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How Much Does Car Insurance Cost by Age Canada 2026

Updated

Average Rates by Age

Age Annual Premium (Average) Notes
16-18 $4,500-$7,000+ Highest rates
19-20 $3,500-$5,500 Still very high
21-24 $2,500-$4,000 Gradually decreasing
25-29 $1,800-$2,800 Major drop at 25
30-39 $1,400-$2,200 Lower, stable
40-49 $1,300-$2,000 Often lowest
50-59 $1,300-$2,000 Still low
60-64 $1,400-$2,200 Slight increase
65-69 $1,500-$2,400 Gradual increase
70+ $1,700-$3,000+ May increase significantly

Rates vary significantly by province, vehicle, driving record, and coverage.

By Province and Age

Young Driver (Age 20)

Province Average Annual
Ontario $5,000-$8,000
BC $3,500-$5,500
Alberta $3,000-$4,500
Quebec $1,500-$2,500*
Manitoba $2,000-$3,000
Saskatchewan $1,800-$2,800
Atlantic $2,500-$4,000

Quebec has public insurance for injury; private for vehicle damage only.

Middle-Aged Driver (Age 40)

Province Average Annual
Ontario $1,400-$2,200
BC $1,200-$1,800
Alberta $1,200-$1,700
Quebec $700-$1,200
Manitoba $1,100-$1,500
Saskatchewan $1,000-$1,400
Atlantic $900-$1,400

Rate Progression Example

Male Driver - Clean Record

Age Annual Premium Change
18 $5,500 -
20 $4,200 -24%
22 $3,400 -19%
25 $2,400 -29%
30 $1,800 -25%
35 $1,600 -11%
40 $1,500 -6%
50 $1,450 -3%
60 $1,500 +3%
70 $1,800 +20%

Female Driver - Clean Record

Age Annual Premium vs Male
18 $4,200 -24%
20 $3,400 -19%
22 $2,800 -18%
25 $2,100 -13%
30 $1,700 -6%
35 $1,550 -3%
40 $1,450 -3%
50 $1,450 0%

Gender gap narrows significantly by age 25-30.

Why Age Matters

Accident Statistics by Age

Age Group Relative Risk
16-19 3x average
20-24 2x average
25-34 1x average
35-54 0.8x average
55-64 0.9x average
65-74 1x average
75+ 1.5x average

What Insurers Consider

Factor Impact
Years driving More = lower rates
Years licensed Matters even if not driving
Driving record Accidents add 25-100%
Claims history Even not-at-fault matters
Vehicle type Sports car = higher
Usage Low km = discounts

Lowering Rates by Age Group

Young Drivers (16-24)

Strategy Potential Savings
Stay on parent’s policy 30-50%
Good student discount 10-15%
Driver training course 5-15%
Choose older vehicle 20-30%
Higher deductible 10-20%
Usage-based insurance 10-30%
Pay annually 5-10%

New Strategies

Strategy Details
Telematics CAA, Intact, others
Pay-per-km Onlia, Sonnet
Good grades Maintain high GPA
Bundling Home/tenant + auto

Middle-Aged (25-55)

Strategy Potential Savings
Bundle home + auto 10-20%
Loyalty discounts 5-15%
Pay annually 5-10%
Increase deductible 10-20%
Shop around 20-30%
Group rates Professional associations

Senior Drivers (55+)

Strategy Potential Savings
Mature driver discount 5-15%
Retiree discount 5-10%
Low mileage 10-20%
Defensive driving course 5-10%
CAA membership rates Varies

First-Time Insurance Tips

New Driver Checklist

Item Why
Get licensed ASAP Start building history
Stay claim-free Even small claims hurt
Take driving course Immediate discount
Choose car wisely Insurance group matters
Shop multiple quotes Rates vary 50%+

Vehicle Choice Impact

Vehicle Type Rate Impact
Sports car +50-100%
Luxury vehicle +30-50%
High-theft vehicle +20-40%
SUV/Truck +10-20%
Economy sedan Baseline
Used economy -10-20%

Getting Quotes

Where to Compare

Type Options
Brokers LowestRates, InsuranceHotline
Direct insurers Sonnet, Onlia, belairdirect
Traditional Intact, Aviva, TD
Provincial ICBC (BC), SGI (SK), MPI (MB)

Quote Information Needed

Information Details
Driver info Name, DOB, license #
Driving history Years, accidents, tickets
Vehicle Year, make, model, VIN
Usage Annual km, commute distance
Address Rate varies by postal code
Coverage Liability, collision, comprehensive

Premium Increase Triggers

Event Typical Increase
At-fault accident 25-100%
Speeding ticket 10-25%
DUI 100-300%+
Multiple claims 50-150%
Lapse in coverage 10-30%
Moving to higher-risk area 10-50%

When Rates Drop

Milestone Expected Drop
25th birthday 10-25%
3 years claim-free 5-15%
Marriage 5-10%
Home ownership 5-10%
Paid off car loan Can drop collision