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HomeCar Insurance ResourcesGuide: How to get cheapest insurance in Ontario

Getting the cheapest insurance in Ontario requires a combination of understanding the insurance market, adopting certain practices to reduce risk, and shopping around efficiently. Here’s a step-by-step guide to help you navigate the process and potentially secure lower premiums.

Step 1: Understand the Basics

Insurance rates in Ontario are regulated by the Financial Services Commission of Ontario (FSCO). Insurers set their rates based on claims histories and projected expenses, and these rates are then reviewed by FSCO.

Step 2: Shop Around

  • Online quote comparison: Websites such as Ratelab can give you multiple quotes from different insurers.
  • Speak with brokers: They represent multiple insurers and can provide customized advice. However, not all insurers use brokers, so it’s a good idea to check both brokers and direct insurers.
  • Direct insurers: Companies like Belairdirect or Sonnet only offer their products directly to consumers, without the involvement of brokers.

Step 3: Bundle Your Insurance

  • Home + Auto: If you bundle home and auto insurance, you might receive a discount.
  • Multiple vehicles: Insuring more than one vehicle can also lead to savings.

Step 4: Increase Your Deductible

The deductible is the amount you’d pay in an accident before your insurance kicks in. By increasing this amount, your premium could decrease. Ensure you can afford the deductible in case of a claim.

Step 5: Use Winter Tires

In Ontario, having winter tires can entitle you to a discount, as they are proven to provide better traction in cold weather conditions.

Step 6: Discounts and Programs

  • Student discounts: Good grades can translate into discounts with some insurers.
  • Retiree discounts: Some companies offer discounts for retirees.
  • Telematics programs: Some insurers offer discounts if you install a device in your vehicle or use an app to track your driving habits.

Step 7: Maintain a Clean Record

  • Driving record: No tickets or accidents will result in a lower premium.
  • Claims history: Even if it’s not your fault, a history of multiple claims can raise your premiums.

Step 8: Consider the Vehicle

Cars that are cheaper to repair or have better safety ratings might have lower insurance premiums. Before purchasing a new car, check insurance costs.

Step 9: Review Your Coverage Annually

Needs change, and insurance products evolve. An annual review of your needs and what’s available in the market can lead to savings.

Average Cheapest Rates

Insurance rates can vary widely based on individual circumstances.

  • Young drivers: Because of the higher risk associated with new drivers, especially those under 25, premiums can be considerably higher. Rates might range from $2,500 to $6,000 or more annually.
  • Experienced drivers with a clean record: These drivers often find the cheapest rates, sometimes ranging from $1,000 to $2,500 annually.
  • Drivers with one ticket or accident: These drivers might see rates from $1,500 to $3,000 or more.

It’s important to note that these are very general figures. Individual rates will depend on many factors, including location within Ontario, type of car, use of car (e.g., commuting vs. pleasure), and more.

Final Tips:

  • Always be honest when providing information. Misrepresentation can lead to cancellation or non-payment in the event of a claim.
  • Remember, the cheapest policy might not always offer the best protection. Consider what coverages you need and understand what you’re getting.

Staying informed and being proactive in your search are key strategies to get the best insurance rates in Ontario.

Which company gives the cheapest car insurance in Ontario?

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Some companies are known for competitive rates or for being budget-friendly in certain segments of the market. Here’s a list of companies that have been recognized for offering competitive rates and reasons they might be able to:

  1. Belairdirect
    • Description: A subsidiary of Intact Financial Corporation, Belairdirect offers car and home insurance direct to consumers.
    • Reason for Competitive Rates: Operating primarily as a direct-to-consumer company helps reduce overhead. Additionally, they offer discounts for combining home and auto policies and for safe driving habits tracked via an app.
  2. Sonnet Insurance
    • Description: An online-only insurance platform that aims to simplify the insurance purchasing process.
    • Reason for Competitive Rates: Digital-only operation cuts down on overhead, passing savings onto consumers. The online model can cater to tech-savvy consumers looking for quick quotes without in-person consultations.
  3. Desjardins Insurance
    • Description: One of Canada’s major insurers, offering a wide range of insurance products.
    • Reason for Competitive Rates: They offer discounts for students, multi-vehicle policies, and for those who bundle different insurance types. Telematics programs that reward safe driving can also reduce premiums.
  4. TD Insurance
    • Description: Part of TD Bank Group, TD Insurance is a major player in the Canadian insurance scene.
    • Reason for Competitive Rates: Discounts are available for alumni or members of professional groups, combining home and auto policies, and for driving hybrid or electric vehicles.
  5. CAA Insurance
    • Description: An insurer linked to the Canadian Automobile Association, best known for its roadside assistance.
    • Reason for Competitive Rates: Offers a “pay-as-you-go” insurance model where premiums are based on how much you drive. This can be beneficial for infrequent drivers. Members also get discounts.
  6. Economical Insurance
    • Description: A Canadian-based company providing home, auto, and business insurance.
    • Reason for Competitive Rates: Offers various discounts, including multi-vehicle, multi-policy, and loyalty discounts. They also provide a telematics program that can reduce premiums for safe driving.
  7. The Co-operators
    • Description: A Canadian-owned multi-line insurer.
    • Reason for Competitive Rates: Offers a range of discounts, including for bundled policies, loyalty, and good student performance. Their telematics program can lead to savings for safe driving.

These are just a few examples, and the actual rate you receive can vary. It’s also worth noting that the cheapest option might not always provide the best coverage for your needs. Shopping around, using online quote comparison tools, and consulting with brokers can help you find the best rate for your specific circumstances.

Which city in Ontario has the lowest auto insurance?

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Auto insurance rates in Ontario vary significantly by location. Generally, areas with less traffic, fewer claims, and lower crime rates will have cheaper auto insurance premiums. The cities and towns outside of the Greater Toronto Area (GTA) usually have the lowest auto insurance rates. Here’s a list of cities and regions that tend to have more affordable rates and some reasons why:

  1. Kingston
    • Description: Located in Eastern Ontario, Kingston is a historic city known for its waterfront and is home to Queen’s University.
    • Reason for Lower Rates: Lower population density, fewer cars, and a lower frequency of claims compared to larger metropolitan areas.
  2. Cornwall
    • Description: A city near the Quebec border, Cornwall sits on the north bank of the St. Lawrence River.
    • Reason for Lower Rates: It’s a smaller city with less traffic congestion, which generally leads to fewer accidents and claims.
  3. The Ottawa Region (excluding downtown)
    • Description: The capital city of Canada, Ottawa boasts a mix of urban and suburban areas.
    • Reason for Lower Rates: While downtown Ottawa might have higher rates due to traffic density, the suburban and outlying areas benefit from more open roads and fewer collision claims.
  4. Pembroke
    • Description: Located in the Ottawa Valley, Pembroke is a smaller city known for its waterfront on the Ottawa River.
    • Reason for Lower Rates: The lower population and traffic density lead to fewer claims, contributing to its lower rates.
  5. Brockville
    • Description: Situated on the northern shore of the St. Lawrence River, Brockville is another historic city in Eastern Ontario.
    • Reason for Lower Rates: Similar to other cities on this list, its smaller size, and less traffic congestion result in fewer accidents.
  6. North Bay
    • Description: Located in Northern Ontario, North Bay is set on the shore of Lake Nipissing.
    • Reason for Lower Rates: Being further from the densely populated regions of Southern Ontario, it experiences fewer claims, resulting in lower rates.
  7. Peterborough
    • Description: Located in Central Ontario, Peterborough is known for its canal and vibrant arts scene.
    • Reason for Lower Rates: While it’s a city with its own urban area, it’s still relatively small compared to Toronto, leading to less traffic and fewer accidents.

Cities in the GTA, like Toronto, Brampton, and Mississauga, tend to have the highest insurance rates in Ontario. This is due to higher traffic densities, a greater number of claims, higher repair costs, and a higher likelihood of theft.

However, even within a city, rates can vary based on specific neighborhoods or postal codes. Factors like car theft rates, vandalism, and even the number of local repair shops can influence prices. Always shop around to get a quote specific to your location and situation.

Which cars in Ontario have the lowest auto insurance?

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Car insurance rates depend significantly on the make, model, and year of the vehicle. Generally, vehicles that are less expensive to repair or replace, have better safety features, and are less likely to be stolen will have lower insurance rates. Rates also vary based on the driver’s history, age, and location, among other factors. However, here are some vehicles known for typically lower insurance rates in Ontario:

  1. Honda CR-V
    • Description: A popular compact SUV known for its reliability and safety features.
    • Reason for Lower Rates: Excellent safety ratings, less costly to repair, and not a frequent target for theft.
  2. Mazda3
    • Description: A compact car available in both sedan and hatchback, known for being fun to drive while also economical.
    • Reason for Lower Rates: Generally less expensive to repair and has good safety ratings.
  3. Toyota Corolla
    • Description: A globally popular compact sedan known for its reliability and longevity.
    • Reason for Lower Rates: Low repair costs, excellent safety features, and a long track record of reliability.
  4. Chevrolet Equinox
    • Description: A mid-sized SUV with good fuel efficiency and space.
    • Reason for Lower Rates: Favorable safety ratings and not typically targeted for theft.
  5. Hyundai Elantra
    • Description: A compact sedan that is economical and offers modern features.
    • Reason for Lower Rates: Generally affordable to repair and boasts good safety ratings.
  6. Subaru Outback
    • Description: A crossover with all-wheel drive, known for its safety features and reliability.
    • Reason for Lower Rates: Stellar safety ratings, especially with advanced safety features in newer models, and moderate repair costs.
  7. Volkswagen Golf
    • Description: A compact hatchback known for being both fun and practical.
    • Reason for Lower Rates: Typically not a primary target for theft and has good safety features.
  8. Ford Escape
    • Description: A popular compact SUV with a variety of trim levels and engine choices.
    • Reason for Lower Rates: Good safety scores and not as frequently stolen.

Cars that tend to have higher insurance premiums usually include luxury brands, high-performance vehicles, and those that are statistically more likely to be involved in accidents or theft. Before purchasing a car, it’s a good idea to get several insurance quotes for the makes and models you’re considering to get a clearer picture of potential insurance costs.

Which driver types in Ontario have the lowest auto insurance?

Old Man Driving Car

In Ontario, as in many other jurisdictions, auto insurance rates are influenced by the risk profiles of different driver types. The lower the risk associated with a driver type, the lower their insurance premiums typically are. Here’s a breakdown of driver types generally associated with more affordable insurance rates:

  1. Mature Drivers with Clean Records
    • Description: Drivers aged between 40 and 70 who have no accidents or convictions on their record.
    • Reason for Lower Rates: Statistical data shows that these drivers are less likely to be involved in accidents compared to very young or very old drivers. A clean record further reduces their risk profile.
  2. Long-Term Policyholders
    • Description: Drivers who have been with the same insurance company for many years.
    • Reason for Lower Rates: Insurers often offer loyalty discounts to long-term customers, reflecting a stable insurance history.
  3. Drivers with Low Annual Mileage
    • Description: Those who drive less than the average annual distance, perhaps because they work from home or use public transport frequently.
    • Reason for Lower Rates: Fewer kilometers driven typically means less exposure to risk.
  4. Defensive Driving Course Graduates
    • Description: Drivers who have taken and successfully completed a defensive driving course.
    • Reason for Lower Rates: The skills acquired in such courses can lead to safer driving habits, reducing the risk of accidents.
  5. Bundled Policyholders
    • Description: Drivers who have multiple insurance policies (like home and auto) with the same insurer.
    • Reason for Lower Rates: Many insurers offer discounts when customers bundle multiple policies, reflecting a broader business relationship.
  6. Telematics Program Participants
    • Description: Drivers who agree to have their driving habits monitored by an insurer’s telematics device or app.
    • Reason for Lower Rates: Safe driving habits, as recorded by the device, can lead to discounts. It promotes conscious driving.
  7. Occupational Discounts
    • Description: Certain professionals (like engineers, nurses, or teachers) sometimes get discounts based on statistical data related to their professions.
    • Reason for Lower Rates: Some professions are associated with more cautious behavior or have been statistically less likely to file claims.
  8. Retirees
    • Description: Individuals who no longer work and are often over the age of 60 or 65.
    • Reason for Lower Rates: Retirees typically have less daily commuting and often drive less, leading to decreased risk.

While these generalizations can apply, every individual’s situation is unique. Other factors such as location, type of vehicle, and more will also influence insurance premiums.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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