Skip to main content

Average Cost of Car Insurance in Canada (2026)

Updated

Average Car Insurance by Province

Province Average Annual Premium Average Monthly Cost System Type
Ontario $1,600–2,400 $133–200 Private (regulated)
British Columbia $1,800–2,200 $150–183 Public (ICBC) + private
Alberta $1,500–2,000 $125–167 Private
Nova Scotia $900–1,200 $75–100 Private
New Brunswick $850–1,100 $71–92 Private
Newfoundland $1,100–1,400 $92–117 Private
PEI $800–1,000 $67–83 Private
Manitoba $1,200–1,500 $100–125 Public (MPI)
Saskatchewan $1,100–1,400 $92–117 Public (SGI) + private
Quebec $700–900 $58–75 Split (SAAQ + private)

Average Car Insurance by Age

Age Group Average Annual Premium Why
16–19 $4,000–7,000+ New driver, highest statistical risk
20–24 $2,500–4,000 Still considered high-risk
25–29 $1,800–2,500 Rates begin to drop significantly
30–39 $1,500–2,000 Lowest rates — experienced, stable
40–49 $1,500–2,000 Still in the “sweet spot”
50–59 $1,500–2,100 Steady rates
60–64 $1,600–2,200 Slight increase begins
65+ $1,700–2,500 Rates increase with age

Average Car Insurance by City

City Average Annual Premium Rank (Most Expensive)
Brampton, ON $2,800–3,500 1 (most expensive)
Mississauga, ON $2,600–3,200 2
Toronto, ON $2,400–3,000 3
Scarborough, ON $2,400–3,000 4
Vaughan, ON $2,300–2,800 5
Edmonton, AB $1,700–2,200 6
Calgary, AB $1,600–2,100 7
Vancouver, BC $2,000–2,400 8
Surrey, BC $1,900–2,300 9
Ottawa, ON $1,500–1,900 10
Winnipeg, MB $1,400–1,700
Montreal, QC $700–1,000 Cheapest major city

How Gender Affects Insurance Rates

Factor Detail
Ontario Gender-based pricing banned since 2013 — no impact
Alberta, Atlantic Canada Insurers can use gender as a rating factor
BC, SK, MB Public systems — rates based on driving record, not gender
General trend Males under 25 pay more in provinces where gender rating is allowed

Factors That Affect Your Premium (Ranked)

Factor Impact How It Affects Cost
Driving record Very high One at-fault accident can increase rates 25–50% for 6 years
Age and experience Very high Under-25 drivers pay 2–3x more than 30-year-olds
Location High Urban cores (especially GTA) cost much more than rural areas
Vehicle type High Sports cars and luxury vehicles cost 30–60% more to insure
Claims history High Each claim can increase premiums 10–25%
Annual mileage Moderate Low-mileage discounts available (under 10,000 km/year)
Coverage level Moderate Higher deductible = lower premium; more coverage = higher premium
Credit score Moderate Used in AB, ON, Atlantic — good credit can save 10–15%
Marital status Low–moderate Married drivers often pay slightly less
Vehicle safety features Low–moderate ADAS features can earn 3–10% discounts
Winter tires Low Ontario mandates a discount; other provinces may offer one

What Happens After an At-Fault Accident

Years Since Accident Premium Increase Notes
Year 1 +25–50% Worst impact
Year 2 +20–40% Still elevated
Year 3 +15–30% Gradual decline
Year 4–5 +10–20% Continuing to drop
Year 6+ Back to normal Most insurers remove the surcharge after 6 years

How Tickets Affect Insurance

Ticket Type Premium Increase Duration on Record
Minor speeding (1–15 over) 5–10% 3 years
Major speeding (30+ over) 15–25% 3 years
Distracted driving 20–25% 3 years
Running red light 10–15% 3 years
DUI / impaired driving 50–100%+ (or policy cancellation) 3–10 years
Careless driving 25–50% 3 years

How to Lower Your Car Insurance

Strategy Potential Savings Effort
Compare 3–5 quotes 10–30% Low
Increase deductible ($500 → $1,000) 10–20% Low
Bundle home + auto 5–15% Low
Ask about group rates (employer, alumni, professional) 5–15% Low
Install winter tires 3–5% Low
Take a defensive driving course 5–10% Moderate
Use telematics/usage-based insurance 10–25% Low
Pay annually instead of monthly 5–10% Low
Drop collision/comprehensive on old cars 20–40% Low
Maintain clean driving record 15–30% (vs. at-fault) Ongoing
Reduce coverage on second vehicle 10–20% Low

Minimum Required Coverage by Province

Province Minimum Liability Mandatory Coverages
Ontario $200,000 Liability, accident benefits, uninsured motorist, direct compensation
BC $200,000 ICBC basic: liability, accident benefits, underinsured motorist
Alberta $200,000 Liability, accident benefits
Saskatchewan $200,000 SGI basic: liability, personal injury
Manitoba $200,000 MPI basic: liability, personal injury, property damage
Quebec $50,000 (property) SAAQ: bodily injury; private: property damage liability
Nova Scotia $500,000 Liability, Section D benefits
New Brunswick $200,000 Liability, accident benefits
PEI $200,000 Liability
Newfoundland $200,000 Liability, accident benefits

Most experts recommend $1–2 million in liability coverage. Minimum coverage may not be enough for a serious accident.