Cheap Car Insurance in Ontario

Although insurance providers use the same data to calculate your insurance estimate, they all assess your risk differently. Because of this, each one offers varying pricing for essentially the same coverage. This is why it is strongly recommended to shop around for insurance and compare quotes from several insurance companies in order to find cheaper car insurance rates. Also, by comparing prices, you can determine if your existing insurance company still provides the best policy at the best rate or if it’s time to switch providers when you reach your renewal date.

A number of factors will determine the price of your auto insurance in Ontario. You’ll find 10 of the most common factors that affect your rate listed below.

1. Your age, gender and marital status. Young drivers pay more for insurance due to their lack of experience and higher risk of accidents, while experienced drivers pay less. Men are statistically more likely to participate in higher-risk driving behaviours than women, so men tend to pay higher premiums. Also, insurance companies see married couples and families as more financially stable and safer drivers, so they tend to have lower rates. 
2. Your licence. G1 or G2 drivers will pay more for car insurance than those with a full G license.
3. Your driving record and experience. The chances of being in an accident decrease as you gain more road experience; however, if you have a poor driving record, it can take some time before your premiums start to drop.
4. Your claims history. If you have a history of submitting claims, it will increase your insurance premiums as insurance providers will see you as a higher risk for submitting future claims. 
5. Your location. You are at a higher risk of being involved in an accident if you live in a highly populated location, such as the Greater Toronto Area (GTA). Also, if your neighbourhood is known for petty crimes and theft, your premiums will reflect it.
6. Your vehicle. Specific vehicles have better safety ratings, while others are more prone to theft, cost more to repair or are statistically more likely to be in an accident. As such, your vehicle’s make, model and year are considered when calculating your premiums.
7. How you use your vehicle. Basically, the more time you spend on the road, the greater the chance of being involved in an accident. As such, if you commute to and from work every day, it makes sense to pay more for insurance than if you solely drive for pleasure.
8. Whether anyone else will be using your vehicle. Adding a secondary driver will increase your premiums. Not only is your insurance company insuring you, but it’s also insuring another person as well. Their age, gender, marital status, driving record, claims history and road experience will all affect your new insurance rate. 
9. Driver’s education. New drivers are seen as safer and more responsible drivers after completing an accredited Ontario driver’s education program.

Your insurance provider. Several insurance providers reward loyal customers or offer discounts to customers who bundle their auto insurance with other policies.

The auto insurance market is hypercompetitive, and insurance providers are always clamouring for more clients. That’s why many websites allow you to enter your information to help you compare prices. If the quote you receive is too high, keep shopping around for different insurance quotes. You can also speak with an insurance advisor who can shop around for you to help speed up the process.

It can also be worthwhile to contact your current insurance provider or advisor if you notice that your rates have suddenly increased. As most insurance companies want to keep your business, they will likely try their best to satisfy your insurance needs. They may be able to recommend other ways to help you lower your insurance rates or find some discounts you are eligible for. 

In some respects, your vehicle insurance premiums are a manifestation of who you are, with the premiums you pay depending on things like your driving history and where you reside. There are a number of potential causes if your rates seem too high or have increased dramatically lately. Thankfully, there are also several methods for reducing those premiums.

While comparing car insurance quotes is one method for finding cheap car insurance in Ontario, there are several other ways for you to save more on your car insurance premiums. Here are some helpful hints to save you even more money:

1. Bundle your policies. When you combine your auto insurance with other insurance policies under the same company, such as your home, RV, cottage or business insurance, you could save up to 15% on each bundled policy.
2. Multi-vehicle discounts. Under the same idea, if you insure multiple cars with the same insurance company, you could save up to 15%.
3. Increase your deductible. A $500 deductible, or out-of-pocket expense, that you would pay in case of a claim is standard for an auto insurance policy. Even by increasing yours to $1,000, you could see savings of up to 10% on your policy. 
4. Pay annually instead of monthly. Monthly payments, while often easier to manage, typically come with administration fees. So by making one annual payment instead of 12 monthly payments, you can save yourself 11 months of additional fees.
5. Review your policy often. Double-check your coverage regularly, particularly right before your renewal date. You’ll save money on your insurance by removing any coverages you no longer need.
6. Install winter tires. Just by swapping out your all-seasons for winter tires, you can save up to 5% on your Ontario car insurance. 
7. Choose a safe car. High crash-test scores, anti-theft devices, dash cams and advanced safety features can all lead to lower car insurance rates.
8. Driver’s education. If you are a young driver or are adding one to your policy, taking an accredited driver’s education course can significantly reduce your premiums.
9. Pay on time and drive responsibly. Insurers love responsible customers. When you make your payments on time, not only do you avoid late fees, but you can also see lower premiums over time. Also, by driving responsibly and keeping your driving record clean, your rates will remain lower than those with a bad driving history.

Ask about usage-based auto insurance. By installing a telematics device, your insurance company can see proof of your good driving habits or that you only use your car sparingly. They can then adjust your insurance premiums accordingly. You could save up to 10%.

Believe it or not, your auto insurance cost is significantly influenced by your age. Younger drivers typically pay higher premiums. Then, as you age, as long as you maintain a clean driving record, your premiums will begin to and continue to drop. That is, until you reach your elderly years, due to the age-associated statistical risks.

Since most insurance providers give a lower premium with each passing year, there is no particular age at which vehicle insurance prices begin to drop. Nevertheless, age is always a factor. Your premiums will often decrease as you age if you keep a clean driving record. Also, the longer you stay with an auto insurance company, the greater the loyalty savings tend to be. And sometimes, competing insurance companies may give you a cheaper premium because of your extensive spotless driving record. 

Do car insurance premiums decrease after age 25?

Although this is a common misconception, there is no data to support the claim that vehicle insurance rates decrease specifically after the age of 25. This myth is likely based on the fact that auto insurance companies consider young drivers between the ages of 16 and 24 at a statistically higher risk of being involved in an accident due to their lack of experience on the road. However, most young driver-involved accidents fall between the 16-19 age group. So, is there actually a difference between being 24 and 25 in the eyes of car insurance companies? No, not really. 

Finding affordable auto insurance for young drivers can be challenging, but don’t fret. After 18, automobile insurance starts to decrease each year steadily, with the most significant decrease in cost typically happening between the ages of 20 and 21, according to LowestRates.ca. After that, as long as you continue to drive safely and maintain a clean record, your car insurance premiums should continue to decrease.

According to RateHub.ca, drivers with a clean driving record and a history of zero claims can expect to see their lowest car insurance premiums around their 50s and 60s. This is because motorists in their 50s and 60s are generally regarded as the safest drivers, thanks to their decades of experience behind the wheel.

Why will my car insurance premiums increase after 70?

Most auto insurance companies view drivers over 70 as being higher-risk drivers. Our chances of getting hurt or killed in an automobile accident rise as we age, which results in increased auto insurance rates. Also, as we get older, many people struggle with routine tasks as our age begins to affect things like our sight, coordination and reaction times, all three of which can affect our ability to drive safely.

However, this doesn’t mean you have to settle for higher insurance rates. Suppose you are 70, in good health and continue to maintain a clean driving record with a history of zero claims. In that case, you can still find cheap car insurance in Ontario by shopping around for quotes from different insurance providers.

According to the insuramap on RATESDOTCA, the cities in Ontario that are tied for the cheapest car insurance rates are Alexandria, Brockville, Cornwall, Kingston, North Glengarry and Ogdensburg at $1,132. 

On the other end of the scale, the highest annual rates for car insurance in Ontario are found within the Greater Toronto Area, with areas of Vaughan sitting at $2,746, followed by areas of Scarborough at $2,562.

The minimum amount of insurance that must be purchased in order to operate a vehicle legally is governed by individual provincial and territorial laws. That being said, third-party liability insurance is a requirement wherever you live in Canada, with a $200,000 minimum requirement in Ontario. 

However, if you are leasing or looking to take out a loan to pay for your vehicle, your lender can insist that you purchase additional insurance. If you end up being involved in an accident and the car is written off entirely, they want to safeguard their loan and asset. Furthermore, as the cost to increase your coverage from $200,000 to $1 or $2 million is fairly insignificant, most drivers opt to increase it as it provides significantly more liability coverage in the event of a costly lawsuit. 

In Ontario, you are also required by law to have statutory accident benefits coverage, direct compensation–property damage (DC-PD) coverage, and uninsured automobile coverage. 

After that, what insurance you add to your vehicle is up to you. Generally, coverage like comprehensive or collision insurance is worth adding for new or expensive vehicles. If you can’t repurchase your car new or the repairs costs would break your bank account, you want to have extra insurance coverage on your vehicle. Once your vehicle ages and its deprecation value has depleted significantly, you can talk to your provider about dropping your additional coverages.

Below are summaries of extra coverage types of car insurance you may want to consider adding to your policy to cover loss or damage. 

Specified perils coverage:

The following insurable perils are included in this insurance optional coverage: fire, theft or attempted theft; lightning, wind, hail, or rising water; earthquake; explosion; riot or civil unrest; falling or forced landing of an aircraft or components of an aircraft; or the stranding, sinking, burning, derailment or collision of any kind of transport in, or upon which an insured vehicle is being carried on land or water.

Collision coverage:

This insurance covers losses incurred when a covered vehicle collides with an object or rolls over. The term “object” refers to anything in or on the ground, as well as another vehicle, including a trailer connected to the insured vehicle.

Comprehensive coverage:

This coverage covers losses included under “specified perils,” falling or flying objects, missiles, and vandalism. However, it does not include losses covered by collision coverage. 

All perils coverage:

This combines both collision and comprehensive coverage. It also includes damage or loss if a resident of your house steals a car that is protected under your insurance coverage. It also insures you in the event of vehicle theft from an employee who drives, services or repairs it. For example, if a mechanic at the repair shop stole it.

Typically, yes. Because they are less valuable than newer models, older vehicles are absolutely cheaper to insure. As such, repairs or total losses won’t require as large of a payout from insurance companies. Plus, once the value of an older car falls below a certain amount, you may no longer need or want to pay for comprehensive and collision insurance, saving you even more on your premiums.

However, not all older model vehicles are cheaper to repair. Some may need expensive and hard-to-find replacement parts, or their unique design makes maintenance difficult and inconvenient. Also, older vehicles lack modern safety features that help lower insurance premiums.

When is a car considered old?

Since each car model depreciates at a different rate, it can be difficult to give a precise answer. However, after a year of usage, you can generally anticipate that most models will have lost about 20% of their value. Then, after about five years of use, most models will typically lose about 40% to 50% of their value. Finally, after nearly 10 years of driving, it’s generally safe to refer to your vehicle as old, although this can vary depending on who you ask. Typically after a decade of use, between its high mileage and various repairs or mechanical fixes. 

Should I cancel my comprehensive car insurance on my older car?

Comprehensive car insurance covers your car for insured perils other than collisions, like fire, theft, or vandalism. It’s an optional type of protection that exists to safeguard your car when you are not using it. For example, if your car was parked on the road during a storm and a large branch or tree fell on it, or if large pieces of hail smashed your windows, your claim would fall under comprehensive coverage. 

Generally speaking, if a car is between 10 and 15 years old, comprehensive insurance is no longer a good investment. However, this is not always the case. The best way to determine whether paying for comprehensive car insurance is still worth it is by taking the value of your car minus the amount you pay annually for comprehensive coverage and your policy deductible. 

For example, if your car is valued at $1,500 and your deductible is set at $1,000, you would only receive $500 as a max payout for your car in the event of total loss. Ask yourself if that’s truly worth it, especially since comprehensive coverage costs, on average, between $100-$300 annually, depending on the province and insurance provider. If you are paying $250 in coverage and a $1,000 deductible, you are essentially only getting back $250.

On the other hand, that $500 cash payout could be essential to helping you secure another vehicle if you have very little or no emergency cash saved up, have difficulty obtaining credit, and depend heavily on having access to a vehicle. If so, then for nothing other than peace of mind, it might be worthwhile to keep some level of comprehensive coverage, even on an older vehicle.

Generally, yes. Most car insurance companies offer what’s called a “multi-car discount,” whereby insuring more than one vehicle under the same policy can save you up to 15%. 

A multi-car (or multi-vehicle) insurance policy works by covering multiple vehicles under one policy and, depending on the insurance provider, helps the policyholder save up to 15%. Each vehicle covered under your multi-car insurance will need its own unique coverage, however, which will affect the cost of the overall premium. 

Your multi-car policy allows you to add any licensed individual residing under your roof, including your spouse, child, and even a roommate. All vehicles covered by this policy will also have the same effective and expiration dates, which makes it easier to keep track of monthly or annual payment due dates.

Furthermore, a multi-car policy is not just for cars. Typically, you can also add trucks, RVs, motorcycles, boats, and snowmobiles to your multi-car policy. However, keep in mind that the majority of insurance providers only permit policyholders to insure a maximum of five vehicles under one policy. So if you are someone who owns several motor vehicles, chances are good that you will end up needing multiple policies. 

When should you not add a second vehicle to your multi-car policy?

Adding a second vehicle to your coverage is not always the best plan. While a multi-car policy seems terrific, thanks to the cost savings alone, there are a few circumstances where having a second policy is necessary.

If you own a classic, collector or antique car, it may require its own unique insurance policy. Compared to modern vehicles, classic cars are considerably different, and they come with their own set of risks. As such, classic car insurance is customized to fit the value of your vehicle and will protect you from higher financial and physical losses in the event of an accident.

If you own a vehicle that is used strictly for work purposes, it will require a commercial vehicle insurance policy, which is different than a personal auto insurance policy. As such, it cannot be included under your personal auto insurance multi-vehicle policy.

Yes. Factors such as your driving history, age and a number of others all play a role in determining whether an insurance company will want to approve you for car insurance. When deciding whether to insure you, the insurance company will also consider how many traffic infractions or accidents you’ve had recently (typically within the past five to seven years).

However, it is against the law to drive without insurance in Ontario. So while individual insurance companies can deny you coverage in extreme cases, the industry overall cannot. If you can drive and own a car, you need insurance. As long as your licence is in good standing and not suspended, you can get car insurance. Some insurance providers do cater to high-risk drivers with poor driving histories, so while your first few insurance companies may deny you coverage, continue to shop around until you find a provider that works for you.

Furthermore, all vehicle insurance companies are required to provide you with their legitimate reasons for denial of insurance in writing. Contact the Financial Services Commission of Ontario (FSCO) if you believe you have been denied coverage due to factors that violate the Insurance Act of Ontario, including your credit history, a physical or mental disability, your location, or the fact that you are new to the country.

Don’t be surprised when you are denied auto insurance if you are a high-risk driver with a poor driving history. 

Below are some of the extreme cases where an insurance company may deny you coverage:

Too many convictions or at-fault accidents

If you have more than the allowed number of traffic violations or collisions where you were at fault, depending on the carrier, you may be denied insurance. Also, certain offences are viewed as more severe than others. For example, an excessive amount of speeding tickets may only raise your premiums, while multiple DUIs may make carriers hesitant to give you insurance. 

Filing too many claims

Your application could be denied if an insurer determines that making several claims has become a pattern of behaviour. They will typically look at your past claims history for the last five to seven years and may decide that you are far too likely to file several claims again. And if your history shows that you have filed them for several at-fault accidents, this will only increase your chances of being denied, as it suggests that you are a high-risk driver who causes frequent accidents.

Several missed payments

In accordance with the Auto Insurance Consumers’ Bill of Rights, policyholders cannot be denied coverage if they pay their premiums within 30 days of a missed payment. This is allowed up to two times, and after that, it is up to the discretion of the insurance provider. Thus, it is essential that you pay your insurance premiums in a timely manner to avoid losing your current coverage or being denied future coverage.

Providing false or incomplete information

In Canada, you risk criminal prosecution — and possibly up to 14 years in prison — if you are found to have lied or misled your auto insurance company. This will remain on your record, and if you apply for new insurance in the future, you may be denied.

If you are involved in a car accident in Ontario, contact your insurance company, as they may dispatch an adjuster to assess the situation. You can usually find the company’s contact number on the pink slip, which individuals often keep in their glove compartment. Collect critical information, such as the make, model, and year of all vehicles involved, license plate numbers, and insurance slip details, and take multiple photographs of the scene. If you suspect the damage to be more than $2,000, contact the non-emergency police line.

So, you’ve picked your insurance company. You’ve built your policy. You’ve made your payments, and now you’ve been in an accident and submitted a claim to your insurance provider. This should be easy peasy; after all, this is what you pay your insurance premiums for. Except you’ve received the settlement offer from your auto insurance company, and it seems much too low. 

Believe it or not, this is a common situation since the whole job of an insurance adjuster involves trying to save their company money. But just because you got a low settlement offer doesn’t mean you need to accept it!

In fact, first offers usually come in low. In addition to trying to save the insurance company money, the insurance adjuster is also allowed to negotiate with the policyholder. This means that if you feel your offer is too low, you can try to negotiate it for a higher offer with the insurance adjuster.

How do I know if it is a reasonable offer?

A settlement offer explains how much the insurance company will pay on your claim. It may cover the claim’s total cost, part of it, or nothing at all. 

First, know your policy limits. Your offer will not exceed that of your coverage limits, even if your expenses do. This is why maybe drivers opt to increase their coverage limits to one or two million even despite Ontario’s minimum requirement of $200,000.  

Next, your medical expenses, vehicle damage, and other accident-related losses, such as towing or rental costs, should all be covered by a reasonable settlement offer (unless they exceed your policy limit). Also, don’t forget to factor in any future expenses. If you require long-term care or have been chronically disabled due to the accident, your injury will cost more than if you are anticipated to recover fully quickly. 

Lastly, track everything. It will be easier for you to judge whether the offer is too low if you keep a record of your expenses in relation to the accident.

Note: Typically, you will receive two different settlement offers for car damage and related injuries, as they are generally submitted as separate claims. 

I believe my offer is too low. Now what?

Now you can negotiate. Reject the original offer in writing and choose a flexible range (within reason) that you believe would fairly compensate you for your losses from the accident. Wait for the adjuster to make another offer and counter it with an offer near the higher end of your range. Sometimes the adjuster will accept your counter offer while other times, you may continue back and forth for a while until both parties are satisfied.

For help with understanding the technical jargon and workings of an insurance claim, or you’d prefer to have someone else handle the negotiation process, consider working with a licenced insurance broker or car accident lawyer.

It is advisable to contact an insurance broker to help you compare quotes from the top insurance companies in Ontario. An insurance broker can aid you in finding the appropriate level of coverage at a reasonable price. It is also important to note that the cheapest insurance policy may not always be the best choice.

Why should I work with an insurance broker?

Insurance brokers serve as middlemen between you and various insurance companies, providing you with access to a wide selection of options. Insurance providers calculate rates differently based on factors such as your location, age, and specific needs. Instead of contacting each provider separately, an insurance broker can compare rates from all of them and present you with the best available option. Insurance brokers operate in your best interests, prioritizing your needs over those of the insurance company. As a result, they can assist you in obtaining the lowest auto insurance premiums without sacrificing the coverage you require.

What is the difference between an insurance broker and an insurance agent?

Insurance agents are licensed professionals but are not independent, as they work for a single insurance company and can only offer that company’s products and solutions. As insurance companies tend to search for clients who fit into a specific category, their agents cannot provide assistance if you fall outside that category should your situation change, such as filing another claim or receiving a driving infraction or ticket.

In contrast, insurance brokers serve as intermediaries between you and multiple insurance providers. They are client-oriented and not affiliated with any insurance company, with their primary goal being to obtain the right insurance for you at the best possible price.

Levitt Insurance Brokers is a leading insurance firm in Canada. We were established with the goal of bringing transparency to a sector that all too frequently lacks it while also offering information, advice, and a more simple solution to simplify your life. Here at Levitt, we try to stand apart from the crowd. Making the complex simple is our greatest strength. Our aim is to assist you in efficiently and effortlessly safeguarding what matters to you most. Simply put, we deliver peace of mind in a matter of minutes.

At Levitt, we’re not in the insurance business. We’re in the business of helping you protect what matters most. It’s about having confidence in someone to be there for you in times of need. Our aim is to help you find the ideal insurance plan for your unique requirements, the key word being “individual.” After all, you are not a machine, and your insurance coverage shouldn’t be structured as if you were. Each person needs a varied amount of security depending on their unique needs, circumstances, and financial means.

At Levitt Insurance Brokers, we have the solutions you deserve. We’ve been there before, and we know what you need. Allow us to provide crucial insurance coverage on your behalf in a matter of seconds. Get the perfect fit for your needs with our powerful tools. Click, compare, and save. It can truly be that simple with Levitt.