Car insurance rates vary across Canada, thanks to a multitude of factors. There are both public and private run insurance programs throughout the nation, with Saskatchewan, Manitoba and British Columbia relying on provincial run coverage, while the rest of Canada is privately insured, through multiple independent insurance companies. Generally, private insurance coverage has proven to be the most affordable option thanks to competition in the market, driving prices lower. Although this is not always the case in all provinces, it has proven to be the most effective method as a whole. Below is a breakdown of the least expensive, to most expensive insurance rates within Canada and some facts about the auto insurance climate within each province.
Note: data is current as of June 2018. As of 2019, reports say there has been an average nationwide annual increase of $298.
10. Quebec - $642 average annual premium
- Least expensive insurance premiums in all of Canada
- Combination of private and public insurance within the province allows for additional coverage on top of basic insurance packages
- No fault system for accidents, limiting liability and reducing insurance costs as a whole
9. Prince Edward Island - $796 average annual premium
- Considered one of the most efficient privatized car insurance systems in Canada
- Rates remain low due to competition & a decrease of auto insurance claims each year
8. New Brunswick - $819 average annual premium
- New Brunswick auto insurance accounts for 2.8% of after tax disposable income, which is one of the lowest percentages within the nation, after Alberta
7. Nova Scotia - $842 average annual premium
- Much like Prince Edward Island, insurance rates are staying affordable, and even decreasing on a yearly basis
- Low number of accident claims per year in comparison to the rest Canada
6. Saskatchewan – $936 average annual premium
- Rates tend to fluctuate each year as result to changes in the public insurance system
5. Manitoba – $1,080 average annual premium
- Cost has fluctuated drastically, with some year averages reaching as high as $1,468.
- Manitoba’s auto insurance system is run by the provincial government, much like Saskatchewan and British Columbia.
- Over the past few years, rates have been sitting around the $1,080 average, making the province the 5th most expensive in Canada.
4. Newfoundland & Labrador - $1,132 average annual premium
- Insurance rates appear to be increasing in Newfoundland & Labrador, as they were considered one of the most affordable provinces in 2007, with rates averaging around $700 yearly.
- This rise in average annual premiums is a result of an increase of accident claims and vehicle related lawsuits over the past 5 years.
3. Alberta – $1,251 average annual premium
- Alberta is considered to have the second most affordable insurance rates in the country when considering the fact that insurance expense only accounts for 2.7% of disposable income.
2. Ontario – $1,445 average annual premium
- One of the most expensive province to insure a car in Canada
- High frequency of claims, lawsuits, and injuries
- High level of fraud and organized crime affecting private insurance companies
- Expense accounts for 4.5% of disposable income
1. British Columbia – $1,680 average annual premium
- The most expensive insurance rates in Canada.
- BC runs a break-even profit system, although operational costs often outdo revenues
- Insurance rates are expected to increase in the coming years
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