Ontario Vehicle Insurance: What Drivers Need to Know
Auto Insurance
Published by BrokerUnion Insurance Editorial Team | RIBO-Licensed Ontario Insurance Broker | October 27, 2026
Reviewed by Muqit Aziz, Principal Broker
Vehicle insurance is mandatory in Ontario: every car, truck, motorcycle and other motor vehicle driven on public roads must be insured, with at least $200,000 in third-party liability. Beyond that legal minimum, Ontario vehicle insurance is personal. Your premium depends on your driving record, experience, vehicle, postal code, how much you drive, the coverage and deductibles you choose, and which insurer you buy from.
This guide explains what Ontario requires, what each coverage does, why two drivers can receive very different quotes, how to save without cutting protection you need, and how to compare quotes properly.
What is vehicle insurance in Ontario?
Vehicle insurance, usually called auto or car insurance, is a contract between you and a licensed insurer that pays for specific losses involving your vehicle. In Ontario it does three main jobs:
- pays others if you're legally responsible for injuring them or damaging their property
- provides accident benefits for injuries, no matter who caused the collision
- optionally pays to repair or replace your own vehicle
Ontario's system is privately run, but heavily regulated. Every auto insurer must be licensed by the Financial Services Regulatory Authority of Ontario (FSRA) and needs FSRA's approval to change the rates it uses. Only a licensed broker, agent or insurance company can sell auto insurance in Ontario.
Is vehicle insurance mandatory in Ontario?
Yes. Under the Compulsory Automobile Insurance Act, every vehicle on Ontario roads must be insured. Ontario requires at least $200,000 in third-party liability on every vehicle, along with the other coverages every standard Ontario policy must include, covered below.
What is the minimum auto insurance coverage in Ontario?
The minimum is a standard Ontario auto policy with $200,000 in third-party liability, plus the mandatory accident benefits, uninsured automobile coverage and direct compensation property damage (DCPD), which you can now choose to remove.
That $200,000 is a legal floor, not a recommendation. A serious collision can produce claims far above it, and you'd be personally responsible for the difference. Many Ontario drivers choose $1 million or $2 million in liability. A licensed broker can help you decide what fits your situation.
What happens if you drive without insurance in Ontario?
Driving uninsured is a serious provincial offence. A first conviction under the Compulsory Automobile Insurance Act carries a fine of $5,000 to $25,000, rising to $10,000 to $50,000 for later convictions, plus a victim fine surcharge. Your licence can be suspended for up to a year and the vehicle impounded for up to three months. A conviction can also make future insurance much harder and more expensive to find.
How much does vehicle insurance cost in Ontario?
There's no single price for Ontario vehicle insurance. For context, FSRA reports that the average Ontario auto premium was $2,164 as of October 2025. That's a province-wide figure across all drivers and vehicles, not what you should expect to pay. A new driver in the GTA with a newer SUV can pay far more; an experienced driver with a clean record and an older car in a smaller community may pay less.
FSRA also notes that approved rate changes are averages: an insurer's approved increase or decrease doesn't necessarily affect every customer in the same way. Your renewal can move differently from the headline number.
Why is car insurance so expensive in Ontario?
Ontario policies include significant accident benefits, and claim costs for injuries, vehicle repairs and theft have risen in recent years. Dense urban areas such as the GTA see more collisions and thefts, which feeds into premiums there. Individual factors, below, then decide where your price lands.
What determines your Ontario vehicle insurance rate?
FSRA explains that your premium is based on your vehicle, driving record, location, age and experience, distance driven, coverage and deductible, and the insurer's own rating system.
| Factor | Potential impact |
|---|---|
| Driving record | Tickets and at-fault collisions can raise premiums for several years |
| Age | Younger drivers generally present higher risk to insurers |
| Driving experience | Years licensed and years accident-free can lower rates |
| Location | Your postal code places you in a rating territory |
| Vehicle | Make, model, repair cost, safety features and theft rates affect price |
| Annual kilometres | More driving can mean greater exposure |
| Coverage | More protection, such as higher limits or optional coverages, increases premium |
| Deductible | A higher deductible may reduce your premium |
| Claims history | Previous claims can affect pricing and eligibility |
| Insurance company | Each insurer uses its own approved rating system |
Does my driving record affect my insurance rate?
Yes, significantly. Convictions and at-fault collisions signal higher expected claim costs. Keeping a clean record is one of the most reliable ways to bring premiums down over time.
Does age affect Ontario car insurance?
Yes. Younger and newly licensed drivers usually pay more. Experience matters as well: an older adult who just got licensed may still be rated as a new driver.
Does my postal code affect my car insurance?
Yes. Insurers group areas into rating territories based on claims patterns, such as collision frequency and theft. Moving from one part of Ontario to another can change your premium even if nothing else changes.
Does the type of vehicle affect insurance rates?
Yes. Vehicles that are expensive to repair, frequently stolen or high-performance usually cost more to insure. Get a quote before you buy a new or used vehicle.
Does annual mileage affect auto insurance?
It can. Drivers who commute long distances usually face more exposure than those who drive occasionally. If your driving drops, for example after moving closer to work, tell your insurer.
Why can two Ontario drivers get different insurance quotes?
Because each insurer has its own approved rating system, underwriting rules and appetite for different kinds of risk. One company may weigh age heavily; another may focus on claims history or vehicle type. One insurer may see your profile as ideal, another as average.
That's why FSRA encourages consumers to shop around, noting that the company with the best rates last year may not be the best value now. In BrokerUnion's experience, the same driver can receive noticeably different premiums from different insurers, even with identical coverage.
What does Ontario vehicle insurance cover?
An Ontario auto policy is made up of several coverages. Some are required; others are optional.
Third-party liability
Third-party liability pays others if you're legally responsible for injuring or killing someone, or damaging their property, including legal defence costs. Ontario's minimum is $200,000; many drivers buy $1 million or $2 million.
Statutory accident benefits
Accident benefits pay for injuries from an auto collision, regardless of who was at fault. Since July 1, 2026, only medical, rehabilitation and attendant care benefits remain mandatory on new and renewing policies. Income replacement, caregiver, non-earner, death and funeral and other benefits are now optional, and you choose whether to add them. If you depend on employment income, think carefully before going without income replacement.
Uninsured automobile coverage
This covers you and your passengers if you're injured or your vehicle is damaged by an uninsured driver, or in a hit-and-run in some cases. It's part of every standard Ontario policy.
What is direct compensation property damage (DCPD)?
DCPD pays to repair your vehicle and replace its contents when another driver is at fault for a collision in Ontario. Your own insurer pays you directly instead of you claiming against the other driver's insurer. Since January 2024, Ontario drivers can elect not to have DCPD. Removing it lowers the premium but means you'd have no coverage for vehicle damage from collisions that aren't your fault, unless you have collision coverage.
Collision and comprehensive coverage
These optional coverages pay for damage to your own vehicle:
- Collision or upset covers damage when your vehicle hits another vehicle or object, or rolls over, typically when you're at fault.
- Comprehensive covers non-collision losses such as theft, fire, vandalism, hail, flooding and falling objects.
- All perils combines collision and comprehensive.
- Specified perils covers only named risks, such as fire and theft, usually at a lower cost than comprehensive.
If your vehicle is financed or leased, your lender will usually require collision and comprehensive.
Mandatory vs optional vehicle insurance coverage
| Coverage | Mandatory in Ontario? | What it does |
|---|---|---|
| Third-party liability ($200,000 minimum) | Yes | Pays others for injury or property damage you're responsible for |
| Medical, rehabilitation and attendant care benefits | Yes | Pays for injury treatment and care after a collision |
| Uninsured automobile | Yes | Protects you from uninsured or unidentified drivers |
| DCPD | Included by default; you may opt out | Repairs your vehicle when another driver is at fault |
| Income replacement and other accident benefits | No (optional since July 1, 2026) | Replaces income and pays other benefits after injury |
| Higher liability limits | No | Protects you above the $200,000 minimum |
| Collision or upset | No (often required by lenders) | Repairs your vehicle after a collision |
| Comprehensive or specified perils | No (often required by lenders) | Covers theft, fire, vandalism and weather |
| Endorsements (such as rental car, depreciation waiver, accident forgiveness) | No | Add or extend specific protections |
BrokerUnion's overview of the Ontario auto insurance changes in 2026 explains the accident benefit reform in more detail.
How to save money on vehicle insurance in Ontario
Compare available options and choose coverage that fits your needs and budget. These steps can help:
- Shop around. Insurers price the same driver differently, so compare several.
- Compare equivalent coverage. A cheaper quote with lower limits or missing coverage isn't a real saving.
- Keep a clean driving record. Time without tickets or at-fault claims lowers premiums.
- Ask about eligible discounts. Availability varies by insurer.
- Bundle home and auto. FSRA notes multi-policy discounts can range from 5 to 15 percent with some insurers.
- Insure multiple vehicles together. FSRA cites multi-vehicle discounts of 5 to 15 percent where offered.
- Install winter tires. All Ontario insurers must offer a winter tire discount.
- Ask about telematics or usage-based insurance. Programs that track driving habits may lower premiums for eligible safe drivers.
- Review deductibles. A higher deductible can lower your premium, but choose one you could afford after a claim.
- Update your annual kilometres if your driving drops, such as after a job change.
- Take approved driver training if you're a new driver; most insurers offer a discount.
A lower premium can come from raising a deductible or removing optional coverage. That can make sense, but only after comparing it with what you'd lose.
Do winter tires reduce car insurance in Ontario?
Yes, where you qualify. Ontario requires insurers to offer a winter tire discount; the amount and conditions vary by insurer.
Can telematics lower my insurance premium?
It can for eligible drivers whose data shows safe driving. Each program has its own rules, and some may also consider risky habits.
How do deductibles affect car insurance premiums?
A higher deductible usually means a lower premium, because you pay more of each claim yourself. Collision and comprehensive often have separate deductibles.
How to compare Ontario vehicle insurance quotes
BrokerUnion's guide to how to compare auto insurance quotes explains this in depth. The core rule: every quote must use the same information.
- Same driver details: licence history, tickets and claims for every driver
- Same vehicle details: VIN, use and annual kilometres
- Same liability limit, such as $1 million or $2 million
- Same deductibles on collision and comprehensive
- Same optional accident benefits and DCPD choice
- Same endorsements, such as rental car coverage or a depreciation waiver
Then compare price, payment options and the insurer's service.
Before comparing Ontario vehicle insurance quotes, have these ready
- Driver's licence information for every driver
- Vehicle identification number (VIN)
- Vehicle make, model and year
- Driving history, including tickets
- Claims history
- Current insurance information and renewal date
- Annual kilometres
- How the vehicle is used (personal, commuting, business)
- Postal code where the vehicle is kept
- Desired coverage and liability limit
- Deductible preference
Switching insurers and handling renewals
How often should I compare car insurance quotes?
At least at every renewal, and after any major change, such as moving, buying a vehicle, adding a driver or a change in your commute.
Can I switch insurance companies before renewal?
Yes, but your current insurer may apply a short-rate cancellation charge. Ask first, and make sure the new policy starts the same day the old one ends so there's no gap.
What happens if my insurance company increases my rate?
Ask why. It could be an approved rate change, a ticket or claim, or a change in your profile. Then compare quotes from other insurers on equivalent coverage before you renew.
Why work with a BrokerUnion insurance broker?
Comparison websites show you prices. A licensed broker also helps you understand what you're buying. As an independent insurance broker in Ontario, BrokerUnion offers:
- Independence. BrokerUnion is RIBO-licensed and not owned by any insurer, so we act for you.
- Multiple insurance markets. We compare available options from the carriers we work with, based on your profile, vehicle and eligibility.
- Personalized advice. A licensed broker explains your coverage, limits and optional accident benefits in plain language.
- Like-for-like comparisons. We line up quotes on the same coverage so price differences are real.
- A dedicated broker, who supports you through policy changes, renewals and claims.
- Options for different drivers, including new drivers, multi-vehicle households, high-risk drivers and telematics programs.
We can't guarantee the cheapest insurance, and we don't recommend choosing a policy on price alone. What we can do is compare available insurance options based on your vehicle, driving history and coverage needs.
Frequently asked questions
What types of auto insurance coverage are available in Ontario?
Mandatory coverage includes third-party liability, core accident benefits, uninsured automobile coverage and DCPD (which you can opt out of). Optional coverage includes higher liability limits, optional accident benefits, collision, comprehensive, all perils, specified perils and endorsements.
What is third-party liability insurance?
It pays others if you're legally responsible for injuring them or damaging their property, including legal costs. Ontario requires at least $200,000.
What is collision coverage?
Optional coverage that pays to repair or replace your vehicle after a collision with another vehicle or object, or a rollover, subject to a deductible.
What is comprehensive auto insurance?
Optional coverage for non-collision damage, such as theft, fire, vandalism, hail and flooding, subject to a deductible.
How are auto insurance rates calculated in Ontario?
Each insurer applies its own FSRA-approved rating system to factors such as your driving record, experience, vehicle, location, kilometres, coverage, deductible and claims history.
Can bundling home and auto insurance save money?
Often, yes. FSRA notes multi-policy discounts can range from 5 to 15 percent with insurers that offer them, but sometimes separate policies cost less overall, so compare both.
Can an insurance broker help me find better auto insurance rates?
A broker can compare the insurers it works with on equal coverage, which often helps drivers find a more competitive rate. No broker can guarantee the lowest price.
What insurance do new drivers need in Ontario?
The same mandatory coverage as any driver. New drivers are often added to a parent's policy as occasional drivers or need their own policy if they own a vehicle. Driver training may earn a discount.
What is high-risk auto insurance in Ontario?
Coverage for drivers whose record, claims, lapses or other factors put them outside standard insurers' guidelines. It's usually more expensive and may come from specialty insurers or, as a last resort, the Facility Association.
How do I compare Ontario auto insurance quotes?
Use identical driver, vehicle, kilometre and coverage details on every quote, then compare price, payment options and service.
Get an Ontario vehicle insurance quote
Looking for vehicle insurance in Ontario? Compare your options with BrokerUnion and get a personalized quote from a licensed Ontario insurance broker.
- Get an auto insurance quote: start with BrokerUnion's Ontario auto insurance page
- Speak with an Ontario insurance broker: (905) 492-7070
- Visit an office: find your nearest BrokerUnion location
Ontario vehicle insurance is required for every driver, but the right policy, and the right price, depends on your profile. Comparing equivalent coverage is the surest way to find it.
About BrokerUnion
BrokerUnion Insurance Inc. is an independent, RIBO-licensed insurance brokerage headquartered in Pickering, Ontario. This guide was written by the BrokerUnion Insurance Editorial Team and reviewed by Muqit Aziz, Principal Broker, using FSRA and Government of Ontario sources.
Insurance rates, coverage availability and eligibility vary by insurer and individual circumstances. This article is for general educational purposes and is not an insurance quote or advice. Policy wording governs in all cases.