How much does car insurance cost in Canada?

The average annual premium ranges from roughly $750 in Quebec to over $2,000 in Ontario as of 2026. Most provinces fall somewhere in between. Your actual rate depends on your driving record, location, vehicle, and the coverage you choose.

Which province has the cheapest car insurance?

Quebec consistently has the lowest average premiums in Canada, often around $750–$900 per year. This is largely because its public SAAQ plan covers bodily injury through a no-fault system, which keeps private premiums down. Atlantic provinces like PEI and New Brunswick are also relatively affordable.

What is the minimum car insurance required in Canada?

Every province requires third-party liability coverage, set at a minimum of $200,000 in most provinces, $500,000 in Manitoba and Nova Scotia, and $50,000 civil liability in Quebec. Most provinces also mandate accident benefits and uninsured-motorist coverage. Many experts recommend buying $1 million or $2 million in liability, since the legal minimum is often too low for a serious accident.

Which provinces have public (government) car insurance?

British Columbia (ICBC), Saskatchewan (SGI), and Manitoba (MPI) run public auto insurance for basic coverage. Quebec is a hybrid where the public SAAQ covers bodily injury and private insurers cover vehicle damage. All other provinces use private insurers you can shop around with.

How can I lower my car insurance premium?

Compare quotes every year, bundle your home and auto policies, and consider usage-based (telematics) insurance if you're a safe driver. Raising your deductible, claiming a winter tire discount, and keeping a clean driving record also help. In private-insurance provinces, switching insurers at renewal can produce the biggest savings.

Car Insurance Cost in Canada by Province (2026)

Car insurance is mandatory for every driver in Canada, but what you pay varies dramatically depending on where you live. Drivers in Ontario and British Columbia routinely pay two to three times more than drivers in Quebec. This guide breaks down average premiums by province, explains why some provinces run government-owned insurers while others use private companies, and shows what coverage you legally need and how to lower your bill.

Note that insurance is regulated provincially, so rules, pricing, and even who you buy from change the moment you cross a provincial border. The figures below are 2026 averages, and your personal rate will depend heavily on your driving record, location, and vehicle.

Average car insurance cost by province

Across Canada, the typical driver pays somewhere between roughly $750 and $2,000 per year. Ontario is consistently the most expensive province and Quebec the cheapest, while the public-insurance provinces (BC, Saskatchewan, Manitoba) tend to have more stable, less volatile pricing. Here are approximate annual averages for 2026:

Ontario: approximately $1,900–$2,000+ (highest in Canada)
British Columbia: approximately $1,800–$1,900
Alberta: approximately $1,600–$1,750
Newfoundland and Labrador: approximately $1,300–$1,400
Saskatchewan: approximately $1,100–$1,200
Manitoba: approximately $1,150–$1,250
Nova Scotia: approximately $1,000–$1,100
New Brunswick: approximately $1,000
Prince Edward Island: approximately $950
Quebec: approximately $750–$900 (lowest in Canada)

These are provincial averages. Within a province, urban centres like Toronto, Brampton, and Vancouver can run well above the average, while rural areas tend to fall below it.

Public vs. private auto insurance: how the systems differ

Canada has a split system. Most provinces use private insurers that compete for your business, which means you can shop around for the best rate. But four provinces run a public (government) auto insurance model where the basic coverage comes from a single Crown corporation.

Public-insurance provinces

British Columbia — basic coverage comes from ICBC, a Crown corporation; BC moved to an Enhanced Care (no-fault) model in 2021
Saskatchewan — basic coverage comes from SGI (Saskatchewan Government Insurance), with optional add-ons available
Manitoba — all auto insurance runs through Manitoba Public Insurance (MPI), a no-fault Crown corporation
Quebec — a hybrid model: the public SAAQ plan covers bodily injury (no-fault), while you buy vehicle damage and civil liability coverage from a private insurer

Private-insurance provinces

Alberta, Ontario, and the Atlantic provinces (Nova Scotia, New Brunswick, Prince Edward Island, Newfoundland and Labrador) rely entirely on private insurers. In these provinces it pays to compare quotes from multiple companies or a broker, since rates for the same driver can vary widely.

What car insurance is mandatory in Canada

Every province requires third-party liability coverage, which pays for injury or property damage you cause to others. The minimum limit is $200,000 in most provinces, but Manitoba and Nova Scotia require $500,000, and Quebec's civil liability minimum is $50,000 (with bodily injury covered separately by the public SAAQ plan).

Beyond liability, most provinces also require some combination of the following, depending on where you live:

Accident benefits — covers medical costs and lost income regardless of fault (required in most provinces)
Direct Compensation – Property Damage (DCPD) — covers damage to your vehicle when another driver is at fault (required in Ontario, Alberta, and several others)
Uninsured/unidentified automobile coverage — protects you if you're hit by an uninsured or hit-and-run driver

Comprehensive and collision coverage are optional everywhere, though your lender or leasing company will usually require them while you're financing a vehicle. The $200,000 legal minimum is widely considered too low; many experts recommend $1 million or $2 million in liability for relatively little extra cost.

What affects your premium

Within any province, insurers price your policy based on how likely you are to file a claim. The biggest factors include:

Driving record — tickets, accidents, and at-fault claims raise your rate the most
Location and postal code — dense urban areas with more theft and collisions cost more
Vehicle make and model — repair costs, theft rates, and safety ratings all matter
Age and driving experience — new and young drivers pay significantly more
How much you drive — higher annual mileage and daily commuting increase risk
Coverage choices — higher limits and lower deductibles raise your premium
Claims history — a clean, claims-free record earns better pricing over time

Broader trends also push rates up: rising vehicle repair costs, increased auto theft, and insurance fraud have driven premium increases across much of Canada heading into 2026.

How to lower your car insurance premium

Even mandatory insurance leaves plenty of room to save. The tactics that move the needle most:

Shop around every year — comparing quotes or using a broker can save many drivers a meaningful amount, especially in private-insurance provinces
Bundle home and auto — multi-policy discounts of roughly 10–15% are common
Try telematics (usage-based insurance) — safe drivers can save 10–25% by letting an app track their driving; sign-up discounts often apply immediately
Raise your deductible — increasing it from $500 to $1,000 can cut your premium noticeably, as long as you could cover that amount in a claim
Ask about a winter tire discount — most insurers offer roughly 2–5% off for installing winter tires (often required by law in Quebec and parts of BC)
Keep your record clean — a few claims-free years is one of the most reliable ways to lower your rate

Because Canadian insurance is provincial, the best move is to confirm the specific rules and discounts available where you live — and to compare offers before every renewal.

Related guides on Experts.ca

Comparing coverage? Explore related Canadian insurance guides on Experts.ca:

Car Insurance in Canada: Average Cost by Province