Ontario drivers continue to face rising insurance costs in 2026, with average premiums increasing 4.45% year-over-year across the province.
To understand how premiums have changed across the province, our team at MyChoice, a leading insurtech and insurance comparison website in Canada, analyzed thousands of real insurance quotes generated between January and June 2026 and compared them with the same period in 2025. For consistency, we focused on quotes reflecting the most common driver profile: a 35-year-old married individual with a clean driving record and continuous insurance coverage. The analysis used several of Ontario’s most commonly insured vehicles, including the Honda Civic, Toyota Corolla, Mazda CX-5, Ford Escape, Honda Accord, and Chevrolet Equinox.
Several of the municipalities that had seen decreases or little change in insurance prices in 2025 are among those seeing the biggest increases in Ontario. Insurers continue to adjust to changing claims and auto theft trends, deal with fraud issues and prepare for coming changes to Ontario’s auto insurance regulations.
Key Findings from the Study
- Drivers are looking for ways to reduce the cost of operating their vehicle, especially considering that the average car insurance rate in Ontario increased 4.45% in 2026.
- Premium increases weren’t consistent across regions, with Vaughan experiencing the largest year-over-year rate increase in the province at 8.86%.
- Kingston (+8.64%), Milton (+8.43%), Markham (+8.12%), Aurora (+7.67%) and Mississauga (+7.34%) all recorded major increases as a result of local risk factors.
- Welland (+2.12%), Oakville (+2.45%), London (+2.53%), Midland (+2.54%), and Chatham (+2.91%) posted the smallest premium increases in Ontario, indicating that increases in premiums are very localized.
- Brampton is the priciest city in Ontario to get auto insurance, with rates that average $3,471 annually.
- These numbers continue to influence insurers’ rates. Collision numbers remain high in a number of Ontario municipalities.
- Vehicle theft activity has improved in several regions, but theft-related losses remain significantly above pre-pandemic levels.
Cities with the Highest Car Insurance Premium Increases in 2026
| City | 2026 Average Car Insurance Premium | YoY Change |
|---|---|---|
| Vaughan | $2,705 | +8.86% |
| Kingston | $1,738 | +8.64% |
| Milton | $2,003 | +8.43% |
| Markham | $2,364 | +8.12% |
| Aurora | $2,222 | +7.67% |
| Mississauga | $2,494 | +7.34% |
| St. Catharines | $1,877 | +6.73% |
| Niagara Falls | $1,919 | +6.68% |
| Etobicoke | $2,431 | +6.34% |
| Barrie | $2,118 | +6.21% |
| Burlington | $1,806 | +6.01% |
| Oshawa | $2,116 | +5.89% |
| Scarborough | $3,047 | +5.77% |
| Peterborough | $1,739 | +5.67% |
| Orangeville | $1,980 | +5.67% |
| Ottawa | $1,680 | +5.63% |
| Cornwall | $1,528 | +5.56% |
| Thunder Bay | $2,032 | +5.52% |
| North Bay | $1,763 | +5.45% |
| Sarnia | $1,744 | +5.34% |
| Stratford | $1,773 | +5.34% |
| Toronto | $2,348 | +5.26% |
| Timmins | $1,716 | +5.23% |
| Guelph | $1,846 | +5.20% |
| Richmond Hill | $2,422 | +4.90% |
| Huntsville | $1,700 | +4.66% |
| Cambridge | $1,979 | +4.47% |
| Ontario Average | — | +4.45% |
Source: MyChoice Database, 2026-2025
Local Risk Factors Continue to Influence Premium Growth
Although all insurers in the province are impacted by larger factors within the province, local claims experience is one of the main influences on insurance rates.
Our recent study identifying Ontario’s safest and most dangerous cities to drive found that many municipalities experiencing above-average insurance inflation also report elevated accident rates. Barrie, for example, recorded the highest accident rate among major Ontario municipalities, with 14.54% of drivers reporting at least one accident on their record. Kingston (14.12%) and Burlington (14.22%) also ranked among the province’s higher-risk communities.
As a result, areas that continue to have a high accident rate will have high auto insurance rates as accident payouts are one of an insurer’s biggest liabilities.
“What’s interesting about the 2026 market is that we’re seeing premium increases spread across a much broader range of communities. It’s no longer just the traditionally expensive cities driving the story. Insurers are responding to changing claims patterns, localized risk factors, and evolving market conditions across the province,” said Aren Mirzaian, CEO, MyChoice.
Cities with the Lowest Car Insurance Premium Increases in 2026
| City | 2026 Average Car Insurance Premium | YoY Change |
|---|---|---|
| Hamilton | $1,870 | +4.36% |
| Brantford | $1,902 | +4.12% |
| Sudbury | $1,842 | +4.08% |
| Windsor | $2,035 | +3.98% |
| Brampton | $3,471 | +3.90% |
| Collingwood | $1,842 | +3.60% |
| Newmarket | $2,140 | +3.58% |
| Bradford | $1,938 | +3.58% |
| Innisfil | $2,295 | +3.56% |
| Kitchener | $1,810 | +3.55% |
| Waterloo | $1,853 | +3.45% |
| Belleville | $1,770 | +3.45% |
| Sault Ste. Marie | $1,888 | +3.32% |
| Orillia | $1,727 | +3.28% |
| Brockville | $1,670 | +3.21% |
| Chatham | $1,969 | +2.91% |
| Midland | $1,669 | +2.54% |
| London | $2,037 | +2.53% |
| Oakville | $1,970 | +2.45% |
| Welland | $1,795 | +2.12% |
| Ontario Average | $2,132 | +4.45% |
Toronto Premiums Continue to Climb
Toronto drivers saw premiums rise 5.26% in 2026, pushing the average annual cost to $2,348.
Although Toronto did show an increase, it’s still one of Ontario’s safest cities to drive in according to MyChoice’s driving risk analysis. Only 6.52% of Toronto drivers have an accident on their driving record, a figure that’s well below many cities in Ontario.
Our analysis of accident rates across Toronto postal codes also finds significant differences between neighbourhoods, which are obscured by city-wide accident rate averages. For example, drivers in Etobicoke (M9P) have accident rates of 16.7%, whereas drivers in a different postal code in downtown Toronto (M5J) have accident rates of 3.8%.
These findings illustrate why insurers continue to evaluate risk at the postal-code level rather than relying solely on city-wide averages. Even within the same municipality, claims patterns can vary dramatically.
GTA Theft Trends Are Improving, But Risk Remains Elevated
Vehicle thefts have decreased in most areas in the GTA in 2026. That’s good news but unfortunately premiums in Toronto continue to increase.
However, theft remains an important rating factor in many urban markets. Our analysis of Toronto theft data found that some postal codes continue to experience theft rates dozens of times higher than others. Areas such as Rexdale and parts of Scarborough remain among the city’s highest-risk theft zones.
Though vehicle theft is not as big an issue as it was just a few years ago, insurers still take into account the risk of comprehensive coverage, especially when it comes to popular models.
Why Are Car Insurance Rates Still Rising in 2026?
Claims Costs Continue to Increase
Although inflation has moderated in many parts of the economy, vehicle repair inflation in Ontario was 3.90% in 2025. Modern vehicles increasingly rely on cameras, sensors, radar systems, and other advanced safety technologies that can significantly increase repair costs following even minor collisions.
Accident Rates Remain Elevated
Toronto has recorded a troubling increase in traffic deaths this year. According to Toronto Police, the city saw a 28% increase in fatal collisions between January and June 2026 compared to the same period last year.
Accident claims are one of the biggest causes of losses to insurers; the higher the number of accidents, the higher the cost of insurance for consumers.
Insurance Fraud Remains a Persistent Challenge
Fraud is still costly for auto insurers in Ontario, including rigged auto accidents, bogus injury claims and fraudulent insurance applications. Insurance fraud remains a concern for insurers and regulators.
How Can Drivers Reduce Their Insurance Costs?
“The biggest factors drivers can control are how they drive, what they drive, and whether they’re comparing rates regularly,” says Aren Mirzaian, CEO of insurance company MyChoice.
- Drivers should review their vehicle insurance regularly, especially in light of changes occurring in Ontario insurance industry, and it’s important that drivers are aware of their vehicle insurance options.
- Protect your vehicle from theft. While vehicle theft has improved, anti-theft devices such as steering wheel locks, immobilizers, and GPS tracking systems can still help reduce risk and may qualify drivers for additional discounts.
- Install winter tires and take advantage of discounts from some Ontario insurers during colder months.
- Maintain a clean driving record. A single at-fault accident can remain on an insurance record for years and, depending on the insurer and severity of the claim, can result in premiums increasing by 50% to 100% or more at renewal.
- Choose a car that is cheaper to insure. Drivers should consider not only the car purchase price, but also insurance costs. Vehicles with strong safety ratings, lower theft rates, lower repair costs, and built-in anti-theft technology are generally less expensive to insure.
Ontario’s upcoming auto insurance reforms will give drivers greater flexibility when selecting accident benefit coverage. While the long-term impact remains uncertain, insurers are continuing to adjust pricing models as they prepare for the new regulatory environment.