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Article Contents
By Aren Mirzaian
Updated on November 06, 2025

12 minute read

✓ Expert Reviewed By Heather Clark, Licensed Insurance Broker
Article Contentstable-of-contents

Quick Facts About Auto Insurance in Canada

  • The national average annual car insurance premium is $1,435.
  • Alberta now has the highest average car insurance rates in Canada, at around $2,180 per year, followed by Ontario at approximately $1,874 per year, and British Columbia at about $1,726 per year.
  • Car insurance is mandatory in every province and territory, though each jurisdiction regulates its own minimum coverage requirements.
  • Comparing rates through MyChoice helps drivers save an average of $200 to $800 per year, depending on their age and vehicle type.

How Does Car Insurance Work in Canada?

Auto insurance in Canada is mandatory by local laws, but the minimum mandatory coverage depends on the province where you live.

Mandatory Coverages:

The coverages listed below are mandatory in Canada (with exceptions) and will always be included in a standard car insurance quote.

Coverage TypeCoverage DetailsProvincial Differences
Third-Party LiabilityProtects you if you injure
someone or damage property
while driving, and covers
legal costs if you’re sued.		Mandatory nationwide. Minimum
required limits vary: typically
$200,000 (most provinces),
$500,000 in Nova Scotia, and
$50,000 Civil Liability in Québec
(bodily injury handled by SAAQ).
Accident BenefitsCovers medical costs, income
replacement, and more for you
and others injured in an
accident, regardless of fault.		Mandatory in most provinces (e.g.
Ontario, Alberta, New Brunswick,
Nova Scotia, Newfoundland). In
Québec, Saskatchewan, and
Manitoba, this protection is
provided through the provincial
public insurer.
Uninsured AutomobileProtects you if you’re hit by an
uninsured or an unidentified
driver and suffer injuries
or vehicle damage.		Mandatory in most provinces,
including Ontario, Alberta, New
Brunswick, Newfoundland, and
Nova Scotia. Included automatically
in public plans in BC, Manitoba,
Saskatchewan, and Québec.
Direct Compensation:
Property Damage		Covers damage to your own
vehicle if you’re not at fault
in an accident with another
insured driver in Canada.		Mandatory in Ontario, Alberta,
New Brunswick, Newfoundland,
Nova Scotia, and PEI. Not applicable
in provinces with government insurance
(BC, Manitoba, Saskatchewan, Québec).
Ontario allows opting out as of Jan 2024.

Highly Recommended Coverages:

Any of the highly recommended coverages listed below for Canada may be removed from your quote. However, we strongly recommend keeping them to ensure adequate protection.

Coverage TypeCoverage DetailsProvincial Differences
CollisionCovers your vehicle if you hit another
car or object and you’re found at fault.		Optional nationwide.
ComprehensiveCovers damage to your vehicle from
non-collision events like theft, vandalism,
fire, or weather.		Optional nationwide.
OPCF/SEF 20:
Loss of Use		Pays for rental or other transportation
if your car is out of service after an
at-fault accident or comprehensive claim.		Optional nationwide.
OPCF/SEF 27:
Rental Vehicle		Extends your coverage to rented or
borrowed vehicles, protecting you if
damage occurs while you drive them.		Optional nationwide.
OPCF/SEF/QEF 44R:
Family Protection		Covers you and your family if you’re
hit by an uninsured, underinsured, or
hit-and-run driver and their coverage
isn’t enough.		Optional nationwide.
OPCF/SEF 39:
Accident Forgiveness		Prevents your insurance premiums from
increasing after your first at-fault
accident, as long as you stay with
the same insurer.		Optional nationwide. Available
in Ontario, Alberta and Atlantic
provinces.
OPCF/SEF 43:
Waiver of Depreciacion		Ensures you get the full purchase price
back—not a depreciated value—if your
new vehicle is written off.		Optional nationwide. Available
in Ontario, Alberta and Atlantic
provinces.

Other Common Car Insurance Coverage Options in Canada

The coverage options available to you in Canada will ultimately depend on which province you live in, but generally speaking, there are consistencies across each province that can be grouped into either mandatory coverage, recommended add-ons or optional add-ons.

Specified Perils Protection

Specified perils insurance coverage protects you from loss or damage due to a specific cause. The most common perils insured are:

It’s worth mentioning that if you choose to take comprehensive auto insurance you’d be covered for all these perils.

Gap Insurance

This type of add-on will offer coverage for the ‘gap’ between the owed amount on a car loan and the car’s actual value in case of total loss or theft.

Usage-Based Insurance

This is a customized insurance policy that bases premiums on driving behavior, often tracked through a device in the vehicle or a mobile app​​.

Average Car Insurance Rates in Canada by Province

The following table presents a comparison of average car insurance rates across Canadian provinces.

Leading the way is Alberta, which is feeling the pinch of rising car insurance costs into 2026. Next on the list is Ontario, which had a car insurance inflation of 4.1% in 2025.

ProvinceAverage Annual
Car Insurance Premium		% Diff From
National Average
British Columbia$1,72620.3%
Alberta$2,18051.9%
Saskatchewan$1,128−21.4%
Manitoba$1,178−17.9%
Ontario$1,87430.6%
Quebec$1,035−27.9%
New Brunswick$923-35.7%
Nova Scotia$1,017-29.1%
Prince Edward Island$968−32.6%
Newfoundland$1,164−18.9%
National Average:1,435

Car Insurance Cost in Canada by Age

Car insurance rates in Canada vary significantly by age, reflecting driving experience and risk exposure.

Even in higher-cost age brackets, drivers who compare quotes through MyChoice can save hundreds each year, with average savings ranging from $225 to over $800, depending on the age group.

AgeAverage Annual Car
Insurance Premium		Average Savings
with MyChoice
18–20$4,118$819
21–24$2,124$422
25–34$1,636$325
35–44$1,435$285
45–54$1,220$243
55–64$1,134$225
65+$1,162$231

Car Insurance Cost in Canada by Vehicle Model

Your vehicle choice has a significant impact on the cost of your car insurance. Affordable and widely driven brands like Honda, Ford, and Kia tend to offer the lowest average premiums due to lower repair costs and strong safety ratings. Luxury and performance models, such as those from Audi and BMW, typically cost more to insure due to the more expensive parts and higher repair expenses associated with them.

Car ModelAverage Annual
Car Insurance Premium
Honda$1,317
Tesla$1,409
Toyota$1,511
Chevrolet$1,349
Ford$1,313
Hyundai$1,447
Audi$1,784
BMW$1,670
Kia$1,312
Mazda$1,338
Mercedes$1,422
Nissan$1,454
Porsche$1,480
Volkswagen$1,320

Who Provides Car Insurance Quotes in Canada

The following table highlights some of the most popular car insurance providers across Canada and the provinces where they operate.

Insurance Brokers

Insurance brokers are independent providers who can compare insurance providers and find you the best policy deals. Brokers are often very knowledgeable about the auto insurance market, so they’re well-equipped to answer your questions about insurance.

Direct Writers

Direct writers are similar to agents in that they only sell products from one insurer. They are usually cheaper because they don’t have physical offices, but you can’t book a face-to-face meeting with them.

Insurance Agents

Insurance agents are employed under a certain insurer, so their policy selection may be limited compared to brokers. However, they know the company’s insurance policies like the back of their hand and can give you discounts not available to brokers. Insurance agents can also close sales independently, ensuring your policy sale finishes quickly.

Insurance Aggregators

Aggregator websites like MyChoice gather offers from multiple insurers in one place to help drivers find the best deals. These sites are entirely free for customers, so you can get quotes and find the right policy without spending anything.

Most Popular Car Insurance Providers in Canada

The following table highlights some of the most popular car insurance providers across Canada and the provinces where they operate.

Take a look at our top companies in Ontario for a more detailed overview, plus some additional insurance providers that are not on the list below.

Car Insurance ProviderProvinces Available*
AvivaAll exc. AB, BC, MB, SK
Canadian Auto Association (CAA)All exc. BC, MB, SK
AllstateAB, NB, NS, ON, QC
BelairdirectAB, BC, NB, NL, NS, ON, PEI, QC
IntactNationwide
TD InsuranceAll exc. BC, MB, SK
RBC InsuranceAll exc. BC, MB, SK
TravelersAB, NB, NL, NS, ON, PEI, Territories, NU, YK
WawanesaAB, NB, NL, NS, ON, PEI, QC
Co-operatorsAB, NB, NL, NS, ON, PEI, NT, YK
Desjardins InsuranceQC

Why You Should Compare Car Insurance Quotes with MyChoice

Selecting a car insurance policy can be confusing, especially with all the insurance companies bidding for your hard-earned dollar. Shopping around for your car insurance policy is the key to getting the best deal out there as it allows you to assess all your different coverage options, hopefully in one place.

That’s where we come in, at MyChoice, we make that process easy, we give you choice and the ability to compare all your different options from Canada’s top insurers. Not forgetting by using MyChoice you can view all your available options in the same place and have peace of mind knowing that you got the best deal, tailored for you.

How to Get Cheap Car Insurance in Canada

Compare Rates Between Insurers

Auto insurance is a highly competitive market, so insurers are constantly vying for your business. When insurers try to give you the best deals, it’s you who wins. Compare rates and shop around to see which insurance provider fits your auto protection needs affordably.

Take Bundled Policies

One of the best ways to save money while shopping is to buy a package deal, and insurance is no different. If you bundle home and auto insurance from the same company, you’re much more likely to get lower rates.

Ask For A Higher Deductible

You must pay a deductible on insurance claims before your carrier covers the remaining expenses. A higher deductible means paying extra if something happens to your car, but it also means you’ll get lower insurance premiums.

Request Group Discounts

Many insurance companies deal in group discounts for companies and other organizations. If you’re shopping for auto insurance in Canada for work, ask your agent about group deals and discounts.

Pay Annual Premiums

Paying annual insurance premiums might look expensive initially, but it’s generally cheaper than paying them monthly. Ask your insurers about half-year premiums if you can’t afford annual premiums.

Drive Safely

Motor vehicle offences and accidents stay on your record for years. Unfortunately, any driving violation on your record will considerably increase your insurance rates. However, this also means you’ll get lower auto insurance rates if you have no offences on record.

Consider Taking Usage-Based Insurance

Usage-based insurance (UBI) or pay-as-you-go insurance tracks your driving behaviour to determine how much you must pay for insurance. Taking UBI lets you save up to 30% on your annual premiums, so it’s a good option if you consider yourself a safe driver.

Take Driving Courses

Accredited driving lessons make you a safer driver and let you earn discounts on auto insurance in some specific provinces in Canada, see our FAQ below for the full list.

Choose the Coverage You Need

Naturally, more insurance protection leads to higher rates. While some auto insurance coverage is mandatory, you have optional insurance coverage like at-fault accident and theft protection. Review your policy and skip unnecessary optional coverage to save on insurance premiums.

Buy Affordable Cars

Cars that are expensive and hard to replace tend to get hit with higher premiums. If possible, buy affordable and reliable cars that are more common and easy to repair or replace if you want lower insurance rates.

Information You Need to Get a Car Insurance Quote

To get a car insurance quote, you’ll need to have the following information on hand so you can get an accurate rate. Regardless of whether you’re switching insurance providers or getting auto insurance for the first time, you’ll need to provide – driver details, vehicle details, previous insurance history and current insurance information.

Driver Details

You’ll need all the personal details of every person you intend to be on your insurance policy. Information such as name, address, date of birth and type of licence are all common requirements.

Previous Insurance History

This involves providing information on when you were first insured, how long you’ve been insured and your current policy tenure. You should also provide any information on previous claims or infractions (tickets, traffic convictions) you’ve incurred.

Vehicle Details

You will need your vehicle make, model, year, main purpose (work, school, business etc) as well as information on daily and annual kilometres driven. If you are planning to insure more than one vehicle you need the information of both vehicles.

Current Insurance Information

Have your current policy information to hand so you can easily compare any key differences and refer to if need be. You’ll also want to ensure you are getting your desired coverage, such as comprehensive and collision or one or the other.

What Factors Affect Your Car Insurance Rate

There are many different factors at play that affect the price of your car insurance, some are given a greater level of importance by certain insurance companies and some are not. One thing that’s important to remember is you’ll often receive a different rate to your neighbour as you’ll likely have a different vehicle and personal insurance history, the rate you receive doesn’t just come down to where you like.

Take a look at some of the more important elements that affect the price of your car insurance below:

Age, Gender, and Marital Status

Your personal demographics will influence auto insurance premiums Canada-wide because different people have varying accident risks. 

Younger people tend to get higher premiums because insurance companies see them as more accident-prone than older people. Generally, your car insurance rates start decreasing when you hit 25 years old as long as you keep a safe driving record. However, insurance premiums increase again for people aged 65 and older because they’re more likely to be injured or killed in traffic accidents.

Women often get lower insurance rates because they’re seen as more careful drivers and don’t take as many risks as men.

Marital status also determines your rates because most insurance companies see married people as more financially stable and less-risky drivers. Married couples also tend to bundle home and auto insurance, saving more on premiums.

Location

People who live in urban areas often see higher insurance premiums because they’re more prone to car accidents and theft. 

Vehicle Make and Model

Expensive cars are more costly to repair or replace, so insurance premiums are usually higher than more common vehicles. You can install security features like anti-theft devices if you have an expensive car and want to save on insurance premiums.

Driving History

People who drive safely are rewarded with lower premiums because they’re usually less likely to get into a traffic accident. Conversely, people who have gotten into multiple accidents get higher premiums because they’re more likely to be involved in another accident down the line.

Driving Activity

Logic dictates that people who drive frequently are more likely to get in an accident. Therefore, kilometres driven is one of the determining factors that set your auto insurance rates.

Insurance Coverage Chosen

Your coverage options influence your insurance rates because taking more coverage gives you more protection. Naturally, the more coverage you choose, the higher your rates.

Policy Discounts

Getting discounts can lower your auto insurance rates and make them more affordable. You can typically get discounts by bundling home and auto insurance or asking for a group discount for your workplace or organization.

Vehicle Model Accident Rates and Repair Costs

Some cars are just more accident-prone than others. Even if you have a spotless driving record, owning a car model infamous for having high accident rates will increase your insurance premiums.

Naturally, older cars are more expensive to insure because they may not have all the safety features of newer vehicles. If you insist on driving a vintage car everywhere, make sure you can pay the insurance premiums.

Past Insurance Claims

Any auto insurance claims will drive your premiums up, regardless of who’s at fault. If you’ve had to make numerous insurance claims, the insurer will see you as a high-risk policyholder and give you a higher rate to insure you.

Number of Licensed Drivers by Age in Canada

The chart below provides an updated snapshot of the distribution of licensed drivers in Canada by age group as of mid-2025.

A total of roughly 27 million drivers remain on the road, with the 60–64 and 65–69 age brackets showing the highest concentration of active licenses — reflecting Canada’s aging but still highly mobile population. Younger groups such as 25–34 and 30–39 continue to represent a strong share of drivers, highlighting the ongoing transition between new and experienced motorists.

Commonly Asked Questions About Auto Insurance

How much does car insurance cost in Canada?

The national average annual car insurance premium is $1,435.

In Canada, the cost of car insurance varies by province due to different insurance systems and factors like accident rates and regional regulations. Our table above shows the average cost by province, age and car brand.

What kind of auto insurance policies are out there?

As previously mentioned, there are three main areas of auto insurance policies available in Canada: mandatory coverage, recommended coverage, and optional add-ons. We delve into each one, specifically covering the points mentioned above.

What are the penalties for driving without insurance?

Typically, fines can range anywhere between $5,000 – $50,000, your license suspended or your vehicle impounded. Not only is this bad in the short term it also does no favours for you in the long run, if you are convicted you can expect to be labelled, as what the insurance companies like to call, a high risk driver. As a result of this, you will no doubt have to pay higher than average insurance rates for the foreseeable future.

Is car insurance required by law in Canada?

Simple answer, yes. If you hold a driver’s license and drive a car, you must ensure that you have some sort of car insurance, no matter what province you reside in.

Is it cheaper to pay monthly or annually for car insurance?

The short answer is yes, generally paying annually will be cheaper than monthly. Some insurers offer a discount of up to around 7%.

Will a driver’s ed course make my car insurance cheaper?

If you can show you are a safe driver then you should receive cheaper car insurance, as a new driver this can be tough but one way to overcome that is to enroll in a government-certified driving school course.

However, this is not available in all Canadian provinces; the driving school discount is only available in Alberta, New Brunswick, Newfoundland & Labrador, Nova Scotia, Ontario and Prince Edward Island.

Does car insurance differ by province?

While there are consistencies across provinces, they are not the same; minimum coverage amounts will vary, and some provinces, like British Columbia and Manitoba, have their car insurance provided by government-owned corporations.

Can I be an Uber driver with regular car insurance?

Even though Lyft and Uber cover you with commercial insurance during rideshare service, it’s mandatory to carry your own car insurance. In Canada, all drivers are legally required to have third-party liability coverage, a component typically included in standard insurance policies.

What happens when I receive an auto insurance quote I like on MyChoice?

When you complete our quoting form, you’ll be shown a list of rates and we assume that the quote you like is the cheapest one.

After that, in most cases, one of our broker partners will contact you right away to see if you want to proceed and purchase the policy, or alternatively, you could call the brokerage directly with the number we provide. The broker will be able to answer any questions you have.

In the scenario where your cheapest rate is from a direct insurer, think Onlia for example, you will have the option to purchase your policy online with them, 24/7, just follow the link once you see the rate and complete the purchase with them. This would be a similar process for any of our other direct insurance partners.

What car insurance companies will I get to see quotes from?

MyChoice partners with over 30 top insurance companies in Canada, offering a mix of direct insurers and traditional insurance companies, giving you the ultimate amount of choice and convenience.

Methodology

Sample Size

We analyzed over 50,000 auto insurance quotes across Canada.

Profiles

Average rates were calculated using a standard profile and incident profiles. All personal details pertaining to the quotes and policies have been kept confidential.

Standard Profile

Single driver, one car, currently insured, and a pristine driving record. Our base profile is a 35-year-old individual (both male and female) with a spotless driving record.

Incident Profiles

We examined how rates change by evaluating profiles with a clean record (standard), one at-fault accident, a single speeding ticket, license suspension for alcohol related offenses and insurance cancellation due to non-payment.

Vehicle Details

These individuals own a 2018 Honda Civic, commute five days a week, and cover a distance of 15,000 kilometres annually.

Vehicle Models

Costs were also analyzed for different vehicles: Mazda CX-5, Ford Escape, Toyota Corolla, Honda Accord, Chevrolet Equinox, and the base 2018 Honda Civic.

Age and Homeownership

Profiles from age 18-65 (standard: 35 years) were considered. Depending on age, individuals might rent or own their homes. Age-related regulations may vary across provinces.

Team

MyChoice data science, MyChoice research.

Sources

1. Mychoice.ca Internal Data, Rate Cost By Province, Canada, Car Insurance Quotes Collected, 2025.

2. Mychoice.ca Internal Data, Rate Cost By Age, Canada, Car Insurance Quotes Collected, 2025.

3. Mychoice.ca Internal Data, Rate Cost By Vehicle Model, Ontario, Car Insurance Quotes Collected, 2025.

4. Canada.ca. Open Government. Active Driver Licences by Class and Age Group. Data Collected in 2025.

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