When owning a car in Canada, getting auto insurance is mandatory.
Depending on which province you live in, insurance is provided through either a public or private system. Public insurance applies to drivers in Manitoba, British Columbia and Saskatchewan. Québec uses a combination of public and private insurance.
Provinces such as Ontario and Alberta require car owners to purchase private insurance. Here is a closer look at the two types.
Why Does Public Insurance Exist in Canada?
Public insurance exists to make sure that all drivers, regardless of their economic status, are able to get access to car insurance coverage.
British Columbia has ICBC, Saskatchewan has SGI, and Manitoba has Manitoba Public Insurance.
Why You Should Consider Public Insurance
The main benefit of public insurance is that drivers can get their mandatory coverage from one provider. However, this does not mean the coverage and price are the same for everybody.
Public insurers can still consider factors such as your driving record, vehicle and how you use it. Drivers may also have a choice of deductibles, limits and optional coverage.
Manitoba Public Insurance offers Basic Autopac and optional coverage. Drivers in the province need at least Basic Autopac, which includes personal injury protection, third-party liability and all-perils coverage.
The Downside to Public Insurance
The main downside is that drivers have no choice of company for their mandatory coverage.
This doesn’t mean there are no options. Drivers in British Columbia, Manitoba and Saskatchewan may be able to buy optional coverage from the public insurer or a private company. However, they cannot shop around for the basic portion of the policy.
The Benefits of Private Insurance in Canada
With private insurance, companies compete with each other for your business. When shopping for insurance, take the time to compare several quotes because the price can differ considerably between companies.
You can use this free tool to compare car insurance quotes based on your profile.
Private insurers consider various factors when determining premiums. These can include your driving record, age, location, vehicle and how you use it. Each company may price those factors differently.
In Ontario, drivers with a clean record pay an average of $2,345 a year, according to MyChoice data. Drivers with one at-fault accident average $2,969, about 26.6% more.
Private insurers may also offer different deductibles, discounts and optional coverages. However, one company will not always be the cheapest or best choice for every driver.
What Do Drivers Pay in Each System?
Statistics Canada reported the following average written premiums as of December 2024:
| Province | System | Average written premium |
|---|---|---|
| Ontario | Private | $2,068 |
| Alberta | Private | $1,818 |
| British Columbia | Public | $1,522 |
| Saskatchewan | Public | $1,361 |
| Atlantic provinces | Private | $1,259 |
| Manitoba | Public | $1,235 |
| Québec | Public and private | $1,044 |
Statistics Canada advises using these averages with caution because insurance requirements differ between provinces.
Québec’s figure covers the private portion of its system. Bodily injury coverage is funded separately through the licence and registration fees paid to the SAAQ.