How long does it take to insure a car Ontario?

*As of June 25, 2021, our customers (with insurance policies underwritten by either Security National Insurance Company, Primmum Insurance Company, TD General Insurance Company and TD Home And Auto Insurance Company) who insure their car with us and who meet the claims-free savings criteria applicable to their province or region with regard to the number of years spent claims-free, save an average of: 30%, in Ontario 20%, in Quebec 20%, in Alberta, Yukon, Nunavut and North West Territories 30%, in the Atlantic Provinces when compared to the premium they would have paid if, within the previous 12 months, they made a claim that would have negatively affected their premium. These claims vary by province and product. Savings are not guaranteed and vary based on the customer's profile, province/region and product. ** Your auto insurance premium may increase for reasons unrelated to the collision. ‡Conditions apply. Subject to eligibility rules. Note: You may not always be given the option to buy online. If this happens, we encourage you to call and speak to one of our licensed advisors, or let us call you!

1This coverage is available June 10, 2021. In the event of a total loss, we will pay the lowest of the following amounts:

2In order to be eligible for the Buy Online Discount for home or car insurance, you must meet eligibility requirements to buy home or car insurance online and complete your purchase of this insurance online. Note: You may not always be given the option to buy online. This may occur, for example, if information provided requires additional verification or if your purchase must be completed with an advisor based on your specific insurance needs. If you are unable to buy online, we encourage you to call and speak to one of our licensed advisors or let us call you

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The cost of car insurance in Ontario is amongst the highest in the country. There are many factors insurers use to determine how much the rates will be for your auto policy. Two of the main ones are your age and gender.

In this blog, we’ll give you a detailed breakdown of the average car insurance costs in Ontario by age and gender. We'll also go over the key factors that influence how much you will pay for your auto insurance.

The average cost of car insurance is $1,634 per year in the province. Most pay in the range of $1,300 to $2,000 annually. They are higher or lower depending on your location, the type of vehicle you drive, driving history, and many other considerations.

How much is car insurance per month?

How much you pay per month in Ontario will vary based on your annual premium. You can estimate your auto insurance per month by dividing your total amount by 12 months. For example, at the provincial average of $1,634 annually, your monthly payment will be $137.

Note that payment schedules can vary by insurer. Most offer 12 monthly payment periods but some providers don't. You can generally save more by paying the entire yearly amount upfront. Be sure to ask your advisor about the payment schedule prior to purchasing your policy.

Average car insurance cost by age, year and month

Age is an important indicator considered by insurance companies. Premiums tend to go down as you get older. Mature drivers experience more savings. Men and women in the 18-25 age range pay more.

Insurance for young drivers is more expensive because they are more likely to get into an accident. This means there are higher claims costs associated with younger drivers. The same is true for seniors. Once you reach a certain age, you could see rates start increasing again. This happens because elderly drivers are statistically more likely to be involved in accidents.

Here is a look at yearly and monthly auto insurance costs by age :

*The prices are based on males and females with clean driving records in Ontario in 2021.

Does car insurance cost more for women or men?

Gender is another indicator used by insurers to determine how much you will pay. Men are a greater threat to road safety than women. They tend to drive more, are more likely to be involved in accidents, and partake in riskier driving behaviours. Males pay more than females.

To illustrate this point we sourced data from our quoter and compared males and females in a series of age categories. We then compared them to the overall average for all drivers.

For example, we compared more than 1,800 quotes of male and female drivers between the ages of 40-49 from Ontario with clean driving records in 2020. In another scenario, we compared more than 1,500 quotes of males and females between the ages of 30-35 with clean driving records. In all scenarios, male drivers pay more than female drivers for insurance.

Average car insurance costs by gender

What is the cost car insurance for new drivers in Ontario

Insurance for first-time drivers tends to be the highest. New drivers, especially if you are under 25 years of age, have some of the highest insurance premiums. People with a G2 licence will pay more than a person with a G licence. As you progress through the licensing system, the amount will decrease. Keep in mind that G1 drivers cannot be listed as the primary driver on a policy. But a policy with a G1 driver listed will result in a rate increase.

You can get a policy with a G2. But this can be expensive because you are not fully licensed. Statistically, you are a greater threat to getting into a crash or filing a claim. To save money, you can get listed on a parents or guardians plan as an occasional driver. It will increase the premium, but not as much as if you took out a separate policy.

Overall, expect the cost of insurance for a new driver to be considerably more than the provincial average.

Prices can vary significantly by age, driving record and insurance history. Check out our car insurance calculator to learn more about determining costs.

How much is does it cost to insure a teenage driver?

Teenage drivers are known for paying a lot for insurance. Based on data from our quoter, the average for a teenager (age 16-19) is $8,335 per year.

For example, it can be $9,000 per year for a 17-year-old. For an 18-year-old taking out a policy, they can expect it to be approximately $688 per month or $8,250 annually.

Compare this to the typical amount of a 40-year-old, and you’ll see a significant difference. They pay approximately $1,977 per year.

Why so much of a difference? Teens are a greater threat to road safety. They have minimal experience behind the wheel. To save money it’s recommended for younger people to get added as a secondary driver on a parent or guardian’s plan. It is much more affordable.

Here is a breakdown of average car insurance costs for teens per month and year :

The quotes are based on these assumptions – males or females in Ontario, new policy, for the year 2020.

Regardless of your age or gender where you live impacts the price of your auto insurance

Location plays a huge role on average auto insurance prices in Ontario. Depending on where you live the amount could vary by hundreds of dollars annually. For example, the average premium for car insurance in Toronto is just over $2,000 annually.

In Brampton it is about $2,400 annually, which is the highest in the province.

The lowest area is the northeastern area of the province. Cities such as Kingston and Belleville average about $1,000 per year.

Here are the average costs for some cities :

• Ottawa is about $1,150 annually.
• London is about $1,400 annually.
• Mississauga is over $2,000 annually.
• Hamilton is approximately $1,600 annually.

Some other factors that affect prices for auto insurance

Many things have a direct impact on the price of auto insurance. Some you have control over (what you drive, driving history) and others you don’t (insurance industry factors).

Industry

Here are some of the things that you have no control over :

• Fraud : Insurance fraud has been spiking costs for drivers and insurers adding up to over $1.3 billion a year.
• Claims expenses : Vehicles are becoming more expensive to repair which increases claims amounts.
• Approved rate increases : Insurance providers can apply to have their rates increased each year based on overall expenses.

Individual

There are certain things you can control to help keep your payments down :

• Location : Where you live in the province will impact the price. You'll pay more in a urban city compared to a rural area.
• Coverage type and limits : The amount of coverage you have on you policy will affect the price.
• Deductible amount : Lowering your insurance deductible will lower the amount.
• Driving history : The more driving experience you have driving and being a good driver will help you save.
• Vehicle : The type of vehicle you drive can lower your monthly insurance. Check out our article on finding a cheap car to insure.
• How much you drive : The more you drive the higher your monthly premiums will be.
• Claims history : Having an at-fault accident on your record means higher insurance.

There are also individual considerations you cannot control, such as your age and gender. For more information please go to our page and see what factors affect Ontario car insurance quotes.

Even though the Ontario provincial government has made promises to get insurance under control, the yearly average costs are still on the rise. They have not significantly decreased at all since 2014 and have increased in 11 consecutive quarters since Q4 2017.

However, people are starting to get a break to some degree. You need to take important steps to reduce payments – such as comparing quotes annually to get the cheapest car insurance and working with an insurance professional.

In terms of age, you can expect to start seeing lower costs once you turn 25. This is particularly the case if you started driving when you were 16. Insurers also tend to drop premiums again once you turn 40 and 50. That is if you have a clean driving record.

A final word on average car insurance costs

Your age and gender are key indicators of your costs, even though you have no control over them. Other things like your location, coverage choice, and vehicle type also matter. In general, young drivers have higher premiums. As you age, you’ll see your premiums go down over time. That is if you keep a squeaky-clean record and capitalize on savings opportunities.