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Best Car Insurance in Canada 2026 | Compare Rates

Updated

Best Car Insurance Companies Canada 2026

Private Market Provinces (ON, AB, NS, NB, PE, NL)

Company Best For Provinces Online Quote Rating
Intact Largest insurer, bundling All private ✅ A+
Belairdirect Online-first, competitive rates ON, QC, AB, NB, NS ✅ A+
TD Insurance TD customers, bundling All private ✅ AA-
Aviva Multi-vehicle discounts ON, AB, Atlantic ✅ A+
Economical (Definity) Competitive rates ON, AB, Atlantic ✅ A
Wawanesa Western Canada AB, MB, BC, SK ✅ A
Sonnet 100% online, fast quotes ON, AB, QC ✅ A+ (Economical)

Public Insurance Provinces

Province Provider Type Average Yearly
BC ICBC Public monopoly (basic) $1,800-2,100
SK SGI Public (basic) + private (optional) $1,100-1,400
MB MPI Public monopoly $1,200-1,500
QC SAAQ Public (injury) + private (damage) $700-900

Average Car Insurance Rates by Province

Province Annual Average Monthly Average Rating
Ontario $2,000-2,200 $167-183 Most expensive
BC $1,800-2,100 $150-175 High
Alberta $1,500-1,800 $125-150 Above average
Atlantic provinces $900-1,200 $75-100 Moderate
Manitoba $1,200-1,500 $100-125 Moderate
Saskatchewan $1,100-1,400 $92-117 Moderate
Quebec $700-900 $58-75 Cheapest

Factors That Affect Your Rate

Factor Impact What You Can Control
Driving record Very high ✅ Drive safely
Age / experience High ❌ Time-based
Location (postal code) High ⚠️ Moving is extreme
Vehicle type High ✅ Choose lower-risk car
Coverage level Medium ✅ Adjust deductible
Credit score (some provinces) Medium ✅ Improve credit
Annual kilometres Medium ✅ Work from home? Lower km
Claims history Very high ✅ Avoid minor claims
Bundling (home + auto) Medium ✅ Bundle policies

How to Save on Car Insurance

Tip Estimated Savings
Compare 3-5 quotes annually $200-800/year
Bundle home + auto 5-15% discount
Increase deductible ($500 → $1,000) 10-15% savings
Winter tire discount (ON, QC) 2-5%
Usage-based / telematics 5-25%
Group/alumni/employer discounts 5-15%
Pay annually (not monthly) Avoid monthly fees
Clean driving record Lowest tier rates
Dashcam (some insurers) 5%
Electric vehicle discounts Varies

Coverage Types Explained

Coverage What It Covers Required?
Third-party liability Damage/injury to others ✅ Yes (minimum $200K, recommended $2M)
Accident benefits Your own injuries ✅ Yes (mandatory in most provinces)
Uninsured motorist Hit by uninsured driver ✅ Yes (usually mandatory)
Collision Your car in an accident ❌ Optional (recommended for new cars)
Comprehensive Theft, fire, weather, vandalism ❌ Optional (recommended)
All perils Collision + comprehensive combined ❌ Optional
Car Age Collision Comprehensive Deductible
New (0-3 years) ✅ Yes ✅ Yes $500
Mid-age (4-7 years) ✅ Yes ✅ Yes $1,000
Old (8+ years) ⚠️ Consider dropping ✅ Keep $1,000+
Under $5K value ❌ Drop ⚠️ Consider dropping —

New Driver Rates

New Driver Profile Approximate Annual Cost
16-year-old (Ontario) $5,000-8,000
18-year-old (G2) $3,500-5,500
25-year-old (new license) $2,500-3,500
New to Canada $2,000-3,500

Tips for New Drivers

Tip Impact
Be added to parent’s policy 30-50% cheaper than own policy
Take driver training course 5-10% discount
Start with an older, cheaper car Lower insurance category
Build clean record for 3+ years Rates drop significantly

How to Get Quotes

Method Process Time
Online (Sonnet, Belairdirect) Enter details, instant quote 5-10 minutes
Comparison sites (LowestRates, Kanetix) Submit once, multiple quotes 10 minutes
Insurance broker Broker shops multiple companies 1 day
Directly (call each insurer) Individual quotes 30+ min each

Recommendation: Use an online comparison tool, then call your top 2-3 picks to negotiate.