Ontario drivers know one thing for sure, car insurance here isn’t cheap. While it’s tempting to go straight for the lowest premium you see, this can leave you underprotected when you need coverage the most. The goal is to find the right mix of price, protection, and service. Here’s a quick guide to help you compare car insurance.
Start With the Mandatory Coverage
Every Ontario auto policy must include third-party liability, accident benefits, direct compensation–property damage (DCPD), and uninsured automobile coverage. The legal minimum for liability is $200,000, but most drivers choose $1–2 million to avoid being underinsured in the event of a major accident or injury claim. Since these basics are required by law, the real differences between insurers come down to pricing, claims handling, and customer service, important points to review when you compare car insurance in Ontario.
Look at Optional Coverage and Endorsements
This is where policies start to differ. Collision coverage helps pay for repairs if you’re at fault in an accident, while comprehensive coverage protects your car from fire, theft and vandalism.
You can also look at add-ons like loss of use, which covers a rental car while yours is being repaired after a covered claim, and depreciation waivers, which let you get full replacement value on a new car for a set time, usually two to four years. Some insurers also offer accident forgiveness, which can prevent your first at-fault accident from raising your rate, though you may need to be claim-free for a certain period to qualify.
Decide on Your Deductible
Your deductible, the amount you pay before insurance covers the rest, has a direct impact on your premium. Higher deductibles mean lower monthly payments but more out-of-pocket costs after a claim. This choice often depends on local risks. A very high deductible might make sense in a low-risk area, but if you live somewhere prone to hail, theft, or wildlife collisions, it could cost you more in the long run.
Ask About Payment Options and Fees
Most insurers charge extra if you pay monthly instead of annually, or if you use certain payment methods. If you can afford to pay annually, you might save a small percentage and avoid service fees altogether. Inquire about the exact cost difference before choosing a payment schedule, especially if you want to compare car insurance on more than just the base rate.
Check Rate Stability
Premiums can change at renewal, and not always in your favour. Ask how often the insurer adjusts rates and whether they offer a “rate lock” or multi-year guaranteed premium. Keep in mind that rate locks often freeze your base rate, but your premium could still change if your rating factors, such as address, vehicle, or driving record, change. This can protect you from sudden increases, especially in Ontario, where market conditions and theft trends can push rates up quickly. This is a good question to raise when you compare car insurance in Ontario across multiple companies.
Hunt for Discounts
Discounts can make a noticeable difference, but not all insurers offer the same ones or calculate them the same way. Many Ontario providers offer discounts for bundling home and auto insurance . That said, bundling isn’t always the cheapest. Sometimes switching providers after a few years results in a bigger discount than staying put. Keep these details in mind when you compare car insurance quotes side by side.
Factor in Your Driving Habits
If you’ve reduced your commuting, say by working from home, make sure your insurer knows. Many Ontarians overpay simply because their policy still lists old driving patterns. Consider telematics or usage-based programs if you consider yourself a good driver. They can reward safe, low-mileage driving. Some programs in Ontario only offer a discount for signing up and safe driving, while others may also apply surcharges for behaviours like late-night driving or hard braking. These matter when you compare insurance for car coverage options.
Understand Vehicle Theft Risk
Ontario, especially the GTA, has some of the highest vehicle theft rates in Canada. If your make and model are on a high-theft list, you’ll likely pay more. Before buying a car, check theft stats from sources like Équité Association. Also, ask if your insurer offers a discount for installing a GPS tracker or an approved anti-theft system. Just make sure you confirm which devices qualify before spending the money. This is another factor to think about when comparing car insurance providers.
Check the Insurer’s Track Record
The cheapest policy isn’t worth much if the insurer is slow or difficult when you file a claim. Ask about average claim settlement times and whether you can choose your own repair shop. Look up complaint records and see if they offer 24/7 claims support. Fast, hassle-free claims service can save you more stress than a few dollars in monthly savings, and it’s something to note when you compare car insurance policies.
Business or Commercial Use
If you occasionally drive for Uber, deliver food, or do courier work, you might not be covered without a commercial policy. Knowing what isn’t covered is just as important as knowing what is. Reviewing these details carefully will help you compare car insurance quotes more accurately.
Keller & Associates Insurance Brokers helps you compare car insurance that matches your needs and driving habits. We also offer life, business, and home insurance, so you can keep your coverage in one place.