How do I insure a car in Canada?

In Canada, you can insure your car through private auto insurance companies or by Non-profit Crown Corporations. Methods of obtaining car insurance through Crown corporations such as ICBC, Manitoba Public Insurance, Saskatchewan Public insurance include: Through Motor Vehicle Registration Through Brokers and Agents (usually for surplus coverage or any gaps that government might now cover) Methods of obtaining auto insurance through Private Insurers include: Directly from the Insurer. No intermediary involved and direct to the consumer Insurance Broker. Intermediary involved and an indirect sales channel to the consumer Through a combination of Direct Writer Insurance companies, Brokers or Agents

How can an Insurance Broker help me get the cheapest car insurance in Canada?

Insurance brokers play an important role in the distribution of auto insurance to consumers in Canada. Insurance brokers are licensed individuals authorized to sell insurance to the public and bring you and the insurance company together into a contractual agreement. The broker is an intermediary is also responsible for ensuring that your insurance needs are met. Tasks that Insurance Broker do for you: Facilitate the purchase of car insurance Compare and contrast auto insurance quotes to get the best coverage for the best price Service the Auto Policy Account Facilitate with the auto claims process Insurance brokers help you choose the best and most affordable auto insurance coverage, from multiple insurance companies!

Compare Car Insurance in Canada for the Cheapest Quote

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Insurancesumo.ca can help you find the lowest possible auto insurance rate in Canada through our simple quoting comparison software, which allows you to choose the most affordable rated auto insurance quote. It’s easy, fast and will save you money!

Comparing Car Insurance Quotes in Canada is Fast and Easy!

Finding affordable car insurance quotes in Canada can be a frustrating task! Not only are you dealing with a heavily regulated insurance market across the country, but also provincial regulators. This means that you are restricted to buying car insurance from the province you reside.

Comparing the cheapest car insurance quotes in Canada. How it Works:

Enter Driver Details

Provide info about vehicle, driving, and insurance history.

Compare your Quotes

Compare auto insurance quotes to find the best coverage for the lowest price.

Choose your Policy

Pick the auto insurance policy you want and purchase coverage!

How to get the most affordable car insurance in Canada

Shop Around

Car insurance companies in Canada update their rates on a continuous basis. Shop for the best rate and make it a habit!

Bundle Home and Auto

Discounts of 20% or higher for insuring your home and auto with the same insurance company.

Increase Deductible

Increasing your deductible brings down your premium because you’re willing to take on more risk, and at the same time, taking some risk away from the insurer.

Switch Vehicle Type

Some vehicles are more expensive to insure than others. You can save some money by choosing a vehicle that costs less to insure!

Reduce Coverage

reducing auto insurance coverage is usually not a good idea, but if your risk tolerance can handle it then this option is sometimes available to you.

Group Insurance

Group insurance discounts to members/employees of the group, which is another way of saving on your car insurance in Canada.

Switch Company

Car insurance rates change monthly from one insurance company to the other. This can present a savings opportunity for you.

Drive Cautiously

It is no surprise that driving according to the law and minimizing traffic infractions /accidents can dramatically decrease your auto insurance premium.

Car Insurance between Provinces:

Car insurance in Canada varies from province to province regarding regulations, administration, and how your insurance policy responds after a claim is submitted. Some provinces choose to have government-run insurance through their vehicle registration system while other provinces choose to have private insurance companies guide the market. Although every province runs its auto insurance system differently, some provinces may seem more or less compared to others.

Alberta

Car insurance in Alberta is much like Ontario in that auto insurance can only be purchased through the private sector.
Alberta does not employ a “no-fault” system, compared to provinces such as Ontario, New Brunswick, Nova Scotia, and Quebec. Alberta uses the ordinary rule of law (tort) to assign fault in car insurance claims.
According to the Insurance Bureau of Canada, the average cost of auto insurance in Alberta is $1,251

Quebec

Car insurance in Quebec resembles a dual system of automobile insurance. Injuries claims are covered by a government compensation plan, (the SAAQ) and property damages are covered by standard automobile policies sold by private insurance companies.
The minimum liability insurance for Quebec is $50,000.
According to the Insurance Bureau of Canada, the average cost of car insurance in Quebec is roughly $700.

Nova Scotia

Car insurance in Nova Scotia is much like Ontario and New Brunswick in adopting a “no-fault” system of auto insurance. This means that you would claim from your insurance regardless of fault, compared to the tort-based provinces where you have a choice to claim between the responsible insurance companies or claim directly through your own.
The minimum liability limit for Nova Scotia is $200,000
The average cost of car insurance in Nova Scotia is $842

N.W.T

Car insurance in the Northwest Territories is offered by private insurers. The Northwest Territories do not use a “no-fault” system but rely strictly on tort law to govern liability and fault in a claim.
Accident Benefits are also mandatory coverage in the Northwest Territories.
The minimum liability limit for the Northwest Territories is $200,000
The average cost of auto insurance in the Northwest Territories is $978

British Columbia

Car insurance in British Columbia is administered by the Insurance Corporation of British Columbia or ICBC. The crown corporation is responsible for providing universal auto insurance, driver and vehicle licensing, and registration.
The minimum liability limit in British Columbia is $200,000
British Columbia is strictly a tort governed province, therefore the “no-fault” auto insurance model does not apply.
The average accost of car insurance in British Columbia is $1,680

Yukon

Car insurance in the Yukon is provided by private insurers. The Yukon is a tort governed province and does not use the “no-fault” system of auto insurance.
The minimum liability limit for the Yukon is $200,000
The average cost of car insurance in the Yukon is $812

New Brunswick

Auto insurance in New Brunswick is very similar to Ontario. New Brunswick became a “no-fault” car insurance system around 2014. Before that New Brunswick was strictly a tort governed province. The decision to move to the No-fault system was to speed up claims, settlements and provide a faster and pleasant experience for the insured.
The minimum liability limit in New Brunswick is $200,000
According to lowestrates.ca, the average cost of auto insurance in New Brunswick is $819

Saskatchewan

Car insurance in Saskatchewan is another province where a crown corporation administers and regulates auto insurance. The crown corporation is referred to as Saskatchewan General Insurance or SGI.
SGI provides basic compulsory auto insurance coverage through the Auto fund. (Trademark name was given to the SGI structural plan) Optional increases in insurance limits, riders, and extensions are purchased through private insurers.
The minimum liability limit in Saskatchewan is $200,000
The average cost of car insurance in Saskatchewan is $936

Ontario

Car insurance in Ontario is a “no-fault” or “inverse liability” system designed to handle auto claims quickly. Ontario is also known for being one of the most costly provinces to purchase car insurance.
The minimum liability limit for auto insurance in Ontario is $200,000.
According to the Insurance Bureau of Canada, the average cost of car insurance in Ontario is $1,445 a year

P.E.I

Car insurance in Prince Edward Island, PEI is sold strictly by private insurance companies.
PEI is also a tort governed province, meaning that the “no-fault” system of auto insurance would not apply.
The minimum liability limit for PEI is $200,000
The average cost of auto insurance in Prince Edward Island is $796

Nunavut

Car insurance in Nunavut is almost identical to the Northwest Territories. Nunavut is completely a tort governed province and does not use the “no-fault” system that provinces such as Ontario, New Brunswick, and Nova Scotia use.
The minimum liability limit for Nunavut is $200,000
The average cost of auto insurance in Nunavut is $963

NewFoundland

Car insurance in Newfoundland and Labrador is provided by private insurers. One distinct difference between auto insurance in Newfoundland and Labrador is that Accident Benefits coverage is optional. It’s the only province in which Accident Benefits is not mandatory for auto insurance coverage.
Newfoundland and Labrador is a tort governed province. “No-Fault” does not apply in this province.
The minimum liability limit for Newfoundland and Labrador is $200,000
The average cost of car insurance in Newfoundland and Labrador is $1,132

FAQs about car insurance in Canada

In Canada, you can insure your car through private auto insurance companies or by Non-profit Crown Corporations.

Methods of obtaining car insurance through Crown corporations such as ICBC, Manitoba Public Insurance, Saskatchewan Public insurance include:

Through Motor Vehicle Registration
Through Brokers and Agents (usually for surplus coverage or any gaps that government might now cover)

Methods of obtaining auto insurance through Private Insurers include:

Directly from the Insurer. No intermediary involved and direct to the consumer
Insurance Broker. Intermediary involved and an indirect sales channel to the consumer
Through a combination of Direct Writer Insurance companies, Brokers or Agents

The difference between public and private auto insurers rests on how the insurance product is sold and administrated. Public car insurance is run by the government while private insurers are run by private companies. Quebec is a hybrid system where both public and private models are used.

Auto insurance through the public sector is administered through the provincial ministry of transportation and vehicle registration offices. Insurance premiums are paid when drivers renew their license plate registrations and renewals.

If supplemental insurance is required, it can be purchased from the private sector.

Insurance brokers play an important role in the distribution of auto insurance to consumers in Canada. Insurance brokers are licensed individuals authorized to sell insurance to the public and bring you and the insurance company together into a contractual agreement. The broker is an intermediary is also responsible for ensuring that your insurance needs are met.

Tasks that Insurance Broker do for you:
Facilitate the purchase of car insurance
Compare and contrast auto insurance quotes to get the best coverage for the best price
Service the Auto Policy Account
Facilitate with the auto claims process

Insurance brokers help you choose the best and most affordable auto insurance coverage, from multiple insurance companies!

British Columbia, Manitoba, Saskatchewan are provinces in Canada that have government auto insurance. Quebec is the only province with a dual system, where both property damages to the vehicle are handled by private insurers, while the government deals with any injuries that might result from a motor vehicle accident.

Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI, and Quebec are provinces in Canada with No-Fault auto insurance.

New Brunswick, Newfoundland, and Labrador, Ontario, Quebec (hybrid), Nova Scotia, PEI, and Quebec have private car insurance.

Car insurance in Canada operates on a provincial level. Each province in Canada regulates auto insurance according to its governing bodies. Provinces such as British Columbia, Saskatchewan, and Manitoba run their provincial car insurance programs through non-profit crown corporations. The administration of car insurance by Crown corporations is usually done through Motor vehicle and license plate registration. The remaining provinces are outside the public sector and rely on private insurance companies to meet the needs of the free market. Private insurers use insurance intermediaries such as Brokers and Insurance agents to sell car insurance to the consumer public.