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An analysis of original anonymized auto insurance policy data covering 4,386 policies reveals major differences in annual car insurance premiums across Montreal.
Published: June 2026
Prepared by: KBD Insurance
Dataset: 4,386 analyzed auto insurance policies across Montreal Island
KBD Insurance analyzed anonymized car insurance premium data from postal codes across Montreal Island. The analysis identified significant differences in average auto insurance premiums across Montreal neighbourhoods, though pricing is influenced by many variables beyond geography alone.
Because insurance pricing is influenced by many factors, including claims history, theft trends, vehicle characteristics, coverage selections, and regional risk exposure, this report does not attribute premium differences to any single factor.
Disclaimer: Some regions included smaller policy sample sizes than others, which may increase variability in average car insurance premiums. The premiums shown in this report represent averages and may not reflect the cost of individual policies.
In this report, you’ll find:
- Why this analysis matters for Montreal drivers
- An overview of car insurance premiums across Montreal
- Key takeaways from the dataset
- Table of insurance premium differences across Montreal
- The top 11 most expensive areas across Montreal Island
- The top 11 least expensive areas across Montreal Island
- Borough & neighbourhood comparisons across Montreal
- Factors that can influence insurance costs
- Why postal codes matter in underwriting
- Broader Quebec & Canadian insurance trends
- Montreal vs. Quebec average car insurance rates
- What this data means for Montreal drivers
- What this data means for insurance professionals
- How insurance premiums may change over time
- Methodology, sources & citations
- Conclusion
Why this analysis matters for Montreal drivers
Many Montreal drivers may not realize how significantly auto insurance premiums can vary between neighbourhoods, even within the same metropolitan area.
Unlike home insurance, where location-based risk factors are often more obvious, some drivers may be surprised to learn that postal code can also influence auto insurance pricing. While motorists travel throughout the city, insurers often use geographic data to help evaluate localized claims trends, theft exposure, traffic patterns, and other regional risk factors.
Understanding these pricing differences can help drivers better evaluate insurance costs, compare coverage options, and recognize how neighbourhood-level risk patterns may influence premiums over time.
Overview of car insurance premiums across Montreal
A data-informed overview of average auto insurance premiums across Montreal municipalities and neighbourhoods.
Important: Policy sample sizes varied by neighbourhood. Areas with smaller sample sizes may show greater variability in average premiums.
Car insurance premiums by neighbourhood
Key takeaways from this dataset
- The analysis reviewed 4,386 auto insurance policies across Montreal Island.
- Anjou reported the lowest average premium at $954.12, based on 34 analyzed policies.
- Despite relatively close policy sample sizes, Westmount reported an average premium of $1,873.87 from 30 policies, compared with Anjou’s $954.12 average.
- Drivers in Westmount paid nearly 57% more than the average premium on Montreal Island.
- Average premiums varied by nearly 96% between the highest and lowest municipalities analyzed.
- The Montreal category accounted for the largest policy sample in the analysis, with 1,201 policies reviewed, and average premiums of $1,281.41.
- West Island communities such as Beaconsfield and Pointe-Claire reported premiums below the island-wide average.
- West Island communities generally reported lower car insurance premiums than the urban core.
Table of car insurance premium differences across Montreal
Average auto insurance premiums are based on aggregated anonymized policy data across Montreal municipalities and borough-level regions. Some municipalities included smaller policy sample sizes than others.
Individual insurance premiums may vary significantly based on driver profile, vehicle type, coverage selections, and other underwriting factors.
Top 11 most expensive areas for car insurance across Montreal Island
Top 11 least expensive areas for car insurance across Montreal Island
Borough & neighbourhood comparisons across Montreal
Westmount reported the highest average premium in the dataset at $1,873.87, though the municipality represented a smaller policy sample than several larger Montreal regions.
Other municipalities including Outremont, Verdun, Montreal-Ouest, and Mont-Royal also ranked among the highest average premiums analyzed.
By comparison, several West Island communities, including Beaconsfield, Pointe-Claire, and Sainte-Anne-de-Bellevue, reported average premiums below the island-wide average of $1,196.39.
The Montreal category represented the largest policy sample in the analysis, with 1,201 analyzed policies and an average premium of $1,281.41, which was above the island-wide average.
Factors that can influence car insurance costs
Postal code is just one component of a broader underwriting process, and insurance premiums can vary significantly based on vehicle type, coverage selections, driving history, claims history, and other individual factors.
While this report does not attribute pricing differences to any single cause, several factors commonly influence auto insurance premiums, including:
- Claims history: Areas with higher historical claims activity may experience higher insurance pricing over time.
- Theft and vandalism trends: Vehicle theft and vandalism can increase regional claims exposure and insurance costs.
- Traffic density: Urban congestion, traffic volume, and accident exposure may contribute to geographic pricing differences.
- Repair and replacement costs: Vehicles with higher repair and vehicle replacement costs may experience higher average premiums.
- Vehicle values: Neighbourhoods with higher concentrations of newer or luxury vehicles may face higher premiums, as well as increased repair and replacement costs following claims.
- Weather exposure: Severe weather events, flooding, and other climate-related claims continue affecting insurance markets across Canada.
Why postal codes matter in auto insurance underwriting
Postal codes help insurers organize and evaluate risk at a localized level. While individual auto insurance premiums are influenced by many factors, geographic data can provide insight into broader patterns that may affect insurance costs across different communities.
Even neighbouring communities can report noticeably different average premiums, reflecting variations in regional risk exposure and claims experience.
Broader Quebec & Canadian insurance trends
Car insurance costs have faced upward pressure across Quebec and Canada in recent years due to rising claims costs, vehicle price inflation, and ongoing auto theft concerns.
Another contributing factor is increasing vehicle complexity, which can make collision repairs more expensive when accidents occur. At the same time, the cost of both new and used vehicles has risen notably in the post-pandemic period. According to Statistics Canada, median vehicle prices increased by 61.5% for new vehicles and 82.2% for used vehicles between 2019 and 2024, contributing to higher replacement and repair costs across the insurance industry.
Auto theft remains another challenge affecting insurers and policyholders. According to the Groupement des Assureurs Automobiles, several regions within Greater Montreal reported some of the highest frequencies of vehicle theft in Quebec, including central and east Montréal (0.36%) and west Montréal (0.24%).
While theft rates alone do not determine insurance premiums, higher theft exposure can contribute to increased claims costs and insurance pricing pressure in affected regions.
Montreal vs. Quebec average car insurance rates
According to KBD data, the average car insurance policy in Quebec was $1,045 in 2026. In comparison, the average premium across 4,386 analyzed policies on Montreal Island was $1,196.39, approximately 14.5% higher than the provincial average.
Considering that factors such as traffic density, population concentration, claims frequency, and regional risk exposure can influence insurance pricing, it is not uncommon for average premiums in major urban centres such as Montreal to exceed broader provincial averages that also include lower-density rural regions.
What this data means for Montreal drivers
Insurance premiums can vary significantly depending on where drivers live, and two drivers with similar vehicles may still pay very different rates based on postal code, driving history, regional risk patterns, and other underwriting considerations.
These findings highlight how neighbourhood-level pricing differences may influence long-term affordability for consumers and reinforce the importance of regularly reviewing coverage options, understanding local insurance trends, and comparing policies over time.
What this data means for insurance professionals
The data demonstrates how neighbourhood-level risk assessment continues shaping auto insurance pricing outcomes across Montreal.
As insurers continue adapting to changing claims trends, theft exposure, repair costs, and evolving risk profiles, geographic segmentation, predictive modeling, and personalized telematics-based insurance programs may play an increasingly important role in underwriting and pricing decisions.
How auto insurance premiums may change over time
As of January 2026, the average cost of car insurance in the province of Quebec was $1,045 a year, based on KBD data.
In contrast, in August 2019, the average rate of car insurance in Quebec was just $717 a year, indicating a 45.7% increase over approximately six and a half years.
Looking ahead, auto insurance premiums may continue increasing as repair costs, vehicle technology, inflation, and claims trends change over time. Modern vehicles increasingly rely on advanced sensors, cameras, and driver-assistance technologies, which can increase repair and replacement costs following collisions.
Geographic pricing differences may also become more pronounced as insurers continue adopting predictive analytics, telematics, and other data-driven underwriting tools. Broader market conditions, including vehicle theft trends, repair expenses, and claims costs may also continue influencing insurance pricing across Montreal and Canada.
Methodology
Data & geographic scope
This analysis is based on anonymized auto insurance policy data from KBD Insurance. No personally identifiable customer information was used in this report.
The analysis examined 4,386 auto insurance policies across municipalities, boroughs, and neighbourhood-level regions on Montreal Island. The report focused on average annual auto insurance premiums grouped by municipality and postal-region-level geography.
Timeframe analyzed
The report reflects policy data current as of May 2026.
Limitations & important considerations
Some municipalities included smaller policy sample sizes than others, which may increase variability in average premiums. Insurance pricing is influenced by many variables beyond geography alone, including driver profile, vehicle type, claims history, and coverage selections.
This analysis does not include every neighbourhood and municipality on Montreal Island. Findings are based solely on locations with sufficient insurance policy data available for analysis.
This report is intended for informational purposes only and does not attribute premium differences to any single factor or underwriting variable.
Sources & citations
Where applicable, supporting industry context and statistics were referenced from Canadian insurance organizations, government datasets, and publicly available industry reports.
Wrap up: what the analysis means
The analysis highlights how significantly car insurance premiums can vary across Montreal municipalities, highlighting the growing importance of hyper-localized pricing and geographic underwriting considerations within the Montreal insurance market.
About KBD Insurance
KBD Insurance is a local Montreal insurance brokerage with 40+ years of experience serving individuals and businesses across the province. The firm provides insurance solutions across home, auto, commercial, and specialty insurance markets.
For additional information, media inquiries, quotes, or industry insights, contact KBD Insurance at info@kbdinsurance.com.