle) damage 
• Personal injury 

Alberta

• Third party liability $200,000
• DCPD (Direct Compensation—Property Damage)
• Accident benefits

Ontario

• Third party liability $200,000
• Uninsured motorist
• Accident benefits
• DCPD

Québec

• Accident benefits 
• Civil liability $50,000

Newfoundland and Labrador

• Third party liability $200,000
• Uninsured motorist
• DCPD

New Brunswick

• Third party liability $200,000
• Uninsured motorist
• Accident benefits
• DCPD

Prince Edward Island

• Third party liability $200,000
• Uninsured motorist
• Accident benefits
• DCPD

Nova Scotia

• Third party liability $500,000
• Uninsured motorist
• Accident benefits
• DCPD

The cheapest insurance rates in Ontario are found in Alexandria, Brockville, Cornwall, Kingston, North Glengarry and Ogdensburg at $1,132 annually. 

At the opposite end of the spectrum, the Greater Toronto Area in Ontario has some of the highest annual rates for auto insurance, with areas of Vaughan sitting at $2,746, followed by areas of Scarborough at $2,562.

That’s why comparing quotes is so important when hunting for car insurance. While all insurance companies use the same information when determining your insurance quote, they evaluate your risk uniquely. As a result, they all offer different prices for coverages that are effectively the same. To discover cheaper vehicle insurance rates, shopping around and comparing quotes from many insurance providers is strongly advised.

You’re not alone if you think that because EVs are safer, consume less fuel, and are better for the environment, their insurance costs should be lower. Like traditional gasoline- and diesel-powered vehicles, electric vehicles (EVs) also need vehicle insurance. And while many insurance companies find certain features of hybrids and EVs attractive, other features are seen as bigger risks. 

First, it’s important to know that Ontario’s auto insurance regulations still apply to electric and hybrid vehicles. This means they still require $200,000 in third-party liability coverage plus uninsured motorist coverage, statutory accident benefits coverage, and direct compensation-property damage (DC-PD) coverage.

Hybrids and EVs are generally more expensive vehicles and include several advanced features. In the event of an accident, their batteries alone are costly to replace, and you typically cannot service EVs at a conventional auto centre due to their sophisticated systems. These reasons lead to higher replacement costs and, thus, higher insurance premiums. 

On the other hand, their advanced safety features often help to lower your insurance rates. Many have crash-avoidance capabilities that can reduce the likelihood of an accident, making them safer and less of a risk in the eyes of insurance providers. Also, some insurers provide discounts for hybrid and electric vehicles, which can help reduce premium rates.

In the end, it really all comes down to which EV or hybrid you decide to purchase and your insurance provider.

You must always have your own insurance in order to drive a car in Ontario legally. Nevertheless, Uber and Lyft provide complete coverage via their business plans as long as a driver is logged in and actively working as a ridesharing driver.

However, if a policyholder fails to inform their insurance company about working for Uber or Lyft, they could risk denying a claim or even cancelling their policy. Ridesharing increases your time on the road and your level of risk as a driver. Plus, personal car insurance plans do not cover the commercial use of a vehicle. As such, you must inform your auto insurance provider of your plans to rideshare.

Luckily, there are auto insurance companies in Ontario that offer unique ride-sharing insurance plans for drivers who use their personal vehicles. Since commercial-use auto insurance is often too expensive for ride-sharing motorists, this policy can offer a more affordable option.

The best course of action would be to contact an insurance broker who can assist you in evaluating various quotes from the leading insurance providers in Ontario. With the help of an insurance broker, you can quickly find the right level of coverage at the best rate for the right price. After all, cheap insurance is not necessarily better insurance.

Why should you work with an insurance broker?

Insurance brokers act as intermediaries between you and multiple insurance companies, giving you access to various options. Each insurance provider calculates rates differently by considering factors such as your location, age, and specific requirements. Rather than contacting each provider individually, an insurance broker can compare rates from all of them and provide you with the best available option. Essentially, insurance brokers work on your behalf, prioritizing your needs over those of the insurance company. This means that they can help you find the lowest auto insurance premiums without compromising the coverage you require. 

What is the difference between an insurance broker and an insurance agent?

Insurance agents are licensed professionals but lack independence as they are employed by a single insurance company and can only offer that company’s products and prices. However, this means that if your circumstances change, you may no longer meet that company’s requirements. Insurance companies tend to seek out customers who fit a specific profile, and their agents cannot provide assistance if you fall outside that category.

On the other hand, insurance brokers act as intermediaries between you and multiple insurance providers. They are client-focused and not affiliated with any insurance company, with their primary objective being to secure the right insurance for you at the most reasonable price. As such, this makes using insurance brokers for all your insurance needs a wise choice.

Levitt Insurance Brokers is a top-rated insurance company in Canada with a mission to provide transparency and simplify the insurance sector by offering information, guidance, and straightforward solutions to make your life easier. We take pride in being different from other insurance companies, and our strength lies in making complex insurance policies easy to understand. Our ultimate goal is to help you secure what matters most to you hassle-free and efficiently, providing you with peace of mind in just a matter of minutes.

Our focus at Levitt is not merely on selling insurance policies but on helping you protect your most valuable things. We understand the importance of having someone reliable to turn to in times of need. Our objective is to find the most suitable insurance plan for your individual needs, recognizing that every person has distinct requirements, circumstances, and financial capabilities.

At Levitt Insurance Brokers, we offer tailored solutions to meet your specific needs. With our state-of-the-art tools, you can compare insurance policies and select the perfect one for you in just a few clicks, saving you time and money. Let us handle your insurance coverage requirements and provide you with the best options. With Levitt, it can truly be that simple.