What does the average car insurance policy cost in Ontario?

Driving in Ontario isn’t cheap. Cars are expensive, gas is pricey, and not everyone has a stellar driving record. But there are lots of factors that influence what you’ll pay for insurance premiums, and this has many people wondering about the average car insurance in Ontario compared to their own policies.


Average car insurance rates in Ontario

In Ontario, estimates for average car insurance premiums for a year range from about $1,500 to $1,900. This is mainly because of high fraud rates, the high cost of settling claims, and the high overhead costs associated with the province’s private insurance system.

The other big factor in Ontario’s auto rates would be the Financial Services Commission of Ontario (FSCO), which approves the rates of every provider operating in the province.


Factors that impact car insurance rates

Although $1,500 to $1,900 represents the average car insurance in Ontario, there are many factors that can influence your own rates. Some people will actually pay substantially more every year to insure a vehicle.



Here are some things that can impact your rates:

  1. Where you live in the province.
  2. Age and gender.
  3. Coverage type.
  4. Deductible.
  5. Driving record and years of experience.
  6. The vehicle you buy.
  7. Vehicle usage (such as commute versus pleasure).
  8. Marital status.
  9. Distance driven in a year.
  10. Claims history.

To help you better understand how much insurance rates can fluctuate based on these factors, it can help to look at an example. Whereas the average person in Ontario will pay less than $2,000 annually for car insurance, a male driver under the age of 25 living in Toronto could pay 3 to 4 times that average.


Finding ways to lower your rates

Whether your policy is higher or lower than the average car insurance in Ontario, there may still be things you could do to reduce your premiums. For instance, your rates will increase the more you drive, and if you use your car to commute, then your rates will go up.

For lower insurance, bundle your auto and home into the same policy. Insurance providers usually give discounts when you bring both under the same roof.

Another sure-fire way to reduce premiums is to increase your deductible, but make sure you have the money to cover the deductible in case of a collision. You can also shop around for lower rates, ask about potential discounts, talk to insurers about better rates, and use winter tires.

The best ways to reduce your rates are to shop around for the best quotes, keep a clean driving record, and maximize your bundle discounts. Focus on the factors you can control and go over the details with your carrier to make the most of those savings.

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