Cheap Car Insurance Toronto | Compare Auto Insurance Quotes Online (2024)

With RATESDOTCA, drivers in Toronto saved an average of $643* on their car insurance premiums.

On this page:

• Car insurance in Toronto
• How much does car insurance cost in Toronto on average?
• Factors that determine your Toronto car insurance quotes
• Mandatory and optional auto insurance in Toronto
• Frequently asked questions about Toronto car insurance
• How to get the cheapest car insurance in Toronto
• Companies that provide auto insurance quotes in Toronto
• Best car insurance companies in Toronto 2024
• Toronto car insurance rates by postal code
• Where are the cheapest car insurance rates in Toronto?
• Average Toronto car insurance rate changes
• Save on Toronto car insurance today

Written ByAlexandra Bosanac

How much does car insurance cost in Toronto on average?

The average cost of car insurance in Toronto for 2023 is $2,325 per year or about $193 per month, according toRATESDOTCA Insuramap. That’s a 19% jump from the 2021 premium of $1,953.

Toronto’s average car insurance rate is 33.3% higher than the provincial average of $1,744 per year or $145 per month.

Although inflation has come down somewhat from its peak of 8.1% last year, the effects were felt throughout the industry in 2023, which helps explain the jump in rates. In total, 73 auto insurance companies requested and received approvals to raise rates last year, with some raising the rates by as much as 16%. The average rate change was 3.9%.

Another reason for the rapid growth of auto insurance rates is the number of thefts in Ontario. Specifically in Toronto,more than 12,000 cars were stolenin 2023 – a more than 24% jump from 2022.

Factors that determine your Toronto car insurance quotes

No one pays the same amount for car insurance, and insurance companies factor in many details when calculating your rate. Some are obvious. You can expect to pay a higher premium if you have received multiple speeding tickets or have been at fault for collisions. But there are also other factors most drivers aren’t familiar with.

Here are some of the mainfactors that insurance companies consider when calculating car insurance rates in Toronto:

1. Your neighbourhood: Your postal code can influence your car insurance rates. Insurance providers are risk assessors, so if drivers in your neighbourhood are more likely to file claims, your rates will reflect this. Differences in the rate of claims from one postal code to the next can be linked to driving behaviour and congestion in the area, crime rates, and other geographic differences.
   
2. Your vehicle: Driving a car decked out with aftermarket accessories, customized specifications, or luxury trim will also raise your insurance rates. These cars cost significantly more to repair or replace after an accident.
   
3. Your daily commute: You may have noticed that insurance companies request your annual mileage. The more time you spend on the road, the more likely you are to get in an accident. This is why commuters tend to pay more for car insurance. If you spend two hours on Highway 401 each day then zigzagging your way into downtown Toronto, you will face higher insurance costs than someone who leaves the car at home and takes the TTC or GO train to work. From an auto insurance perspective, commuting by transit, walking, or cycling is a much better choice.
   
4. Your driving history: Your personal driving record has an outsized impact in determining your car insurance premiums. If you have any convictions or accidents on your record, you’ll pay more for insurance until enough time has passed (usually six years). Those pesky speeding tickets can raise a red flag if you have a pattern of accumulating them. While parking tickets will not increase your insurance rates, if your driver’s licence gets suspended because of too many unpaid parking tickets, this can cause your insurance provider to increase your rates.
   
5. The coverage you have: Like all cities in Ontario, Toronto has mandatory and optional auto insurance coverages. If you select coverages beyond the minimum requirement, you will pay more for that enhanced protection.
   
6. Discount eligibility: Your age, occupation, and alumni are all potential sources of discounts. You can always ask your insurance provider about the discounts you're eligible for to ensure you get the best rate.
   
7. Additional drivers: A policy that includes secondary drivers will expand your vehicle's coverage, but it also means you'll pay more.
   
8. Bundle your insurance: Your insurance provider might also ask you to bundle your insurance policies, such as home and auto, as an easy way to reduce your premium from 5-15%.

Let's get started

Why is car insurance so expensive in Toronto?

How much can I save on Toronto car insurance with RATESDOTCA?

When should I shop around for the best car insurance rates in Toronto?

How to get the cheapest car insurance in Toronto

Car insurance rates in Toronto are overseen by the Financial Services Regulatory of Ontario (FSRA). The tactics that lower your car insurance premium in Toronto apply to the rest of Ontario, too. Here are a few tips to get the cheapest car insurance in Ontario.

1. Compare quotes: Of course, the easiest way to save money is to compare auto insurance quotes on RATESDOTCA! If you’re looking to buy a new car, compare quotes for the vehicles you’re considering to see which one is cheapest to insure.
2. Increase your deductible: Thedeductible is what you must pay out of pocket if you file a claim. The more you agree to pay, the lower your premium will be.
3. Bundle home and auto insurance: If you bundle your home and auto insurance under the same insurance company, you can save 5 to 15% off both policies. This is also called a multi-line discount.
4. Change into winter tires: Toronto roads face some harsh winter conditions. Save 5% on your car insurance by installing winter tires for the season. Protect your wallet and keep you and your family safe on icy roads.
5. Know what coverage you need: Review your coverage each year and cancel any add-ons you no longer need. For example, if you drive an older car that isn't worth repairing, it would make economic sense to cancel your collision coverage.
6. Pay annually: If you can pay your premiums annually rather than monthly, you can often save a bit of money. Some insurance companies offer a discount on the payment of annual premiums upfront.
7. Drive less: The less you drive, the more you save. If you commute to work via car, switching to transit can slash your premiums. If you don’t drive as much as you used to, call your insurance company and let them know.
8. Drivers education: Most insurance companies offer discounts for new drivers who complete driver training from a Ministry of Transportation accredited driving school. A defensive driving course can also make you eligible for discounts.
9. Multi-vehicle discounts: Like multi-product discounts, multi-vehicle discount means you can insure more than one vehicle under the same insurance company to snag a 5 to 15% discount on your premiums.
10. Ask about employee or alumni discounts: If you are part of a professional association, union, or non-profit association, you may be eligible for group discounts.
11. Safety features: Installing approved anti-theft devices or safety features on your car can lead to discounts. Check device eligibility before you purchase and install it.
12. Avoid additional drivers:A policy that includessecondary driverswill expand the coverage of your vehicle, but it also means you'll pay more. If you have a family member who rarely uses a vehicle, consider whether you need to keep them on the policy.

For our first-ever Best Home and Auto Insurer Awards, we surveyed drivers in Ontario and Alberta to see what they say are the best car insurance companies in several categories. Here's what they said are the best car insurance companies in Canada right now.

Where are the cheapest car insurance rates in Toronto?

Where you live in Toronto dramatically impacts what you pay for car insurance. People living just one postal code over could be paying a different average rate than you. In Toronto, it's not always immediately apparent which neighbourhood will have low rates. The city's constantly growing and changing, so hazards change and relocate accordingly.

Two postal codes in one city ward are tied for having the most affordable rates in the city. These postal codes lie in midtown Toronto in predominantly affluent neighbourhoods with good public transportation and access to amenities. Drivers can leave their cars at home during the workweek and likely have the cash to take extra measures to reduce their theft risk. Single-family homes with garages where cars can be secured and monitored are common.

Here they are, sorted by official city ward:

• Eglinton-Lawrence (M5N, M6C)
  • Average premium in 2023: $1,389

The second lowest auto insurance premium in Toronto is in the ward of York South-Weston in the Stockyards neighbourhood. The area is a mix of industrial, commercial, and residential uses. While the area is no stranger to traffic congestion, many residents rely on public transportation; buses and streetcars all run through here.

• York South-Weston (M6N)
  • Average premium in 2023: $1,466

Finally, the third cheapest rate in the city is found in a few west-end wards. At $2,158 and $2,210 annually, rates here are substantially higher rates than the next lowest rates (47% and 33.6% higher, to be specific). These are car-dependent neighbourhoods, with greater risk of accidents and theft. However, residents can supplement their car use with streetcars, subways, buses, and commuter trains.

• Etobico*ke-Lakeshore (M8V, M8X, M8Y, M8Z, M9A, M9B)
• Etobico*ke Centre (M9C)
• Parkdale-High Park (M6S)
  • Average premium in 2023: $2,158

Let's get started

Alexandra Bosanac has been a content manager for RATESDOTCA since 2021, specializing in auto insurance. She began covering auto insurance in 2017. Alexandra has a bachelor's degree in journalism from Toronto Metropolitan University. Before joining the RATESDOTCA editorial team, she reported for the Canadian Business, the Toronto Star, the National Post, and the CBC.

5 mins read

Craig S.

Apr.15.24

5 mins read

Arshi H.

Apr.03.24

4 mins read

Arshi H.

Mar.28.24