Car Insurance Estimator

Car Insurance in Canada: Public vs Private Systems

Canada has a split system for auto insurance. Four provinces operate public insurance programs: British Columbia (ICBC), Saskatchewan (SGI), Manitoba (MPI), and Quebec (SAAQ for bodily injury only). In these provinces, basic coverage is mandatory and purchased from the government insurer, though optional coverage (collision, comprehensive) can be purchased from private insurers in some cases. The remaining provinces — Ontario, Alberta, New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland — rely entirely on private insurers operating under provincial regulation. Ontario has the highest average premiums in the country at approximately $1,900 per year.

Several factors determine your premium: driving record, age, gender (in provinces where gender-based pricing is permitted), location, vehicle make/model/year, annual kilometres driven, and the type and amount of coverage selected. Drivers under 25 pay significantly higher premiums — often 50–100% more — due to statistically higher accident rates. A clean driving record with no at-fault claims or convictions for several years qualifies you for discounts in most provinces. Bundling auto with home insurance, maintaining winter tires, and installing telematics devices can further reduce premiums by 5–15%.

Average Annual Auto Insurance Premiums by Province

All provinces require minimum liability coverage, but the amounts vary. Ontario mandates $200,000, while most other provinces require $200,000 or allow as low as $200,000. Experts universally recommend carrying at least $1,000,000 in third-party liability coverage, as a serious accident can easily exceed lower limits. Increasing liability from $1M to $2M is surprisingly affordable — often only $20–40 per year. Review your policy annually at renewal to ensure you are not overpaying for coverage you do not need or underinsured for risks you cannot afford.