Car Insurance in Ontario: Rates, Requirements, and How to Save
Introduction
Ontario has the highest car insurance premiums in Canada, making it essential for drivers to understand the system and shop smartly. Whether you're a new driver or a seasoned commuter, this article explains how car insurance works in Ontario and how to lower your rates.
Is Car Insurance Mandatory in Ontario?
Yes. Ontario law requires all vehicles on public roads to have valid car insurance. Driving uninsured is illegal and can lead to heavy fines, vehicle impoundment, and license suspension.
Mandatory Insurance Coverage in Ontario
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Third-Party Liability
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Minimum: $200,000 (most drivers carry $1M or more)
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Covers injury or property damage you cause to others
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Accident Benefits
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Covers medical care, rehab, income replacement after an accident
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Uninsured Automobile Coverage
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Covers your injuries if hit by an uninsured or hit-and-run driver
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Direct Compensation – Property Damage (DCPD)
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Covers damage to your car if you're not at fault
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Optional Coverage in Ontario
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Collision Coverage
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Comprehensive Coverage
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Specified Perils or All-Perils Coverage
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Loss of Use or Rental Car Coverage
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Depreciation Waiver for new vehicles
Why Is Insurance So Expensive in Ontario?
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High population density
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More claims and fraud
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Expensive vehicle repairs
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Higher legal costs due to "tort" system (ability to sue)
Average Annual Premium in Ontario: $1,600 – $2,400
Best Car Insurance Companies in Ontario
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Intact Insurance
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Aviva Canada
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Desjardins Insurance
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Belairdirect
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Sonnet
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TD Insurance
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CAA Insurance
How to Lower Your Insurance Premium in Ontario
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Shop around annually – use comparison websites
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Bundle home and auto policies
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Increase deductibles to reduce monthly payments
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Maintain a clean driving record
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Install winter tires – required for discount
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Enroll in usage-based insurance (UBI) programs
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Take an approved defensive driving course
Telematics and Usage-Based Insurance in Ontario
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Companies offer programs where your driving is tracked by an app or device
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Safe driving can earn discounts of 5–25%
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Examples: TD MyAdvantage, Intact My Driving Discount, CAA MyPace
Insurance for New Drivers in Ontario
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Expect high premiums in first year
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G1/G2 drivers should get added to a parent’s policy if possible
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Completing driver training programs can help reduce premiums
Filing a Claim in Ontario
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Contact your insurer ASAP
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Provide photos, reports, and details of the accident
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Claims adjusters will assess damage and liability
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Deductibles apply based on fault and coverage
No-Fault Insurance in Ontario: What It Means
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Each person deals with their own insurer regardless of who caused the accident
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You may still be found “at fault” and it can impact your record
Conclusion
Car insurance in Ontario is expensive, but with the right knowledge and planning, you can reduce costs and get the coverage you need. Don’t settle for the first quote—comparison shopping and strategic coverage choices are key.
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