Average auto insurance costs by province, public vs private systems explained, and how to lower your premiums.
| Province | Avg Annual Premium | System | At-Fault Rules |
|---|---|---|---|
| British Columbia | $1,832 | Public (ICBC) | Care-based (no-fault as of 2021) |
| Ontario | $1,920 | Private | Modified no-fault |
| Alberta | $1,640 | Private | Tort-based (can sue) |
| Quebec | $780 | Mixed (SAAQ + private) | No-fault bodily injury (SAAQ); tort for property |
| Manitoba | $1,080 | Public (MPI) | No-fault |
| Saskatchewan | $1,100 | Public (SGI) | No-fault |
| Nova Scotia | $1,350 | Private | Tort-based |
| New Brunswick | $900 | Private | No-fault/tort hybrid |
| Newfoundland | $1,150 | Private | Tort-based |
| PEI | $850 | Private | Tort-based |
Ontario and BC have the highest average premiums in Canada. Quebec consistently has the lowest due to its hybrid public/private model where SAAQ covers all bodily injury claims at flat rates.
| Coverage | Required? | What It Covers |
|---|---|---|
| Third-party liability (min $200K–$1M) | Yes — all provinces | Damages/injuries to others |
| Accident benefits (no-fault) | Yes — most provinces | Your medical costs after accident |
| Uninsured motorist | Yes — all provinces | Accidents with uninsured drivers |
| Collision | Optional (required by lender) | Damage to your vehicle in a collision |
| Comprehensive | Optional (required by lender) | Theft, fire, flood, falling objects, animals |
| Specified perils | Optional | Only specific listed perils |
| Strategy | Estimated Savings |
|---|---|
| Bundle with home/tenant insurance | 5–15% |
| Increase deductible ($500 → $2,000) | 10–20% |
| Winter tires (where applicable) | 5% in ON, QC, NB, PEI |
| Usage-based insurance (telematics) | 10–30% for safe drivers |
| Complete approved driver training | 5–15% for new drivers |
| Pay annually instead of monthly | 2–5% |
| Maintain a clean driving record | Maintains lowest base rate |
| Compare 3–5 providers before renewing | $200–$600/year potential |
Public (BC, MB, SK): A government crown corporation is the only provider of basic auto insurance. You must purchase basic coverage from them, with additional optional coverage available privately. Public systems often have lower rates but less competition and flexibility.
Private (ON, AB, Atlantic provinces): Multiple competing insurers set their own rates within provincial regulatory frameworks. This creates more price variation — good drivers can find better deals by shopping around.
Hybrid (QC): SAAQ (provincial) covers all bodily injury claims. Private insurers cover property damage. Result: Quebec has Canada's lowest average premiums.