When it comes to driving in Canada, having the right car insurance is not just a legal necessity—it’s your financial shield against accidents, theft, natural disasters, and unexpected liabilities.
With different provinces having their own rules, choosing the right car insurance company can be tricky. This comprehensive guide breaks down the top auto insurers in Canada, what they offer, and how to pick the one that suits your needs.
Understanding Car Insurance in Canada
Car insurance in Canada is regulated provincially, meaning rules vary by region. Some provinces, like British Columbia, Manitoba, and Saskatchewan, operate under public insurance systems, while others like Ontario and Alberta use private insurers.
Mandatory coverages across provinces may include:
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Third-party liability
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Accident benefits
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Direct compensation for property damage (DCPD)
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Uninsured automobile coverage
Optional coverages include:
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Comprehensive
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Collision
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Loss of use
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Depreciation waiver
Best Car Insurance Companies in Canada
Here is list of the top-performing and most trusted auto insurance companies in Canada this year:
1. Intact Insurance
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Overview: Canada’s largest private-sector insurer.
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Highlights:
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Multiple discount options
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24/7 claims service
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myDrive™ usage-based insurance
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Best For: Comprehensive coverage and advanced digital tools
2. Desjardins Insurance
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Overview: A trusted Quebec-based provider with nationwide presence.
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Highlights:
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Bundling discounts (home + auto)
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Ajusto™ telematics program
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Flexible deductible options
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Best For: Safe drivers and Quebec residents
3. Aviva Canada
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Overview: A global brand with strong coverage options across Canada.
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Highlights:
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Accident forgiveness
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Lifestyle discounts (retirees, electric cars)
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Multiple vehicle coverage
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Best For: Families and experienced drivers
4. The Co-operators
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Overview: A cooperative-based insurer popular in rural and suburban areas.
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Highlights:
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Strong customer support
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Personalized agent service
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Competitive rates for young drivers
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Best For: Drivers looking for personalized service and ethical business practices
5. Belairdirect
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Overview: A subsidiary of Intact, known for affordability and ease of use.
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Highlights:
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Instant online quotes
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Paperless policy management
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App-based claim tracking
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Best For: Tech-savvy customers and budget-conscious drivers
6. CAA Insurance
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Overview: Backed by the Canadian Automobile Association.
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Highlights:
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CAA membership discounts
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Roadside assistance included
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Winter tire discount
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Best For: Loyal CAA members and Ontario drivers
7. Economical Insurance
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Overview: A growing player with over 150 years of experience.
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Highlights:
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Offers both individual and commercial car insurance
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Group plan discounts
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Roadside assistance add-ons
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Best For: Small business vehicle owners and group insurance seekers
Average Car Insurance Rates by Province
| Province | Average Annual Premium |
|---|---|
| Ontario | $1,700 – $2,300 |
| Alberta | $1,300 – $1,800 |
| British Columbia | $1,200 – $1,600 (public) |
| Quebec | $700 – $1,100 |
| Nova Scotia | $900 – $1,300 |
| Saskatchewan | $1,000 – $1,400 (public) |
Premiums are influenced by:
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Age and gender
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Driving history
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Vehicle type
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Location (urban vs. rural)
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Insurance history
Tips to Save on Car Insurance in Canada
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Bundle Policies: Combine auto with home or life insurance.
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Install Winter Tires: Many provinces offer discounts for using them.
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Drive Safely: Clean records get better rates.
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Telematics: Enrol in usage-based insurance programs.
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Increase Your Deductible: This lowers monthly premiums.
Final Thoughts
Choosing the best car insurance company in Canada depends on your location, vehicle type, and personal driving habits. While cost is important, also consider customer service, claims satisfaction, digital features, and available discounts.
Whether you’re in Toronto, Montreal, Vancouver, or Calgary—there’s a policy and provider that fits your needs.
Frequently Asked Questions (FAQs)
A: Yes, all provinces and territories in Canada require drivers to have at least basic liability insurance to legally operate a vehicle.
A: Top-rated providers include:
Intact Insurance
Desjardins
Aviva Canada
Belairdirect
The Co-operators
CAA Insurance
Economical Insurance
A: The average cost varies by province. For example:
Ontario: $1,700–$2,300/year
Quebec: $700–$1,100/year
Alberta: $1,300–$1,800/year
A: Premiums are influenced by:
Driving history
Age and gender
Vehicle type and usage
Province or city
Claims history
A: Yes! Common discounts include:
Bundling home and auto insurance
Installing winter tires
No claims bonus
Using telematics (usage-based insurance)
Being a member of CAA or alumni groups
A: Public insurance (e.g., in BC, SK, MB) is provided by the government.
Private insurance (e.g., in ON, QC, AB) is offered by private companies like Intact or Aviva.
A: Absolutely. Companies like Belairdirect, Desjardins, and Goose Insurance allow for instant quotes and online purchases.
A: It’s a policy where your premium is based on how safely and how often you drive, tracked via a mobile app or device. Great for low-mileage drivers.
A: Only if you add comprehensive coverage to your policy. It’s optional but highly recommended.
A: Yes, but you may incur a cancellation fee. It’s best to switch insurers when your current policy is up for renewal.