If you're looking for the cheapest car insurance in Ontario, you've probably noticed that finding a straightforward answer is difficult. That's because the "cheapest" insurer is different for every driver—your rates depend on your unique combination of factors including driving history, location, vehicle, and coverage needs.
This guide explains how to find the cheapest car insurance for your specific situation and what to understand about how insurers price their policies.
Why "Cheapest" Varies by Driver
Every insurance company uses its own proprietary rating algorithms to calculate premiums. This means the insurer that offers the lowest rate for your neighbour might be one of the most expensive for you. Here's why:
Different Risk Appetites
- Some insurers specialize in certain demographics (young drivers, seniors, etc.)
- Others focus on specific geographic areas or vehicle types
- Risk factors are weighted differently by each company
Unique Rating Factors
- Your postal code can have dramatically different impacts depending on the insurer
- Your vehicle's make and model is rated differently by each company
- Your driving experience and claims history affect rates differently across insurers
Discount Structures
- Available discounts vary significantly between companies
- Some insurers offer loyalty rewards; others don't
- Bundling discounts differ—some insurers offer home and auto bundles, others don't
Direct Writers vs. Broker-Distributed Insurers
Understanding how insurance is sold can help you find the best rates:
Direct Insurance Companies
Direct insurers sell policies directly to consumers without intermediaries. You deal with the insurance company directly.
Potential Advantages:
- May have lower overhead costs without broker commissions
- Often have user-friendly online quote and purchase processes
- Convenient for those who prefer self-service
Examples in Ontario:
- Sonnet (owned by Definity)
- belairdirect (owned by Intact)
- TD Insurance
- RBC Insurance
Broker-Distributed Insurers
These insurers sell exclusively through independent brokers who can shop multiple companies for you.
Potential Advantages:
- Brokers can compare rates from multiple insurers at once
- Personal advice and advocacy during claims
- May have access to preferred or specialized markets
Examples in Ontario:
- Intact Insurance (through brokers)
- Economical Insurance
- Aviva (through brokers)
- Wawanesa
Hybrid Distribution
Some insurance groups offer both options:
- Intact owns belairdirect (direct) while also distributing Intact policies through brokers
- Definity owns Sonnet (direct) and Economical (broker)
- Aviva sells through brokers and offers Aviva Direct
How to Actually Find Your Cheapest Option
Since rates vary so much by driver, the only way to find your cheapest option is to compare quotes. Here's a practical approach:
Step 1: Gather Your Information
Before getting quotes, collect:
- Driver's licence numbers for all drivers
- Vehicle information (VIN, make, model, year)
- Your driving history (accidents, tickets in the last 6 years)
- Current policy details if you're already insured
Step 2: Get Multiple Quotes
Cast a wide net by getting quotes from:
- Several direct insurers
- At least one or two insurance brokers (who can quote multiple companies)
- Both large national insurers and regional players
Step 3: Compare Apples to Apples
Make sure you're comparing the same coverage levels:
- Same liability limits
- Same deductibles
- Same optional coverages included or excluded
Step 4: Ask About All Discounts
After getting initial quotes, ask each insurer about:
- Bundle discounts (home, tenant, or condo insurance)
- Professional or alumni association discounts
- Usage-based insurance programs
- Winter tire discount (mandatory in Ontario)
- Any other available discounts
Additional Ways to Lower Your Premium
Beyond shopping around, consider these strategies:
Adjust Your Coverage
- Higher Deductible: Increasing your deductible can significantly lower your premium—if you can afford the higher out-of-pocket cost if you make a claim.
- Review Optional Coverages: Do you need rental car coverage if you have a second vehicle? Evaluate each optional coverage.
- Consider Usage: If you drive very little, ask about low-mileage discounts or usage-based programs.
Improve Your Risk Profile
- Drive Safely: A clean driving record is the best way to lower rates over time.
- Take a Driving Course: Approved courses can qualify you for discounts.
- Install Winter Tires: Required discount in Ontario, typically 5%.
Consider Your Vehicle
- Insurance-Friendly Vehicles: Before buying a car, check insurance rates for different models.
- Anti-Theft Devices: May qualify for additional discounts.
Find Your Cheapest Rate
Ready to find out which insurer offers you the best rate? The only way to know is to get quotes based on your specific situation.
Get your free car insurance quote and compare rates from Ontario insurers to find your cheapest option.