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With over 100 car insurance companies scattered across Canada and auto insurance rates climbing by an average of 5% annually, the importance of shopping around cannot be overstated.
Fortunately, we've done the heavy lifting for you.
We reviewed all the leading auto insurance companies to determine the most suitable personal car insurance policy tailored to your needs.
Dive into this guide for pinpointing the most dependable and economical insurance companies in Canada.
Additionally, it's packed with valuable tips to help you trim down your insurance expenses, ensuring you get the best possible coverage without breaking the bank.
Is Auto Insurance Mandatory in Canada?
Car insurance in Canada is mandatory for all drivers, which means every province including Quebec, Alberta, Nova Scotia, and Saskatchewan.
All Canadian provinces requires car owners to at least carry liability and accident benefits/bodily injury coverage. Some provinces may require you to have additional or comprehensive coverage.
Unlike car insurance, life insurance is not mandatory. There are some popular insurance companies that you may hear when researching for cheap car insurance in Canada, such as Belair Direct, TD Insurance, and Desjardins.
These car insurance companies may be popular, however, these companies may not always be the best choice for you.
What Factors Determine Car Insurance Premiums?
Car insurance companies uses various factors to set your insurance premium rate. These include:
The current age and value of your car
Driving habits
An insurance company also considers various factors related to your driving habits when determining your car insurance rates. For instance, the purpose and frequency of your car usage play a significant role.
Drivers who primarily use their vehicles for personal purposes typically receive lower rates compared to those who extensively use their cars for business purposes, such as commuting across the province on a daily basis.
Driving Situations
Furthermore, driving during peak hours can escalate insurance expenses due to the increased likelihood of accidents in congested traffic conditions. Your annual mileage plays a significant role in determining your insurance rate.
The more kilometers you drive each year, the greater your insurance premium tends to be. This correlation arises because spending more time on the road heightens the probability of accidents occurring, impacting the risk assessment conducted by insurance providers.
Driving history
Your driving history is thoroughly assessed by car insurance providers to gauge your risk level.
Instances such as past convictions for driving under the influence or accumulating multiple driving tickets and offenses can result in increased premiums as insurers anticipate future driving behaviours based on your past record.
Therefore, maintaining a clean driving history is essential for keeping your insurance rates affordable.
Age
Drivers under the age of 25 tend to receive higher premiums because insurance carriers view them as high-risk. Once you turn 25, your premium rates can start to decline.
Gender
Statistically speaking, men present more of a risk for car insurance than women.
Men are more likely to receive DUIs and engage in dangerous driving behaviours, like speeding. As a result, men pay on average 5% more for car insurance in Canada compared to females.
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Location
Where you live can have a large impact on the amount you pay for car insurance premiums
For example, the average premium for car insurance in British Columbia is $1,680 per year whereas the average premium for car insurance in Quebec is $735 per year. Although your postal code has an impact on your insurance prices, it can be a bit of a lottery.
If you reside in a location with a higher crime and vandalism rate than the national average, your auto insurance premiums will cost more. The same is true if you routinely drive on a dangerous road.
Even though this has nothing to do with your driving, it may increase your chances of being involved in a car accident or theft.
Coverage level
A car insurance policy is required for all drivers in Canada. You must carry, at minimum, liability and accident benefits/bodily injury coverage.
Of course, you can buy additional coverage like uninsured motorist coverage. However, keep in mind that the more coverage you get, the greater the annual price.
The amount of auto insurance deductible you select will also affect your car insurance premiums.
A deductible is the amount of money you pay out of pocket in the case of a claim before your policy covers the balance. Your rates will be less expensive if you have a larger deductible.
What Are the Best Auto Insurance Companies in Canada?
CAA
Rating: 4.7
The Canadian Automobile Association (CAA) stands as a notable not-for-profit organization with a large membership base nationwide. Comprising numerous clubs spanning from Prince Edward Island and Newfoundland to British Columbia, CAA ensures widespread coverage across the country.
Offering flexibility and choice, CAA provides customizable car insurance plans tailored to individual needs at competitive rates.
Discounts, Coverage, and Protections
With CAA, policyholders have the freedom to select their preferred levels of coverage or deductible and can even specify additional features, such as rental car insurance, ensuring that their insurance plan aligns perfectly with their unique requirements and preferences.
The insurer offers a wide array of discounts to help you cut down the cost of coverage, including a bundle discount, multi-vehicle discount, and winter tire discount.
Getting a CAA membership will reduce your premiums by up to 20% and allow you to enjoy several car insurance benefits for free.
These include free roadside assistance, towing, membership discounts, and access to its rewards program.
CAA is an excellent option for car insurance.
Co-operators Insurance
Rating: 4.5
The Co-operators is a top car insurance company in Canada. The insurer performs flawlessly in most crucial departments and has impressive customer service. Thanks to its strong financial health, drivers can count on it to cover their claim expenses without any delays.
With The Co-operators, drivers can rest assured knowing that their insurance needs are met with a range of options designed to provide peace of mind and financial security in any situation.
The Co-operators excel in offering personal car insurance policies that strike a balance between affordability and comprehensive coverage.
Coverage and Protections
Their policies encompass all mandatory and popular types of coverages, ensuring that drivers have the necessary protection on the road.
These include uninsured motorist coverage, and coverage for third-party liability, accident benefits, collision or upset, direct compensation property damage (DCPD), all perils, specified perils, and comprehensive.
In addition to these, the insurer offers a slew of add-ons for extra protection, such as loss of use coverage, accident forgiveness, limited waiver of depreciation, family protection endorsement, transportation replacement and additional equipment coverage.
Discounts
Co-operators offer several discount programs to help you save money on car insurance. These include a driver-training discount, multi-policy discount, multi-vehicle discount, winter tire discount, and telematics discount.
All in all, excellent services for customers, robust financial health, and affordable rates make Co-operators a strong choice to be your selected car insurance company.
Aviva Canada Insurance
Rating: 4.4
Financially strong and available throughout Canada, Aviva is a great insurance company, and another excellent option for car insurance.
Aviva has reasonably affordable rates and offers some unique features, including specialized coverage for Uber and Lyft drivers in Ontario.
However the insurance company offers fewer discounts than some other providers and does not provide online quotes.
Coverage and Customizations
Aviva provides a comprehensive range of standard coverage options, ensuring drivers are adequately protected on the road.
These include direct-compensation property damage coverage (DCPD), accident benefits, third-party liability coverage, accident coverage, and uninsured motorist coverage, offering a robust safety net against various risks.
Additionally, Aviva offers a variety of optional add-ons that allow policyholders to tailor their coverage to suit their specific requirements.
These optional features include collision protection, transportation replacement, conviction protection, accident forgiveness, disappearing deductible, and comprehensive coverage, providing additional layers of protection and peace of mind.
With flexible options from Aviva, drivers can customize their policies to ensure they have the right level of coverage for their individual needs and preferences.
Discounts to reduce the cost of vehicle protection coverage:
- Multiple-vehicle (Insure two or more automobiles with Aviva and the provider will reduce your premiums)
- Retiree (Aviva makes car insurance more affordable for retirees)
- Clean driving (Drivers with a clean driving record earn a handsome discount)
- Bundle (Combining Aviva auto and home insurance will allow you to save on both)
Intact Insurance
Rating: 4
Intact stands as a prominent car insurance company in Canada, renowned for its reputation as a highly respected insurance provider. Offering reasonably priced car insurance products accessible across Canada, Intact combines affordability with widespread availability.
Notably, their commitment to customer satisfaction is underscored by a 30-minute claims handling guarantee. Intact pledges to address your claim request within this timeframe or refund the annual premium, showcasing their dedication to prompt and efficient service.
However, it is important to note that Intact provides fewer discounts compared to some of its competitors, and its customer service may not rank as the absolute best in the industry. Despite these considerations, Intact remains a trusted choice for drivers seeking reliable and accessible car insurance coverage.
Coverage and Protections
Like all the major car insurers, Intact offers several add-ons on top of standard coverage options.These include collision or upset, all perils other than collision or upset, specific perils, roadside assistance, accident forgiveness, and minor conviction protection.
With Intact, you can save up to 30% by driving safely, up to 15% by bundling auto and home insurance/property insurance, and up to 20% by driving an all-electric or a hybrid car.
Economical Mutual
Rating: 4.5
Economical Mutual holds a prominent position as a leading car insurance company in Canada, boasting a rich history dating back to 1871 and maintaining a robust financial standing. Renowned for its reliability and stability, Economical Mutual has established itself as a trusted choice for drivers across the country.
While it caters to all types of drivers, Economical Mutual has particularly garnered car insurance recognition in recent years for its specialization in providing high-risk auto insurance. Through its subsidiary, Perth Insurance company, Economical Mutual offers tailored solutions specifically designed to meet the needs of high-risk drivers.
If you find yourself in this category, Economical Mutual is likely to provide you with the best deal, ensuring both comprehensive coverage and competitive rates tailored to your unique circumstances.
Discounts and Customization
Like other big players, Economical Mutual offers a range of add-ons to help you customize the policy according to your needs. It also rewards its policyholders with a number of discounts, including a multi-vehicle, safe driver, security (you must have an anti-theft device installed in your car to be eligible), bundling, and conviction free.
On the downside, Economical Mutual does not yet have a mobile app.
Pembridge
Rating: 4.4
Pembridge stands out as the newest addition among car insurance companies in Canada featured on our list. Despite its youth, Pembridge excels in offering competitively priced auto insurance policies, making it an attractive option for budget-conscious drivers.
Moreover, Pembridge prioritizes customer satisfaction by ensuring that all policyholders receive personalized attention from its dedicated claim agents.
However, it is worth noting that obtaining an online insurance quote directly from Pembridge is not possible, as the company exclusively sells insurance through insurance brokers.
This approach underscores Pembridge's commitment to providing expert guidance and tailored solutions to its customers through the intermediary support of knowledgeable insurance professionals.
Discounts and Customization
Aside from the three mandatory coverage types — liability, accident benefits, and direct compensation property — Pembridge offers a wide range of add-ons.
These include collision, comprehensive, specified perils, all perils, loss of use, waiver of depreciation, and damage to a non-owned vehicle.
Pembridge offers seven discount programs: multi line, mature driver, multi vehicle, renewal, education, grad license, and retiree.
Best Ways to Save Money on Auto Insurance
Shop around
Even though a car insurance provider looks at similar factors to decide your premium rates, such as driving history, driving behaviour, and age; each assesses risk differently. That is why it is important to obtain quotes from multiple suppliers.
Take advantage of discounts
A car insurance provider usually offer different ways to lower the cost of car insurance, so make sure you are getting all the eligible discounts.
Some of the most common discounts include:
Choose the right deductible amount
One of the simplest ways to get a cheap car insurance premium is to choose a higher deductible. For instance, choosing a $1,500 deductible instead of a $500 deductible will bring down your car insurance cost.
Pay premiums annually
Paying your car insurance premiums annually instead of monthly can easily save you about 10% per year.
It is smart to contact many of the best car insurance companies in Canada for a quote before purchasing insurance.
Conclusion
Car insurance is an essential requirement for all drivers in Canada, ensuring financial protection and peace of mind on the road.
Among the top car insurance providers in the country are renowned names like CAA, Co-operators, Aviva, Intact, Economical Mutual, and Pembridge. These industry leaders offer a wide array of customizable coverage options designed to suit individual needs, all at competitive rates.
However, navigating the multitude of choices can be overwhelming. That is where a trusted advisor from Dundas Life can be invaluable to help you find the best car insurance.
They possess the expertise to guide you through the intricate landscape of car insurance companies in Canada, helping you make informed decisions tailored to your unique circumstances.
Do not hesitate to reach out to them for personalized assistance and comprehensive information on finding the right car insurance coverage for you.
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