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 municipalities that experienced stable pricing or even declines in 2025 are now among the cities with the highest premium increases in Ontario. At the same time, insurers continue to adapt to changing claims trends, evolving theft patterns, fraud concerns, and upcoming regulatory changes affecting Ontario’s auto insurance system.
Key Findings from the Study
- Ontario’s average car insurance premium increased by 4.45% in 2026.
- Vaughan recorded the largest increase in the province, with premiums rising 8.86% year-over-year.
- Other major increases occurred in Kingston (+8.64%), Milton (+8.43%), Markham (+8.12%), Aurora (+7.67%), and Mississauga (+7.34%).
- Welland (+2.12%), Oakville (+2.45%), London (+2.53%), Midland (+2.54%), and Chatham (+2.91%) recorded the smallest premium increases in Ontario, demonstrating that rate growth remains highly localized.
- Brampton remains Ontario’s most expensive city for car insurance, with average annual premiums reaching $3,471.
- Collision rates remain elevated across many Ontario municipalities, continuing to influence insurer pricing decisions.
- 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% |
| Ontario Average | +4.45% |
Local Risk Factors Continue to Influence Premium Growth
Although province-wide factors affect every insurer, local claims experience continues to play a major role in determining 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.
Because collision claims remain one of the largest costs for insurers, areas with consistently elevated accident frequencies often face greater upward pressure on premiums over time.
As MyChoice CEO Aren Mirzaian explains: “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.”
Cities with the Lowest Car Insurance Premium Increases in 2026
| City | 2026 Average Car Insurance Premium | YoY Change |
|---|---|---|
| Welland | $1,795 | +2.12% |
| Oakville | $1,970 | +2.45% |
| London | $2,037 | +2.53% |
| Midland | $1,669 | +2.54% |
| Chatham | $1,969 | +2.91% |
| Brockville | $1,670 | +3.21% |
| Sault Ste. Marie | $1,888 | +3.32% |
| Waterloo | $1,853 | +3.45% |
| Belleville | $1,770 | +3.45% |
| Kitchener | $1,810 | +3.55% |
| Newmarket | $2,140 | +3.58% |
| Bradford | $1,938 | +3.58% |
| Collingwood | $1,842 | +3.60% |
| Brampton | $3,471 | +3.90% |
| Windsor | $2,035 | +3.98% |
| Sudbury | $1,842 | +4.08% |
| Brantford | $1,902 | +4.12% |
| Hamilton | $1,870 | +4.36% |
| Ontario Average | +4.45% |
Toronto Premiums Continue to Climb
Toronto drivers saw premiums rise 5.26% in 2026, pushing the average annual cost to $2,348.
Despite the increase, Toronto remains one of Ontario’s safest municipalities according to MyChoice’s driving risk analysis. Just 6.52% of Toronto drivers reported an accident on their record, well below the rates observed in many mid-sized Ontario cities.
However, city-wide averages only tell part of the story. Our analysis of accident rates across Toronto postal codes found significant differences between neighbourhoods. Drivers in Etobicoke’s M9P postal code reported accident rates of 16.7%, while drivers in downtown Toronto’s M5J postal code reported accident rates of just 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
One positive development in 2026 is the continued decline in vehicle thefts across much of the Greater Toronto Area.
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.
While theft is no longer the dominant story it was several years ago, insurers continue to account for theft exposure when pricing comprehensive coverage, particularly for frequently targeted vehicle models.
Why Are Car Insurance Rates Still Rising in 2026?
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 MyChoice CEO, Aren Mirzaian.
- Review your coverage regularly. Ontario’s changing insurance landscape makes it increasingly important for drivers to understand their policy options and coverage selections.
- 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 to qualify for a car insurance discount. Many Ontario insurers offer discounts for drivers who install winter tires during the 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.