Car Insurance Across Canada and the Differences

Car Insurance Rate in Canada

How are Car Insurance Compared Across Canada?

While getting a car loan is typically an important part of purchasing a car, it is also important to ensure that your vehicle is worthwhile. While this will certainly involve proper vehicle maintenance and servicing, this also includes being sure you have purchased the necessary car insurance. While you may think that all car insurance across Canada will be similar, in terms of cost – you may be surprised to hear that these insurance rates actually vary quite significantly across each province.

There are various factors that impact these differences- beginning with the variations between private and publicly run insurance programs in various provinces. While Manitoba and British Columbia, for example offer provincially run coverage, the remaining provinces are comprised of various private and independently operated insurance groups – offering a range of interest rates.

Let’s glance at the variation between the average car insurance rates across Canada, as well as the pros and cons and differences affecting these individual provincial insurance rates. Please note: the quoted car insurance rates represent the average insurance premiums for an established driver with a clean driving record and only cover the minimum liability insurance required by each province.

  • Ontario – $ 1,281
    Ontario individuals are typically expected to pay the highest amount of insurance in the country with an average premium of $1,281 per year. Within this province, there are a high volume of injuries, auto claims, and vehicle-related lawsuits that drive up this rate. Additionally, there are the organized crime rings associated with fraud and private auto insurance in the province. Compared to other provinces, car insurance expenses account for 4.5% of personal disposable income – and the annual cost is almost twice as high as the lowest provincial rate.
  • British Columbia – $1,112
    British Columbia has the second highest annual car insurance rates in the country, around$1,112 per year. BC is also one of the the most expensive of the rates in all of the provincially-funded car insurance categories in Canada. Insurance is provided by the Insurance Corporation of British Columbia (ICBC), offering a lower amount of competition. Reasons for high insurance rates in this province are linked to higher chances of vehicle accidents – despite being provincially ran – these policies still remain quite high.
  • Saskatchewan – $ 1,049
    Ranking in at number 3 is car insurance rates in Saskatchewan. These annual premiums also fall slightly above the $1,000 mark at $1,049. These rates have tended to move up or down, each year and since this policy is set by the Saskatchewan Government Insurance (SGI), residents of this province must purchase their insurance through this agency and can’t shop around for alternative rates.
  • Manitoba – $ 1,027
    Over the last 5 years, Manitoba drivers have seen insurance rates fluctuating quite a bit – and at some point, rates were even as high as $ 1,468. As well as in British Columbia and Saskatchewan, Manitoba operates under a province-run insurance program. Under this program, insurance rates have remained near the $1,027 annual price range for some time.
  • Alberta – $ 1,004
    The province of Alberta ranks in the middle of the pack with an annual car insurance premium of $1,004. The expense of insurance in this region also only accounts for a 2.7% of disposable income. Ultimately, in relationship to this percentage, Alberta’s auto insurance affordability rate actually makes it the second best in all of Canada.
  • Newfoundland & Labrador – $749
    While some other provinces have seen a drop in price, Newfoundland and Labrador insurance rates appear to be on the rise. Compared to rates seen in 2007, in the last few years the average yearly auto insurance rate has increased from $700 up to $749. In the last 5 years, there has been an increase in the occurrence of auto claims and vehicle-related lawsuits in the province, which appear to account for this increase.
  • Nova Scotia – $735
    In Nova Scotia, vehicle insurance rates also appear to be maintaining their affordability, and in fact a decrease has rather consistently been seen in these rates each year. Again, as compared to other provinces, the lower level of accident claims each year appear to be a major factor in the lower rate in this province.
  • New Brunswick – $728
    Annual premiums for New Brunswick average $728, and auto insurance reflects 2.8% of after-tax disposable income rates – one of the least expensive percentages across the nation, following Alberta.
  • Prince Edward Island (PEI) – $695
    For PEI, the average cost per year for vehicle insurance is approximately $695. This province offers rates through a private insurance program and has been recognized as one of the most efficient of the privately ran insurance programs in Canada. Rates have also been experiencing a decrease, with factors such as competition levels and a decline in existing auto insurance claims occurring.
  • Quebec – $642
    All in all, Quebec offers the least costly car insurance coverage of all provinces. An annual premium cost of about $642 can provide drivers with a basic package. Basic insurance includes no fault for accidents – and this can limit liability and reduces the overall costs of insurance for drivers. Quebec also offers a combination or private and publicly run insurance groups.

What to Keep In Mind

Also differing across each province – there are varying degrees of what is seen as a mandatory insurance coverage package. As a result, this also affects the cost of how much you will except to pay in each part of Canada. With that being said, making sure you are aware of the specifics associated with your province is important – and may or may not be considered a pro or con, depending on the situation – and the cost, of course.

What Determines Your Insurance Rate?

In most provinces, there are certain criteria that will be taken into account when you are obtaining car insurance. The following factors will likely be examined when your insurance policy is being considered.

  • Your driving experience
  • Your driving record
  • Where you live
  • The type of vehicle you drive
  • Your age and gender

Since premiums vary across the nation, and certain provinces require that vehicle owners obtain certain insurance packages, comprised of mandatory coverage – you can see just how different the car insurance climates remain throughout Canada. Ultimately, you will need to be aware of the specifications for your region, as well as knowing what you can do to help reduce your own costs.

Now that you are aware of a little more of what to expect in your own province, hopefully you can move forward with your car ownership plans. Similar to obtaining a loan, it’s important to gather this knowledge before you buy so you can budget accordingly. In addition to understanding the differences in car insurance across Canada, you can also look to acquire the vehicle financing you need build your credit. Canada Auto Experts is here to help link you up with a lender to do that.

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