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.
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Canada is one of the most insured countries in the world! It’s no surprise Canadians drivers pay a lot for car insurance!
Let us find you the most affordable auto insurance quote for you. We will connect you to a Canadian insurance broker of your Province, who will secure the best and cheapest rate!
How can an insurance Broker help me find 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 responsible for ensuring that your insurance needs are continuously, met, including securing the lowest and best car insurance rate, each and every policy term!
- 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
Car Insurance between Provinces
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 lowestrates.ca, the average cost of car insurance in Ontario is $1,445 a year
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 lowestrates.ca, the average cost of auto insurance in Alberta is $1,251
Car insurance in Quebec resembles a duel 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.
Quebec’s government compensation plan is funded by premiums collected from driver’s license registration, fuel tax, and license plate registration.
The minimum liability insurance for Quebec is $50,000, a stark contrast to other provinces where the minimum liability limit is $200,000. Since the government of Quebec handles all injuries it’s no surprise that the legal liability limit is much lower than other provinces.
According to lowestrates.ca, the average cost of car insurance in Quebec is roughly $700.
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 claim, 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
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
Car insurance in Manitoba is sold by a non-profit Crown corporation. Manitoba public insurance provides drivers with basic compulsory auto insurance. Optional increase and extensions are available for purchase through private insurers.
The minimum liability limit in Manitoba is $200,000
The average cost of car insurance in Manitoba is $1.080 based on lowestrates.ca
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 Autofund. (Trademark name was given to the SGI structural plan) Optional increase in insurance limits, riders and extension are purchased through private insurers.
The minimum liability limit in Saskatchewan is $200,000
The average cost of car insurance in Saskatchewan is $936
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 claiming 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
Newfoundland and Labrador
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 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
Prince Edward Island
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
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
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 is also a 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
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
FAQs about car insurance in Canada
Which Provinces have government run auto insurance?
British Columbia, Manitoba, Saskatchewan are provinces in Canada that have government auto insurance. Quebec is the only province with 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.
Which Provinces have no-fault car insurance?
Ontario, New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI and Quebec are provinces in Canada with No-Fault auto insurance.
What Canadian Provinces have private car insurance?
New Brunswick, Newfoundland and Labrador, Ontario, Quebec (hybrid), Nova Scotia, PEI and Quebec have private car insurance.
How does car insurance work in Canada?
Car insurance in Canada operates on a provincial level. Each province in Canada regulates auto insurance according to their 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.