Compare auto insurance quotes for Toronto

Want to know about the ins and outs of doing this well? Read on to learn how to compare car insurance quotes for Toronto and get the best deal.

What affects auto insurance costs in Toronto?

Insurance companies in Canada make rate decisions based on a driver’s financial risk, and they account for a number of factors when they choose how much to charge for insurance.

Insurers set premiums based on the following details: personal characteristics, where you live, your vehicle type and how much you drive. Let’s take a closer look.

How age, gender and other personal details affect the price of auto insurance

There are things you can do to help lower your car insurance, and some things are out of your control. 

Age

Vehicle insurance is typically more expensive for drivers under age 25, due to their higher risk of accidents. “Young people have the highest rates of traffic death and injury per capita among all age groups and the highest death rate per kilometre driven among all drivers under 75 years of age,” notes Mothers Against Drunk Driving Canada. 

Note that new drivers in Ontario (of any age) qualify for an insurance discount if they complete a beginner driver education course approved by the Ministry of Transportation. 

Gender

Ontario auto insurers recognize three genders: male, female and gender X.

Typically, male drivers are charged more for insurance, as statistically, they are more often the driver during motor vehicle accidents, according to the most recent Ontario Road Safety Annual Report. 

Ontario added gender X as an option for driver’s licence applications in 2017. Some insurers charge the same rate for gender X drivers as they do for female drivers, while others use an average of rates for males and females, says the Canadian Institute of Actuaries.

In June 2024, the Insurance Brokers Association of Ontario reported that fewer than a third of insurance companies offer the option of selecting gender X when applying for insurance. The Financial Services Regulatory Authority of Ontario (FSRAO) has set guidance that all insurers in the province must account for gender X in their practices before Jan. 1, 2026.

Driving record

Your driving record includes how long you’ve had a licence, the amount of driver education you have, and whether you’ve had any speeding tickets, accidents or driving convictions. A good driving record means lower premiums, says the FSRAO.

Marital status

Whether or not you’re married can also affect how much you’re charged for vehicle insurance. Canadian insurers will ask about your marital status when you apply. Why? Insurers view married people as less risky drivers, in part because they may have kids in the car. In Ontario, they take this into consideration when determining your insurance premium, according to Ratehub.ca. (MoneySense and Ratehub.ca are both owned by Ratehub Inc.)

How much you drive can affect your insurance cost

Are you a daily commuter? Do you drive kids to school every day? Do you take many road trips? Your insurance rates will likely be higher, thanks to the kilometres you rack up. Low-mileage drivers—typically, those who drive less than 10,000 kilometres per year—may be offered a discount. 

How vehicle type affects insurance premiums

Claims rankings for different vehicles—which are organized by make, model, body style and model year—play a role in insurance rates, says the Insurance Bureau of Canada (IBC). Those rankings are calculated using factors like theft rates, vehicle design (some are safer or less susceptible to collision damage), repair costs and replacement value (which goes down as your car ages).

How much is auto insurance in Toronto?

Car insurance in Toronto and the Greater Toronto Area (GTA) is more expensive than in other parts of Ontario. There’s no getting around that fact.

Here’s why it’s more expensive in the city. If you live somewhere where motor vehicle accidents and auto theft are more common, your vehicle insurance premiums will likely be higher. Toronto is one of those places, especially if you live in certain neighbourhoods. The Wellesley Institute, a non-profit research organization, notes: “In Toronto, the highest premiums impact residents with postal codes based in Etobicoke, North York and Scarborough.”

The FSRAO found that in October 2024, the average annual cost of insurance for private passenger vehicles in the GTA was $2,638, about $630 higher than the average cost of $2,006 across the province.

To give you an idea of what you might pay for auto insurance in Toronto, we picked Canada’s top-selling 2024 models in three categories—pickup trucks, cars and SUVs/crossovers—according to Driver.ca. We sourced insurance quotes from Ratehub.ca, using the same driver profile for all three: female, age 35, full G licence, clean driving record, and living in downtown Toronto’s Fort York area. Here are the results:

Note that vehicles in the same category may have very different insurance premiums. For example, it costs $2,172 to insure a 2024 Mazda 3—that’s $1,032 less than it costs to insure a 2024 Honda Civic. One compelling difference between the two cars: the Civic has been on Équité Association’s list of Canada’s top 10 most stolen vehicles since 2020.

To estimate the cost of insuring different vehicles, read MoneySense’s guide to comparing auto insurance quotes.

How to get cheaper car insurance in Toronto

While car insurance is expensive in Toronto, thankfully, there are ways for Torontonians to lower their auto insurance rates.

Here are some ideas from the IBC that can help you get insurance that won’t break the bank.

1. Comparison shop. Whether you’re a new or experienced driver, it’s worth getting a few car insurance quotes. An insurance rate comparison tool can save you time and streamline this task.
2. Bundle up. Combining home and vehicle insurance can save you 5% to 10% on your premiums.
3. Consider a UBI. A usage-based insurance app or device (also known as a UBI) will track how much, where and how you drive—for instance, whether you often brake hard or accelerate quickly. Depending on the results, your premiums could go down (though they could also go up). Quebec’s Autorité des marchés financiers has tips for deciding whether or not to get a UBI.
4. Spend less time behind the wheel. Insurers offer lower rates to people who put fewer kilometres on their vehicles. So, instead of driving to work every day, walk, bike, carpool or take public transit more often.
5. Be a safe driver. Maintaining a clean driving record is one of the best ways to keep your premiums low. 
6. Pay a higher deductible. You have control over how much of a loss you pay when you have to make a claim. A higher deductible means lower premiums—but note that you’ll have to pay the equivalent of the deductible out of pocket, if an accident happens.
7. Make it harder to steal your vehicle. Talk to your insurer about its premium discounts and kinds of theft-deterrent systems that qualify. A steering wheel lock, camera or alarm might save you money.
8. Pick a vehicle that’s less likely to get stolen. Some makes and models are hot commodities in the stolen-vehicle market. As a result, many Ontario insurers are adding surcharges for these cars. If you’re getting a new car, avoid those! The IBC has created a tool, How Cars Measure Up, that arms you with the information you’ll need.

What about opting out of DCPD coverage?

Another way Toronto drivers can reduce insurance costs is by opting out of Direct Compensation Property Damage (DCPD), which covers collision damage to your vehicle when you’re not at fault. DCPD was introduced along with no-fault insurance as part of the Ontario Insurance Act in 1990, and it was a mandatory component of auto insurance until Jan. 1, 2024. 

Now, you can save money by opting out of DCPD, but consider carefully before you do. “If you opt out of DCPD, you will be responsible for paying to fix any damage to your vehicle or its contents that was caused by you and other drivers,” according to the IBC. “Before you choose this option, consider whether you are willing and can afford to pay these costs out of pocket.” The IBC answers common questions about opting out of DCPD.

Yes, you can get a good insurance rate in Toronto

There’s no doubt that vehicle insurance is more expensive in the GTA, but savvy shoppers can minimize the cost.

To find the lowest possible premiums, compare auto insurance quotes and do all you can to optimize your driving record and any other factors within your control.

More about auto insurance:

• Best credit cards for rental car insurance
• Best used cars in Canada
• Driving underwater: Is your car worth less than what you’re paying for it?
• Why car insurance premiums are rising and what to do about it
• Your complete guide to car insurance in Canada

About Alex Mlynek

Alex Mlynek is a writer and editor with more than 20 years’ experience. She's written for such magazines as Report on Business and Reader's Digest. Her first job out of journalism school was at MoneySense.

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