Car insurance Cambridge, ON​

Part of a series on car insurance rates in Ontario.

Car Insurance Cambridge FAQ

Is car insurance mandatory in Cambridge?

Yes, car insurance is mandatory in Cambridge. It is a legal requirement for all drivers in Cambridge to have a minimum amount of car insurance coverage. This mandatory coverage includes third-party liability coverage, which protects you if you cause injuries to other individuals or damage to their property while driving. 

Alongside the required coverage, drivers have the option to acquire extra voluntary coverage, such as collision and comprehensive coverage. It is important to maintain valid and up-to-date car insurance at all times while driving in Cambridge to comply with legal requirements. Operating a vehicle without insurance is against the law and can lead to financial penalties, legal repercussions, and other potential consequences.

What are the three types of car insurance in Cambridge?

In Cambridge, Ontario, there are several types of car insurance coverage available, but the three most common types include:

Third-Party Liability Coverage

This mandatory type of coverage provides protection if you are responsible for causing injury or damage to others while driving. It covers legal expenses, settlements, and claims up to the specified coverage limit, which is set at a minimum of $200,000. However, most policyholders opt for higher coverage limits of $1 or $2 million. 

This mandatory coverage includes accident benefits coverage, which benefits individuals injured in a car accident, regardless of fault, uninsured motorist coverage, which protects you if you are involved in an accident with a driver who is uninsured, underinsured, or involved in a hit-and-run incident, and direct compensation-property damage coverage, which applies when your vehicle is damaged in an accident caused by someone else.

Collision Coverage

Collision coverage is an optional type of car insurance that protects your vehicle from damages resulting from an at-fault collision. It covers the cost of repairing or replacing your vehicle minus the deductible if you are involved in an accident with another vehicle or object. This coverage is especially helpful when you are at fault or have no other party to hold responsible. While collision coverage is not mandatory, it provides financial assistance to restore your vehicle to its pre-accident condition. 

Collision coverage involves a deductible, which affects the amount you must pay out of pocket before your insurance coverage takes effect. Including collision coverage in your policy depends on factors such as your vehicle’s value, risk tolerance, and financial circumstances.

Comprehensive Coverage

Comprehensive coverage is an optional type of car insurance that protects damages to your vehicle caused by non-collision events. It covers a wide range of risks, including theft, vandalism, fire, natural disasters, falling objects, and collisions with animals. Essentially, comprehensive coverage safeguards your vehicle against damages that are beyond your control. If your car is stolen, vandalized, or damaged due to a covered event, comprehensive coverage can help cover the cost of repairs or provide compensation for the actual cash value of your vehicle. 

As with other types of insurance, comprehensive coverage typically comes with a deductible, which is the amount you are responsible for paying before your insurance kicks in. Including comprehensive coverage in your car insurance policy is optional but can provide valuable financial protection, particularly for newer or higher-value vehicles.

How much is it to insure a car in Cambridge?

The cost of insuring a car in Cambridge can vary significantly depending on various factors. These factors include vehicle type, age, driving record, coverage limits, deductibles, and the insurance company you choose. Additionally, insurance rates are influenced by the specific postal code area in Cambridge, where you reside.

According to available data, drivers in Cambridge who maintain a clean driving record generally face an average annual premium of approximately $1,425, with the highest prices in the N3H postal code area and the lowerest found in N1S.

To determine the exact cost, working with an insurance broker, like one here at aha insurance, to secure quotes tailored to your specific circumstances is best. Insurance companies can provide accurate quotes by providing the necessary information, such as your vehicle details and driving history. Comparing rates from multiple insurers will help you identify the most cost-effective option for your car insurance needs in Cambridge.

What are the main factors affecting my auto insurance premiums in Cambridge?

Several factors can influence your auto insurance premiums in Cambridge. Here are the main factors that insurance companies consider when determining your rates:

  1. Driving record, age, and experience: Your driving history plays a significant role in your insurance premiums. Insurance companies assess factors such as past accidents, traffic violations, and claims history to evaluate the risk associated with insuring you. Younger and less experienced drivers typically face higher premiums due to their higher risk profile. However, as you gain more driving experience and age, your premiums may decrease.
  2. Vehicle type and location: The make, model, and year of your vehicle can impact your insurance rates. Expensive or high-performance cars often have higher premiums due to increased repair costs or a greater likelihood of theft. Your location in Cambridge can also affect your insurance premiums. Urban areas may have higher rates due to increased traffic, higher theft rates, or more accident-prone areas.
  3. Coverage, deductibles, and claims history: The level of coverage you choose and the deductible amount you select can impact your premiums. Higher coverage limits and lower deductibles generally result in higher premiums. Additionally, your claims history, especially at-fault claims, can influence your premiums. Insurance companies may view a history of frequent claims as a higher risk and charge higher premiums.

Other factors that can affect your premiums include the usage and mileage of your vehicle and your insurance history. It’s important to note that these factors can vary between insurance companies, and each company may have its own underwriting criteria.

How can I apply for car insurance in Cambridge?

When shopping for car insurance in Cambridge, look no further than aha insurance. Follow these steps to apply today!

  1. Visit the aha insurance website and click “start your 3-minute quote” to begin your free insurance quote. 
  2. Fill in the necessary details, including your personal information, vehicle details, and any other required information.
  3. Review your free quote from aha insurance based on the details provided, including the coverage and the associated premium.
  4. Work with one of our expert aha insurance representatives to complete the application process. They will guide you through any additional documentation or information required.
  5. Lastly, together, carefully review the policy terms and conditions before finalizing your car insurance with us. 


What is the average car insurance cost in Cambridge?

If you’re looking to purchase car insurance in Cambridge, you’ll be pleased to know that drivers generally enjoy auto insurance rates that are below the provincial average. Those with a clean driving record typically pay around $1,400 annually. 

However, it’s important to note that insurance rates can vary depending on various factors such as location, driving history, age, and vehicle type. To find the most affordable car insurance rates in Cambridge, you can contact insurance providers directly and request customized quotes that consider your specific circumstances. Comparing rates from multiple insurers will help you identify the most cost-effective option for your car insurance requirements in Cambridge.

What type of auto insurance do I need in Cambridge?

In Cambridge, as in the rest of Ontario, certain types of auto insurance coverage are mandatory, while others are optional. The mandatory types of auto insurance coverage you need in Cambridge include:

Third-Party Liability Coverage

This coverage is required by law and provides protection if you cause injury to someone else or damage to their property while driving. It covers legal expenses, settlements, and claims up to the specified coverage limit.

Accident Benefits Coverage

Also known as statutory accident benefits, this is a mandatory type of car insurance in Ontario that provides financial support to individuals injured in a car accident. It includes benefits such as medical expenses, rehabilitation costs, income replacement, attendant care, caregiver benefits, and non-earner benefits. This coverage aims to help individuals recover and cover the expenses associated with their injuries.

Uninsured Motorist Coverage

This type of car insurance protects you if you are involved in an accident with an uninsured, underinsured, or unidentified driver. It helps cover expenses for bodily injury and property damage when the at-fault driver lacks sufficient insurance or cannot be identified. While not mandatory, uninsured motorist coverage is a valuable addition to your policy, ensuring you are financially protected when the other driver does not have adequate insurance.

Direct Compensation-Property Damage Coverage

Direct Compensation-Property Damage (DC-PD) coverage is a type of car insurance in Ontario that compensates for damages to your vehicle caused by a collision with another insured vehicle. With DC-PD coverage, you receive compensation directly from your insurance company, simplifying the claims process. As such, reviewing your policy for specific details and eligibility requirements for DC-PD coverage is important.

Who regulates car insurance rates in Cambridge?

Car insurance rates in Cambridge, as well as in the entire province of Ontario, are regulated by the Financial Services Regulatory Authority of Ontario (FSRA). The FSRA is a government agency responsible for overseeing and regulating insurance and other financial services in Ontario. Their role includes reviewing and approving insurance rates filed by insurance companies to ensure that they are fair, reasonable, and compliant with all applicable laws and regulations.

The FSRA ensures that insurance companies in Cambridge adhere to the established guidelines and pricing structures when determining insurance rates. They work to protect consumers’ interests and promote a transparent and competitive insurance market.

How can I lower my car insurance rates in Cambridge?

To potentially lower your car insurance rates in Cambridge, you can consider the following strategies:

  • Shop around and compare rates: Obtain quotes from multiple insurance providers to compare coverage options and rates. Each insurer has its own pricing model, so exploring different options can help you find the most affordable rate for your specific needs.
  • Increase deductibles: Opting for a higher deductible means you’ll have a higher out-of-pocket expense in the event of a claim, but it can also result in lower premiums. Consider whether you can comfortably afford the higher deductible before making this choice.
  • Bundle your policies: If you have other insurance needs, such as home or renter’s insurance, consider bundling them with the same insurance provider. Many insurers offer discounts for bundling multiple policies.
  • Install safety features: Equipping your vehicle with safety features such as anti-theft devices can potentially lead to discounts on your insurance premiums.
  • Inquire about discounts: Inquire about any available discounts offered by insurance companies. These may include discounts for being a safe driver, being a student with good grades, or completing a defensive driving course.

It’s important to note that multiple factors influence insurance rates, and the availability of discounts and cost-saving measures may vary between insurance providers. Consulting with a licensed insurance broker can provide personalized advice and assistance in reducing your premiums while maintaining the necessary coverage.

Fast facts about auto insurance in Cambridge

Average annual car insurance rate

Regular drivers in the city

Collisions per year (approximately)


Collision rate for the city

Average age

Average household income


Unemployment rate


Understanding car insurance in Cambridge, Ontario

Cambridge, Ontario is comprised of three neighbouring towns that merged into one municipal identity, but they still keep their identities as extended neighbourhoods. The city as a whole sits in a great position just south-east of Kitchener and south-west of Guelph.

This gives its residents highly manageable commuting distances to work in a dense population centre outside of Toronto.

That’s a good thing, because it reduces the overall commuting distance for the city’s entire working population. Even better, just over half of Cambridge’s workforce works right inside the city.

This reduces their exposure to risk on the road (and reducing their car insurance rates accordingly).

Get your bundle on & save!

Want even cheaper insurance? Save up to 50% on home and up to 15% on car insurance when you bundle them.

Get your bundle on & save!

Want even cheaper insurance? Save up to 50% on home and up to 15% on car insurance when you bundle them.

Busting myths about driving and insurance in Cambridge

Myth: Cambridge is a dangerous place to live.

Not overall. The crime severity index for the Waterloo Region (including Cambridge) is 70, which is on the upper-high end for Ontario. London scored 78, and Greater Sudbury scored 84. Brantford scored 90, and Windsor scored 95. It’s not just a 100-point scale, either. Some communities have scores in the 200s and 300s. Cambridge is doing pretty well.

Myth: Cambridge is just a bedroom community.

Cambridge is not just a bedroom community for Toronto. According to Statistics Canada, 54% of the city’s workforce commutes to work within the city. Beyond that, most commuters travel to nearby cities like Guelph, Kitchener, and Waterloo. No one wants to drive on the 401 that early in the morning.

Myth: Few job opportunities outweigh the low car insurance rates.

Wrong. Cambridge’s unemployment rate in the 2016 Census was only 6.4% compared to the national average of 7% in that same year (and the majority of the workforce works inside the city). You can also commute to Kitchener, Waterloo, Guelph, Milton, Woodstock, or anywhere in smaller towns around the area.

Myth: Student populations drive irresponsibly in Cambridge.

Most schools in the area are actually located in Kitchener, Waterloo, and Guelph, with the exception of one building from Conestoga College sitting within Cambridge’s limits. It’s just not a university or college town, so you don’t see many students on the city’s streets. They need bus access from one end of Kitchener to the southern end, most often.

How Cambridge’s rates compare to other cities in Ontario

  • North York: $4,261
  • Etobicoke: $4,199
  • Brampton: $4,071
  • Scarborough: $3,825
  • East York: $3,605
  • Woodbridge: $3,603
  • Richmond Hill: $3,579
  • Mississauga: $3,473
  • Markham: $3,389
  • Niagara Falls: $3,321
  • Bowmanville: $3,308
  • Peterborough: $3,259
  • Pickering: $ 3,245
  • Newmarket: $ 3,216
  • Hamilton: $3,201
  • Brantford: $ 3,158
  • Maple: $3,150
  • Whitby: $3,087
  • Ajax: $3,053
  • York: $2,999
  • Toronto: $2,983
  • Barrie: $2,924
  • Thornhill: $2,871
  • Waterloo: $2,867
  • Caledon: $2,780
  • London: $2,765
  • Fort Erie: $2,720
  • Oakville: $2,720
  • Sault Ste Marie: $ 2,713
  • Kitchener: $2,705
  • Milton: $2,680
  • St Catharines: $ 2,550
  • Windsor: $2,536
  • Woodstock: $2,513
  • Innisfil: $2,505
  • Burlington: $2,476
  • Kingston: $ 2,360
  • Cambridge: $2,297
  • Oshawa: $2,295
  • Guelph: $2,268
  • Gloucester: $2,256
  • Stoney Creek: $2,222
  • Nepean: $2,196
  • Ottawa: $2,195
  • Sudbury: $2,005
  • Kanata: $2,002
  • Thunder Bay: $1,973
  • Wasaga Beach: $1,958

Quick tips on insurance and driving in Cambridge

Avoid Cambridge’s most dangerous intersections.

Some intersections are dangerous for everybody. Avoid these ones and protect your car insurance rates.

Sorry, Hespeler Road!

  • Hespeler Road and Bishop Street
  • Maple Grove Road and Fischer Mills Road
  • Queen Street, Beaverdale, and Hespeler
  • Can Amera Parkway and Hespeler Road
  • King Street and Bishop Street

Consider comprehensive car insurance for overland flood damage to your car.

The Grand River runs right through Cambridge, and the city also gets a fair amount of precipitation. That results in flood warnings now and again (as recently as January 2020).

Look into comprehensive coverage to protect your car in case you’re in an area affected by floods or just living close to the river bank.

Commuting to Kitchener, Waterloo, or Guelph? Take back roads.

There’s a reasonable chance your job is in another city. If that’s the case, then avoid the 401 and Kitchener-Waterloo’s intra-city highways if possible. The 401 sees slowdowns and fender-benders quite a bit, and the intra-city highways are high-speed spaghetti junctions.

Take back roads instead. They’re less travelled, reducing your chance of being involved in a collision. Your auto rates will thank you.

Cambridge Insurance FAQs

What impacts Cambridge auto insurance?

The short average commuting distance of residents who work within the city lowers Cambridge’s average auto insurance rates. In contrast, in municipalities like Vaughn, Ajax and Whitby, a higher percentage of the population commuting on major highways to more densely populated locations in the GTA increases the risk of accidents and insurance premiums. 

In addition to your city, your postal code is another factor that insurers use to determine what drivers pay for auto insurance. As a result, neighbourhoods with relatively low crime and collision rates can also enjoy lower average car insurance prices. 

Learn more about how your address affects your car insurance here

Check out our exploration of car insurance in Kitchener for more insights into auto coverage in the Waterloo Region. 

How can I get cheap car insurance in Cambridge, Ontario?

A reliable way for Cambridge residents to find better auto insurance prices is to work with an insurance brokerage representing multiple major Canadian insurance companies. Comparing quote options before your current auto policy renews helps guarantee you pay the best price for the insurance you need. 

You can receive a free, guaranteed online quote at aha insurance in three minutes. You can also speak with one of our expert brokers to ensure you have the best coverage for your needs. 

In addition to where you live and the insurance policy you choose, there are other things you can do to lower how much you pay for car insurance. A crucial strategy is maintaining a good driving record so at-fault accidents and traffic tickets don’t raise your rates. 

Bundling your home and auto insurance policies with the same insurer can help you get a better deal on coverage. For example, you can save up to 50% off home and 18% off car insurance when you bundle your coverage with aha.

Take a look at our guide with more tips on how to lower car insurance in Ontario.

How do Cambridge's rates compare to other cities in Ontario?

The average cost of car insurance in Cambridge is lower than the Ontario average. In 2021, Cambridge residents paid an average of $1,412 for their annual insurance policies compared to the provincial average of $1,555. 

The Ontario cities with the cheapest average auto insurance rates include smaller municipalities like Cornwall and Port Hope. However, Cambridge residents can pay significantly less for auto insurance than those in many cities in the Greater Toronto Area, which tend to have the highest car insurance rates in the province

Sources for facts about Cambridge:

  • Statistics Canada, Cambridge 2016 Census Profile
  • Ministry of Transportation, 2016 Road Safety Report
  • Maclean’s, “Canada’s Most Dangerous Places 2019”
  • Global News, “Top 10 worst intersections in Waterloo region”
  • Cambridge Times, “Closures remain as Cambridge and North Dumfries dry out from flooding”
  • Bike WR via YouTube, “Navigating a Pedestrian Crossing”

Source for average insurance rates by city:

  • Survey of 2,800 auto insurance policy holders in Ontario

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