The average car insurance rates in Canada in 2025 are $1,725 per year, or about $144 per month.
This figure represents a national average. Your actual rate may vary depending on your location, age, driving record, vehicle, and insurance history.
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How much does car insurance cost by province in 2025?
Car insurance rates differ widely across Canada. Here are the 2025 average premiums by province:
- Ontario: $1,920/year — Highest in the country due to dense traffic, higher claims, and insurance fraud.
- Alberta: $1,735/year — Rates are rising due to increased claims and inflation.
- British Columbia (ICBC): $1,450/year — Public model offers steady pricing.
- Quebec: $900/year — Lowest in the country due to a hybrid public-private model.
- Manitoba (MPI): $1,350/year — Public insurance system keeps rates consistent.
- Saskatchewan (SGI): $1,235/year — Moderate increases in urban areas.
- Nova Scotia: $1,150/year — Stable private market with competitive rates.
- New Brunswick: $1,120/year — Fewer claims help control costs.
- Newfoundland and Labrador: $1,270/year — Fewer insurers, but stable rates.
- Prince Edward Island: $1,080/year — Among the lowest premiums in Canada.
- Territories: $1,300–$1,500/year — Varies based on insurer and region.
These numbers assume full coverage and a clean driving record. Your rate may be higher or lower.
Why is car insurance more expensive in Ontario?
Ontario has the highest car insurance rates in Canada.
Key reasons:
- High traffic volume = more accidents
- More vehicle thefts and staged fraud
- Expensive medical claims and repair costs
- Private insurance system with wide rate differences
What factors affect car insurance rates in 2025?
Your car insurance premium isn’t just pulled from thin air; it’s calculated based on multiple personal and situational factors. From where you live to how you drive, insurers use a detailed risk profile to set your rate.
Here’s what matters most in 2025:
1. Where you live
Urban areas like Toronto, Vancouver, and Calgary have higher rates due to more claims, thefts, and traffic congestion.
2. Your age and driving experience
- New drivers pay more (especially under 25)
- Experienced drivers with clean records save more
3. The type of vehicle you drive
- Luxury, sports, or frequently stolen vehicles cost more to insure
- Vehicles with safety features may earn discounts
4. Your driving record
- Accidents, tickets, or DUIs significantly raise your premium
- A clean record = lower cost
5. How often and how far you drive
- Daily commuters pay more
- Low mileage or occasional drivers may qualify for discounts
- Rideshare drivers require extra coverage
6. The level of coverage you choose
- Liability-only is the cheapest option
- Adding collision and comprehensive protection increases the cost
- Higher deductibles lower your premium
7. Your insurance history
- Gaps in coverage raise red flags for insurers
- Long-term, claim-free customers often get better rates
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What trends are pushing car insurance rates up in 2025?
Car insurance premiums are on the rise across Canada, and it’s not just inflation. A few key trends are making it more expensive for insurers to cover claims, which directly impacts what drivers pay. Here’s what’s driving rates higher in 2025:
Inflation and repair costs
Repairing vehicles is more expensive. Parts, labour, and tech contribute to rising claims.
Increase in car thefts
Cities like Toronto and Brampton have seen a surge in stolen vehicles, which drives up premiums.
More injury claims and lawsuits
Legal action related to accidents is becoming more common, adding pressure to insurance costs.
Advanced risk analysis by insurers
Insurance companies are using data tools to evaluate risks more precisely. Small changes like a new address can affect your rate.
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How can you lower your car insurance premium in 2025?
1. Bundle your policies
Combine auto and home insurance with one provider (like Buckler Insurance) to save 10–25%.
2. Increase your deductible
Choosing a $1,000 deductible instead of a $500 deductible lowers your premium.
3. Install anti-theft devices
Immobilizers, alarms, and tracking systems reduce theft risk and may earn you a discount.
4. Drive less
If you drive under 10,000 km/year, ask your insurer about low-mileage discounts.
5. Maintain a clean driving record
Avoid speeding, distracted driving, and accidents. Even one ticket can raise your rate.
6. Consider usage-based insurance
Telematics programs track your driving habits. Safer drivers often save more.
Is car insurance cheaper in Quebec?
Yes. Quebec has the lowest car insurance rates in Canada.
This is due to its hybrid model, where the government covers personal injury and private insurers handle property damage. Fewer lawsuits and lower claim costs result in lower premiums overall.
How does Buckler Insurance help you save on car insurance?
As an independent Ontario-based broker, Buckler Insurance helps drivers:
- Compare rates from multiple insurers
- Customize policies based on your needs
- Uncover available discounts (bundling, retiree, student, etc.)
- Manage coverage digitally for convenience
- Access real people for support when you need it
We don’t sell you the most expensive auto insurance policy; we help you find the one that fits your life.
Take Control of Your Car Insurance in 2025
Car insurance rates in Canada are rising, but that doesn’t mean you have to overpay. Understanding how premiums are calculated and what factors matter most gives you an edge.
At Buckler Insurance, we make it easy to compare, customize, and save. Whether you’re renewing, switching providers, or just want a second opinion, we’re ready to help.
Get in touch today for a free, personalized quote. Take back control of your car insurance rates in 2025.
