Cheapest Car Insurance in Canada by Province – A Comprehensive Guide

What is the cheapest car insurance in Canada by province? Auto insurance rates vary in Canada based on many factors, including how each province provides coverage for its drivers.

There are both public and private insurance programs across the country, with Saskatchewan, Manitoba and British Columbia relying on provincial-administered coverage and the rest of the country relying on private insurance through several independent insurance companies.

Overall, private insurance coverage has proven to be the cheapest option as competition in the market results in lower prices. While this is not always the case in all countries, it is certainly the most effective way of offering insurance as a whole.

To give you an idea of ​​what insurance rates are like across Canada, here’s a breakdown of the cheapest to the most expensive insurance rates in the country – as well as some facts about the auto insurance rate in each province.

How does car insurance work in Canada?

To drive a vehicle, Canadian motorists must have auto insurance. It is required by law in all provinces and territories. Getting caught driving without it can result in hefty fines and affect future eligibility for coverage.

But each province and territory implements different auto insurance systems, resulting in different levels of protection and premium prices for drivers across the country.

For those living in British Columbia and Manitoba, auto insurance is regulated by government organizations, the Insurance Corporation of British Columbia (ICBC) and Manitoba Public Insurance. Auto insurance in Saskatchewan is also managed by a crown company, Saskatchewan Government Insurance (SGI), but motorists can purchase additional coverage through private insurers.

In Quebec, the Société de l’assurance automobile du Québec (SAAQ), another public body, sets minimum limits for personal injury, while private companies provide civil liability, property damage, and additional protections. Drivers in the other provinces and territories can purchase automobile policies from private carriers.

Counties and territories also have their own set of rules and regulations when it comes to mandatory coverage, but there are similarities. These are:

Third-Party Liability:

This covers the cost of litigation when a motorist is responsible for an accident resulting in personal injury, death or property damage. The minimum amount varies by location but is typically set at $200,000.

Uninsured Car/Driver:

This coverage applies if the policyholder or their passenger is injured or killed by an uninsured driver or in a rear-end collision. It also covers damage to the vehicle.

Accident Benefits:

This pays medical treatment and income replacement if the policyholder is injured in an accident, regardless of who is at fault. It also pays the funeral expenses if the driver succumbs to his injuries.

Direct Compensation for Property Damage:

This policy is valid in Ontario, Quebec, Nova Scotia, New Brunswick and Prince Edward Island and covers damage to the vehicle and its contents resulting from an accident involving another covered vehicle, provided the policyholder is not at fault.

Auto insurance providers also offer optional coverages for better protection, including:

Collision Coverage:

This covers the repair costs incurred if the policyholder’s vehicle collides with another vehicle or object, even if it is at fault or someone else was driving the car. It also pays for a replacement if the vehicle is damaged beyond repair.

Comprehensive coverage:

This covers repair costs for damage caused by vandalism, theft, fire, natural disasters and other hazards.

Specific Risk Coverage:

This protects against losses arising from specific risks detailed in the policy.

Collision Damage Waiver:

Mandatory in Manitoba and Saskatchewan, this covers everything covered by collision and collision damage waivers, as well as all other incidents beyond the policyholder’s control.

Why do you need car insurance in Canada?

If you own or buy a vehicle in Canada, Canadian government law requires you to have auto insurance. As we know, insurance is a long-term investment. Protect yourself against the high cost of repairing or replacing your vehicle if it is damaged or involved in an accident. In many cases, car insurance companies offer financial help, for example, if you cause damage to others while driving, you are also liable for these costs. Even the best drivers have accidents.

Cheapest Car Insurance in Canada by Province

Alberta:

Alberta is known for having some of the highest car insurance rates in Canada. However, you can still find affordable coverage if you shop around. Some of the cheapest car insurance providers in Alberta include TD Insurance, Intact Insurance, and Desjardins Insurance. Be sure to compare quotes from multiple providers to find the best rate.

British Columbia:

In British Columbia, car insurance is provided by the government-run Insurance Corporation of British Columbia (ICBC). While rates can be high, there are a few ways to save on your car insurance. For example, you can choose a higher deductible or opt for a usage-based insurance program like ICBC’s “MyDrivingDiscount” program.

Manitoba:

In Manitoba, car insurance is provided by Manitoba Public Insurance (MPI). Rates are generally lower than in other provinces, but you can still save money by choosing a higher deductible or bundling your car insurance with other types of insurance, such as home insurance.

New Brunswick:

In New Brunswick, some of the cheapest car insurance providers include Allstate Insurance, TD Insurance, and Johnson Insurance. Be sure to ask about discounts, such as multi-car discounts or discounts for good driving habits.

Newfoundland and Labrador:

In Newfoundland and Labrador, car insurance rates can be high due to the province’s harsh weather conditions and remote locations. However, you can still find affordable coverage by shopping around and comparing quotes from multiple providers. Some of the cheapest car insurance providers in Newfoundland and Labrador include Allstate Insurance, TD Insurance, and Johnson Insurance.

Nova Scotia:

In Nova Scotia, some of the cheapest car insurance providers include Allstate Insurance, TD Insurance, and Johnson Insurance. You can also save money by choosing a higher deductible or bundling your car insurance with other types of insurance, such as home insurance.

Ontario:

Ontario is known for having some of the highest car insurance rates in Canada. However, you can still find affordable coverage if you shop around. Some of the cheapest car insurance providers in Ontario include Belairdirect, Desjardins Insurance, and Aviva Canada. Be sure to compare quotes from multiple providers to find the best rate.

Prince Edward Island:

In Prince Edward Island, car insurance rates are generally lower than in other provinces. Some of the cheapest car insurance providers include Allstate Insurance, TD Insurance, and Johnson Insurance. You can also save money by choosing a higher deductible or bundling your car insurance with other types of insurance, such as home insurance.

Quebec:

In Quebec, car insurance is provided by private insurers. Some of the cheapest car insurance providers in Quebec include Belairdirect, Desjardins Insurance, and Intact Insurance. Be sure to ask about discounts, such as multi-car discounts or discounts for good driving habits.

Saskatchewan:

In Saskatchewan, car insurance is provided by Saskatchewan Government Insurance (SGI). Rates are generally lower than in other provinces, but you can still save money by choosing a higher deductible or bundling your car insurance with other types of insurance, such as home insurance.

Cheapest car insurance in Canada by Province

What Is The Cheapest Car Insurance In Canada By Province 2022?

According to IBC, the cheapest provinces in Canada to ensure your car are:

With an average auto insurance premium of $717, Quebec is the clear winner. This may be because liability insurance is the only type of car insurance required in Quebec. In some jurisdictions, the required amount is $50,000 instead of $200,000. In summary, if you are looking for cheap car insurance, you should go to Quebec, Prince Edward Island, or New Brunswick.

Which province in Canada has the most expensive car insurance?

British Columbia is the winner with an average annual car insurance policy of $1,832.

How to compare car insurance?

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Here are some current car insurance deals for 2022

Factors affecting your insurance rate in Canada

• Location ()
• Automobile
• Age Gender
• Driving record
• Car use

Car Insurance Rates in Canada By Province

Quebec – $710 average annual premium

• Quebec has the cheapest insurance premiums in all of Canada.
• The combination of private and statutory insurance in the country offers additional protection to basic insurance.
• The error-free accident system limits liability and reduces overall insurance costs.

Prince Edward Island – $860 average annual premium

• PEI is recognized as one of the most efficient privatized auto insurance systems in Canada.
• Prices remain low in this county due to competition and an annual decline in auto insurance claims.

New Brunswick – $865 average annual premium

• Auto insurance in New Brunswick accounts for 2.8% of after-tax disposable income — the lowest percentage in the nation after Alberta.
• Insurance reforms in New Brunswick keep premiums on the lower end of the scale and reward safer drivers.

Nova Scotia – $890 average annual premium

• Nova Scotia has a lower number of accident claims per year compared to the rest of Canada.
• Nova Scotia also rewards safe drivers with lower insurance premiums.

Manitoba – $1,140 average annual premium

• Manitoba’s insurance system is administered by the provincial government, leaving residents with little choice when it comes to insurance.
• However, the province has agreed to reduce auto insurance rates by 8.8% in 2021.

Newfoundland and Labrador – $1,165 average annual premium

• The increase in average annual premiums since 2007 can be attributed to increases in accident claims and vehicle-related lawsuits (although the average rate has only increased by $33 since 2018).
• Newfoundland and Labrador only offer private insurance options so prices are competitive.

Saskatchewan – $1,230 average annual premium

• Saskatchewan uses a state insurance program.
• Saskatchewan drivers are required to have liability insurance for their vehicles with coverage of $200,000.
• In this federal state, age, gender or location are not taken into account when determining the tariff, only your ticket.

Alberta – $1,310 average annual premium

• Insurance costs account for only 2.7% of disposable income in the province of Alberta.
• Previously, insurers could only expect rate increases of 5% per year, but that cap was removed in 2019.

Ontario – $1,500 average annual premium

• Ontario’s high insurance rates are due to a high frequency of claims, lawsuits and injuries.
• There is also a high level of fraud and organized crime affecting private insurance companies.
• In general, the higher rates in Ontario are due to that province having the most drivers in the country.

British Columbia – $1,830 average annual premium

• British Columbia has the most expensive auto insurance rates in Canada.
• The province operates a break-even profit system, but operating costs often exceed revenue.
• However, in the spring of 2021, BC’s insurance company cut premiums by about 20%.

Best Discounts On Car Insurance In Canada

Discounts for young drivers

Many insurers offer discounts for young drivers as the insurance premium for young people is quite high.

Group Discount

You can benefit from a discount if you are part of a group, this can be members of a club, employees of the same company, etc.

Discount for experienced drivers

You can get a discount if you have good driving practice and are over 50 years old.

Discount for combined policies

You can get a discount by combining your car and home insurance, for example, the discount is often between 5% and 15%.

Discount on winter tires

It’s snowing in Canada! That’s why some insurers give a discount if you add winter tires to your vehicle.

Pension Discount

You may be eligible for a discount if you are retired. Questions.

Renewal Discount

Some insurers reward your loyalty if, for example, you have been with them for many years without an accident.

Anti-theft discount

Add security to your vehicle.

How do you get cheaper car insurance?

In most federal states, certain criteria are taken into account when applying for car insurance. It is important to realize that many of the factors used to calculate your rewards are beyond your control.

But aside from moving to another province, you have several factors under your control. The following tips can help you get cheaper car insurance:

• Take a look around, request offers, and compare prices:  Be prepared to negotiate, negotiate and play insurance providers off against each other. They’re competing for your business, so make them work for it. Unfortunately, if you’re in BC, Saskatchewan, or Manitoba, this strategy doesn’t make sense.
• Only pay for the protection you need: As previously mentioned, some coverages are mandatory under Canadian law, e.g. Liability and Extended Coverage. But if your county’s mandatory coverage allows it, consider dropping something like collision insurance if your vehicle has a low resale value.
• Combine insurance: If you already have home insurance, you may be able to combine it with car insurance to get a better deal.
• Choose the right car: Cars with sufficient safety equipment (e.g. airbags, brake assistant), high crash test results, and less powerful engines tend to have cheaper insurance rates. Many stolen makes and models are also more expensive to insure.

Tips for Saving Money on Car Insurance:

1. Choose a higher deductible: A deductible is an amount you pay out of pocket before your insurance coverage kicks in. By choosing a higher deductible, you can lower your monthly premiums.
2. Bundle your insurance: Many insurance providers offer discounts for customers who bundle their car insurance with other types of insurance, such as home or life insurance.
3. Ask about discounts: Many insurance providers offer discounts for good driving habits, such as completing a defensive driving course or maintaining a clean driving record.
4. Consider usage-based insurance: Some insurance providers offer usage-based insurance programs, where your premiums are based on how much you drive and how safely you drive.
5. Shop around: Be sure to compare quotes from multiple insurance providers to find the best rate. Don’t just go with the first provider you find, as rates can vary significantly between providers.

Factors that Affect Car Insurance Rates:

1. Age: Younger drivers generally pay more for car insurance than older drivers, as they are considered to be a higher risk.
2. Driving record: Your driving record, including any accidents or tickets, can have a significant impact on your car insurance rates.
3. Type of vehicle: The make and model of your vehicle can also affect your car insurance rates. Generally, more expensive or high-performance vehicles will have higher insurance rates.
4. Location: Insurance rates can vary significantly by province, as well as by city or even neighbourhood. Urban areas tend to have higher rates than rural areas.
5. Credit score: In some provinces, your credit score can also affect your car insurance rates.

By considering these factors and taking steps to save money on your car insurance, you can find affordable coverage that meets your needs. Remember to always shop around and compare quotes from multiple providers to find the best rate for your budget.

Conclusion

Now that you know a little more about what to expect in your country and what you can do to pay less for insurance, including the cheapest car insurance in Canada by province in 2022, hopefully, you can move on with your car ownership plans. As with taking out a loan, it’s important to gather this knowledge before making your purchase so you can budget accordingly.