Does joint car ownership affect insurance rates in Ontario?

There are cases when having more means less. One such example is when you and someone you know co-own a vehicle, since cars tend be the second-largest cost in the average household. It makes getting a car more affordable, especially for couples and newlyweds. However, joint car ownership in Ontario can impact the rates on your car insurance.

The trick is to make sure that it works out in your favour after reducing vehicle ownership costs. There are many details to think about before deciding that it’s worth it, including adding your spouse as a secondary driver to your auto policy.


How insurance companies define joint car ownership in Ontario

Joint car ownership means that you and a friend, relative, or colleague are sharing a car’s ownership while also sharing the costs that come with it. This option can be useful if you aren’t in the financial position to afford one on your own. It also comes in handy when you’re not driving on a regular basis and aren’t able to justify the cost of sole ownership.



Both of your names will appear on the official green paper permit the province of Ontario issues. You must have this permit on hand while driving at all times. Plus, any paperwork related to the car, including the transfer of ownership, must be be signed by all parties involved. It might make more sense to keep that green slip in the car to make sure that it’s always present when needed for shared ownership.

With the costs associated with owning and operating a vehicle rising, many people lean towards sharing cars in order to save money. It can also prove to be a more viable route towards qualifying for a car loan. You can add both of your names to make it happen, and you’re on your way.


How does joint car ownership affect insurance rates?

Considering those aspects, co-ownership sounds like the smart thing to do. Just remember that insurance companies will write quotes based on the history of both owners. One of the major factors for your insurance rates comes to how much you’ll pay for insurance comes down to your driving record. The more speeding tickets and at-fault accidents on someone’s record, the higher the rates may be when it’s time to share a car. Insurance companies can have different rules when it comes to this kind of thing, but records of all drivers will be taken into consideration in most cases.

Despite having multiple names on the documentation proving joint ownership, insurance providers will analyze each driver on an individual basis. That’s why it helps to get separate quotes before applying for auto insurance coverage.

Age and experience also matter when evaluating your joint claim. Your insurance rate will depend on how old your co-owner is and how much driving experience they have. That’s important if you are a parent taking on joint car ownership in Ontario with a child who has a novice license (G1 or G2).



When and where you drive also matters as, for instance, as someone driving through downtown cores during rush hour could have different rates from someone who only drives on the weekend. Remember to account for that in a joint insurance policy!


Is joint car ownership a wise move, then?

Joint car ownership in Ontario can be a great option if you are confident in the driving record of your co-owner.

Joint ownership can be the right move if you’re concerned about car insurance prices. According to the Financial Services Commission of Ontario, recent increases are partially due to new cars being more expensive to repair and the rise in distracted driving. Be upfront about what’s happening with your car and track your driving habits—there are mobile apps that let you do this—as better driving equals better rates.

If you can both can manage it, then joint car ownership in Ontario may be your best move.  See how much your rates would be together and separately with our accurate online quote process. It only takes 3 minutes!

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