Ontario Car Insurance Overview
Why It’s Expensive
| Factor |
Impact |
| Insurance fraud |
$1.6B+ annually |
| No-fault system |
Higher accident benefits |
| Urban density |
More accidents |
| Expensive claims |
Medical, legal costs |
| Result |
Highest premiums in Canada |
Average Costs by City
| City |
Annual Average |
| Brampton |
$2,500-$3,500 |
| Toronto |
$2,200-$3,000 |
| Mississauga |
$2,000-$2,800 |
| Vaughan |
$1,900-$2,600 |
| Hamilton |
$1,600-$2,200 |
| Ottawa |
$1,400-$1,800 |
| London |
$1,400-$1,800 |
| Kingston |
$1,200-$1,600 |
Mandatory Coverage
Required by Law
| Coverage |
Minimum |
What It Covers |
| Third-party liability |
$200,000 |
Injuries/damage to others |
| Accident benefits |
Statutory |
Your injuries |
| Direct compensation |
Required |
Your vehicle damage |
| Uninsured motorist |
Required |
Hit by uninsured |
Third-Party Liability
| Amount |
Recommendation |
| $200,000 minimum |
Legal requirement |
| $1,000,000 |
Standard recommendation |
| $2,000,000 |
If you have assets |
Statutory Accident Benefits (SABs)
| Benefit |
Standard |
Optional Enhanced |
| Medical/rehab |
$65,000 |
$130,000-$1M |
| Income replacement |
70% up to $400/week |
Up to $1,000/week |
| Caregiver benefits |
$250/week |
$450/week |
| Death benefits |
$25,000 |
$50,000 |
Optional Coverage
Comprehensive
| Covers |
|
| Theft |
Vehicle stolen |
| Vandalism |
Damage by others |
| Weather |
Hail, flooding |
| Fire |
Vehicle fire |
| Animals |
Collision with wildlife |
Collision
| Covers |
|
| At-fault accidents |
Your vehicle repairs |
| Single-vehicle |
Hit object, rollover |
| Hit and run |
When at fault |
Recommended Add-Ons
| Add-On |
Purpose |
| Accident forgiveness |
First at-fault won’t raise rates |
| Waiver of depreciation |
New car full value |
| Rental car coverage |
While yours is repaired |
| Roadside assistance |
Towing, battery boost |
Factors Affecting Rates
Driver Factors
| Factor |
Impact |
| Age |
Under 25 pays 2-3Γ more |
| Gender |
Males under 25 pay more |
| Driving record |
Clean = lower rates |
| Years licensed |
More experience = cheaper |
| Credit score |
Some insurers check |
Vehicle Factors
| Factor |
Impact |
| Make/model |
Sports cars cost more |
| Year |
Newer = higher premiums |
| Safety features |
Discounts available |
| Theft rates |
High-theft models cost more |
Location Factors
| Factor |
Impact |
| Postal code |
Major factor in Ontario |
| Urban vs rural |
Urban costs more |
| Parking |
Garage vs street |
| Commute distance |
Longer = more expensive |
How to Save Money
Discounts to Ask For
| Discount |
Typical Savings |
| Bundle home + auto |
10-20% |
| Multiple vehicles |
10-15% |
| Winter tires |
5% |
| Clean driving record |
10-25% |
| Usage-based insurance |
Up to 25% |
| Group rates (employer) |
10-15% |
| Alumni association |
10-15% |
| Retiree discount |
10% |
Other Strategies
| Strategy |
Savings |
| Higher deductible |
10-20% |
| Drop collision (old car) |
Significant |
| Pay annually |
Avoid monthly fees |
| Shop around yearly |
10-30%+ |
| Take driving course |
5-10% |
Best Insurance Companies in Ontario
Major Insurers
| Company |
Notes |
| Intact |
Largest in Canada |
| Aviva |
Good discounts |
| Desjardins |
Competitive rates |
| TD Insurance |
Bank bundle savings |
| Belairdirect |
Online savings |
| CAA |
Members benefit |
How to Compare
| Step |
Action |
| 1 |
Get 3-5 quotes |
| 2 |
Compare same coverage |
| 3 |
Check reviews/complaints |
| 4 |
Consider claims process |
| 5 |
Ask about discounts |
Special Situations
New Drivers
| Situation |
Options |
| G1/G2 license |
Limited coverage options |
| Under 25 |
Expect high rates |
| On parent’s policy |
Usually cheaper |
| Own policy |
Much more expensive |
New to Ontario
| Situation |
What Happens |
| From another province |
Driving record transfers |
| New to Canada |
May start fresh |
| International license |
Limited recognition |
High-Risk Drivers
| If You Have |
Options |
| Multiple tickets |
Facility Association |
| DUI conviction |
Specialized insurers |
| At-fault accidents |
SR-22 equivalent |
Filing a Claim
Steps
| Step |
Action |
| 1 |
Ensure safety, call 911 if needed |
| 2 |
Exchange info with other driver |
| 3 |
Document scene (photos) |
| 4 |
Report to Collision Reporting Centre |
| 5 |
Contact insurer within 24 hours |
What to Provide
| Information |
Details |
| Date/time/location |
Of accident |
| Other driver’s info |
License, insurance |
| Police report number |
If applicable |
| Photos |
Damage, scene |
| Witness info |
If available |
Ontario-Specific Rules
No-Fault System
| Meaning |
|
| Your insurer pays |
Regardless of fault |
| Regardless of fault |
For your injuries |
| Fault still determined |
Affects future rates |
Fault Determination Rules
| Scenario |
At-Fault |
| Rear-ended |
0% (usually) |
| Rear-ending |
100% |
| Left turn collision |
Usually 100% |
| Both changing lanes |
50/50 |