Car Insurance Rates Rise 4.10% in Ontario in 2025
Car insurance costs continue to be an escalating burden for Ontario drivers. Despite efforts to contain rate hikes, premiums have continued to rise in most cities across the province, driven by factors such as surging repair costs, vehicle theft, insurance fraud and increasing claim payouts.
To understand how costs are evolving, our team at MyChoice, a leading Canadian insurtech company, conducted a detailed analysis of year-over-year car insurance inflation across Ontario municipalities. We examined thousands of real quotes generated through MyChoice between January and June 2025 and compared them with the same period in 2024. For consistency, we focused on quotes reflecting the most common driver profile: a 35-year-old married individual (male or female) who is currently insured and maintains a clean driving record. The costs were analyzed based on the most popular vehicles in Ontario, including Honda Civic, Mazda CX-5, Ford Escape, Toyota Corolla, Honda Accord, and Chevrolet Equinox. This standardized approach enabled us to track premium movements across regions in a reliable and comparable way, while still drawing from real, location-specific pricing data provided by insurers.
The findings provide a clear snapshot of how much more the average driver will pay in 2025, as well as which communities have been hit the hardest.
Key Findings from the Study
- In Ontario, the average car insurance premium increased by 4.10% in 2025, continuing a multi-year trend of rising rates.
- Kingston saw the steepest increase in the province, with average premiums up 14.73% year-over-year.
- Other notable car insurance price increases happened in Barrie (+13.78%), Windsor (+12.69%), Innisfil (+12.15%), and Belleville (+11.92%).
- Brampton remains the most expensive city overall, where drivers now pay an average of $3,341 annually – a nearly 11% increase.
- Kingston, Brantford, Burlington, and Brampton were all identified as one of the most dangerous cities to drive in Ontario in our recent study, based on accident and infraction data across the province.
- In contrast, some cities experienced modest declines in car insurance premiums, including Markham (−7.05%), Mississauga (−2.17%), and Richmond Hill (−2.12%).
Cities with the Highest Car Insurance Premium Increase in 2025
| City | 2025 Average Car Insurance Premium | 2024 Average Car Insurance Premium | 2025 vs 2024 Change |
|---|---|---|---|
| Kingston | $1,581 | $1,378 | +14.73% |
| Barrie | $1,915 | $1,683 | +13.78% |
| Windsor | $1,891 | $1,678 | +12.69% |
| Innisfil | $2,216 | $1,976 | +12.15% |
| Belleville | $1,652 | $1,476 | +11.92% |
| Brampton | $3,341 | $3,012 | +10.92% |
| Chatham | $1,913 | $1,745 | +9.63% |
| Peterborough | $1,584 | $1,454 | +8.94% |
| Sarnia | $1,603 | $1,477 | +8.53% |
| Thunder Bay | $1,926 | $1,783 | +8.02% |
| Sudbury | $1,698 | $1,577 | +7.67% |
| Burlington | $1,704 | $1,585 | +7.51% |
| North Bay | $1,672 | $1,557 | +7.39% |
| Brockville | $1,529 | $1,424 | +7.37% |
| Oakville | $1,809 | $1,692 | +6.91% |
| Brantford | $1,769 | $1,657 | +6.76% |
| Oshawa | $1,974 | $1,854 | +6.47% |
| Hamilton | $1,735 | $1,632 | +6.31% |
| Sault Ste Marie | $1,747 | $1,645 | +6.20% |
| London | $1,987 | $1,882 | +5.58% |
| Ontario Average: | +4.10% |
While many Ontario communities experienced substantial jumps in car insurance costs over the past year, others saw only modest increases or even slight declines. This uneven pattern reflects local accident rates, theft trends, and claims activity. As previously mentioned, our study of Ontario’s safest and most dangerous cities for driving found that cities such as Kingston, Brantford, Burlington and Brampton consistently have higher rates of accidents and infractions compared to the provincial average. Insurers typically adjust pricing to reflect this heightened risk exposure, which can result in premiums rising faster than in regions with steadier claims histories.
As MyChoice CEO, Aren Mirzaian, explains, “Even within the same province, insurers calibrate their rates based on very localized risk data – everything from collision frequency to vehicle theft patterns – which is why drivers sometimes see sharp differences in premiums between neighbouring communities.”
Cities with the Lowest Car Insurance Premium Increase in 2025
| City | 2025 Average Car Insurance Premium | 2024 Average Car Insurance Premium | 2025 vs 2024 Change |
|---|---|---|---|
| Ontario Average: | +4.10% | ||
| Newmarket | $2,066 | $1,993 | +3.66% |
| Waterloo | $1,737 | $1,678 | +3.52% |
| Cambridge | $1,894 | $1,831 | +3.44% |
| Bradford | $1,871 | $1,823 | +2.63% |
| St Catharines | $1,741 | $1,697 | +2.59% |
| Orillia | $1,672 | $1,630 | +2.58% |
| Aurora | $2,023 | $1,973 | +2.53% |
| Milton | $1,824 | $1,782 | +2.36% |
| Kitchener | $1,748 | $1,712 | +2.10% |
| Cornwall | $1,381 | $1,353 | +2.07% |
| Etobicoke | $2,255 | $2,213 | +1.90% |
| Huntsville | $1,624 | $1,598 | +1.63% |
| Guelph | $1,729 | $1,703 | +1.53% |
| Ottawa | $1,560 | $1,544 | +1.04% |
| Scarborough | $2,881 | $2,866 | +0.52% |
| Vaughan | $2,451 | $2,467 | −0.65% |
| Toronto | $2,231 | $2,255 | −1.06% |
| Richmond Hill | $2,309 | $2,359 | −2.12% |
| Mississauga | $2,258 | $2,308 | −2.17% |
| Markham | $2,163 | $2,327 | −7.05% |
Why Are Car Insurance Rates Still Rising?
Ontario drivers face unique challenges that continue to push premiums upward:
- Auto Theft Crisis: Vehicle theft rates remain elevated, particularly in the GTA, driving up comprehensive claims and costs.
- Repair Inflation: Modern vehicles, especially those with ADAS (advanced driver-assistance systems), are significantly more expensive to repair after collisions.
- Rising Liability Claims: Settlements and injury payouts have increased steadily in recent years, adding pressure to insurers’ bottom lines.
- Fraud and Staged Collisions: Fraudulent claims persist as a major issue in certain regions of the province, indirectly raising premiums for all policyholders.
Ontario’s Financial Services Regulatory Authority (FSRA) recently introduced a new Fraud Reporting Service (FRS) rule requiring insurance companies to report detailed data on auto insurance fraud on an ongoing basis. This initiative aims to enable regulators to track trends, identify high-risk regions, and more effectively address fraudulent claims. Over time, better data and stricter oversight could help stabilize system costs and gradually lead to more affordable premiums.
How Can You Lower Your Premiums Today?
While market forces and fraud initiatives play a big role in shaping overall rates, there are many proven strategies drivers can use to reduce their premiums individually:
- Install Anti-Theft Devices: Adding security features, like steering wheel locks, kill switches, or GPS tracking systems, can make your vehicle less attractive to thieves. Many insurers offer discounts of up to 15% for effective anti-theft systems.
- Bundle Policies: Combining your auto policy with home or tenant insurance can yield savings of 20–50% and simplify account management.
- Install Winter Tires: Many Ontario insurers offer a discount for using winter tires, helping you save while staying safer in cold months.
- Shop Around: Premiums can vary dramatically between insurers, even for identical coverage. Use MyChoice to compare car insurance quotes and ensure you’re getting the best possible rate.