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About Comparing Car Insurance

When you are buying car insurance in Canada, you will need to work with various rates, coverage options, and provincial regulations.

Canadian drivers spend an average of $1,725 on automobile insurance annually, but your actual expenditure is based on where you live, the cars you drive, and how well you negotiate automobile insurance rates.

In this guide, we break down everything you need to find the best car insurance for your situation and save money.

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$100/month

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Via BestMoney

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Price From

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Via BestMoney

Why compare car insurance quotes in Canada?

When you compare car insurance quotes from multiple providers, you get a clear picture of what’s available and what you’re actually paying for.

Insurance rates vary significantly between companies, even for the same driver and vehicle. One insurer might quote you $2,200 annually while another offers $1,600 for identical coverage.

The difference between the highest and lowest quotes for the same coverage can be 30% or more. So, comparing car insurance helps you understand your coverage options, as not all policies are created equal.

Some insurers offer better claims service, more flexible payment options, or additional benefits like roadside assistance.

Insurance rates also change over time. Your current provider might have offered you a great rate three years ago, but that doesn’t mean they’re still competitive. Comparing quotes regularly ensures you’re always getting the best available deals.

How car insurance pricing works

Insurance companies use complex formulas to calculate premiums, but several key factors have the biggest impact on what you pay.

• Driving Record: Insurance companies look back at your driving record for the past three to six years. A clean driving record with no accidents or traffic violations tells insurers you’re a low-risk driver. Even a single speeding ticket can increase your rates, while maintaining a clean record can significantly reduce your premiums. Multiple accidents or serious violations like impaired driving can make insurance extremely expensive or even difficult to obtain.
• Claims History: Filing frequent claims, even for small amounts, signals to insurers that you’re more likely to file claims in the future. Some companies offer claims-free discounts that reward drivers who go years without filing a claim. These discounts can reduce your premium by 10% to 25%.
• Vehicle Make, Model and Safety Features: Insurance companies evaluate vehicles based on repair costs, theft rates, safety ratings, and claims history. Sports cars and luxury vehicles typically cost more to insure because they’re expensive to repair and are more likely to be stolen or driven aggressively. Vehicles with strong safety ratings and modern safety features often qualify for lower premiums. Anti-lock brakes, stability control, airbags, and advanced driver assistance systems reduce the likelihood of accidents and injuries, and many insurers offer discounts for vehicles equipped with these features.
• Location and Province Differences: Ontario has the highest rates at $1,920 per year, while Quebec has the lowest at $900 per year. Calgary drivers pay a median premium of $3,182 annually, while Saskatoon drivers pay $1,249. These differences exist because each province has its own insurance system, regulations, and market conditions. Urban areas within provinces also have higher rates than rural areas because cities have more traffic, more accidents, and higher theft rates.

Where to compare car insurance

The three main places to compare car insurance in Canada are through online aggregators, brokers, and direct insurers. Each has advantages depending on your situation:

• BestMoney: BestMoney lets you get quotes from multiple insurers in one place. The platform is fast and convenient, giving you a clear view of available rates in minutes. However, some insurers may not be listed, so a few options could be missing.
• Insurance brokers: Insurance brokers work on your behalf to compare car insurance quotes from multiple companies. They have access to various insurers, including some that don’t work with online platforms. They can explain complex coverage options, help you understand policy differences, and advocate for you during claims. They’re especially valuable if you have a complicated insurance history or unique coverage needs.
• Direct insurers: Direct insurers sell policies directly to consumers without intermediaries. Companies like TD Insurance, Intact, and Desjardins fall into this category. Going direct can sometimes result in lower prices since there’s no broker commission. The downside is that you only see what that one company offers.

How to compare car insurance quotes

Comparing car insurance effectively requires preparation and knowing what to look for. Follow these steps to ensure you’re making a fair comparison and finding the best value.

Gather documents and important details

Before you start requesting quotes, gather all the information insurers will need. Having everything ready speeds up the process and ensures accurate quotes.

You’ll need your driver’s license number, vehicle identification number (VIN), current insurance policy details, including coverage amounts and claims history, and information about all drivers who will be listed on the policy.

You should also know your vehicle’s make, model, year, and any anti-theft or safety features. If you’re leasing or financing, have your lender’s information ready.

Some insurers ask about your annual mileage, how you use the vehicle, and where it’s parked overnight.

If you provide incorrect details to get a lower quote, the insurer can adjust your premium when they verify the information, or worse, deny a claim if they discover misrepresented information.

Compare coverage vs price

When you compare online car insurance in Canada, compare what’s actually included in each quote. Two policies with different premiums might offer vastly different coverage levels, deductibles, and limits.

Start with the mandatory coverage in your province, as every province requires minimum liability coverage, but the minimums vary.

Make sure all quotes include at least the legal minimum, though you should consider higher limits for better protection.

Next, look at optional coverages. Collision coverage pays for damage to your vehicle in an accident, regardless of fault.

Comprehensive coverage protects against theft, vandalism, weather damage, and other non-collision events. These coverages have deductibles, which is the amount you pay before insurance kicks in.

Compare deductibles across quotes carefully. A policy that’s $200 cheaper annually but has a $1,000 higher deductible isn’t necessarily a better deal.

Additional endorsements like rental car coverage, accident forgiveness, or enhanced replacement cost coverage can add value but also increase your premium.

Car insurance comparison by province

Car insurance comparison by province reveals significant differences in how insurance works across Canada. Here’s what you should know:

• Ontario: Ontario has the highest average rates at $1,920 per year due to high claims costs and traffic density. The province requires a minimum $200,000 in third-party liability coverage, though most experts recommend at least $1 million.
• Quebec: Quebec has the lowest rates at $900 per year, thanks to its hybrid public-private system. The government-run SAAQ provides mandatory injury coverage, while private insurers cover vehicle damage.
• British Columbia: BC operates through the government-run Insurance Corporation of BC (ICBC). Average premiums are $1,450 per year. ICBC introduced an Enhanced Care model that changed how claims are handled.
• Alberta: Alberta averages $1,735 per year in the private insurance market. The province recently ended rate caps and is transitioning to a no-fault system expected to take effect in 2027.
• Manitoba: Manitoba Public Insurance provides basic coverage in a public system. Average rates are $1,350 per year. Drivers can purchase additional coverage from private insurers.
• Saskatchewan: Saskatchewan Government Insurance operates the public system with average rates of $1,235 per year. Additional private coverage is available.
• Nova Scotia: Operating in a private market, Nova Scotia drivers face average premiums of $2,491. Halifax specifically averages around $2,490 annually.
• New Brunswick: New Brunswick uses a private insurance system. Moncton drivers pay around $2,247 annually.
• Newfoundland and Labrador: St. John’s drivers pay approximately $2,340 annually. The province operates under a tort system where at-fault drivers can be sued.
• Prince Edward Island: PEI operates a private market with competitive rates compared to other Atlantic provinces.
• Yukon, Northwest Territories, and Nunavut: The territories have private insurance markets with limited competition due to small populations.

Common mistakes when comparing quotes

Many Canadian drivers make errors during the comparison process that cost them money or leave them underinsured. Here are the common mistakes to avoid:

• Comparing price alone without considering coverage differences: A cheap policy with minimal coverage and high deductibles might seem like a great deal until you need to file a claim. Always compare similar coverage levels to see true price differences.
• Not updating your information regularly: If you’ve moved, changed vehicles, or improved your credit score, these factors affect your rates. Make sure every quote request reflects your current situation to get accurate quotes.
• Overlooking available discounts: Many drivers pay more than necessary because they don’t ask about discounts. When you compare auto insurance quotes, specifically ask each insurer about all discounts you might qualify for.
• Accepting the first quote without shopping around: This leaves money on the table. Get at least three quotes from different sources before making a decision to ensure you’re getting competitive rates.
• Choosing insufficient coverage limits to save money: While minimum liability coverage costs less, it might not adequately protect your assets. Experts generally recommend at least $1 million in liability coverage.
• Not reading the policy details: Skipping the fine print means missing important exclusions or limitations. Take time to review the actual policy document, not just the quote summary.

How to get the best rate after comparison

Once you’ve completed your comparison and identified the best options, you can take additional steps to optimize your rate and coverage:

• Negotiate with insurers: If you’ve received a better quote elsewhere, mention this to your preferred insurer and ask if they can match or beat it. Many companies have the flexibility to adjust rates, especially for desirable customers with clean records.
• Improve your credit score: In provinces where insurers can consider credit information, better credit often translates to lower rates. Working on your credit score can pay dividends when you renew.
• Review your coverage annually: Make sure you’re not paying for coverage you don’t need. An older vehicle might not need collision and comprehensive coverage if it’s not worth much. Conversely, increased assets might require higher liability limits.
• Ask about claim forgiveness programs: Some insurers offer accident forgiveness as a built-in benefit or purchasable endorsement. This prevents your first at-fault accident from increasing your premium and can protect your rates after an accident.
• Maintain continuous coverage: Gaps in coverage, even short ones, can result in higher rates. Maintaining continuous coverage demonstrates responsibility to insurers.

Conclusion to how to compare car insurance

Understanding how to compare car insurance effectively puts you in control of one of your largest regular expenses.

The process takes time, but the savings and better coverage make it worthwhile. So, start your comparison today by gathering your current policy information and driver details.

Decide whether you’ll use online comparison sites, work with a broker, or contact insurers directly. Get quotes from at least three different sources.

Don’t accept the first reasonable quote you receive. Take time to compare coverage details, not just prices. Ask about all available discounts and make sure you understand what’s included in each policy.