Auto Insurance in Ontario 2025: Rates and Tips

Ontario has the highest auto insurance rates in Canada. Here's why — and how to pay less.

Ontario consistently has some of the highest auto insurance premiums in Canada, averaging $1,500–$2,200 per year. The private market is heavily regulated by the Financial Services Regulatory Authority of Ontario (FSRA), but rates still vary significantly between insurers and regions. Understanding how the system works is key to getting the best deal.

How Ontario Auto Insurance Works

Ontario operates on a private insurance system with regulated rate approvals. Every insurer must submit rate changes to FSRA for approval. The province uses a "tort-modified" system, meaning you can sue for damages above a threshold, but there are caps on pain and suffering for minor injuries.

The Direct Compensation System

Ontario uses the Direct Compensation – Property Damage (DCPD) system. If you are not at fault in an accident, you deal with your own insurer for property damage rather than suing the at-fault driver's insurer. This speeds up claims processing significantly.

Ontario Auto Insurance: Mandatory Coverages

CoverageMinimum RequiredRecommended
Third-party liability$200,000$1M–$2M
Statutory accident benefitsStandard benefitsEnhanced options available
Direct compensation – property damageRequired—
Uninsured automobileRequired—

Average Auto Insurance Rates by Ontario City 2025

CityAverage Annual Premium
Brampton$2,400 – $3,200
Toronto$2,000 – $2,800
Mississauga$1,800 – $2,400
Ottawa$1,200 – $1,600
Hamilton$1,400 – $1,900
London$1,200 – $1,700
Rural Ontario$900 – $1,400

Brampton and Toronto consistently have the highest rates in Ontario due to higher accident frequency, fraud claims, and dense traffic.

Ontario's Statutory Accident Benefits (SABs)

After an accident in Ontario, your own insurer provides accident benefits regardless of fault. Standard benefits include:

Consider enhanced accident benefits: The standard income replacement cap of $400/week is very low for most working Canadians. If you don't have disability insurance through work, consider purchasing enhanced accident benefits for $5–$15/month more.

How to Lower Your Ontario Auto Insurance Premium

  1. Shop annually: Ontario rates vary enormously between insurers — sometimes 30–50% for identical coverage
  2. Use a broker: Independent brokers compare 10+ companies simultaneously
  3. Telematics/usage-based insurance: Programs like Intact's myDriving or Aviva's Drive can save 10–25% for safe drivers
  4. Bundle home and auto: Multi-product discounts of 5–15%
  5. Maintain a clean record: Tickets and at-fault accidents stay on your record for 6 years
  6. Increase deductibles: Going from $500 to $1,000 deductible typically saves 5–10%
  7. Take a driver improvement course: Can earn discounts, especially for new drivers

At-Fault Accidents in Ontario

Ontario uses the Fault Determination Rules to assign fault percentages in accidents. Being found even partially at fault can increase your premiums significantly. Key points:

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Top Auto Insurers in Ontario 2025