You likely know that car insurance is required throughout Canada.
The Canadian government requires drivers to obtain car insurance because it guarantees that everyone can pay for expenses (personal or third-party) if they are involved in an accident. But did you know that the average car insurance cost varies from province to province?
It’s true.
In this article, we’ll be answering several commonly asked questions, such as, “how much is car insurance coverage in Canada?” and “what is the typical cost of car coverage in my province?”.
START A QUOTE
How much does car insurance cost in Canada?
On average, Canadian drivers pay between $1,300 and $1,800 for car insurance coverage each year. It’s difficult to pinpoint an exact number because there are several different types of car insurance options and several factors influence the overall price.
Some of these factors include the following:
- Location
- Make and model of vehicle
- Driving history
- Age
- Gender
Do you want to save on car insurance coverage in Canada?
Is your wallet starting to feel a little light? Has your bank account been looking a tad bit empty lately? Then you’re likely overspending on car insurance.
Thankfully, you don’t have to spend a small fortune in order to protect your vehicle — you can rely on the Surex team.
Our team of Surex insurance advisors works closely with the best car insurance companies in Canada in order to find you the best quotes in the industry.
What’s our secret? It’s less of a secret and more of a technique; our advisors leverage their working relationship with the top providers, allowing them to quote some of the cheapest rates in the country.
So, if you’re tired of overspending, don’t hesitate to reach out to one of our experienced advisors today!
Getting average car insurance Canada — what are the provincial cost differences drivers should be aware of?
As mentioned above, the average car insurance price varies from province to province. This is because each province has its own unique risk factors and variables. Additionally, some provinces have government-operated car insurance programs, which can lead to an increased price (due to a lack of competition).
The average prices (by province) are:
British Columbia — The average cost of car insurance in British Columbia is approximately $1,832 per year. Car insurance in British Columbia is provided by a government-operated group, which gives drivers fewer options to choose from.
Ontario — The average cost of car insurance in Ontario is approximately $1,528 per year. In Ontario, car insurance is provided by privately-owned companies. There is no government-provided car insurance coverage in Ontario.
Alberta — The average cost of car insurance in Alberta is roughly $1,316 per year. Car insurance in Alberta is provided by privately-owned companies, which gives drivers a number of options to choose from.
Saskatchewan — The average cost of car insurance in Saskatchewan is about $1,233 per year. Car insurance in Saskatchewan is provided by a government group, meaning that there’s very little wiggle room when it comes to pricing and options.
Newfoundland and Labrador — The average cost of car insurance in Newfoundland and Labrador is approximately $1,168 per year. Drivers in Newfoundland and Labrador purchase coverage from private car insurance companies.
Manitoba — The average cost of car insurance in Manitoba is roughly $1,140 per year. In Manitoba, car insurance is provided by a government-operated organization, meaning that there are only a handful of coverage and pricing options.
Nova Scotia — The average price of car insurance in Nova Scotia is about $891 per year. Drivers in Nova Scotia can compare car insurance quotes from several reputable private car insurance providers.
New Brunswick — The average price of car insurance in New Brunswick is approximately $876 per year. Car insurance is provided by private car insurance carriers in New Brunswick, giving drivers a plethora of options.
Prince Edward Island — The average price of car insurance in Prince Edward Island is roughly $861 per year, putting it neck-and-neck with the other Maritime provinces. In Prince Edward Island, car insurance is offered by private companies.
Quebec — The average price of car insurance in Quebec is approximately $717 per year, making it the cheapest province on the list. In Quebec, car insurance is provided by a government-operated organization, but drivers can also mix this coverage with privately offered insurance.
As you can see, there is a vast difference between the provinces at the opposite ends of the list. The average price of car coverage in Quebec is less than half of the average cost in British Columbia.
Bonus — Click the following link to learn which cities have the cheapest car insurance (on average) in Ontario.
Tips for saving on car insurance in Canada
Although you may not be able to take advantage of all the savings opportunities if you live in a province with government-provided car insurance, all drivers are encouraged to try the following tips and tricks if they want to reduce their rates:
Go to driving school
Going to driving school is a fantastic option for young drivers that want to be proactive about saving on car insurance.
Maintain a clean driving record
Having a clean driving record incentivizes your car insurance provider to reduce your rates over time. Some providers even offer “accident-free” discounts to drivers who can go a year or more without getting into an accident.
Drop the bells and whistles from your policy
If you have a modestly-valued car, you may not want to invest in extensive auto insurance coverage. Drivers who want to save can go without some specialized add-ons or additional types of coverage. Although you won’t be as protected, you will save a significant amount of cash.
Increase your deductible
Increasing your deductible is a simple way to save on monthly or yearly car insurance payments. However, if you increase your deductible, be prepared to fork over more money if an accident occurs down the line.
Buy a used vehicle
New vehicles generally cost more to insure because they have a higher replacement value. As the name implies, the replacement value is the amount of money needed to repair or replace the car. If you buy a used vehicle, the replacement value will be much lower. Because of this, used cars are ideal for young drivers who haven’t gained much on-road experience.
