Which Province Has the Most Expensive Car Insurance in Canada?

As a licensed insurance broker with over 10 years of experience working with Canada’s top insurers, I’ve reviewed thousands of car insurance policies. One question I get asked often is: “Which province has the most expensive car insurance in Canada?” 

The answer isn’t always as simple as quoting a single number. Insurance rates depend on many variables like location, driving history, claim statistics, insurance regulations, and even weather patterns.

But after years of working closely with clients from coast to coast, I’ve seen consistent patterns. Some provinces have rates that are significantly higher than others. 

In this article, I’ll break it all down for you with facts, figures, and insights from real experiences. That way, you will know exactly where your province stands and what you can do about it.

Why Car Insurance Rates Vary Across Canadian Provinces

To understand why one province might have more expensive car insurance than another, you have to consider the following:

• Insurance system (private vs. public): Provinces like British Columbia and Manitoba use government-run auto insurance systems, while others like Ontario and Alberta rely on private insurers.
• Claims frequency and fraud: Provinces with high accident rates or insurance fraud often pass that cost to drivers.
• Population density: Cities with more traffic (like Toronto or Vancouver) tend to have higher premiums due to increased accident risk.
• Repair and healthcare costs: In places where repairs and medical care cost more, insurance companies charge more to offset their risk.

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Average Car Insurance Rates by Province in Canada (2025)

Here’s a breakdown of the average annual car insurance premiums in Canada by province. This table reflects data compiled from public insurance boards, brokerage networks, and recent market analysis.

Key insight: Ontario consistently ranks as the province with the most expensive car insurance in Canada.

Why Is Car Insurance in Ontario So Expensive?

Ontario’s sky-high premiums are largely due to:

1. Insurance fraud: Ontario is known for a high rate of staged accidents and fraudulent injury claims, especially in the Greater Toronto Area (GTA).
2. Litigious environment: Personal injury claims often result in lengthy legal battles, which drive up costs for insurers.
3. Private market volatility: Unlike public insurance models, Ontario’s private insurers adjust rates often, and consumers face frequent premium hikes.
4. High repair costs: Vehicle repairs in Ontario are among the highest in Canada due to expensive parts, labour, and advanced vehicle tech.

Cities With the Highest Car Insurance Rates in Canada

Even within provinces, rates vary significantly based on city or postal code. Here’s a look at some of the cities that contribute to Ontario’s average:

• Brampton, ON: ~$2,700/year (highest in Canada)
• Mississauga, ON: ~$2,300/year
• Toronto, ON: ~$2,200/year
• Vaughan, ON: ~$2,100/year

These cities are all part of the GTA, which is notorious for traffic congestion and accident frequency.

Compare that with:

• Montreal, QC: ~$900/year
• Halifax, NS: ~$1,000/year
• Winnipeg, MB: ~$1,150/year

The difference is staggering.

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How I Helped a Client Save Over $1,000/Year

A few years ago, I met a client named David from Brampton. He was paying $2,850 annually for full coverage on a used 2018 Toyota Camry. As someone with no accidents or tickets, he felt he was being punished just for his postal code.

After reviewing his policy, I noticed a few things:

• He was using his vehicle primarily for commuting, but his mileage was under 10,000 km/year.
• He had no bundling discounts, even though he owned a condo and had tenant insurance elsewhere.
• His deductible was set too low, which drove up the cost unnecessarily.

I recommended the following:

• Switch to a usage-based telematics policy.
• Bundle auto and home insurance with one provider.
• Increase the deductible from $500 to $1,000.
• Switch to a higher-rated insurer with better pricing in the GTA.

The result? His premium dropped from $2,850 to $1,765.

That’s a $1,085 annual savings, without compromising on coverage.

Comparing Private vs. Public Auto Insurance in Canada

One major factor in the difference in premiums is the insurance model used in each province.

Public Insurance (e.g., BC, Manitoba, Saskatchewan):

• Rates are regulated and consistent.
• Claims are handled by government-run entities.
• Less competition, but also less volatility.

Private Insurance (e.g., Ontario, Alberta):

• Greater variety in coverage and rates.
• More competitive, but subject to market changes.
• Discounts and programs like usage-based insurance are more widely available.

Hybrid System (e.g., Quebec):

• The government handles basic liability.
• Private insurers handle optional and collision coverage.
• Lowest average premiums in Canada.

Public systems tend to reduce premiums overall but may limit flexibility. Private systems offer choice, but that can come with a cost, especially in urban areas.

What Drives Up Car Insurance Rates the Most in Canada?

If you’re wondering why your rate is high, consider these key factors that impact premiums:

1. Your location: As we’ve discussed, postal code plays a huge role. Do you live in a high-risk area? Expect to pay more.
2. Driving record: Accidents, tickets, or license suspensions? Insurers take those seriously.
3. Vehicle type: Expensive cars or ones frequently stolen (like certain Hondas and Toyotas) lead to higher premiums.
4. Insurance history: Gaps in coverage, late payments, or previous cancellations can hurt your profile.
5. Claim frequency: If you file multiple claims, even small ones, expect your premium to rise.

How to Lower Your Car Insurance Premium in Canada, Even in an Expensive Province

Even if you’re stuck in a high-rate province like Ontario, you still have options. Here’s what I recommend to my clients:

• Use telematics: Usage-based apps reward safe driving and can cut premiums by 10–30%.
• Increase your deductible: If you’re financially able to pay more out of pocket during a claim, your annual premium drops.
• Bundle policies: Combine home, condo, or tenant insurance with the same provider.
• Compare quotes yearly: Insurance markets change. The best rate last year may not be the best today.
• Consider winter tires: In many provinces, insurers offer a discount for having them during winter months.

Even small steps can lead to big savings over time.

Is There Hope for Cheaper Car Insurance Rates?

Yes. While Ontario may top the list now, insurance regulators are working to bring reforms. There’s growing demand for transparent pricing, streamlined claims processes, and fraud reduction strategies. British Columbia’s ICBC recently implemented a no-fault system to curb litigation and reduce costs, and Ontario may follow suit in the coming years.

In the meantime, stay informed. Work with a broker who knows the landscape well and can advocate on your behalf.

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Conclusion: The Province with the Most Expensive Car Insurance Rate in Canada

If you’re searching for “the province that has the most expensive car insurance rate in Canada,” Ontario is the clear leader in terms of high premiums. Cities like Brampton, Mississauga, and Toronto drive the average up, and factors like fraud, claim rates, and private market complexity only make things worse.

Still, armed with the right strategies and the help of an experienced insurance broker, you can lower your rates significantly. You can achieve this even in the most expensive provinces.

And remember: cheaper doesn’t always mean better. The goal is to find affordable coverage that still protects you, your car, and your peace of mind.

If you’re ready to explore your options or want a second opinion on your current policy, I’m here to help. Send an email to [email protected].