Car insurance in Ontario

The average monthly car insurance cost in Ontario is around $127. 

This works out to $1528 annually, but your personal car insurance rate will depend on several factors that could make it either lower or higher. 

This includes your driving record, claims history, your age and gender, your car and its mileage, and more. 

But, since your car insurance premium is customized to you, the best thing to do if you want an accurate number is to get a quote. We can help with that.  

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If you’re looking for the best car insurance in Ontario, the most important thing is to find a company that offers the right kind of coverage for you and your vehicle.

For example, if you drive a luxury or vintage car, you’ll need a policy that covers all its bells and whistles. 

The same goes for if you plan on having multiple drivers listed on your car insurance policy.

The easiest way to find the best car insurance for you is to work with a broker. They can shop around, and really tailor your policy to fit your needs. 

That said, if you want to browse the top Canadian car insurance companies first to do your own shopping, here’s a list:

• Intact Insurance
• Economical Insurance 
• Belair
• Desjardins

At KBD, we work with Intact Insurance and Economical to get the best car insurance quote for you.

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Not exactly, but Canadian car insurance companies have access to a general database that holds a record of all driver’s claims history.

If you’re considered a high-risk driver, your insurance premium will reflect that. 

But even if you’re not, there are a few things that all drivers can do to lower their premiums. 

• Find discounts and bundle your policies 
• Drive responsibly
• Use multi-car discounts
• Shop around regularly for better rates
• Increase your deductible 
• Only pay for what you need
• Download car insurance telematics
• Try not to claim
• Pay on time
• Buy a beater

An insurance broker can look over your car insurance coverage to find you better savings. 

Get in touch with our Ontario insurance brokers and we’ll help you save. 

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It’s actually pretty simple. 

First you need to decide whether to go with an insurance broker or directly to an insurance company. 

This will likely depend on whichever company is cheaper!

If this is your first time getting car insurance, or you’ve just moved to Ontario, a broker can make things easier.  

They’ll walk you through the process, and find you the best rate. 

With a direct insurance company, you’ll have to go at it alone.

Next up, you need to get a quote. You can do this one of two ways. 

1. Online: Get your quote online, think about it, then finalize with an agent over the phone.
2. By phone: A broker can get you a quote in just 3-5 minutes. 

Ready for a car insurance quote? 

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Yes, this is called non-owner car insurance in Ontario. 

It’s not mandatory, but can be helpful in certain situations. Basically, it covers you if you’re driving, but you don’t own a car. Usually car insurance follows the car, not the person. 

For example, if you live in downtown Toronto, and occasionally rent a car to get groceries, or go on a weekend trip, it can be a good idea to get non-owner car insurance. 

If you don’t own a vehicle, but are in an at-fault accident, you could end up shelling out your own money to pay for the damages.

So, in short, non-owner car insurance is good coverage to have if you’re borrowing, renting, or using car-sharing services.

Finding the cheapest car insurance for you (it’s different for everyone) depends on a few key factors. 

If you drive like Speedy Gonzales and have made claims for several accidents, that will be reflected in your car insurance premium.

On the flip side, if you’ve got a friend who’s a super careful driver, they’ll generally pay less. 

But if you’ve landed yourself in the specialty/substandard (aka: high risk and high rates) insurance market, here’s a few things you can do to make your Ontario car insurance premium cheaper. 

1. Use car insurance telematics
2. Avoid making claims
3. Buy a cheap car
4. Pay on time 

The best way to maintain your cheap car insurance is to drive responsibly so that you can avoid making claims, and keep your premiums as low as possible.  

Chat with an Ontario car insurance broker about the best way for you to do this. 

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Car insurance is mandatory in Ontario and all drivers have to carry at least $200k in liability coverage. 

So to make sure you’re following all the Ontario car insurance rules, you must carry the following coverage on your policies:

• Third party liability: Provides coverage if you’re responsible for property damage, injury, or death. 

• Statutory accident benefits coverage: Covers expenses related to income replacement, medical and rehabilitation, and death and funeral expenses, etc. 

• Uninsured automobile coverage: Pays out for damages that are caused by a driver that doesn’t have auto insurance. 
• Direct compensation – property damage insurance (DC-PC): Covers you if your vehicle is damaged in an accident in which you’re not at fault. 

Need automobile coverage? 

Give us a call. 

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You must have car insurance to legally be able to drive in Ontario, and there are both mandatory and optional coverages. 

Mandatory coverages:

• Statutory accident benefits coverage: Covers income replacement, medical and rehabilitation, death and funeral expenses, etc. 
• Third party liability: Covers you if you’re responsible for property damage, injury, or death. 
• Uninsured automobile coverage: Covers you if you’re in an accident in which damages are caused by a driver who doesn’t have auto insurance. 
• Direct compensation – property damage insurance (DC-PC): Covers your expenses if your vehicle is damaged in an accident that you didn’t cause.

In Ontario, collision and comprehensive car insurance is optional. 

Pro tip: if your car is financed or leased, the company will require you to carry full car insurance.

Speak with your Ontario car insurance broker to see if these would be a good fit for you. 

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Cancelling subscription plans usually comes with charges. It’s annoying. Like when you sign up to Amazon Prime to watch one show, and don’t realize it’s non-refundable. Oops. 

There’s a penalty fee for cancelling your car insurance in the middle of your policy term, and it can reflect badly on you in the eyes of insurance companies. 

Since car insurance is mandatory in Ontario, it doesn’t look so great to have gaps in your coverage. 

BUT if you do need to cancel, here’s our best advice:

1. Wait until your renewal date to cancel. You’ll avoid the penalty fee of a short-rate cancellation, and stay in good standing with your insurance company. 
2. Keep up-to-date with your insurance. If you don’t have car insurance for a few years, you go back to square one, as though you don’t have any insurance experience. And first time car insurance buyers pay higher premiums, which is worth avoiding.
3. Take advantage of the ‘storage endorsement’: This is coverage designed for people with summer cars, but it’s completely legal for people who are temporarily car-less to use. You’ll be covered for fire, theft, and vandalism, and will only pay 15-20% of your original rate. Collision coverage is not included.

Still have questions? Call us, or check out this blog on how to cancel car insurance without charges. 

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In general, if they have a valid Canadian licence and your permission, they can borrow your car without being listed on your insurance policy (if it’s going to be for a short period of time). 

BUT if they use your car on a regular basis, add them to your insurance. Your car insurance will only extend to very occasional drivers, e.g., if your friend is borrowing your car for an afternoon. 

It won’t cover someone who regularly uses your vehicle every weekend (unless this somebody is added as a secondary driver). 

Make sure that they know where the licence and registration is, and keep in mind that it can affect your insurance record if they get into an accident.

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