Canada is unique in having both public and private auto insurance systems operating within the same country. Four provinces use some form of public auto insurance. The rest rely entirely on private insurers competing for your business.
Ontario uses a fully private insurance system regulated by the Financial Services Regulatory Authority of Ontario (FSRAO). It consistently has the highest average car insurance rates in Canada, driven by high population density, vehicle theft rates (especially in the GTA), legal costs, and fraud.
Average annual premium: $1,500–$2,000. Mandatory coverage includes third-party liability ($200,000 minimum), accident benefits, uninsured motorist, and direct compensation for property damage (DCPD). Drivers must report all accidents to their own insurer. Ontario has a no-fault accident benefits system, meaning your insurer pays your injury costs regardless of who caused the accident.
Shopping around is critical in Ontario. Rate differences between insurers can exceed $1,000 per year for the same coverage. Independent brokers and online comparison sites are both widely used.
BC drivers must buy basic auto insurance from ICBC (Insurance Corporation of BC), the provincial Crown corporation. Optional collision and comprehensive coverage can be purchased from ICBC or from private insurers including Intact, Wawanesa, and others.
In 2021, ICBC shifted from a tort-based system to an "enhanced care" model. Under care-based insurance, the focus is on recovering from injury with medical benefits, income replacement, and rehabilitation — rather than on litigation and fault determination for injury claims. This change significantly reduced legal costs and is gradually lowering premiums.
Average annual premium: $1,400–$1,700. Under the new model, rates are based heavily on your own driving record rather than the historical practice of higher rates for high-risk postal codes.
Alberta uses a private insurance system. It is one of the more expensive provinces for car insurance, in part due to severe weather events (hail, flooding) and relatively high accident rates.
Average annual premium: $1,300–$1,600. Alberta regulates auto insurance through the Alberta Automobile Insurance Rate Board (AIRB). The province uses a direct compensation system and a modified no-fault system for accident benefits while retaining the ability to sue for pain and suffering above the minor injury cap (currently $5,500 for minor injuries).
Alberta has a Direct Compensation for Property Damage (DCPD) rule, meaning your own insurer pays for your vehicle damage when another driver is at fault.
Quebec operates a unique hybrid model. The SAAQ (Société de l'assurance automobile du Québec) handles all bodily injury claims through a public no-fault system — meaning no one can sue for bodily injury from a car accident in Quebec. Property damage (damage to vehicles and other property) is covered by private insurers.
This system results in significantly lower premiums than most other provinces. Average annual premium: $700–$1,000, among the lowest in Canada. Every Quebec driver pays an annual contribution to SAAQ as part of vehicle registration fees. Property damage insurance is purchased privately and is relatively affordable because the expensive bodily injury component is off the table.
Saskatchewan uses SGI (Saskatchewan Government Insurance) for basic auto coverage. SGI administers the provincial vehicle registration and driver licensing system as well. Optional additional coverage is available from private insurers and from SGI directly.
Average annual premium: $1,000–$1,400. Saskatchewan uses a tort system for injury claims — at-fault drivers can still be sued. SGI recently introduced changes to rating practices to more closely reflect individual driving records.
Manitoba uses MPI (Manitoba Public Insurance) for basic Autopac coverage. Every registered vehicle must have basic Autopac. Optional additional coverage is available from MPI or private insurers.
Manitoba uses a no-fault system for injury claims. Rates are set by the Public Utilities Board. Average annual premium: $1,100–$1,400. Safe Driver Rebates can reduce premiums significantly for drivers with long claim-free records.
The Atlantic provinces (excluding Newfoundland/Labrador which has its own system) use private insurance with relatively similar regulatory frameworks. Nova Scotia and New Brunswick both have direct compensation for property damage and modified tort systems for injury.
Average annual premiums range from $900–$1,300. New Brunswick and Nova Scotia have rate filing requirements where insurers must justify rate increases. PEI tends to have slightly lower rates due to lower traffic density.
Newfoundland uses private insurance. It is one of the Atlantic provinces where rates have historically been higher relative to the rest of Atlantic Canada. The province uses a tort system for injury claims, which contributes to higher legal costs and premiums. Average annual premium: $1,000–$1,400.
The territories use private insurance. Due to low population density, limited repair facilities, and the challenges of extreme weather and remote driving conditions, rates tend to be higher. Many northern residents drive longer distances on rougher roads.
When you move to a new province, you must get insurance in your new province within a reasonable timeframe (usually within 60–90 days of establishing residency). Your driving record will transfer with you. If you are moving from Ontario to Quebec, expect a significant drop in your insurance costs. Moving from Quebec to Ontario often comes as an unpleasant shock.
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