Updated: April 2025 | bremo.io financial guides
Ontario Car Insurance 2025: Canada's Most Expensive Market
Ontario consistently has the highest auto insurance premiums in Canada. The average Ontario driver pays approximately $1,900 per year — significantly above the national average and far above provinces with public insurance systems like BC (ICBC) or Manitoba (MPI). This guide explains why Ontario car insurance is so expensive and what you can do to reduce your premiums.
Ontario Average Car Insurance Rates
Average annual premiums in Ontario vary enormously by region:
- Brampton — Often the most expensive city, $3,000–$5,000+/year for some driver profiles
- Toronto/GTA — $2,500–$4,000/year for average drivers
- Ottawa, London, Hamilton — $1,500–$2,500/year
- Smaller cities, rural Ontario — $1,000–$1,800/year
The national average is around $1,900/year for Ontario, but individual premiums vary widely based on driving record, vehicle, and postal code.
Why Ontario Has Canada's Highest Rates
Several factors drive Ontario's high premiums:
- Insurance fraud — Staged accidents, inflated injury claims, and tow truck fraud add billions to industry costs annually
- Accident benefits generosity — Ontario's Statutory Accident Benefits Schedule (SABS) is among the most generous in Canada, making injury claims more costly
- Dense urban traffic — GTA's congestion leads to more accidents per vehicle than less-dense areas
- Vehicle theft rates — Ontario has some of Canada's highest auto theft rates, particularly in the GTA
- Legal costs — High litigation rates and legal costs in the province
Ontario average ~$1,900/year is the highest provincial average in Canada. Brampton is among the most expensive cities in the country for auto insurance.
Mandatory Coverage in Ontario
Ontario requires: Third-party liability (minimum $200,000), Statutory Accident Benefits, Direct Compensation Property Damage (DCPD), and Uninsured Automobile Coverage. The FSRA (Financial Services Regulatory Authority of Ontario) regulates insurer rates and products.
How to Save on Ontario Car Insurance
- Usage-based insurance (UBI) — Telematics programs from Intact, Desjardins, Belairdirect reward safe drivers. Savings of 15–30% are possible.
- Bundle home and auto — Multi-policy discounts of 10–20%
- Maintain a clean driving record — Tickets and at-fault accidents dramatically increase premiums
- Annual shopping — Get 3–5 quotes every renewal. Rates vary enormously across Ontario insurers.
- Increase deductibles — Moving from $500 to $1,000 deductible can reduce premiums 10–15%
- Anti-theft devices — Discounts available for approved tracking devices