How Does Car Insurance Work in Toronto?
Car insurance is mandatory in Ontario, but it’s important to understand the factors that influence your insurance premium and the types of coverage you should consider.
Below is a breakdown of what’s included in your car insurance package in Toronto when you get a quote with MyChoice, categorized by mandatory and highly recommended coverages. Together, the mandatory and recommended coverage premiums reflect the average car insurance cost in Toronto referenced above.
| Coverage Type | What’s Included | Average Annual Car Insurance Premium |
|---|---|---|
| Mandatory | – Third-Party Liability – Accident Benefits – Uninsured Automobile | $995 |
| Highly Recommended | – Direct Compensation: Property Damage – Collision – Comprehensive – OPCF 20 – OPCF 27 – OPCF 44R – OPCF 39 – OPCF 43 | $1,236 |
| Coverage Total: | $2,231 |
Mandatory Coverages:
| Coverage Type | Coverage Details | Average Annual Car Insurance Premium |
|---|---|---|
| Third-Party Liability | Protects you if you injure someone or damage property while driving, and covers legal costs if you’re sued. | $311 |
| Accident Benefits | Covers medical costs, income replacement, and more for you and others injured in an accident, regardless of fault. | $667 |
| Uninsured Automobile | Protects you if you’re hit by an uninsured or an unidentified driver and suffer injuries or vehicle damage. | $17 |
| Coverage Total: | $995 |
*The above coverages are mandatory in Toronto and will always be included in a standard car insurance quote.
Highly Recommended Coverages
| Coverage Type | Coverage Details | Average Annual Car Insurance Premium |
|---|---|---|
| Direct Compensation: Property Damage | Covers damage to your own vehicle if you’re not at fault in an accident with another insured driver in Ontario. | $548 |
| Collision | Covers your vehicle if you hit another car or object and you’re found at fault. | $334 |
| Comprehensive | Covers damage to your vehicle from non-collision events like theft, vandalism, fire, or weather. | $240 |
| OPCF 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. | $28 |
| OPCF 27: Rental Vehicle | Extends your coverage to rented or borrowed vehicles, protecting you if damage occurs while you drive them. | $29 |
| OPCF 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. | $22 |
| OPCF 39: Accident Forgiveness | Prevents your insurance premiums from increasing after your first at-fault accident, as long as you stay with the same insurer. | $33 |
| OPCF 43: Waiver of Depreciacion | Ensures you get the full purchase price back—not a depreciated value—if your new vehicle is written off. | $2 |
| Coverage Total: | $1,236 |
*Any of the above highly recommended coverages in Toronto may be removed from your quote, but we strongly recommend keeping them to have adequate protection.
Most Expensive Postal Codes in Toronto
In 2025, the average auto insurance rate in Toronto is $2,231. However, some areas in Toronto are more expensive than the rest.
Check the table below for our detailed look at the five most expensive wards for car insurance in Toronto:
| Area | Postal Code | Average Annual Car Insurance Premium |
|---|---|---|
| Humber River-Black Creek | M3N, M3M | $2,722 |
| Humber River-Black Creek/ York Centre/York South-Weston | M3L, M3J, M9N | $2,691 |
| Humber River-Black Creek | M9L | $2,625 |
| Scarborough North/Scarborough -Rouge Park/Scarborough Centre/ Scarborough-Guildwood/Scarborough Southwest | M1B, M1J, M1K | $2,541 |
| Scarborough Centre/Scarborough Southwest | M1R, M1L | $2,477 |
Least Expensive Postal Codes in Toronto
Although it’s the largest city in Canada, Toronto has some areas with lower than average car insurance premiums. As of 2025, there are three postal codes where car insurance rates are well under the city average.
Check the table below for MyChoice’s detailed look at the three most affordable wards for car insurance in Toronto:
| Area | Postal Code | Average Annual Car Insurance Premium |
|---|---|---|
| Toronto Centre/ University-Rosedale/ Spadina-Fort York | M4X, M4W, M5B, M5V,M5S, M7A, M5J, M4Y,M5H, M5G | $2,103 |
| Willowdale | M2N | $2,115 |
| Davenport/Parkdale-High Park Etobicoke-Lakeshore/ University- Rosedale/ Spadina-Fort York/ Etobicoke Centre | M6P, M8Y, M5T, M8Z, M8X, M6J, M8W, M6R, M8V, M6H, M9B, M6K, M6S | $2,121 |
How Toronto Car Insurance Rates Compare to Nearby Cities
Toronto’s car insurance rates are some of the highest in the region. You can see how they compare to some of the neighbouring cities in the table below.
| City | Average Annual Car Insurance Premium |
|---|---|
| Toronto, ON | $2,231 |
| Etobicoke, ON | $2,255 |
| Scarborough, ON | $2,881 |
| Vaughan, ON | $2,451 |
| Markham, ON | $2,163 |
| Brampton, ON | $3,341 |
Car Insurance Cost in Toronto by Age
Your Toronto car insurance cost changes depending on how old you are. Younger people typically pay higher premiums, which get lower as they age. However, premiums will rise again once they hit 65.
Here’s a detailed look at car insurance costs in Toronto categorized by age and how much you can save if you use MyChoice:
| Age | Average Annual Car Insurance Premium | Annual Savings with MyChoice |
|---|---|---|
| 18-20 | $6,403 | $1,274 |
| 21-24 | $3,302 | $657 |
| 25-34 | $2,543 | $506 |
| 35-44 | $2,231 | $444 |
| 45-54 | $1,896 | $377 |
| 55-64 | $1,762 | $351 |
| 65+ | $1,807 | $359 |
Car Insurance Cost in Toronto by Driving History
Your driving history determines car insurance rates in Toronto because it’s a good way to gauge your overall risk. If insurers think you’re a safe driver based on your driving history, you’ll get lower premiums. Conversely, having many accidents on your record means you’re a high-risk driver who may get higher premiums.
Driving violations stay on your record for years, so you may need to buy specialized high-risk driver insurance to drive legally. Here’s a quick look at how different types of traffic violations can influence your insurance rates compared to a clean driving record, based on MyChoice’s price quote data:
| Driving Violation | Average Annual Car Insurance Premium |
|---|---|
| Clean driving record | $2,231 |
| Insurance cancellation due to non-payment | $3,101 |
| Licence suspension for alcohol-related offences | $2,343 |
| One at-fault accident | $4,373 |
| Minor speeding ticket | $2,700 |
Car Insurance Cost in Toronto by Vehicle Model
Below is a breakdown of the estimated insurance costs for various car models in Toronto. This should give you an idea of what you can expect to pay for car insurance based on the vehicle model you drive.
| Car Model | Average Annual Car Insurance Premium |
|---|---|
| Honda | $2,047 |
| Tesla | $2,191 |
| Toyota | $2,349 |
| Ford | $2,042 |
| Audi | $2,774 |
| BMW | $2,597 |
| Mazda | $2,080 |
| Mercedes | $2,210 |
| Nissan | $2,260 |
| Subaru | $1,936 |
| Volkswagen | $2,052 |
The Best Car Insurance Brokerages in Toronto
Without prior experience, finding and buying car insurance in Toronto alone can be frustrating. Fortunately, you can work with car insurance brokers to make the process easier. Depending on the nature of their business, car insurance brokers either sell policies from multiple companies or exclusively offer products from one insurer. We also work with insurance brokers to help you find the best rates.
Brokers can help you find the insurance coverage you need at a price you can afford. Here are some of our car insurance brokerage partners in Toronto you can visit for your auto insurance needs:
| Brokerage | Address | Phone number |
|---|---|---|
| Billyard Insurance Group – St. Clair | 691 St Clair Ave W 2nd floor, Toronto, ON M6C 1B2 | 416-814-7577 |
| MITCH Insurance Brokers | 296 Richmond St W Suite 212, Toronto, ON M5V 1X2 | 888-401-4697 |
| Leibel Insurance Group | 401 Bay St. Suite #1600, Toronto, ON M5H 2Y4 | 416-238-8338 |
Driving in Toronto
As the largest city in the nation, Toronto has a lot of busy traffic. It pays to know essential information about driving in the city, so you can regulate risk and have the smoothest driving experience possible.
Here are some important details about roads, transportation, and tourist attractions in Toronto:
- Major highways in Toronto: 401, 404, 407, Queen Elizabeth Way, Don Valley Parkway, and Gardiner Expressway
- Public transit options: TTC (subway, bus, and streetcar), Metrolinx GO Transit (bus and trains)
- Essential toll roads: 407 ETR
- Ridesharing services: Uber and Lyft
- Road trips around the city: Niagara Falls, St. Catharines, Kawartha Lakes, Muskoka cottage country and Lake Rosseau, Bruce Peninsula National Park, Blue Mountain, Algonquin Park
- Parking space providers: City of Toronto Parking, Green P, Impark, private parking spaces
- Top tourist attractions: CN Tower, Royal Ontario Museum, Art Gallery of Ontario, Ripley’s Aquarium of Canada, Toronto Islands, Toronto Zoo, St. Lawrence Market, Casa Loma
- Busy intersections: Eglinton Ave. West and Martin Grove Road, Lawrence Ave. West and Black Creek Drive, St. Clair Ave. East and Mount Pleasant Ave., Finch Ave. and Yonge Street, Sheppard Ave. and Yonge Street
- Airports: Pearson International Airport and Billy Bishop Toronto City Airport
Main Mode of Commuting in Toronto
A vast majority of Toronto’s commuters travel by personal vehicle, making up 61% of the city’s commuters. However, Toronto is also a public transit-friendly town, with 26.2% of the city’s commuters preferring it. Here’s a closer look at the main modes of commuting in Toronto:
| Main mode of commuting | Counts | Rates |
|---|---|---|
| Total – 25% sample data | 791,470 | 100.0 |
| Car, truck or van | 482,480 | 61.0% |
| Car, truck or van – as a driver | 424,985 | 53.7% |
| Car, truck or van – as a passenger | 57,490 | 7.3% |
| Public transit | 207,680 | 26.2% |
| Walked | 60,615 | 7.7% |
| Bicycle | 15,750 | 2.0% |
| Other method | 24,945 | 3.2% |
Commuting Duration in Toronto
Toronto is a big and busy city, so it makes sense that commute times can be a little long. 31.8% of Toronto’s commuters spend 15 to 29 minutes getting to work, while 28.1% of them spend 30 to 44 minutes doing so. Here’s a detailed look at the commuting duration in Toronto.
| Commuting duration | Counts | Rates |
|---|---|---|
| Total – 25% sample data | 791,470 | 100.0 |
| Less than 15 minutes | 130,355 | 16.5% |
| 15 to 29 minutes | 251,795 | 31.8% |
| 30 to 44 minutes | 222,015 | 28.1% |
| 45 to 59 minutes | 88,655 | 11.2% |
| 60 minutes and over | 98,655 | 12.5% |
Driving Conditions in Toronto
Your accident risk and insurance premiums may rise or fall depending on current driving conditions. Here are some key facts about driving conditions in Toronto:
- Average daily commute time: 96 minutes both ways
- Average annual rainfall: 831 mm
- Average annual snowfall: 121.5 cm in winter
- Rainy days per year: 136 days
- Rainiest month in Toronto: July
- Driest month in Toronto: February
- Snow days per year: 45 days
- Snowfall months in Toronto: November through April
Traffic in Toronto
Toronto is home to millions of people driving over one million cars. It’s a very busy city, and knowing the key facts about traffic in Toronto can help you regulate risk and ensure you don’t overpay for insurance.
Here are some fast facts about traffic in Toronto:
- Population: The Greater Toronto Area (GTA) boasts a population of over 6.4 million.
- Road length: Toronto boasts over 5,600 kilometres of road spread across 9,250 streets.
- Daily commuters: Over 2.7 million people commute to Toronto every day.
- Time spent in traffic annually: Most Torontonians spend about 47 hours each year stuck in traffic.
- Average number of passengers in each vehicle: 67% of car trips in and out of Toronto are solo trips.
- Busiest highways: Toronto’s portion of Highway 401 is the busiest highway in North America. Average Annual Daily Traffic data records over 400,000 vehicles that pass through it daily.
The bottom line is that Toronto is big and extremely busy. If you want to drive in Toronto, you need to be prepared for lots of traffic and congestion. In addition to traffic, you must deal with pedestrians and cyclists, meaning you need to really focus when driving in Toronto. Even if you practice good driving habits, Toronto auto insurance is mandatory. Get a quote with MyChoice and find the best insurance deals by comparing the entire market.
The Most Common Questions About Car Insurance in Toronto
How much is car insurance in Toronto?
The average car insurance cost in Toronto is $2,231/year in 2025.
Is there first-time car buyer insurance in Toronto?
There’s no specific first-time car buyer insurance in Toronto. However, if you’re a student or underage driver, you can ask to be included in your parents’ auto insurance policy. This way, you don’t have to pay for insurance yourself.
Can Toronto police stop you?
Toronto police officers can legally stop you for any reason, whether they believe you’ve committed a crime or not. They also have the power to ask for your licence and vehicle registration. Failure to comply may lead to an arrest.
How much is car insurance in Toronto after getting a G2 driver’s licence?
G2 driver’s licence holders may need to pay 25-50% more on car insurance in Toronto. G2 drivers are charged higher rates because most insurers see them as high-risk drivers due to inexperience.
How do Toronto car insurance rates compare to other cities in Ontario?
At $2,231/year, Toronto is above the provincial average of $1,874/year and is considered one of the more expensive cities for auto insurance.
Why do Toronto car insurance rates change so often?
Toronto car insurance rates often change because of factors like inflation, the rising cost of living, and changes in vehicle risk. Generally, car insurance rates change at the start of every policy year, pending approval from the Financial Services Regulatory Authority of Ontario (FSRA).
When is the best time to compare car insurance in Toronto?
The best time to compare car insurance costs in Toronto is near the end of your policy year. If your policy renewal is approaching, search the insurance market to find a better deal than the one you have now.
Is car insurance mandatory in Toronto?
Car insurance in Toronto is mandatory, as in the rest of Canada. Drivers who are caught driving without insurance may be fined or have their licence suspended.
How can you get cheaper car insurance in Toronto?
Compare car insurance rates in Toronto with MyChoice, or visit our main car insurance page to learn other ways of getting cheap car insurance quotes.