How Does Car Insurance in Ontario Work?
Understanding how car insurance in Ontario works is essential before purchasing a vehicle or policy. The first step is getting insurance quotes to determine how much it will cost to insure your car. You can contact an insurance company directly or work with a licensed broker who compares quotes from multiple insurers on your behalf.
To purchase auto insurance in Ontario, you must have a valid driver’s licence. Under Ontario’s graduated licensing system, drivers with a G1 or G2 licence can buy insurance. However, limited driving experience often results in higher premiums compared to drivers with a full G licence.
When requesting a quote, insurers will ask for details about your vehicle, including:
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Year, make, and model
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How the vehicle will be used (commuting, personal use, or business use)
They will also collect personal and driving information such as:
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Age and gender
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Residential address
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Driving history
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Driver education courses completed
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Tickets, accidents, or insurance claims within the past few years
It’s critical to provide accurate information. Misrepresenting your driving history—even unintentionally—can result in denied coverage or cancelled policies. Insurers will also ask whether you are the primary driver or if additional drivers will regularly use the vehicle.
If you already have car insurance and are shopping for a better rate, you’ll need to provide details of your current policy.
Tip for young drivers: If you’re buying your first car and live with your parents, request a quote from their insurer. You may qualify for discounts by adding your vehicle to their policy.
How Much Does Car Insurance Cost in Ontario?
According to ThinkInsure.ca, the average cost of car insurance in Ontario in 2022 was $1,634 per year, or approximately $137 per month. However, premiums vary widely based on location, driving history, vehicle type, and coverage options.
Most Expensive Cities in Ontario for Car Insurance
Some Ontario cities have significantly higher insurance premiums due to traffic density and claims frequency. The most expensive cities include:
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Vaughan – $2,179/year
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Ajax – $2,104/year
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Richmond Hill – $2,025/year
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Brampton – $1,976/year
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Mississauga – $1,971/year
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Pickering – $1,959/year
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Toronto – $1,953/year
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Oshawa – $1,833/year
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Whitby – $1,792/year
Monthly premiums in these areas range from $147 to $182.
Cheapest Cities in Ontario for Car Insurance
Some regions offer much more affordable auto insurance rates. The least expensive areas include:
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Kendal – $1,271/year
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Amherstview
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Brockville
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Iroquois
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Martintown
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Elizabethtown
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Cornwall
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Kingston
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Gananoque
In these locations, average monthly premiums range from $94 to $106.
Most Expensive Cars to Insure in Ontario
Insurance costs also depend on your vehicle. According to the Insurance Bureau of Canada’s How Cars Measure Up (HCMU) data, the following vehicles tend to have higher-than-average insurance premiums due to claim frequency and repair costs:
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BMW X6 (2011–2017)
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Dodge Challenger / Charger (2014–2017)
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Land Rover Range Rover / Range Rover Sport (2014–2018)
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Lexus RX (2016–2020)
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Porsche Cayenne (2004–2018)
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Tesla Model S (2014–2017)
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Tesla Model X (2016–2018)
These figures are not Ontario-specific and do not account for personal factors such as your driving record or location.
Can Someone Else Drive Your Car Under Ontario Insurance?
Yes, any licensed driver can drive your car with your permission, but there are important rules to consider.
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Occasional drivers (a few times per year) do not need to be listed on your policy.
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Regular drivers (once a week or more) must be added as secondary drivers.
This applies to everyone, including family members. Failing to list a frequent driver can lead to denied claims or increased premiums.
If someone drives your car and causes an accident, the claim is made under your insurance policy, and it may impact your rates.
Can You Register a Car Without Insurance in Ontario?
No. Car insurance is mandatory in Ontario. You must provide proof of valid insurance to register a vehicle or renew your registration.
Frequently Asked Questions About Car Insurance in Ontario
What is car insurance and why is it mandatory in Ontario?
Car insurance is a legal requirement in Ontario that protects drivers financially in case of accidents, injuries, or property damage. Every vehicle owner must carry a minimum level of coverage to legally drive and register a car in the province.
What is the minimum car insurance coverage required in Ontario?
Ontario drivers must carry:
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Third-party liability coverage (minimum $200,000, though $1 million is recommended)
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Accident benefits coverage
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Direct compensation–property damage (DCPD)
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Uninsured automobile coverage
These coverages protect you, your passengers, and others involved in an accident.
How much does car insurance cost in Ontario?
The average cost of car insurance in Ontario is around $1,600 per year, but rates vary depending on your city, driving record, vehicle type, age, and coverage level. Drivers in the GTA generally pay more than those in smaller towns.
Can I get car insurance with a G1 or G2 licence?
Yes, you can get car insurance in Ontario with a G1 or G2 licence. However, new and inexperienced drivers usually pay higher premiums compared to fully licensed G drivers.
What factors affect car insurance rates in Ontario?
Car insurance premiums are influenced by:
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Your driving record and claims history
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Your age and experience
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Where you live
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The type of vehicle you drive
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How often and why you drive (commuting or business use)
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Listed secondary drivers
Which cities in Ontario have the highest car insurance rates?
Cities such as Vaughan, Brampton, Ajax, Mississauga, and Toronto typically have the highest car insurance premiums due to higher traffic density and claim frequency.
Which Ontario cities have the cheapest car insurance?
Smaller towns and rural areas like Kendal, Brockville, Kingston, Cornwall, and Gananoque generally offer lower insurance rates, often under the provincial average.
Can someone else drive my car under my Ontario insurance policy?
Yes, anyone with a valid driver’s licence can drive your car with your permission. However, if someone drives your vehicle regularly, they must be listed as a secondary driver on your policy to avoid claim issues.
Do family members need to be listed on my car insurance?
Yes. If a family member (such as a spouse or child) uses your car frequently, they must be added as a listed driver. Occasional drivers do not need to be added.
What happens if someone else crashes my car?
If another driver crashes your car with your permission, the claim is made under your insurance policy, and it may affect your future premiums.
Can I register a car in Ontario without insurance?
No. You cannot register or renew a vehicle registration in Ontario without valid car insurance. Proof of insurance is mandatory.
What are the most expensive cars to insure in Ontario?
Luxury vehicles, sports cars, and electric vehicles often cost more to insure. Models like high-end BMWs, Teslas, Porsches, and Range Rovers usually have higher premiums due to repair and claim costs.
How can I lower my car insurance costs in Ontario?
You may reduce your premiums by:
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Maintaining a clean driving record
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Bundling home and auto insurance
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Adding winter tires
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Taking a certified driver training course
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Comparing quotes from multiple insurers
