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HomeCar Insurance ResourcesLowest car insurance rates by city in Ontario

Below is a list of 20 cities or towns that, historically, have had relatively lower car insurance rates, in no particular order:

  1. Kingston – $900 – $1,200
  2. Belleville – $900 – $1,250
  3. Brockville – $920 – $1,230
  4. Cornwall – $900 – $1,240
  5. Ottawa – $950 – $1,300
  6. Pembroke – $930 – $1,220
  7. North Bay – $910 – $1,200
  8. Sudbury – $940 – $1,280
  9. Timmins – $930 – $1,250
  10. Sault Ste. Marie – $920 – $1,240
  11. Thunder Bay – $930 – $1,270
  12. Peterborough – $950 – $1,300
  13. Cobourg – $920 – $1,240
  14. Owen Sound – $910 – $1,230
  15. Orillia – $930 – $1,250
  16. Barrie – $980 – $1,320
  17. Collingwood – $940 – $1,270
  18. Kitchener-Waterloo – $990 – $1,340
  19. Guelph – $1,000 – $1,350
  20. Stratford – $950 – $1,290

Why These Cities Have Cheaper Rates:

  1. Lower Population Density: Cities with lower population density typically experience fewer accidents, leading to lower claims and, hence, lower premiums.
  2. Fewer Claims: Regions with fewer insurance claims on average will typically have lower rates. This is often due to factors like less traffic congestion and fewer car thefts.
  3. Proximity to High-risk Areas: Cities close to high-risk areas like Toronto might still see slightly elevated rates due to their proximity, even if they themselves don’t experience high claim frequencies.
  4. Driving Behavior: Some cities might have a lower incidence of risky driving behavior, leading to fewer accidents and claims.

How does your city affect your car insurance in Ontario?


In Ontario, as in many other places, the city or town in which you live can have a significant impact on your car insurance premiums. Here’s how and why your location affects your rates:

  1. Traffic Density: Urban areas, particularly cities like Toronto and Mississauga, have a higher concentration of vehicles. More vehicles on the road often lead to increased chances of collisions, which in turn can raise insurance rates.
  2. Theft Rates: Some cities or neighborhoods might have higher rates of car theft or vandalism. If you live in such an area, insurance companies might consider you at a higher risk of making a claim and will charge higher premiums accordingly.
  3. Accident Rates: Some areas have higher accident rates due to factors like road conditions, traffic patterns, or even the behavior of local drivers. Higher accident rates can lead to increased insurance claims, prompting insurers to charge higher rates for those areas.
  4. Cost of Repairs: In some cities or neighborhoods, the cost of car repairs might be higher, either due to higher labor rates, higher parts costs, or both. If you live in an area where it’s more expensive to repair vehicles, this can be reflected in your insurance rates.
  5. Fraud: Unfortunately, insurance fraud is a reality and is more prevalent in some areas than in others. Areas with higher rates of insurance fraud can see elevated insurance premiums as insurers try to offset the costs of fraudulent claims.
  6. Weather and Environmental Factors: Cities that experience extreme weather conditions or are prone to environmental hazards (like flooding) might see higher rates due to the increased likelihood of damage to vehicles.
  7. Local Legislation and Legal Costs: The legal environment, including how often residents sue after collisions and the typical payouts of those suits, can also influence insurance premiums.
  8. Economic Factors: Economic conditions can influence vehicle types in an area, driving habits, and even the frequency of claims, all of which can impact insurance rates.
  9. Availability of Public Transportation: In cities with efficient public transportation systems, some people might opt to use public transit instead of driving, potentially reducing the number of drivers and accidents. This can sometimes be a factor in determining insurance rates.
  10. Coverage Choices: If many residents in a particular city opt for higher levels of coverage or additional riders, this can influence the average premiums in that city.

Does the insurance address have to match the license in Ontario?

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In Ontario, the address on your auto insurance policy should match the address on your driver’s license. Here’s why:

  1. Proof of Address for Claims: In the event of a claim, the insurer may verify the details you provided. If there’s a discrepancy between the address on your license and your insurance policy, it could complicate the claims process or even result in a denial of the claim.
  2. Risk Assessment: Insurance premiums are determined based on several factors, one of which is your address. As mentioned earlier, certain areas have higher risks due to factors like theft, accidents, and fraud. If you live in a high-risk area but use a low-risk address for your insurance, you could be seen as misrepresenting information to get a lower rate, which is a form of fraud.
  3. Legal Requirements: It’s a requirement under the Highway Traffic Act in Ontario to update your address on your driver’s license within six days of a change in address. Similarly, insurance companies need accurate, up-to-date information to ensure they’re providing the correct coverage.
  4. Policy Validity: If you provide false information to your insurance company, including not updating them with a change of address, it could invalidate your policy. This means if you were to get into an accident, your insurance might not cover it.

It’s always essential to keep all personal information up-to-date with both the Ministry of Transportation and your insurance company. If you move or have a change in your living situation, notify both entities as soon as possible to ensure you remain compliant and adequately covered.

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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