Auto insurance rates can increase even if you have not been in any accidents. Factors that may increase insurance rates include tariffs and inflation, the type of vehicle you drive, higher auto repair costs, auto theft and severe weather events.
For this article, we reviewed FSRA’s Ontario average-premium series, the Government of Canada’s automobile tariff measures, the federal 2026 auto strategy and Alberta’s automobile-insurance reform page to explain some of the factors pressuring auto insurance costs.
Read More: Why Car Insurance Rates Can Rise Without an Accident
Why Your Location Still Matters
Using the same standard driver and vehicle profile, including the same coverage and deductibles, we collected 50,000 quotes from MyChoice since the beginning of 2026 across the province of Ontario. The average annual quote in Sarnia is around $1,820, while it’s $4,210 in Brampton.
While this doesn’t necessarily reflect what you’ll be quoted, these quotes can help you see the disparity between areas.
How Supply Chain Issues and Inflation Affect Insurance Costs
Component prices, maintenance service rates and automobile values are all relevant considerations.
Lengthy repair times may increase covered expenses such as rental or alternate transportation.
How Current Auto Tariffs May Affect Repair and Replacement Costs
Changes to tariffs and affected items may cause auto insurance costs to vary over time. Since April 9, 2025, there’s a 25% tariff on vehicles from the US that don’t meet CUSMA and on specified non-Canadian or non-Mexican content of vehicles that meet CUSMA requirements.
While there isn't reliable information about the percentage increase in insurance premiums due to tariffs, they may affect certain cars and auto parts.
Read More: Impact of Trump’s Tariffs on the Insurance Market in Canada
How EV Repair Complexity Can Affect Some Claims
Insurance costs depend on the car you drive, its claims record and provincial regulations.
Higher Repair Severity
Check the cost of insurance on the car you’re looking at, as repair costs can vary widely. Repair costs vary by vehicle, extent of damage, whether a battery is involved, parts, labour and calibration.
Rising Write-Off Rates
National averages are unlikely to apply to your car. No single statistic can predict whether an EV will be repaired after damage or deemed a total loss.
Many factors come into play, including the car model, the nature of the damage, whether a battery is involved, any additional inspection needed for safety, parts, labour, the car’s value and insurance policy details.
Expensive Battery Replacements
Have a qualified repair facility inspect the vehicle to determine whether it needs battery repair or replacement. Costs vary by vehicle and by the extent of damage. Do not rely on generalized pack estimates.
Read More: How EV Repair Costs Can Affect Insurance
How to Read a Premium-Increase Headline
- Premium headlines are not the same as an individual's rate increase or decrease at renewal. For accurate information for a specific time frame, consult the filings with the appropriate provincial regulator and identify the filings for your insurer.
- Understand your deductible. Different provinces and insurers have different deductibles to choose from. Your deductible is the amount you pay out of pocket when making a claim. Make sure you can afford the deductible you choose.
- Read the fine print regarding privacy for any telematics or mileage programs. Different provinces and insurers have different rules. Read them before opting into the program.