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Compare cheap auto insurance quotes from Ratehub.ca users
Thousands of Canadians come to us weekly, looking for ways to save on their next auto insurance policy. Just like we've helped them compare the market with ease, we can do the same for you. Here are a few sample car insurance quotes Ratehub.ca users received on March 10, 2024 – to find out how little you could be paying, take advantage of our free comparison service and uncover your potential savings today.
$80/month
42-year-old male
driving a 2009 Ford Edge under CAA Insurance
$148/month
42-year-old female
driving a 2013 Nissan Murano under Travelers Canada
$236/month
38-year-old female
driving a 2022 Honda Civic under Unica Insurance
$276/month
56-year-old female
driving a 2024 Hyundai Tucson under SGI Canada
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Why should I compare car insurance quotes?
Matt Hands, VP, Insurance and MoneySense
In 2021, we surveyed over 1,500 Canadians to learn more about auto insurance shopping behaviour within the country. 76% of policyholders claimed to be confident with the coverage they had in place – they did not feel overinsured or underinsured. On top of that, 65% of the group said they were happy with the rate they were currently paying.
But what about those who didn't feel this way? Shopping around for car insurance and comparing quotes online is one of the best ways you can ensure your policy meets all your coverage needs for the lowest rate possible.
While 64% of Canadians said they allow their policy to renew automatically when the time comes (leaving potential savings on the table), 51% also claimed a dislike for comparing car insurance quotes because it takes too long, and they don't believe they'll find a better deal. This is simply untrue – with us, you can save hundreds of dollars each year by taking just a few minutes out of your day.
64%
of Canadians allow their car insurance policy to auto-renew.
51%
of Canadians think comparing quotes is time consuming and ineffective.
Why do I need car insurance in Canada?
First and foremost, it's the law. Car insurance is a requirement for everyone who wishes to drive a car in Canada. The coverage is there to protect you from all kinds of financial implications, such as vehicle repairs after a collision or liability claims after an accident.
In Canada, driving an uninsured vehicle is a serious offence – you could a heavy fine or even a license suspension. You'll also need to provide proof of an auto insurance policy before you're able to register your vehicle.
How does car insurance work in Canada?
Even though auto insurance is legally mandated Canada-wide, the coverage requirements for a standard car insurance policy vary provincially (and it heavily depends on whether the province runs on a public or private insurance system).
British Columbia, Saskatchewan, and Manitoba are public insurance markets where you buy auto insurance from the government (with the option of purchasing supplemental coverage from private insurers). Alberta, Ontario, and Atlantic Canada have private insurance companies vying for your business which is why comparing car insurance quotes online is an effective strategy for uncovering lower rates. Quebec, on the other hand, is a hybrid system that offers the cheapest car insurance rates. There, you buy injury coverage from the government and property damage from a private insurer.
Even though each province sets a minimum standard for coverage, most people purchase a more comprehensive insurance policy. In fact, in every province, you can customize your policy's coverages and amounts to further suit your personal needs.
Another thing to understand about auto insurance in Canada is the differences between the accident claim systems. Several provinces have shifted towards a no-fault insurance system in which you only deal with your own insurance company when seeking financial compensation for a collision you were involved in (regardless of fault). The other system is a tort-based system – many consider this to be inefficient as you'll need to deal with the at-fault driver's insurer to seek compensation.
Regardless of the rules in your province, not having the right auto insurance policy in place will leave you financially vulnerable if you're ever involved in an incident. So make sure you understand the coverage you need when shopping around for car insurance.
Types of auto insurance in Canada
While the types of car insurance you're required to carry will differ from province-to-province, you'll have the option of customizing your policy with additional options, no matter where you're situated. Here's a quick overview of the main coverages in Canada.
Third-party liability
Accident benefits
Uninsured motorist
Direct compensation for property damage
Collision
Optional endorsem*nts
How auto insurance differs from province to province
Auto insurance works differently depending on where you're situated within the country. In the table below, we break down the key differences in each province, including public vs. private systems and mandatory vs. optional coverages.
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How much is car insurance in Canada?
Here is a chart displaying the average car insurance cost in Canada. Your car insurance rate will vary depending on a multitude of factors, but this can give you an idea of how average car insurance quotes differ across each province. To find the exact cost you’ll be paying for your auto coverage, be sure to compare auto insurance rates with us.
Source: Insurance Bureau of Canada (2019), GISA & MSA data for private insurers (2018), SGI Annual Report (2018), MPI Annual Report (2017), Société de l'assurance automobile du Québec (SAAQ), and ICBC Service Plan (2019).
How are auto insurance quotes calculated in Canada?
Auto insurance companies quote you based on various individualized factors – generally speaking, the more risk you bring, the more your policy will cost. Here, we cover a few of the main factors, so you can better understand the pricing dynamics behind the system,
Driver age
The highest age-specific rate of passenger vehicle death in Canada was found among 16 to 24 year olds. Young drivers tend to see more expensive premiums, due to the increased risk they bring.
Driver gender
Statistics Canada found that males were nearly twice as likely to die in a vehicle collision compared to females. Not all provinces use gender as a quoting factor but many do – and of course, this leads to higher rates for male drivers.
Location
Generally speaking, living in rural areas will lead to cheaper insurance rates. Cities with large populations tend to come with high crime rates and busy streets – resulting in costlier premiums.
Vehicle type
The more expensive your vehicle is to repair or replace, the more expensive your insurance will be. But it doesn't stop there – cars with high theft and accident rates often see increased premiums also.
Driving history
Generally speaking, the more experience you have as a driver, the lower yoiur rates will be. But if you have several convictions on your record, expect to see higher car insurance premiums.
Driving activity
It's no surprise that more time on the road equals to a higher likelihood of making a claim. So the longer your daily commute, the more expensive your premium will be. And one way to lower your premium is to simply drive less.
Insurance coverage
It's no surprise that adding on optional coverages and increasing your policy limits will lead a to higher auto insurance premium. The additional peace of mind doesn't come without a price.
Applicable discounts
Different insurers offer different types of discounts, so be sure to ask about your eligibility. Bundling multiple policies under one provider, for example, is a great way to save.
What market conditions can impact car insurance rates?
There are a number of market conditions that impact the price Canadians pay for auto insurance, and unfortunately, a lot of these are largely out of the public's control. Insurers monitor the trends of these conditions, and use their learnings as the basis for their pricing model changes – below, we cover a few major market conditions you should be aware of.
Inflation
In October of 2023, Canada's CPI rose 3.8% on a year-over-year basis while auto insurance premiums saw a 7.5% increase. As the cost of living gets more expensive, insurance won't be immune to its effects.
Vehicle theft
According to Équité Association, car theft rates in 2022 reached historical highs – Ontario saw a 48% increase. With stolen vehiocles trends on the rise, insurers will charge customers more to cover the risk.
Insurance fraud
According to the Insurance Bureau of Canada, insurance fraud costs Canadians over $1 billion in additional premiums. Some common examples of fraud include staged accidents and inaccurate reportings of car repairs.
Repair costs
Vehicle parts, repairs, and maintenance saw a year-over-year increase of 7.3% in the October 2023 CPI. Plus, technological advancements have also made it more costly for insurers to cover repairs and replacement claims.
Supply chain issues
If the supply chain is slowed down, vehicles take longer to repair, forcing insurers to pay out more funds. For example, rental cars may be needed for an extended period of time while a driver awaits their car to be fixed.
Increased drivers
As more and more people start driving in Canada, it increases the likelihood of accidents on the road. With that, it's inevitable that insurers will need to pay out more claims, causing premiums to rise for all.
How to get the cheapest car insurance quotes in Canada
While market conditions may not be factors you can inherently control, there are a few steps you can take to ensure you're paying the best car insurance rate possible. Here, we can cover ten different steps you can take to help lower your bill.
Compare quotes
While two providers may offer the same coverages, the price of auto insurance can vary drastically. To make sure you're getting the best rate possible, be sure to shop the market.
Bundle policies
Insurance companies value loyal customers. By having your auto and home insurance bundled together under the same carrier, you can expect a substantial rate reduction.
Increase your deductible
The deductible is what you pay when something happens to your car before the insurance company pays the rest. Increasing your deductible will lower your annual premium.
Get a group rate
Many insurance companies offer discounts to members of professional organizations or affiliation groups – so it pays to ask about savings (literally).
Install safety devices
Insurance companies are all about lowering the risk of a claim. You could see a rate deduction by installing anti-theft devices or opting for a car that's already equipped with the newest safety features.
Pay annually
Paying your full premium up-front tends to be less money in the long run, compared to making multiple, monthly payments. This is because insurers like to see a commitment to the policy.
Keep a clean driving record
At-fault collisions and driving convictions stay on your insurance record for years and make your rates go way up – if you drive safely over a long period, you’ll pay the lowest rates.
Track your driving
According to a Ratehub.ca survey, only 12% of Canadians have tried usage-based insurance. If you haven't yet done so, opting-in for UBI (tracking your driving behaviour) can lead to big savings.
Install winter tires
While winter tires are only required in select provinces, it's always better to be safe than sorry – and the potential auto insurance savings are a plus.
Take a course
Accredited driving courses will not only make you a better driver, but it can also lead to cheaper car insurance rates. This is because insurers see graduates as a lower-risk policyholder.
Compare cheap auto insurance quotes for free to unlock your savings.
Now that you've learned how quotes are created and what factors impact your rates, it's time to see how much you can save on car insurance today.
The top auto insurance misconceptions in Canada
In a 2021 survey, we presented common car insurance misconceptions to over 1,500 Canadians, asking them to agree or disagree with the statements – all of them were actually false.
We found Canadians to be fairly knowledgeable, but there were still many gaps when it came to understanding how car insurance works across the country – the average responder was only correct about half the time. Click on each misconception below to learn more.
"My insurer won't find out about my ticket or accident if I don't tell them."
"My insurer won't find out about my ticket or accident if I don't tell them."
"My postal code doesn't impact my car insurance rate."
"How much I drive won't impact my car insurance rate."
"Speeding tickets under 15 km won't impact my car insurance rate."
"My car insurance rate will only go up if I make a claim."
"The police determine fault when I make an insurance claim."
"Car insurance follows the person, not the car."
"Speed camera tickets will impact my car insurance rate."
Recent Canadian auto insurance news
Vehicle theft continues to play a big role in the price of auto insurance in Canada – so much so that the industry is looking for ways to improve theft prevention and vehicle security. According to an Équité Association report released in November of 2023, auto theft in Canada reached a historical high in 2022.
As a major source of illegal trade, the country has been put in the spotlight globally. In Ontario, auto theft increased by 48% while Quebec saw an even higher increase of 50%. And for the first time in history, 2022 marked a year where private Canadian insurers paid out $1.2 billion in theft-related claims.
While the full impact of vehicle theft may hit each driver differently, one common consequence we may all face is the potential increase in our auto insurance premiums. As theft continues to rise, insurers will need to increase their rates in order to offset the increase in claims. Drivers of highly stolen vehicles can also expect a bigger impact on the price they'll be paying for coverage.
- How stolen vehicles impact insurance
According to the Insurance Bureau of Canada, vehicle theft costs Canadians over $1 billion each year.
read blog - The top 10 most stolen vehicles in Canada
The most stolen vehicle across the country in 2022 was the 2020 Honda CR-V.
read blog - 7 car security tips to prevent car theft
On average, a vehicle is stolen every six minutes in Canada – learn how to reduce your risk from falling victim.
read blog
Frequently asked Canadian auto insurance questions
Is car insurance in Canada mandatory?
To drive a vehicle, yes, it's mandatory to have insurance. However, you can own a car without insurance – but you won't be able to drive it.
Driving without insurance carries severe penalties including fines, a license suspension, or having your vehicle impounded.If convicted, it'll be extraordinarily difficult to get insurance at a low rate in the future.And in the worst-case scenario, if you get into an accident without auto insurance, you'll have to pay for all the damages and recovery out-of-pocket.
Why are my auto insurance quotes so high?
There are many car insurance factors that go into calculating your rate. If you're male and young, you're statistically at greater risk of getting into an accident, so your rates will reflect that. Other high-risk factors include your driving history and experience, living in a densely populated city, and the amount of car insurance fraud in a particular area – these may have detrimental effects on your auto insurance rate.
How do I find the cheapest auto insurance rates?
If you're looking for cheap car insurance, there are several ways to do it, including bundling auto and home insurance, driving less, paying annual (not monthly) premiums, and simply asking about discounts. But above all, the best way to get cheap car insurance is to compare quotes from multiple providers, and we can do exactly that for you.
Once you've selected the best rate, we'll connect you with a car insurance broker who will help lock in your cheap auto premium with the insurance company.
Is auto insurance different between provinces?
Yes, each province has a different car insurance system and different mandatory coverages – as such, your rates vary greatly between them. You can view average annual insurance rates by province above to see the pricing differences. British Columbia, Saskatchewan, and Manitoba have government-provided auto insurance programs. Alberta, Ontario, the Atlantic Provinces, and all the Territories have private car insurance markets. Quebec is a hybrid system, where the government provides personal injury and the property damage is done through private insurers.
What do I need to get car insurance in Canada?
To purchase a car insurance policy in Canada, you'll need the fulfill the following requirements:
- You must be a resident of Canada
- You must have a valid driver's license
- You cannot have an auto insurance fraud conviction within the last ten years
- Your car must be for personal use (business-use vehicles require commercial auto insurance)
For high-risk car insurance, you may need to use the Facility Association for coverage through a standard insurer.
Remember, honesty is the best policy. Lying about where you live or any modifications to your car can be some of the fastest ways to have a claim denied or your insurance cancelled.
Do I need car insurance if I don't drive my car in Canada?
No, car insurance is not required as long as you don't intend to drive your car. In fact, you don't need insurance to purchase a car, but you will need to provide proof of insurance to get licence plates or renew your licence plate stickers.
Keep in mind, however, that you may still want some form of coverage for a parked car – what if it falls victim to a hit-and-run? And remember, it's mandatory to have a valid car insurance policy if you intend to drive your car. It's illegal to drive a car that is not insured.
Who has the best and cheapest car insurance?
The cost of auto insurance depends on many factors such as your age, driving experience, and coverage choices. The best way to get the cheapest car insurance is to compare car insurance quotes online to see which provider will give you the cheapest price based on your personal situation.
Find out more on how you can save on auto insurance.
Do I need special insurance to drive for Uber?
Although Uber, Lyft, and most other ridesharing companies offer some level of commercial auto coverage, you should still extend your own car insurance to cover the increased risk of ridesharing. Not all car insurance companies provide coverage for rideshare driving, so you’ll also need to notify your provider ahead of time. If you fail to do so, your claim will likely be denied for misrepresentation, and you run the risk of policy cancellation. For more information on purchasing this specialized coverage, visit our page on rideshare auto insurance.
How does a car insurance deductible work?
A car insurance deductible is the amount of money you agree to pay out-of-pocket before your insurer meets you for collision and comprehensive claims. Let’s say your car is vandalized and the cost to repair the paint is $400. If your deductible is set at $300, you’ll need to contribute this amount before your provider foots the remaining $100. The higher the deductible you set, the cheaper your car insurance will be.
At what age does car insurance go down?
Generally speaking, car insurance rates tend to decrease more substantially at the age of 25. Keep in mind that insurers take into account other factors, such as your driving experience and driving history, so if you’re a newly licensed driver at age 30, you could still see much higher premiums. And once you reach an older age that could affect your driving capabilities, you may start seeing your rates go up again.
What doesn't impact my car insurance rate?
Your employment history, previous bankruptcy, housing situation, and net worth are not factors. Your credit score may or may not have an impact depending on the province you live in. And the car's colour? That's a myth.
Do I need to purchase car insurance from my home insurance provider?
No, it is not mandatory to purchase insurance from the same carrier. Lots of people choose to purchase insurance from different insurance companies for various reasons. You may be able to find a cheaper car insurance rate from another carrier or your current home insurance provider may not offer coverage for your vehicle.
There is no rule that says home insurance and car insurance must be bundled together. Do whatever makes the most financial and logistical sense for your situation.
Can I drive a car if I don't have auto insurance?
Yes, you can drive someone else's vehicle as long as that vehicle has a valid insurance policy and you have permission to drive the vehicle. If you are involved in an accident driving someone else's vehicle it will be covered under their insurance policy. You just need a valid driver's licence to operate an insured vehicle.
Can I cancel my car insurance?
Yes, you can cancel your car insurance policy at any time, but you may be charged an early cancellation fee or administration fees. It will depend on your carrier's rules, so it's best to discuss your cancellation options before cancelling.
If you paid for your insurance upfront (i.e. annually), a carrier will reimburse you for the unused portion of your auto insurance policy.
What happens if I stop paying my car insurance premium?
If you stop paying your monthly or annual car insurance premiums, your policy will lapse and the car insurance company may cancel your policy.
If your policy is cancelled you are no longer legally able to drive your car, plus you will now have a cancellation for unpaid fees listed on your driving record. Having a cancellation for non-payment will have a negative impact on your ability to find insurance in the future. This will at the very minimum increase the price you pay for insurance for at least the next three years and may limit the number of insurance companies who are willing to insure you.
Remember, even if you have a dispute with the car insurance company, withholding payment doesn't hurt the insurer – it only hurts you.
How long do car accidents stay on your record?
This will depend on the province you live in and the carrier's approved underwriting criteria. But generally, it's around five to six years that an at-fault accident will impact your car insurance rates. It's best to remember that a clean driving record will help you maintain cheap car insurance.
How much does car insurance increase after an at-fault accident claim?
If you submit an insurance claim for an accident and you are deemed to be at fault by your insurer you can expect to see a significant increase in your car insurance premium at renewal. The first-year increase will likely be around 50% to 70% annually.
Assuming you maintain a clean record, your policy will start to decrease slowly each year. However, the amount varies depending on who is to blame for the claim, the severity and expense of the accident, and your overall driving record.
The only way an at-fault accident will not impact your premium is if it was your first at-fault accident and you have an accident forgiveness endorsem*nt on your policy.
All about your Ratehub.ca car insurance quote
Your most frequently asked questions about our online car insurance process, answered.
Ratehub.ca partners with top auto insurance companies across Canada, so you can compare your personalized car insurance quotes all at once. Each rate is calculated using the insurer's own underwriting and quoting process, so you can receive an accurate estimation based on your profile.
Yes, our auto insurance quote calculator is completely free of charge – you also aren't obligated to purchase an auto insurance policy with us (but we make it extremely easy to do so).
Yes, after finding a car insurance quote you like, we'll connect you with a licensed auto insurance broker in Canada. That way, you can obtain the coverage you need, and be confident throughout the entire insurance process.
Matt Hands, Business Director of Insurance
With 6+ years of experience at Ratehub.ca, Matt’s focus has been on growing its newest business unit, Insurance. He is a thought leader and a valuable resource to respected publications across Canada. read full bio
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