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Affordable Car & Auto Insurance For Toronto Drivers

Car Insurance Prices for 5 make/model/years of cars:

  • $1902 – 2009 Toyota Corolla CE 4DR
  • $2269 – 2013 Hyundai Elantra GL 4DR
  • $2451.50 – 2012 Honda Civic LX 4DR
  • $2572 – 2017 Dodge Grand Caravan SE
  • $2061 – 2018 Audi Q5 4DR AWD

Is Auto Insurance Mandatory in Toronto?

Yes, if you drive a vehicle in Toronto, you’re required to have basic auto coverage, known as mandatory coverage.

By law, you must have mandatory minimum third-party liability– for property damage, liability, or death due to an accident. We highly recommend that you go with a standard liability of $1 million, so you’re adequately covered.

Speak to your car insurance broker or your auto insurance company in Toronto for information about how to get the cheapest car insurance coverage.

Mandatory Car Insurance:
  • Accident Benefits Coverage: If someone is hurt in an accident, the driver will receive benefits, such as income replacement, rehabilitation, and medical. It doesn’t matter who is at-fault.
  • Third Party Liability Coverage: This coverage will cover costs for injuries and damage you cause to others, including recouping legal expenses if you’re sued.
  • Property Damage Coverage: If you’re not at-fault in an accident, you’ll covered for loss of use and damage to your vehicle, or its contents.
  • Uninsured Automobile Coverage: If you’re injured or killed by an uninsured driver, or it’s a hit-and-run, you or your family are covered.

A few conditions apply to the above mandatory requirements:

  1. The accident must occur in the province where you’re insured;
  2. There must be more than one vehicle involved in the incident;
  3. The second auto must be insured and licensed in Ontario. Did you know?

What happens if you don’t have minimum third-party liability auto coverage?

If you don’t have the mandatory minimum third-party liability coverage on your auto policy, you risk:

  • Fines of $5,000 to $50,000
  • A one-year license suspension
  • Unable to pay for medical costs of a lawyer after an accident
  • Any costs due to an at-fault accident are not covered
  • Your insurance rates will increase
  • Possibility of no coverage
  • You become a high-risk driver
  • Your vehicle being impounded

If you fail to insure your car for a certain period and then want to buy auto insurance, you risk having inadequate insurance coverage and, in some cases, no coverage at all.

At Sharp Insurance, our skilled brokers help you choose the proper limits for your mandatory auto protection, so you don’t get caught with inadequate coverage when you need it the most.

Did You Know?

The minimum liability auto policy does not protect you against water damage to your car. You require additional coverage for adequate protection against floods and other acts of god that are out of your control.

What are the Optional Car Insurance Coverages in Toronto?

optional coverage, you get to choose what you need:

Collision or Upset Coverage

This covers you if your car rolls over, you are at-fault in an accident, or you hit an object. A reported hit and run is also included in this option. It may not be savvy to buy collision if your car is older, as your deductible may be higher than the repair costs.

Comprehensive Coverage

this type of coverage includes hail, wind, and water damage to your vehicle, theft and vandalism. Driving another person’s car or having a loan on the car may require you to be covered under a broad comprehensive policy.

Emergency Road Service

If you need to tow your car after an accident, this coverage will pay for it.

Loss of Use

If you need a rental car or a bus tickets when your car is getting repaired after an accident, loss of use coverage will cover your expenses.

Rental Car

This coverage is in place of the rental car company’s insurance. Get this add-on protection to pay for physical damage to your rental car.

In addition to these options, you can increase your liability and standard benefits protection, if required; it will cost you more, but you’ll have peace of mind with additional coverage in the event of an accident.

  1. If you don’t have comprehensive coverage, you won’t be covered if your vehicle is damaged by fire, wind, or hail.
  2. If you were in an accident while under the influence of drugs or alcohol or are convicted of certain Criminal Code offences relating to a vehicle, your insurance company won’t cover you.
  3. You won’t have coverage if you use your car for transporting passengers and only have personal use insurance. You’ll need commercial vehicle insurance to ensure you’re covered.

Did You Know?

On average, Toronto drivers have 3 discounts on their car insurance policy; multi-policy, hybrid car, and good driver discounts, for example.

How Much does it Cost for Car Insurance in Toronto?

Toronto comes is the second most expensive city for insurance rates in Ontario. It will cost you $1,989, on average, or $165.75 per month, to drive a car in Toronto, compared to $2,047, or 171 per month, in Toronto. Drivers have the same number of claims, 0.59 per person, in Toronto as the provincial average.

Is Car Insurance required

What Factors Affect the Cost of Car Insurance in Toronto?

While you may look at the average cost of auto insurance rates in Toronto to get an idea of how much you’ll pay every month, the premium you get will depend on many different elements that go into calculating your rate.

Below are some factors that impact your insurance rate in Toronto:

  • Claims and insurance history
    • The number of years you’ve had insurance (consecutively)
    • Total number of claims
  • Discount options
  • Credit score
  • Insurance options: coverage level, policy limits, loss settlement, and deductibles
  • Where you live
    • Claim and crime rates in your area
  • Drivers abstract, including any traffic violations
  • Personal details, including age, sex, marital status
  • Car’s make, model and age
  • How often you drive your vehicle
  • Your daily commute and distance
  • The insurance company you choose
  • Driver status: new or experienced driver

Did You Know?

In Toronto, the yearly average cost of car insurance is slightly higher for males at $2,010 compared to $1,961 for females.

How Can I Get Cheap Auto Insurance Rates in Toronto

The key to finding the lowest auto insurance premiums in Toronto depend on many factors, including:

  • If you pay for small claims out-of-pocket
  • Your driving record
  • If you take a defensive driving course
  • Use of winter tires in the colder months
  • A safety device on your car to prevent thefts or vandalism
  • How often you drive; if you take transit or other modes of transportation
  • Use of an older car on the road
  • Choose a higher deductible
  • Pay your insurance bills on time
  • Follow the rules of the road and drive safe

Check in with your insurance company, your brokerage, or shop around at the time of renewal to get the best car insurance rates in Toronto. Our expert auto insurance brokers are here to help you – we’ll show you how!

What is No-Fault Car Insurance?

In Toronto, a no-fault insurance system means that no matter who caused the accident, all parties must go through their respective auto insurance companies in Toronto for compensation. A bonus to this system is that the claims process for the client is easier and quicker.

Did You Know?

In Toronto, the yearly average cost of car insurance is slightly higher for males at $2,010 compared to $1,961 for females.

What is the Cheapest and Most Expensive Cars to insure In Toronto?

If you don’t want to spend a lot on car insurance, the Station Wagon is a good bet; it’s the cheapest car type to insure in Toronto, on average at $1,160 per year. A large SUV and a 4-door Sedan, on the other hand, are both the most expensive vehicles to insure in the city. The average cost of insuring a large SUV is $2,062.50 per year, while it costs $2,095 to insure a 4-door Sedan.

How Much Does Car Insurance Cost for a New Driver in Toronto?

The cost for a first-time driver (1 year licensed) to insure a vehicle in Toronto is $354 per month, on average. After five years, the average car insurance rate starts to drop: on average, it will cost you $257.25 each month.

Premiums for first-time drivers are high but keep in mind that the cost also depends on factors, such as age – which impacts your rates significantly. Discounts will shave off a few hundred dollars a year, but if you want a great premium rate – be an excellent driver and be patient.

If you choose to drive an older car, there are certain makes and models that will cost you less, even in your first year on the road. For example, a Toyota Corolla 2009 has cheap car insurance coverage, all other factors being equal.

Did You Know?

Your age and the number of years you’ve been licensed determine your car insurance rates. In Toronto, the average cost of car insurance for a driver that has been licensed for one year, on average, is $4,247.5 compared to $2,061 for a driver with 20 years of experience.

How Can I Get Cheap Car Insurance Rates for New Drivers in Toronto

There are several ways to get cheap auto insurance rates for first-time drivers in Toronto, including:

  • Eligible discounts (combine policies)
  • Be a great driver- keep a clean driving record with no claims or convictions
  • Drive an older car – a lot of older makes and models will cost you less to insure
  • Shop around for different auto insurance quotes
  • Add the new driver onto an existing policy as an occasional driver
  • Take a drivers training course

Sharp Insurance’s expert auto insurance brokers can walk you through the ideal car insurance policy for you – based on your needs and lifestyle. Remember that if your auto insurance policy doesn’t cover your needs, a cheap rate won’t help you recover after an accident.

What Information Do I Need to Get an Auto Insurance Quote in Toronto?

Here is a list of items required to make a call for an auto insurance quote:

  • Personal information (names of the drivers, birth date, phone number, address)
  • Registration
  • Make, model and year of your vehicle (or VIN)
  • Purchase price of the car
  • Your driving abstract
  • Name of your insurance company, policy number, coverage, limits

You may be calling your insurance brokerage or your auto insurance company to get an auto insurance quote for your first car; or you’ve bought an older car to get cheaper rates. It pays to shop around for a great insurance rate whatever your reason, as premiums are quite high in Toronto.

What are the Different Types of Traffic Violations?

There are three categories of traffic tickets that may impact your car insurance premiums in Toronto: minor, major, and serious offenses.

Minor Offenses Include:
  • Speeding 1-49km/h over the speed limit
  • Following too close
  • Improper turn
  • Improper passing
  • Failure to share the roadway
  • Failure to signal
  • Traffic light violation
  • Wrong way on a one-way street
  • Improper lane change
Major offenses include:
  • Driving without insurance
  • Failure to report an accident
  • Improper passing of a school bus
  • Improper passing and speeding in a school zone
  • Failure to report highway property damage
Serious Offenses include:
  • Speeding 50km/h or more over the speed limit
  • Careless driving
  • Stunting
  • Racing
  • Driving under the influence of drugs or alcohol
  • Driving while license is under suspension

*[Insert graph/chart of impact on rates.]*

How Do Tickets Impact My Car Insurance Rates?

Major or severe violations will negatively impact your insurance premiums in Toronto and may lead to your license being suspended or a loss of insurance coverage.

What type of convictions can lead to a higher premium? Even minor tickets, such as speeding at or below 49 km/h and failing to signal, can lead to an increase in your insurance rates.

But, by how much? A rate increase from a traffic violation depends on the infraction and your driving record.

Did You Know?

Parking tickets don’t impact your insurance rates, but it’s necessary to pay your parking tickets in order to get your car registration renewed.

Since January 1, 2019, distracted driving rules in Ontario have become stricter as distracted driving is still the number one reason for an accident. Here are a few examples of what can happen to a first-time offender:

  • A distracted driving charge (e.g. texting, talking on phone, GPS programming) will cost you a maximum $1,000, three demerit points, a three-day license suspension.
  • A second or third offense carries a penalty of up to $3,000, a 3-day license suspension.

How to Get a Drivers Abstract Report

If you’re interested in looking at your driver’s abstract, contact the Ministry of Transportation for a copy. The report costs under $20 to get information on your driving record details, any prior or existing violations, the date you were first licensed, and any tickets you have.

What Insurance is Best for High-Risk Drivers in Toronto?

A driver will need high-risk auto insurance in Toronto if they:

  • Have a high number of claims or at-fault accidents
  • Had their license suspended
  • Drove impaired (under the influence of drugs or alcohol)
  • Miss payments repeatedly, have their auto insurance cancelled for non-payment
  • Were criminally convicted of a charge relating to driving

Our experienced insurance brokers in Toronto will help you find the best insurance company that offers ideal rates if you’re a high-risk driver. After three to five years of good behavior, you’ll be on your way to better rates and a safer ride.

Why should I Choose Sharp Insurance for my Insurance Brokerage?

Sharp Insurance is an award-winning insurance brokerage that provides excellent customer service, a leading digital platform, and competitive rates to its customers. There are many reasons to choose Sharp, including:

We’re independent. We work for you. We partner with some of the best auto insurance companies in Toronto to give you exceptional customer service and competitive rates.

We’re digital leaders. We’re leaders in digital technology for the insurance industry. We have an online portal and app that lets you manage your insurance needs when and where it’s convenient for you.

We’re experts. Our auto insurance brokers are trusted advisors that have many years of experience. We’re here to answer your questions, help with claims, and make sure you’ve got the proper coverage.

We help find you competitive rates. We work with different insurers to get you the best car insurance rates that suit your needs.

How Do you File a Car Claim in Toronto?

In the unfortunate circumstance that you get into a car accident and file a claim, there is some basic information that you should have on hand when you call your insurance company representative, agent, or auto insurance broker in Toronto.

The below information is necessary to process your car insurance claim with your insurer.
  • Your policy number and insurance company
  • License plate
  • Make, model, and year of the vehicle (the VIN works, too)
  • Driver’s license number
  • Name
  • Phone number
You should also write down and provide details of the loss, including:
  • Date of loss
  • Time of day
  • How the damage occurred
  • Details of the incident
  • Weather conditions
  • Anything else related to the incident, including whether there were any witnesses

If you’re in a collision, it’s important to collect information from the other driver, as you’ll have to provide details on the call to your insurance company.

Take photos or videos at the scene of the accident, if possible. When you call into the claims department, you’ll be assigned a claims adjuster to assess the damage, negotiate a settlement, and keep you updated of any changes to the claim.

Did You Know?

Severe weather-related claims in Canada have doubled every 5 to 10 years to over $1 billion a year.

Frequently Asked Questions About Car Insurance in Toronto

All drivers require car insurance. It’s compulsory to have car insurance in Toronto, as in all cities in Canada. There are mandatory car insurance requirements for drivers in Toronto, including third party liability and accident benefits coverage. See our section on this page on Mandatory Car Insurance in Toronto to get more information.

Technically, you can be denied insurance by the industry but there must be a reason. However, there are general rules that says an insurance company can’t use any reason to deny coverage, such as credit history or a disability. If you’re denied coverage for any reason (excessive traffic violations) you can contact the Facility Association, which handles high-risk auto insurance in Toronto.

Toronto, like all cities in Ontario, has a no-fault system. The no-fault system means that regardless of who is at-fault in an accident, all parties must go to their respective insurance company in the event of an accident.

No, if your personal items are stolen from your car you won’t be covered. To have proper coverage for belongings such as a laptop, GPS or a phone left in your car (even temporarily) it will fall under your home insurance policy. If your car is damaged and the items inside were stolen, you must file two separate insurance claims, each with a separate deductible.

No, photo radar tickets will not impact your car insurance rates in Toronto because there is no way to confirm who was driving. If you are issued a photo radar ticket, you’re still required to pay it. If you’re pulled over by a police officer for a speeding ticket, on the other hand, you’ll likely get a large increase in your car insurance rates.

Yes, speeding tickets will increase your auto insurance rates.

Yes, if you’re a driver with a ride-sharing company, such as Uber, Lyft, and ecoRides, you need specific insurance. If you use carsharing, for example Outdoorsy or Turo, you also require additional coverage. In both examples, you need to inform your insurance company that you’re renting a vehicle or transporting other people for funds. Once you have an individual carsharing or ride-sharing policy, read it over carefully. In 2016, Financial Services Company of Ontario approved a commercial auto insurance policy for ride-sharing drives and passengers. Make sure you let your insurance company know if you have a separate commercial auto policy in addition to your personal policy.

Ontario is a private insurance system for car insurance, which means there is more competition in the province’s insurance industry. What does that mean for you? It means there is more competition in the market and your insurance rate will depend on which insurance company you choose.

By law, you must have mandatory minimum third-party liability– for property damage, liability, or death due to an accident. We highly recommend that you go with a standard liability of $1 million, so you’re adequately covered.

No, men and women are on par for car insurance rates in Toronto. This is also the case for most cities in Ontario. On average, the cost of insurance for a male is $2,010 and $1,961 for women.

The frequency that you pay your rates depends on what insurance company you have a policy with. Ontario is a private system, so that gives customers the ability to shop around and find the best rates that suit their needs.

After a car accident, your insurer will decide if your vehicle is a total loss or if it’s worth repairing. Your insurance company will assess the value of your car: if your car costs more money to repair than the actual cash value of the car, it will be deemed a total loss. If the cost of repairs is less than the actual cash value, the insurance company will likely decide to repair your car.

Actual cash value, also known as market value, is the amount your insurance company will pay you for its worth at the time of the claim. Your insurance rates tend to be lower if you choose to be reimbursed by the actual cash value. Replacement cost is the value of an asset that you receive from your insurance company that matches the item at the time of loss. The difference between replacement cost and actual cash value is depreciation of an item. You can determine which method you’d like to use when you first set up your auto insurance policy.

No, if you purchase a new car and have an existing insurance policy, you can simply transfer your policy over to the new vehicle. Depending on the year, model and other factors – you may want to change your coverage options. It’s always best to contact your insurance company when you make the switch in case something needs to be changed.

Your auto insurance policy may cover you during your travel outside of Ontario. It depends on your auto insurance company. If you’re in an accident in your own vehicle while in another province, city, or country – call your insurer immediately, even if it’s a minor accident. You’ll have to follow a similar procedure to what you do in your own city, or province but you won’t have the preferred vendors to choose from.

Yes, your car needs to be registered in Ontario to get insurance in Toronto.

Currently Not Accepting Walk-Ins

Please be advised that due to unforeseen circumstances, Sharp is unable to assist walk-in clients at the moment.

We are happy to assist you with all your insurance needs over the phone at 1.877.218.2008