The best car insurance companies in Ontario for 2023

Car insurance is so nuanced nowadays that it’s difficult to know which insurer is right for you. Every company boasts the “cheapest rates,” but price is just one thing to consider when it comes to choosing a provider. Ontario has about 8.7 million motor vehicles that are registered, according to StatCan, with Ontario and Quebec accounting for more than half of vehicle registrations in Canada. That all said, there’s a lot of auto insurers in Ontario, making for a more difficult time in choosing the best one.

Here’s a total breakdown of the best auto insurers in Ontario, including what different types of auto insurers exist, how they rank by price, coverage options, and more.

In Ontario, there are more than 80 auto insurers. Each has something different to offer, and some may only provide niche auto insurance such as for classic cars, Right-hand drive vehicles, or high-risk drivers.

How do you gauge how good an insurance company is? Every company is different, but often what makes an insurer “the best” is how well they:

There’s no real place that does a total comparison between different insurers, so we’ve done our best to create one. Please keep in mind that we’re only able to get pricing information for the insurance companies that we work with.

Because auto insurance premiums are based on many different factors that are unique to you, there is no one “best” auto insurer in Ontario for everyone. Even if your next-door neighbour, Brad, tells you he’s with the best auto insurance company, that doesn’t mean that same insurer will be who is best for you. Brad could have gotten a great price on his insurance because of his driving experience, the value and age of his vehicle, the distance of his daily commute, and many other factors that are unique to him.

The table above should give you an idea of how different ages and genders with the exact same vehicle and rough annual mileage can produce entirely different price points depending on the individual insurer.  

An insurance broker’s job is to find you affordable coverage, yes, but they will do so by helping you save money, like finding you key auto insurance discounts. At the same time, they help you find the best coverage fit. There are more ways to rank auto insurance companies than simply by price. Here’s a few other things to keep in mind:

Ratings and online reviews are a good way to see what kind of service an insurance company might offer. Of course, reviews are not solely what you should go off. This is why: 

What you want to weigh is how much an insurance company might argue with you over what is covered in the event of a claim and how easy they are to get a hold of. Reviews may indicate the kind of bad experience customers have had, so pay attention to any patterns that you might notice. 

J.D. Power curates a customer satisfaction survey each year for auto insurance companies. Rankings may only be a general guideline, but they’re good to check out for common trends. Note, however, the following limitations: 

Something else worth looking at/considering is the volume of premiums different insurers take in. 
When insurance companies are smaller, their pools of funds to payout claims are smaller. There’s the risk, then, that a smaller insurance company may not have the funds to pay out all its claims. Larger insurance companies have their risks spread out more evenly, so even a major storm that has the potential to affect thousands of people at once may still be payable. In Canada, insurers must meet certain minimum standards for financial stability, and many will purchase reinsurance to protect themselves against major events, so oftentimes it can be a better idea to get your insurance through a larger provider. This isn’t always an exact science, however, as some smaller insurers can be just as great (if not greater) at meeting your insurance needs than the big guys! 

Insurers specialize in different types of risk, and we’ve included this in the chart above to show which companies are open for business in your specific category (whether that’s normal, business, motorcycle, specialty, and so on). 

Most Ontario drivers are insured in what is known as the regular market, which means companies that offer insurance to low or medium-risk drivers who have standard vehicles without modifications, that aren’t right-hand drive or used for business purposes. 

To be in the standard market, you shouldn’t have more than three tickets or at-fault accidents on your record. Tickets can stay on your record for three years, and accidents up to six. Even if you’ve only had one serious traffic-related conviction like a DUI or distracted driving, you could be placed in the high-risk market. 

High-risk auto insurance companies provide coverage for drivers whose risk profile may be uninsurable by most standard market insurers because of multiple tickets or at-fault accidents, a serious driving conviction (DUI, street racing, driving with a suspended license) or being cancelled for non-payment.  
 

Motorcycles in Ontario can be pricey to insure because accidents often involve more severe injuries, and even the potential for long-term disability. Motorcycle insurance tends to be seen as riskier, even for experienced drivers. 

It becomes even more difficult to obtain insurance if you are under the age of 25 or have had less than five years of riding experience. Facility Association, in this case, could be your only option.  

Only a few companies specialize in distributing insurance for “non-standard” vehicles. These include right-hand drive, classic or collector cars, and vehicles with significant modifications to them.  

Using your personal vehicle to travel to and from meetings or take calls doesn’t constitute as business use so you can easily use your personal policy for this. You’ll want to always keep your insurance broker informed, but they probably won’t suggest an additional commercial auto policy. 

However, if you drive a company vehicle or have a car with business branding on it and use it to transport goods, haul tools, or deliver passengers, you will need commercial insurance. 

Using your own vehicle to drive for Uber, Lyft or other ridesharing companies, and transport either passengers or food, means that most insurers won’t want to cover you and you’ll need to acquire a policy through a separate rideshare insurance provider. Unfortunately, yes, ride-sharing vehicle insurance is more expensive than personal car insurance. Don’t feel tempted to neglect telling your insurance provider about your business as that’s driving without insurance. 

With over 40 farm mutuals operating in Ontario, there’s quite a few options for farmers. However, some of these mutuals only operate in their immediate geographic area. 

As well as farm mutuals, many of the business insurers mentioned above will also cover farm vehicles as part of a larger commercial insurance policy for your agri-business or farm. 

Choosing an auto insurance company that is right for you can be tough, so why not call Mitch? We are partners with some of Canada’s top providers. Not only can we help you find a company that fits the bill, but we can also help you find more affordable coverage, find you discounts, and more.