What’s the Average Car Insurance Cost for Canadians by Province?

TL;DR

Ontario and Alberta now have the highest average car insurance rates in Canada, with Ontario drivers paying around $1,920/year and Alberta close behind at $1,735/year. Quebec remains the most affordable province at roughly $900/year. Whether you're in a province with public insurance (BC, Saskatchewan, Manitoba) or private insurance (Ontario, Alberta, Atlantic provinces), various factors — including auto theft, insurance fraud, high-frequency accident claims, and rising repair costs — are pushing premiums higher across the board. The car you drive, where you live, and your driving record all play a role in what you'll pay.

Key Takeaways

• Ontario now has the highest average annual premium in Canada at approximately $1,920/year — surpassing British Columbia.
• Alberta has seen significant recent rate hikes due to rising insurance claims, inflation, and insurers exiting the market.
• Quebec remains the most affordable province for auto insurance at around $900/year, thanks to its hybrid public-private model and limits on bodily injury claims.
• BC, Saskatchewan, and Manitoba use public insurance systems, which limit competition but provide more price stability.
• Insurance fraud and organized crime are major cost drivers in Ontario, adding over $1 billion annually in claims expenses.
• Auto theft — especially in the GTA — continues to push up comprehensive insurance premiums province-wide.
• Choosing the right vehicle can save you hundreds to thousands of dollars per year on insurance in Ontario.
• Used cars are generally cheaper to insure than new ones, making them a practical option for cost-conscious drivers.

How Does Car Insurance Work in Canada?

Car insurance is legally required in every province and territory in Canada. When you get into an accident, make a claim for theft or damage, or cause harm to another driver or pedestrian, your insurance policy is what covers the costs — up to your policy's limits.

Here are the key types of insurance coverage Canadian drivers deal with:

Third-Party Liability

Covers injury or property damage you cause to others in an accident. This is mandatory in every province. Most provinces require a minimum of $200,000 in coverage, though most drivers carry $1 million or more.

Accident Benefits

Pays for medical expenses, rehabilitation, and in some cases lost wages if you or your passengers are injured — regardless of fault. The scope of these benefits varies significantly by province.

Collision Coverage

Covers damage to your own vehicle in a collision, regardless of fault. This is optional in most provinces but required by many lenders if you're financing a vehicle.

Comprehensive Coverage

Covers non-collision events like auto theft, fire, hail, flooding, and vandalism. With auto theft at record levels in many Canadian cities, this coverage is increasingly valuable.

Uninsured Motorist Coverage

Protects you if you're hit by an uninsured driver or in a hit-and-run situation.

How your insurance claim is handled depends on the system your province uses:

No-Fault Insurance

You deal directly with your own insurer after an accident, regardless of who caused it. This system is designed to reduce lawsuits and speed up claim payouts. BC, Manitoba, Saskatchewan, and Quebec all use some form of no-fault insurance.

Tort System

Allows drivers to sue an at-fault party for pain and suffering, lost wages, and other damages. Provinces like Newfoundland & Labrador operate primarily under this system. While it gives drivers more legal recourse, it also tends to produce higher premiums because insurers must account for the potential cost of litigation.

Premiums are calculated based on various factors including your driving record, age, where you live, how much you drive, the vehicle you drive, and the type and amount of coverage you select. For a deeper look at what affects your rate, see our guide on factors that affect your car insurance rate.

One more important distinction: some provinces deliver insurance through a crown corporation (a government-owned monopoly), while others rely on private insurance companies that compete for your business. This structural difference has a major impact on the average annual premium drivers pay and how much choice they have when shopping for coverage.

Car Insurance Rates by Province (2025 Averages)

The Insurance Bureau of Canada (IBC) calculates average premiums by dividing total premiums collected per province by the total number of personal vehicles registered. Keep in mind these are provincial averages — your actual rate depends on your individual profile and where in the province you live.

Note: Rates below reflect 2025 estimates based on available industry data. Rates have increased significantly across most provinces since 2020.

Province	Avg. Annual Premium	Insurance System
Ontario	~$1,920	Private
Alberta	~$1,735	Private
British Columbia	~$1,450	Public (ICBC)
Newfoundland & Labrador	~$1,270	Private
Saskatchewan	~$1,249	Public (SGI)
Nova Scotia	~$1,150	Private
Manitoba	~$1,140	Public (MPI)
New Brunswick	~$1,120	Private
Prince Edward Island	~$1,080	Private
Quebec	~$900	Hybrid (Public + Private)

Ontario – ~$1,920/year

Ontario is now the most expensive province for car insurance in Canada. As one of the most populated provinces — and home to some of the busiest urban corridors in the country — Ontario's auto insurance rates are pushed up by a high frequency of accident claims, extensive accident benefit entitlements, and rampant insurance fraud.

Insurance fraud and organized crime are significant cost drivers here. According to the Insurance Bureau of Canada, fraud costs Ontario's insurance system over $1 billion annually — costs that get spread across all policyholders through higher premiums. Staged collisions, exaggerated injury claims, and fraudulent repair billing are ongoing problems, particularly in the GTA.

Auto theft has also become a major issue. Cities like Brampton, Toronto, Mississauga, Vaughan, and Markham consistently rank among the most expensive for car insurance in Ontario — and they're also the province's top cities for auto theft. The connection is direct: more theft claims mean higher comprehensive premiums for everyone in the area. For more on which vehicles are being targeted, read our post on most stolen cars in Ontario.

Ontario uses a private insurance market, which means you can shop around for the best rate. Drivers in major centres should absolutely compare quotes before renewing — premiums can vary significantly between providers for the same coverage. Ontario is also undergoing insurance reforms; starting July 1, 2026, many accident benefits will become optional ("à la carte"), which will change how policies are structured and priced.

See our full breakdown: Car Insurance in Ontario: Everything You Need to Know

Car Insurance Rates Ontario: What's Behind the Recent Rate Hikes?

Ontario drivers have seen their insurance bills climb steadily over the past several years. The main contributors to recent rate hikes include:

• Auto theft surge: The GTA has been one of the hardest-hit regions in Canada for vehicle theft, driving up comprehensive insurance claims.
• Rising repair costs: Parts, labour, and increasingly sophisticated vehicle technology have pushed the cost of repairing a vehicle significantly higher.
• Inflation and supply chain recovery: Post-pandemic disruptions increased vehicle values and replacement costs.
• Fraud: Fraudulent claims — especially in Brampton and surrounding areas — continue to inflate costs system-wide.
• Litigation: Ontario's generous accident benefit laws mean that car accidents frequently result in lawsuits, adding to insurer costs.

There is some modest relief on the horizon. In the first half of 2025, auto theft in Ontario dropped about 26% compared to the year before, according to the Équité Association. As theft claims stabilize and insurance companies return to profitability, experts expect rate increases to moderate — though not reverse — through 2026.

Alberta – ~$1,735/year

Alberta has had one of the most volatile insurance markets in Canada in recent years. After a rate cap was lifted in 2019 (which had previously limited insurers to a maximum 5% annual increase), premiums climbed steeply. A subsequent rate pause in 2023 caused roughly a third of Alberta's insurers to operate at a loss — and several private insurance companies actually withdrew from the Alberta market between late 2023 and early 2025, citing ongoing unprofitability.

In November 2024, the Alberta government announced a transition to a pure no-fault system (expected to take effect in 2027), along with allowing annual increases of up to 7.5% in the meantime. The intent is to stabilize the market and bring insurers back, but drivers are absorbing higher premiums in the short term.

See our full breakdown: Car Insurance in Alberta: Everything You Need to Know

British Columbia – ~$1,450/year

BC is one of the few provinces where auto insurance costs have actually declined since the pandemic. That's largely thanks to ICBC's no-fault system, introduced in May 2021, which eliminated most personal injury lawsuits and redirected those funds toward direct benefits for accident victims. The result was a meaningful reduction in rates compared to the pre-2021 peak of around $1,832/year.

ICBC is a crown corporation and the only insurer for basic coverage in BC — there's no shopping around. If you want optional enhanced coverage, a limited number of private insurers offer it. The public monopoly has drawn criticism over the years, but the no-fault reform has provided real rate relief.

See our full breakdown: Car Insurance in British Columbia: Everything You Need to Know

Saskatchewan – ~$1,249/year

Saskatchewan operates through Saskatchewan Government Insurance (SGI), a provincially run insurer. Like BC and Manitoba, there's no private-market competition for basic coverage. Rates have remained relatively stable, though drivers in urban areas like Regina and Saskatoon have seen modest increases tied to higher accident claims and vehicle values.

Newfoundland & Labrador – ~$1,270/year

For a relatively small and less densely populated province, Newfoundland & Labrador has consistently had some of the highest insurance rates in Atlantic Canada. The province operates under a tort system, meaning drivers can sue at-fault parties for pain and suffering and lost wages — which tends to produce larger claim payouts and, in turn, more expensive premiums. Fewer competing insurers in the market also limits downward pressure on rates.

Manitoba – ~$1,140/year

Manitoba Public Insurance (MPI) is the province's government-owned insurer for basic coverage. Manitoba served as the model for BC's no-fault transition. Rates here are relatively stable, sitting in the middle of the national range. Since MPI is a public insurer, drivers don't have the option to shop around for basic coverage, but rates tend to be more predictable year over year.

Nova Scotia – ~$1,150/year

Nova Scotia has benefited from insurance reforms since 2003 that introduced caps on minor injury claims and improved the regulatory environment for private insurers. The province sees fewer accident claims per year compared to most other provinces, which helps keep premiums on the lower end nationally. That said, rates have risen from around $891 in 2020 as repair costs and broader market pressures have worked their way through the system.

New Brunswick – ~$1,120/year

New Brunswick used to be one of the cheapest provinces for car insurance. Rates have climbed over the past several years, driven largely by an increase in accident claims attributed to distracted driving. The province's insurance reforms have helped keep premiums below the national average, and auto insurance accounts for a relatively low percentage of after-tax income for New Brunswick residents compared to most other provinces.

Prince Edward Island – ~$1,080/year

PEI consistently has one of the lowest insurance rates in Canada. The province has a lower volume of vehicles on the road, fewer accidents per capita, and a private insurance market with reasonable competition. PEI and Quebec are typically the two most affordable options for Canadian drivers on the insurance front.

Quebec – ~$900/year

Quebec drivers pay the least for car insurance in Canada — less than half of what Ontario drivers pay on average. The province uses a hybrid system: the Société de l'assurance automobile du Québec (SAAQ) covers bodily injury claims on a no-fault basis, while property damage and liability are handled by private insurers. This structure, combined with limits on bodily injury awards, keeps premiums based significantly lower than in fully private markets. Rates have also risen more slowly in Quebec than in most other provinces.

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Car Insurance Rates Ontario: Cheapest Cars to Insure

One of the most controllable factors in your insurance bill is the vehicle you choose to drive. In Ontario especially — where the average annual premium is nearly $2,000 — picking a lower-risk vehicle can make a real difference. Insurers rate vehicles using the Canadian Loss Experience Automobile Rating (CLEAR) system, which analyzes historical claims data to assess the cost and frequency of claims for each make and model.

As a general rule, vehicles with good safety ratings, lower theft risk, and affordable repair costs attract lower premiums. Family-oriented vehicles like minivans, compact SUVs, and sedans tend to fall into this category — their drivers also tend to have lower-risk profiles statistically.

Some of the consistently cheapest cars to insure in Ontario include:

• Jeep Wrangler – Average annual premium around $1,670
• Nissan Versa – Around $1,709/year
• Toyota Prius – Around $1,917/year
• Honda CR-V – Around $2,082/year
• Mazda CX-5 – Around $1,877/year
• Honda Odyssey – Around $2,059/year
• Ford Transit – As low as ~$1,248/year according to some 2025 data
• Subaru Forester – Around $1,424/year

Domestic brands — Chevrolet, Ford, GMC — also tend to insure cheaper than luxury or foreign brands. Brands like Honda, Toyota, and Subaru land in the middle of the pack for insurance costs in Ontario, generally below the provincial average.

Used vehicles are almost always cheaper to insure than new ones, since their replacement value is lower. If budget is a priority, a used car is worth considering — there are plenty of other advantages to buying used beyond insurance savings. You can also check out our piece on ways to get cheaper car insurance for more strategies.

Most Expensive Cars to Insure in Ontario

On the flip side, luxury vehicles, high-performance sports cars, and models with a high theft rate consistently carry some of the highest insurance premiums in Ontario. The cost to repair, replace, or source parts for these vehicles is simply much higher — and that's reflected in what you pay for insurance coverage.

Some of the priciest vehicles to insure in Ontario include:

• Maserati Quattroporte – Average annual premium starting around $5,000–$5,200
• BMW M8 Competition Gran Coupe – Around $4,200+/year
• Porsche Panamera Turbo S – Among the highest in the province
• Audi RS7 – High-performance credentials mean higher premiums
• Porsche 911 – A combination of performance risk and repair costs drive rates up
• Range Rover Autobiography – High theft risk and expensive repairs contribute to expensive premiums
• Audi RS E-tron GT – Electric performance vehicles are increasingly appearing at the top of insurers' cost lists

The combination of high vehicle value, expensive specialized parts, and the profile of drivers who tend to own these cars all contribute to expensive insurance premiums. Young drivers (under 25) in high-end vehicles pay especially steep rates — a 22-year-old in a BMW M4 can expect to pay thousands more per year than a 45-year-old with the same car and a clean record.

For Ontario drivers in major cities like Toronto, Brampton, or Mississauga, it's also worth noting that auto theft rates significantly affect comprehensive premiums. High-demand vehicles — particularly certain truck and SUV models — attract thieves and are priced accordingly by insurers.

Why Are Insurance Rates So Different Across Canada?

The gap between, say, Ontario and Quebec isn't random. Several structural and regional factors drive the variation in auto insurance rates across provinces:

Public vs. Private Insurance

The most significant structural difference is whether a province uses public insurance (a government monopoly) or private insurance companies competing for customers. BC, Saskatchewan, and Manitoba all use public systems, which tend to produce more stable (though not always lower) rates. Provinces with private insurance — Ontario, Alberta, and the Atlantic provinces — see more market volatility but also give drivers the ability to shop around and compare quotes.

No-Fault vs. Tort Systems

Provinces where drivers can sue each other for damages (tort system) tend to have higher premiums because insurers factor in the potential cost of legal action. Quebec and BC have shifted toward no-fault models, which reduce lawsuits and have helped stabilize or reduce rates. Ontario allows lawsuits in certain circumstances, which adds cost to the system.

Insurance Fraud

Insurance fraud is a multi-billion dollar problem in Canada, concentrated most heavily in Ontario. Staged accidents, exaggerated injury claims, and organized fraud rings — which in some cases involve organized crime — cost the insurance industry enormous amounts each year. Those costs are passed directly to drivers through higher premiums, whether or not they've ever made a claim. Ontario's Financial Services Regulatory Authority (FSRA) has introduced new fraud reporting requirements to help track and address the problem.

Auto Theft

Canada has been dealing with a vehicle theft crisis. Over 105,000 vehicles were stolen in Canada in 2023 alone, with Ontario and Quebec accounting for a disproportionate share. The Insurance Bureau of Canada reported approximately $1.2 billion in auto theft claims in 2022. In Ontario's most populated cities, auto theft is a major driver of higher comprehensive insurance premiums. Some insurers have even begun discounting policies for vehicles with approved anti-theft tracking devices — and increasing rates for those that decline.

Population Density and Accident Claims

Most drivers, most traffic, and most accidents are concentrated in Canada's most populated provinces — Ontario and Quebec. Higher population density means more vehicles on the road, more opportunities for collisions, and a higher frequency of insurance claims. That's particularly true in urban centres like Toronto, where the GTA average annual premium of around $2,543 is significantly above the provincial average.

Weather and Climate Events

2024 was a record year for weather-related insured losses in Canada, crossing $8.5 billion. Increasingly severe hail, flooding, and ice storms lead to more insurance claims — costs that eventually show up in higher premiums, particularly in provinces with heavy weather exposure. This is an increasingly significant driver of recent rate hikes across many provinces.

4 Ways to Lower Your Car Insurance Costs

Regardless of which province you live in, there are some things within your control when it comes to reducing what you pay:

1. Shop Around and Compare Quotes

If you're in a province with private insurance (Ontario, Alberta, Atlantic Canada), this is the single most effective thing you can do. Rates for the same driver and vehicle can vary substantially across providers. If you're in BC, Saskatchewan, or Manitoba, this option doesn't apply to basic coverage — but you can still compare optional coverage add-ons.

2. Choose the Right Vehicle

As covered above, the car you drive matters. Vehicles with good safety ratings, lower theft risk, and affordable repair costs attract lower premiums. If you're buying a used car, the insurance savings are even more pronounced — used cars generally cost less to insure than their newer equivalents.

3. Only Pay for the Coverage You Actually Need

Some coverage is mandatory under Canadian law, like third-party liability and accident benefits. But optional coverages like collision may not make sense if your vehicle has a low resale value. Review your policy at renewal with this in mind.

4. Bundle and Add Safety Features

If you already have home or tenant insurance, combining it with your car insurance through the same provider can earn you a meaningful discount — sometimes 5–25%. Anti-theft devices, winter tires (in some provinces), and usage-based insurance (telematics) programs for safe drivers can also bring lower premiums. For a full list of strategies, see our guide to getting cheaper car insurance in Canada.

Frequently Asked Questions

Which province has the highest car insurance rates in Canada?

Ontario currently has the highest average annual premium in Canada at around $1,920/year. Alberta is a close second at approximately $1,735/year. Both provinces use private insurance systems, which means drivers can shop around — but also that premiums are subject to market pressures.

Which province has the cheapest car insurance?

Quebec consistently has the lowest car insurance rates in Canada, averaging around $900/year. This is largely due to the province's hybrid public-private insurance system and limits on bodily injury claims, which reduce the overall cost of insurance claims for insurers.

Why is car insurance so expensive in Ontario?

Several factors contribute to Ontario's high auto insurance rates: it's the most populated province with the highest concentration of drivers on the road; insurance fraud and organized crime cost the system over $1 billion annually; auto theft has surged in the GTA; repair costs have climbed sharply; and the province allows lawsuits after accidents, which increases insurer liability. All of these factors mean more frequent and more expensive insurance claims, which translates to higher premiums for everyone.

Is public or private car insurance cheaper?

It depends on the province. Public insurance provinces like Manitoba and Saskatchewan tend to have moderate rates with less year-to-year volatility. BC's rates were very high under ICBC before the no-fault reforms, and have since come down. Private insurance provinces like Ontario and Alberta have the highest rates nationally. Quebec's hybrid model produces the lowest rates. There's no universal answer — the structure matters less than the specific regulations and market conditions in each province.

How can I lower my car insurance premium in Ontario?

The most effective strategies are: comparing quotes across multiple providers (rates vary significantly); choosing a vehicle with lower theft risk and repair costs; maintaining a clean driving record; increasing your deductible; bundling auto and home insurance; installing an approved anti-theft device; and considering usage-based (telematics) insurance if you're a safe, low-mileage driver.

Does buying a used car reduce my insurance costs?

Generally, yes. Used cars have a lower market value, which reduces the insurance company's exposure in the event of a total loss. You may also be able to drop collision coverage on an older vehicle, reducing your premium further. For more detail, see our article on the advantages of buying a used car.

How does auto theft affect car insurance rates?

Auto theft drives up comprehensive insurance claims, which increases premiums — especially in cities with high theft rates like Brampton, Toronto, and Vancouver. If you drive a model that's frequently targeted by thieves, you may already be paying a surcharge on your comprehensive coverage. Installing an approved anti-theft device or GPS tracking system can sometimes reduce that cost. Read more about the most stolen cars in Canada.

What is the CLEAR system?

CLEAR stands for Canadian Loss Experience Automobile Rating. It's the system used by most Canadian insurance companies to rate vehicle models based on historical claims data — including how often a vehicle gets into accidents, how much those accidents cost, and how frequently the model is stolen. Vehicles with a better (lower-risk) CLEAR rating tend to have lower insurance premiums.

People Also Ask

Why do Ontario drivers pay more for car insurance than Quebec drivers?

Ontario uses a private insurance system with generous accident benefit laws and allows drivers to sue for pain and suffering after accidents. Quebec uses a hybrid public-private model with limits on bodily injury claims and a more restrictive no-fault structure for personal injuries. Ontario also has significantly higher rates of insurance fraud and auto theft, particularly in the GTA. The combination of all these factors results in Ontario drivers paying more than twice what Quebec drivers pay on average.

What happens to my car insurance if my car gets stolen?

If your vehicle is stolen and you have comprehensive coverage, you can file an insurance claim. You'll need to pay your deductible, and then the insurer will reimburse you up to the vehicle's insured value. If you don't have comprehensive coverage, theft isn't covered — third-party liability and collision coverage do not protect against theft. If you're in a province with public insurance (BC, Manitoba, Saskatchewan), basic theft coverage is typically included in your policy automatically.

Do car insurance rates go up after a claim?

Yes, in most cases. An at-fault accident can increase your premium by 20–40% at renewal and can remain on your record for up to six years depending on the province. Not-at-fault claims generally have less impact, but can still affect rates depending on your insurer and province. Multiple claims — even minor ones — signal higher risk and can significantly increase what you pay. For more on this topic, see how much your insurance goes up after a car accident.

Is car insurance mandatory across all of Canada?

Yes. Every province and territory in Canada requires drivers to carry at minimum third-party liability insurance and, in most provinces, accident benefits coverage. The minimum required amounts vary by province. Driving without insurance is illegal everywhere in Canada and can result in significant fines, licence suspension, and vehicle impoundment.

What's the cheapest car to insure in Ontario right now?

Based on 2025 data, some of the consistently cheapest vehicles to insure in Ontario include the Jeep Wrangler (around $1,670/year), Nissan Versa (~$1,709/year), Ford Transit (as low as ~$1,248/year in some estimates), and Subaru Forester (~$1,424/year). Compact sedans like the Toyota Corolla and Honda Civic also consistently rank among the more affordable options to insure. Keep in mind that your specific rate will depend on your age, driving record, location, and coverage choices.

Why is car insurance cheaper in Manitoba than in Ontario?

Manitoba uses a public insurer (MPI) with a no-fault system, which means most personal injury lawsuits are eliminated from the claims process. This keeps legal costs low for the insurer, which translates into lower premiums for drivers. Ontario, by contrast, has private insurers, allows lawsuits in many circumstances, and deals with significantly more insurance fraud and auto theft — all of which push premiums higher.

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