Car Insurance Canada 2026: Rates by Province and How to Save
Updated April 2026 · 10 min read
Car Insurance Costs Across Canada
Car insurance costs vary wildly by province. Ontario drivers pay an average of CAD 1,920 per year while Quebec drivers pay just CAD 720 — nearly three times less. The difference comes down to whether the province has public or private insurance, fraud rates, and accident benefit levels. Use our budget planner to factor insurance into your monthly costs.
How to Save CAD 500+ on Car Insurance
The easiest savings: bundle home and auto with one insurer for 10 to 15 percent discount. Increase your deductible from CAD 500 to CAD 1,000 (saves 10 to 15 percent on comprehensive and collision). Install winter tires for a 5 to 10 percent discount. Most importantly, shop around every renewal — comparing 3 or more quotes typically saves CAD 200 to 500 annually.
Your driving record is the single biggest factor. One at-fault accident can increase premiums by 25 to 50 percent for 6 years. A major conviction (DUI) can triple your premium. A clean record for 6 or more years earns the best rates. Plan your full auto budget including loan payments with our car loan calculator and track your savings with our savings calculator.
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Frequently Asked Questions
Which province has the cheapest car insurance?
Quebec has the lowest rates averaging CAD 720 per year due to its public auto insurance system. British Columbia, Saskatchewan, and Manitoba have government-run systems with moderate rates. Ontario is the most expensive at CAD 1,920 per year on average.
Why is Ontario car insurance so expensive?
Ontario has the highest fraud rates, most generous accident benefits, higher population density leading to more accidents, and a fully private insurance market. These factors combine to push premiums significantly above the national average.
How can I lower my car insurance in Canada?
Bundle home and auto (10 to 15 percent discount), increase deductible to CAD 1,000, install winter tires (5 to 10 percent discount in some provinces), maintain a clean driving record, take a defensive driving course, and compare at least 3 quotes every renewal.
Do I need winter tire coverage?
Many provinces mandate winter tires (Quebec) or incentivize them through insurance discounts (Ontario, Alberta). Winter tires reduce accident risk by 38 percent and many insurers offer 5 to 10 percent premium discounts for installing them.
How does credit score affect car insurance in Canada?
Unlike the US, most Canadian provinces prohibit or limit the use of credit scores in auto insurance pricing. Ontario, Alberta, and some other provinces do not allow insurers to use credit score as a rating factor. Check your provincial regulations.