Straight answers to the car insurance questions Ontario drivers actually ask — from a RIBO-licensed Brampton broker. For newcomer-specific questions (foreign licence, letter of experience, first policy in Canada), see our newcomer car insurance Q&A. For your own numbers, get a free quote or call (647) 967-8013.
Cost & pricing
Why is car insurance so expensive in Ontario?
Ontario has the highest auto premiums in Canada. It comes down to the province’s generous no-fault accident benefits, dense traffic and high claims frequency in the GTA, and the cost of insurance fraud such as staged collisions — insurers build all of that into rates. Comparing insurers is the most reliable way to offset it.
How much does car insurance cost per month in Ontario?
The provincial average is roughly $180 to $220 a month, but GTA drivers and newer drivers often pay more. Your figure depends on your record, vehicle, postal code, and licence history, so a quote on your situation is the only accurate number.
What is the average car insurance cost in Ontario?
Around $2,000 to $2,700 a year on average, though it ranges widely. Cities like Brampton, Mississauga, and Toronto sit above the average because of higher claims and traffic density.
Why is car insurance in Brampton so expensive?
Brampton has among the highest premiums in Ontario — often above $3,000 a year — because of heavy traffic, a high volume of claims, and fraud in the region. Your own rate still depends on your record and vehicle, and comparing insurers can reduce it meaningfully.
What factors affect my car insurance rate?
The biggest ones are your driving record and claims history, your postal code, the make and model you drive, your annual mileage, how long you have held a licence, and the coverages and deductibles you choose.
Does my credit score affect car insurance in Ontario?
No. Ontario does not allow auto insurers to use your credit score or credit history when pricing car insurance — unlike some other provinces, and unlike home insurance. Your driving record carries far more weight.
Coverage & what is required
What car insurance is mandatory in Ontario?
Every Ontario policy must include four coverages: third-party liability, statutory accident benefits, direct compensation–property damage (DCPD), and uninsured automobile coverage. Collision and comprehensive are optional.
What is DCPD coverage?
Direct compensation–property damage pays for damage to your own vehicle when another driver is at fault, through your own insurer under Ontario’s system. It is mandatory and helps claims settle faster.
What is the difference between collision and comprehensive coverage?
Collision covers damage to your own car from an at-fault crash. Comprehensive covers non-collision events — theft, vandalism, fire, hail, and falling objects. Both are optional, but lenders usually require them on financed or leased cars.
How much liability coverage do I need in Ontario?
The legal minimum is $200,000, but most drivers carry $1 million or $2 million, because lawsuits routinely exceed the minimum and the extra coverage costs relatively little.
Is my car covered if someone else drives it?
Generally yes, if they have your permission and a valid licence, since coverage follows the vehicle. But anyone who drives it regularly should be listed on the policy, or a claim could be denied.
New & young drivers
How much is car insurance for a new G2 driver in Ontario?
New drivers pay the most — a G2 driver often pays several thousand dollars a year, and more in the GTA — because they have little driving history. Rates fall as you move to a full G licence and stay claim-free.
Do G1 drivers need insurance in Ontario?
A G1 driver generally cannot insure a car in their own name, but they must be covered to drive — usually by being listed on the vehicle owner’s policy. G1 rules also require a fully licensed supervising driver, with no 400-series highways or midnight–5 a.m. driving without an instructor.
How does the G1–G2–G system affect my insurance?
Premiums are highest at G1 and G2 and drop as you gain experience and move to a full G licence with a clean record. Completing an accredited driver-training (BDE) course can also lower your starting rate.
How can a new or young driver lower car insurance?
Complete an accredited driver-training course, get added to a parent’s policy as an occasional driver, choose a modest and safe vehicle, keep a clean record, and consider a telematics program.
Claims & accidents
Will my insurance go up after an at-fault accident?
Usually yes. An at-fault collision — where you are 50% or more at fault — is “chargeable,” and premiums commonly rise 20–50%, sometimes more after multiple claims. A not-at-fault accident generally should not raise your rate.
How long does an accident stay on my insurance record in Ontario?
Insurers typically consider at-fault accidents for about six years, though the impact fades over time if you stay claim-free. That is separate from demerit points on your driving record, which follow their own timelines.
Does a comprehensive claim like theft or hail raise my rates?
Usually far less than an at-fault collision. Because these events are not your fault, a single comprehensive claim often has a small or no effect on your premium, though many claims over time can still matter.
What should I do right after a car accident?
Make sure everyone is safe, call 911 if there are injuries, exchange information, photograph the scene, and report to your broker or insurer promptly. Damage over the reportable threshold, or any injury, may require a police or Collision Reporting Centre report.
What is accident forgiveness?
It is an option that keeps your first at-fault accident from raising your rate with that insurer. It only protects you while you stay with that company — a new insurer can still rate for the accident if you switch.
Tickets, discounts & saving
How long do tickets affect my car insurance in Ontario?
Insurers can factor traffic convictions into your rate for three years from the conviction date. A single minor ticket may have little effect on its own, but several — or one serious conviction — can raise your premium significantly.
How much does a speeding ticket raise my insurance?
A single minor ticket may have a small impact, but multiple tickets or a major conviction can raise your premium substantially and push you toward a higher-risk category. Staying ticket-free is one of the simplest ways to keep rates down.
Do winter tires lower my car insurance in Ontario?
Yes. Since 2016 every Ontario insurer must offer a winter-tire discount, typically 3–5%. You generally need them installed for the winter season, often by around November 1.
What is telematics or usage-based insurance?
It is an app or device that measures how you actually drive — braking, speed, time of day, and mileage. Most Ontario insurers give an enrollment discount, often around 10%, and can reward safe driving with further savings.
What discounts can lower my car insurance?
Common ones include bundling home and auto, multi-vehicle, winter tires, telematics, continuous coverage, and being claims-free. A broker can check which discounts each insurer offers for your profile.
Switching & renewing
Can I switch car insurance companies mid-term?
Yes, you can usually cancel and switch at any time. But cancelling before your renewal date typically triggers a short-rate penalty, so the savings need to outweigh the fee.
Is there a fee to cancel car insurance early in Ontario?
Usually yes — a short-rate cancellation penalty, commonly a few percent of your premium (roughly a few weeks’ worth). You can avoid it by switching on your renewal date instead of mid-term.
When is the best time to shop for or switch insurers?
About three to four weeks before your renewal date. That leaves time to compare quotes and switch without a cancellation fee — and renewal is when many insurers quietly raise rates, so it is worth checking every year.
Working with a broker
Does it cost anything to use an insurance broker?
No. A broker’s service is free to you — brokers are paid a commission by the insurance company when a policy is placed, never by the client. You get multiple carriers compared at no cost.
Can you insure a high-risk driver with tickets or past accidents?
Yes. High-risk drivers — those with tickets, at-fault accidents, or a lapse in coverage — can usually still get insured, often through specialty markets. A broker finds you a fair rate and a path back to standard pricing as your record improves.
Can I bundle home and auto insurance to save money?
Usually yes, and it is one of the easiest ways to save — bundling home, tenant, or condo insurance with auto often trims 15–30% off your premiums. A broker can compare bundled rates across several carriers.
Get a car insurance quote in Ontario
Whether you are a new driver, a newcomer, or shopping your renewal, NavInsurance compares car insurance across Ontario and explains your options in plain language — in English, Punjabi, Hindi, or Urdu. Request your free quote or call (647) 967-8013.