How Does Car Insurance Work in Canada?
Car insurance is mandatory throughout Canada, although each province sets its own minimum required coverage.
Mandatory Coverages:
A standard Canadian car insurance quote always contains the mandatory coverages identified below, subject to the noted exceptions.
| Coverage Type | Coverage Details | Provincial Differences |
|---|---|---|
| Third-Party Liability | Responds when your driving injures another person or damages their property, and pays legal costs if a lawsuit follows. | Mandatory nationwide. Minimum limits vary by jurisdiction; most provinces require $200,000; Nova Scotia requires $500,000. Québec requires $50,000 Civil Liability (bodily injury is under the jurisdiction of SAAQ). |
| Accident Benefits | After an accident, medical costs, income replacement, and other benefits are provided to you and other injured people, regardless of fault. | Coverage is required in all other provinces, including Ontario, Alberta, New Brunswick, Nova Scotia, and Newfoundland. In Québec, Saskatchewan, and Manitoba, however, this is covered by the provincial public insurer. |
| Uninsured Automobile | Provides protection for injury or vehicle damage when an uninsured or unidentified driver hits you. | This type of coverage is mandatory in a majority of provinces. These include Ontario, Alberta, New Brunswick, Newfoundland, and Nova Scotia. It is included in the public auto insurance plans in BC, Manitoba, Saskatchewan, and Québec. |
| Direct Compensation: Property Damage | Pays for damage to your vehicle after an accident with another insured Canadian driver when you are not at fault. | Coverage is mandatory in Ontario, Alberta, New Brunswick, Newfoundland, Nova Scotia and PEI, but not in provinces that have government insurance (BC, Manitoba, Saskatchewan and Québec). In Ontario, you can opt out beginning in January 2024. |
Highly Recommended Coverages:
You can remove any of the following optional coverages from the quote. We nevertheless strongly recommend retaining them so the policy provides adequate protection.
| Coverage Type | Coverage Details | Provincial Differences |
|---|---|---|
| Collision | When you are found at fault for striking another car or object, damage to your own vehicle is covered. | Optional nationwide. |
| Comprehensive | Responds to vehicle damage caused by a non-collision event, including theft, vandalism, fire, or weather. | Optional nationwide. |
| OPCF/SEF 20 Loss of Use | Covers a rental vehicle or other transportation while your car is unavailable following an at-fault accident or comprehensive claim. | Optional nationwide. |
| OPCF/SEF 27: Rental Vehicle | Coverage under this endorsement/policy extension will apply to a car that is rented or borrowed and is damaged when driven by you. | Optional nationwide. |
| OPCF/SEF/QEF 44R: Family Protection | This coverage protects you and your family against a loss caused by a driver who does not have adequate coverage, including coverage from a hit-and-run, uninsured, or underinsured driver. | Optional nationwide. |
| OPCF/SEF 39: Accident Forgiveness | With accident forgiveness, if you’re involved in your first at-fault accident and remain with your insurer, your insurer will not increase your premium as a result. | This coverage is optional nationwide. Available in Ontario, Alberta and Atlantic provinces. |
| OPCF/SEF 43: Waiver of Depreciation | This option means that if a new car is written off, then we would pay you the original purchase price rather than the depreciated amount. | • Available in Ontario, Alberta and the Atlantic provinces. Optional everywhere. |
Other Common Car Insurance Coverage Options in Canada
The province where you live ultimately determines which car insurance options are available. Across Canada, however, the choices generally fall into three familiar groups: mandatory coverage, recommended add-ons, and optional add-ons.
Average Car Insurance Rates in Canada by Province
The following table presents a comparison of average car insurance rates across Canadian provinces.
| Province | Average Annual Car Insurance Premium | % Diff From National Average |
|---|---|---|
| British Columbia | $1,726 | 20.3% |
| Alberta | $1,772 | 23.5% |
| Saskatchewan | $1,128 | −21.4% |
| Manitoba | $1,178 | −17.9% |
| Ontario | $1,874 | 30.6% |
| 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 vary widely in Canada by age as well because of differences in risk and experience.
Drivers in higher-cost age groups can still save hundreds per year by comparing quotes through MyChoice. Depending on the age bracket, average savings run from $225 to over $800.
| Age | Average 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 |
Who Provides Car Insurance Quotes in Canada
The table presents several popular Canadian car insurance providers and the provinces in which they operate.
Most Popular Car Insurance Providers in Canada
The following table shows which of the popular Canadian car insurance providers are available in each province.
The table below doesn’t include some of the providers. Please refer to Ontario’s list of top companies for more information and more providers.
| Car Insurance Provider | Provinces Available* |
|---|---|
| Aviva | All exc. AB, BC, MB, SK |
| Allstate | AB – NB – NS – ON – QC |
| Belairdirect | AB – BC – NB – NL – NS ON – PEI – QC |
| Intact | Nationwide |
| TD Insurance | All exc. BC, MB, SK |
| RBC Insurance | All exc. BC, MB, SK |
| Travelers | AB – NB – NL – NS – ON PEI – Territories – NU YK |
| Wawanesa | AB, NB, NL, NS, ON, PEI, QC |
| Co-operators | AB – NB – NL – NS – ON PEI – NT – YK |
| Desjardins Insurance | QC |
Why You Should Compare Car Insurance Quotes with MyChoice
With many insurers competing for your business, choosing a car insurance policy can be confusing. Comparing companies helps uncover the best deal and lets you assess the available coverage options, ideally in one place.
MyChoice simplifies the search by placing choices from Canada’s top insurers together for comparison. You can review the available options in one place and feel confident that the selected deal is tailored to you.
How to Get Cheap Car Insurance in Canada
Information You Need to Get a Car Insurance Quote
Generating an accurate car insurance quote requires lots of information. Have at hand information about the driver, car, insurance history and current insurance policy. See tips for buying car insurance for the first time. See tips for changing car insurance providers.
What Factors Affect Your Car Insurance Rate
Car insurance prices reflect many factors, and insurers do not give every factor the same weight. Your neighbour will often receive another rate because the vehicle and personal insurance history may differ; location alone does not determine the quote.
Some of the more influential elements in a car insurance price are outlined below:
Number of Licensed Drivers by Age in Canada
The chart offers a current, mid-2025 view of how Canada’s licensed drivers are distributed among age groups.
Roughly 27 million drivers are still active. The largest concentrations occur in the 60–64 and 65–69 brackets, illustrating an aging Canadian population that remains highly mobile. The substantial shares represented by younger groups, including 25–34 and 30–39, also show the continuing handoff between newer and more experienced motorists.
Commonly Asked Questions About Auto Insurance
How much does car insurance cost in Canada?
Average car insurance costs vary across Canada because each province has its own insurance system, accident track records, and rules. See table above to compare the average car insurance costs by province, driver’s age, and car brand.
What kind of auto insurance policies are out there?
Canadian auto insurance falls into three principal areas: mandatory coverage, recommended coverage, and optional add-ons. Each category is examined in detail above.
What are the penalties for driving without insurance?
Typical consequences can include a fine ranging from $5,000 – $50,000, a suspended licence, or an impounded vehicle. The effects may also last well beyond the immediate penalty: a conviction can lead insurers to classify you as a high-risk driver, resulting in higher-than-average rates for the foreseeable future.
Is car insurance required by law in Canada?
Yes. Anyone who holds a driver's licence and operates a car must carry some form of car insurance, regardless of the province of residence.
Is it cheaper to pay monthly or annually for car insurance?
Generally, annual payment is cheaper than monthly instalments. Some insurers provide those who pay annually with a discount of up to around 7%.
Will a driver’s ed course make my car insurance cheaper?
Showing a record of safe driving should help you obtain cheaper car insurance. That can be difficult for a new driver, but enrolling in a government-certified driving school course is one way to address the lack of experience.
Does car insurance differ by province?
Although provincial systems share certain features, they are not identical: minimum coverage amounts differ, and government-owned corporations provide car insurance in provinces including British Columbia and Manitoba.
Can I be an Uber driver with regular car insurance?
Lyft and Uber may provide commercial coverage while rideshare service is underway, but carrying your own car insurance is still mandatory. Every Canadian driver is legally required to have third-party liability coverage, which is typically part of a standard policy.
What happens when I receive an auto insurance quote I like on MyChoice?
We understand that you're looking for the cheapest quote. When you've completed the form, you will be presented with a list of quotes.
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.
