Auto insurance is mandatory across Canada, but the cost varies widely depending on the province, driving history, vehicle type, and provider. Finding the cheapest auto insurance in Canada doesn’t mean sacrificing coverage; instead, it often means comparing providers that consistently offer affordable premiums, fair eligibility rules, and discounts that align with your personal profile.
In 2025, Canadians are paying some of the highest auto insurance rates in the world, especially in provinces like Ontario and British Columbia. For many drivers, rising costs are a financial burden. That’s why identifying the companies offering competitive pricing has become an essential step before renewing or purchasing a policy.
The good news is that several national and regional insurers have made efforts to keep their premiums accessible while still maintaining reliable customer service. These companies often provide digital tools, bundle discounts, and flexible payment plans that reduce the overall cost of coverage.
How to Find Low-Cost Coverage: A Step-by-Step Guide
1. Start by comparing multiple quotes online. Use licensed insurance comparison platforms available in Canada to see side-by-side options from major providers.
2. Enter accurate information. Always input your driving record, vehicle details, and location correctly, since any discrepancies can change your rate later.
3. Look for available discounts. Bundling home and auto, using telematics (safe-driving apps), and maintaining a clean driving record often reduce costs.
4. Review coverage types carefully. Basic liability is mandatory, but consider optional protections (like collision or comprehensive) based on your needs and budget.
5. Choose a deductible that balances cost and risk. A higher deductible lowers premiums but means paying more out of pocket after an accident.
6. Re-evaluate annually. Rates change frequently in Canada, so shop around each year before automatically renewing.
Costs, Trade-offs, and Eligibility
Auto insurance costs in Canada range from about $700 annually in Québec to over $2,000 annually in Ontario (Insurance Bureau of Canada, 2025). Eligibility for cheaper policies often depends on:
- Province of residence: Each province has its own insurance system. For example, ICBC in British Columbia is public, while Ontario is private.
- Driving history: Clean records usually get the best discounts, while drivers with tickets or claims may pay much more.
- Vehicle type and usage: Safer, newer vehicles with anti-theft devices often qualify for reduced premiums.
- Credit score (where permitted): In some provinces, insurers may factor in financial stability when calculating risk.
The trade-off with lower-cost options is sometimes fewer in-person services or a heavier reliance on digital platforms, but many Canadians find that acceptable for the savings.
5 Affordable Auto Insurance Providers Canadians Use in 2025
The Co-operators
Founded in Ontario, The Co-operators is a co-operative insurer that frequently appears in affordability rankings. Customers often choose it for bundle discounts and strong local service. It has a reputation for balancing cost with reliability, particularly in Ontario and the Prairies.
Aviva Canada
As one of the country’s largest insurers, Aviva offers wide availability and multiple discount opportunities. For drivers with safe records and higher deductibles, Aviva’s quotes are often among the most competitive. Its large market share also means more flexible policy options for diverse needs.
Intact Insurance
Intact is widely known for offering competitive pricing, especially in Ontario and Alberta. Drivers who combine policies (auto and home) can save significantly. In many cases, Intact provides among the lowest premiums for drivers with long, clean histories.
Desjardins General Insurance
Based in Québec, Desjardins is one of the leading insurers in that province and also serves other parts of Canada. It’s often recognized for fair pricing and dependable service. For Québec drivers in particular, Desjardins is frequently cited as one of the most affordable providers.
Sonnet Insurance
Sonnet is a 100% digital insurer, offering quick online quotes and straightforward policies. Its streamlined model can mean lower overhead and competitive premiums, especially for customers comfortable managing policies online. Many younger drivers and tech-savvy Canadians find Sonnet appealing.
What to Look for When Comparing Auto Insurance
The cheapest option isn’t always the best. Canadians comparing car insurance quotes should consider:
- Coverage inclusions: Liability is mandatory, but look at collision, comprehensive, and optional add-ons.
- Discount eligibility: Safe driving, multiple vehicles, and bundled insurance can lower costs.
- Customer service reputation: Low premiums should still come with responsive claims support.
- Digital vs. traditional service: Decide whether you prefer in-person support or a digital-first experience.
Recent Data and Expert Insights
According to the Insurance Bureau of Canada (IBC, 2025), the average annual premium is $1,831 in Ontario, $1,668 in Alberta, $1,342 in Nova Scotia, and just $736 in Québec. These figures highlight how location significantly impacts affordability.
Laura Osman, a spokesperson for IBC, notes: “Insurance rates in Canada remain under pressure, but consumer choice and comparison shopping can result in significant savings year to year” (IBC 2025).
Digital insurers like Sonnet have also reported steady growth in market share, showing that Canadians are increasingly comfortable managing policies online when it means lower costs.
FAQ
1. What is the cheapest province for car insurance in Canada?
Québec typically has the lowest average rates, around $700 per year.
2. Which company offers the cheapest auto insurance in Ontario?
It varies by driver profile, but The Co-operators, Intact, and Aviva often appear among the lowest.
3. Can new drivers get affordable insurance in Canada?
New drivers usually pay higher rates, but programs like telematics (tracking driving habits) may help reduce costs.
4. Does credit score affect car insurance in Canada?
In some provinces, insurers may use credit information, while others prohibit it. Always check local rules.
5. Are digital insurers like Sonnet reliable?
Yes. Sonnet is regulated like traditional insurers and is backed by major parent companies, making it a trusted option.
6. How often should I shop for new quotes?
Experts recommend comparing quotes annually before renewing your policy.
A reliable, affordable auto insurance policy can make a big difference in your monthly budget. By comparing multiple providers, taking advantage of discounts, and reassessing each year, Canadians can find meaningful savings without sacrificing peace of mind.
Disclaimer: This article is for informational purposes only and is not medical, financial, or legal advice.
References
- Insurance Bureau of Canada (IBC). Auto Insurance Facts and Figures 2025. https://www.ibc.ca
- Ratehub. Best Car Insurance Companies in Canada (2025). https://www.ratehub.ca
- ThinkInsure. Car Insurance Quotes Canada 2025. https://www.thinkinsure.ca
- Desjardins General Insurance. Company Overview. https://www.desjardins.com
- Sonnet Insurance. About Sonnet. https://www.sonnet.ca
