Explaining the Difference Between Automobile Insurance Rates in Canada


Drivers can save a decent amount of money by comparing automobile insurance rates in Canada. Finding out what factors affect your insurance and how to shop for coverage is the first step to significant savings.

Research insurance rates over the internet or on the phone. Use search engines to find comparison websites or check out the yellow pages for companies that serve your area. One phone call and less than 20 minutes of your time to answer questions and make a few choices can put you on the path to saving money. Get a firm quotation to really get a handle on how much.

Auto insurance rates change based on you, your car and your location. In a few provinces mandatory insurance is issued through the government, such as in Manitoba. Across the country it is the law that all drivers have adequate coverage for property and liability damage. That coverage must be valid at all times. Insurance companies also sell policies that cover drivers well beyond that minimum amount.

If an Alberta driver who is 49 years old drives a 2004 Toyota Sienna, they can expect to pay as low as $1400 and as high as $1700 for insurance. If that driver moved to Ontario and drove a 1999 vehicle, they would save anywhere from $200 to $300 per year.

Your past driving record and the use of your vehicle will also have an effect on the automobile insurance rates in Canada. Using a car or truck for business will result in more distance driven and a higher insurance policy. Also a bad driving record will drive the cost of insurance up and may cause a provider to cancel your policy or refuse further coverage.

Any time you are refused coverage it will have to be reported on subsequent insurance applications. Also any accidents in the last ten years where you were deemed at fault and any claims will need to be disclosed on future applications. Remember to be up front with your record to obtain the most accurate quotation and the best coverage.

Gender is another factor which may increase your auto insurance rates. Whether male or female, if you have taken a driver training course and can provide proof of it, your rates should decrease.

It would seem that Ontario has the highest automobile insurance rates in Canada. An Ontario driver who’s 23 years old and owns a 2006 Chrysler should pay around $1600 annually, while a Quebec driver who’s 19 years old and owns a 2005 Mazda will pay less than $1100 through the same national insurance company. Although other aspects may have affected that comparison, where you live is an important factor in how high your insurance is.

Setting a higher deductible will decrease your annual policy. Also be sure that you are not carrying any excessive or unnecessary coverage. Go over your policy in detail and choose the highest deductible that you are comfortable with. Remember that the annual savings stay in your pocket every year and the higher cost of the deductible is only relevant when a claim is made.

When shopping wisely for automobile insurance rates in Canada, be honest about your record and understand the coverage offered. That will help you to choose the best policy and obtain the lowest rate.

This reliable car insurance in Ontario dealership offers competitive rates along with exceptional customer service, thus providing the best valued car insurance. You are guaranteed a safe driving experience by entrusting us with your auto insurance in Ontario needs.

Auto Insurance FAQ:

Question: How much for basic auto insurance in Canada?
I am driving my car from BC to Waterloo, ON. back for school. I was wondering, in this case, which province’s auto insurance I am supposed to get. Can I drive around in Ontario for more than four months with ICBC insurance? Or Do I have to get the new Ontario insurance? In BC I am still N, which is equivalent of G2, and I currently drove for closely three years. Another thing was, how much would the basic insurance cost a month? Is there any big difference between BC and Ontario?

Answer: The best answer you’re going to get to all your questions is from your own insurance people. Call them and ask them. Anyone other than them who gives you a price is guessing.

Question: Can I buy US auto insurance to cover my Canada vehicle?
I just moved to Canada this month. I have had Geico auto insurance in US more than 4 years. However, there is no Geico insurance service in Canada. Can I continue to use my US Geico insurance and register my car in Canada?

Answer: Not if you live in Canada. Plus, some provinces have their own auto insurance that you must buy.

Question: Which american auto insurance company covers you if you travel to canada?
I frequently travel to canada on weekends. Which auto insurance company covers you for that travel?

Answer: Unlike Mexico which requires you to buy their insurance, Canada will recognize your current policy as a tourist in their country. If you MOVE to Canada, they give you a grace period which varies by company. Now, call your agent & get a Nonresident Interprovince Canadian ID card. This will be in English & French & will be required if you are ever in an accident or get a ticket.

Question: What is the point in adding an occasional driver on my auto insurance (Ontario, Canada)?
Is there a legal obligation? Is there any impact on the auto rate if that person is young or have been involved in accidents? If the occasional driver gets involved in an accident, will it also be on my record? But what is the difference if the occasional driver gets into an accident if she’s on the policy or not?

Answer: Is there a law that says you have to? No, there isn’t. However every insurer requires that you disclose all licensed drivers in the household as well as regular operators of the vehicle. If you fail to do so, and that person has an accident, then the insurer has grounds to deny any claim filed. This means you (as owner of the vehicle) and/or the driver of the vehicle could be financially responsible for everyone’s damages/injuries, which means you could be in debt for the rest of your life. There is an additional premium charged for an occasional driver who is under 25, however an occasional driver over 25 can change your rating as well depending on how long they’ve been licensed, however the additional premium won’t be as much as having an occasional driver under 25.

To answer your second question: regardless of whether or not the person driving is a listed driver on your policy, if that person has an accident which is their fault (even partially), then it will affect your rating. The difference between having them listed and not having them listed is by not having them listed you’re running the risk of not having the claim paid.

Question: When is Geico going to offer auto insurance in Canada so I can switch?

Answer: Why would they? There are several hundred insurance companies in Canada already. Have you any idea how much it would cost them to set up and be licenced in Canada, in each province they wanted to deal in?

Question: Cheap Auto Insurance Ontario Canada!?
I am a 20 year old Female driver. I have never been insured before and looking to buy my first car. Are there any sites where I can get quotes? I am from Hamilton Ontario Canada. I have been in two at fault accidents in the past 4 years.

Answer: With two at-fault accidents you only qualify for three companies: Perth Insurance, Jevco Insurance and the Facility Association. The Facility Association is the insurer of last resort in Ontario, and they’ll insure someone when no one else will. None of these companies will quote you online, you have to call an insurance broker in Hamilton to get a quote with these companies (yes this means actually having to talk to a real human being). I work with all three companies and I quickly ran some numbers through my rating software. Unfortunately I don’t know: the exact date of the accidents; how many years you’ve been licensed; the vehicle you have or where your exact location in Hamilton is; however if one of the accidents occurred within the last year and you had a 1990 Chevrolet Cavalier, Jevco turns out to be the cheapest of $6,100 for minimum coverages. This is not an exact figure, but it will give you an idea. Contact a local insurance broker for more exact figures.

Question: Teen having major trouble getting auto insurance in Toronto, Canada?
It was about 3 years ago today that I started to save up for the car of my dreams. I saved up, with MY money earned from working, not given to me by my parents, and I’m not some rich kid either. I call the insurance company and they quote me for $550.00 WTF?! What are my options? This is disgusting to be honest.

Answer: Your options are: to pay for the insurance; shop around (you might be able to find an insurer who will insure for a few bucks per month less); not drive. You should have factored in ALL the costs associated with vehicle ownership before buying a vehicle, not just the obvious one. Insurance for 18 year olds, especially males, is expensive. If you’re paying cash for the vehicle you can always decide not to take collision and comprehensive coverage, however depending on the vehicle this will not make a huge difference (maybe $50-$75/month less).

Question: What do Americans pay for auto insurance?
From 19 years old; with a bad driving record; to 40 year old with good driving records. What kind of numbers are out there? In Canada, I pay $100 a month for my older truck. I have a good driving record. That can go up to $200 for a new car and an average driving record.

Answer: When I was 18 I bought a z28 Camaro and I had one speeding ticket. My insurance, on my own policy, was $225/mo and that was more than anyone I’ve run across since then. Now that I’m 30, my wife and I insure two cars for only $100/mo.

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