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Jessica Jones
Jessica Jones

Toronto Auto Insurance [2021]



Car owners in Toronto (same as all cities in Ontario) are required by law to have car insurance. If you are found driving without valid auto insurance, your driver's license will be suspended and your vehicle will be towed. Fines for not carrying valid auto insurance is ranging from $5000 to $50,000.




toronto auto insurance



Toronto operates under a no-fault insurance system, which means drivers always go through their own insurance company, no matter who is at fault in an accident. Auto insurance in Toronto is a privatized industry, meaning you purchase your policy from a licensed insurance broker, insurance agent or direct writer:


Toronto auto insurance (same as Ontario auto insurance) is regulated by the Financial Services Regulatory Authority of Ontario (FSRA), formerly known as the Financial Services Commission of Ontario (FSCO), an agency of the Ministry of Finance. FSRA regulate all Ontario auto insurance rates to ensure all insurance company's proposed rates are reasonable, but also allow them to charge enough to cover their operating cost, future claims from consumers and their own profit. Auto insurance providers can apply to increase or decrease their rates every quarter, and usually request rate increases due to changes in a particular coverage. Auto insurance companies also offer rate reduction, insurance rebate and billing flexibility to provide financial relief to their customers during this COVID-19 pandemic.


The average Toronto car insurance costs $1952 per year or $163 per month, based on our current RATESDOTCA Insuramap data, which is $297 more than the Ontario provincial average of $1,555 a year. The average cost of car insurance for the Greater Toronto Area (including Toronto) is $1,842, meaning that driving costs Toronto drivers about 6% more than their suburban counterparts. When we look at prices for the rest of Ontario, Toronto is the seventh most expensive city to be a driver.


Side note, car insurance rates in Toronto are governed by the Financial Services Regulatory of Ontario (FSRA). To get the cheapest car insurance in Toronto will be same way as getting the cheapest car insurance in Ontario.


Direct writers provide insurance quotes from a single company. Insurance brokers offer quotes from a handful of companies. Quote comparison websites, like RATESDOTCA, compile insurance quotes from multiple brokers and insurance companies and aggregate user rates. By offering more options, shoppers have a better chance of finding a better policy when they use a quote comparison website.


After years of increases, the cost of auto insurance in Toronto declined when COVID-19 swept the city in early 2020. The average annual premium for Toronto in 2021 was 11.3% lower than the previous year's average.


However, for several reasons, the trend is not expected to continue into 2022. Chief among them is that Covid-19 insurance rebates offered by insurance companies as relief are expiring soon. Insurance costs will also be affected by people resuming their pre-pandemic driving habits. Rising inflation is also projected to put upward pressure on premiums.


In Brampton, a suburb just outside of Toronto, drivers face some of the highest car insurance rates due to the high volume of fraud and uninsured vehicles on the road. Despite being a relatively low-risk driver, location can still play a big factor in the price of your policy.


The vehicle you drive is one of the many factors that go into your car insurance quote. That being said, inexpensive, used cars (as well as cars with high safety ratings and low theft rates) generally come with cheaper premiums.


Rental cars in Toronto typically only come with the minimum required coverages, so you'll want to purchase additional rental car insurance to ensure you're covered for vehicle damages. Otherwise, you could be liable for paying thousands of dollars out-of-pocket to repair or replace the car after an accident.


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Auto insurance is mandatory for every vehicle on the road in Ontario, including Toronto. There are minimum standards for the car insurance coverage that drivers are required to carry, outlined in Ontario's Insurance Act. Many drivers opt for additional insurance beyond the legal minimum since this better protects against financial risks related to driving, like property damage and injuries.


Ontario has a no-fault insurance system. This means that all drivers involved in accidents file claims with their own insurance providers to cover their losses. This makes it faster and more efficient for drivers to receive compensation than a tort insurance system, where the driver deemed to be the victim in an accident must sue the at-fault driver for compensation in court.


As a Toronto driver, you must follow laws set by the province of Ontario for mandatory minimum insurance coverage throughout the province. There are different coverage levels for various types of risks related to driving, and these are all combined in your auto insurance policy.


This type of coverage provides for some of your needs if you are injured in an auto accident, like supplemental medical benefits, rehabilitation services, and attendant care. It also includes income replacement and caregiver benefits if your injuries prevent you from working or providing care to a dependent.


This type of coverage, called DCPD for short, protects you when your vehicle or items inside your vehicle are damaged. The name of this kind of coverage reflects that your insurance provider directly compensates you for the loss, even though another person may be at fault. You don't have to sue the other person in court in order to receive compensation.


Many Toronto drivers prefer to carry additional car insurance beyond what's required by Ontario law. You have the option of increasing your coverage amounts for the standard coverage types in your policy. You can also opt for additional kinds of coverage that protect you from other types of risks.


Extra third-party liability coverage: The standard coverage amount is $200,000. However, legal damages can exceed this amount if you are found to be at fault in a collision in which another person is seriously injured or killed. For more protection, insurance companies encourage drivers to purchase at least $1 million to $2 million in third-party liability coverage.


Additional accident benefits coverage: You can increase the coverage amounts for medical and attendant care expenses in the event you are injured in an auto accident. Standard coverage is $65,000 for serious injuries and $1 million for catastrophic injuries. It will raise your premium, but it's recommended to increase your benefit to as much as $1 million and $3 million respectively. You can also increase other accident benefits that help you or your family cover additional costs linked to significant injury or death from an auto accident, such as for housekeeping, dependent care, and funeral expenses.


Loss of use coverage: This optional insurance type covers a rental car while your vehicle is repaired or replaced due to a covered accident or other insured damage. The endorsement OPCF 20, Coverage for Transportation Replacement, adds loss of use coverage to your policy.


Borrowed and rented vehicles coverage: You can extend your auto insurance coverage for the vehicle you own to also cover any vehicles you rent or borrow on a short-term basis. You'll need to add OPCF 27, Liability for Damage to Non-Owned Automobile(s), to your coverage to gain this protection.


Leased vehicle coverage: If you drive a leased vehicle, you will need to add an endorsement to your auto insurance: OPCF 5, Permission to Rent or Lease Automobiles and Extending Coverage to the Specified Lessee(s). This is for long-term leases rather than short-term car rentals.


New vehicle replacement: This coverage type provides temporary protection for new vehicles, usually for the first two or so years you own a new car. This type of protection means that if your new vehicle is damaged in a covered event, your insurance provider won't factor its depreciated value into your compensation. This could more easily allow you to replace the vehicle with another new vehicle. The Removing Depreciation Deduction endorsement, OPCF 43, offers this type of protection. 041b061a72


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