Car insurance rates vary across Canada thanks to a multitude of factors including the way in which each province offers insurance coverage to its drivers.
There are both public and private run insurance programs throughout the country, with Saskatchewan, Manitoba, and British Columbia relying on provincially run coverage and the rest of the country relying on private insurance through multiple independent insurance companies.
Generally, private insurance coverage has proven to be the most affordable option thanks to the competitive nature of the market which drives lower prices. Although this is not always the case in all provinces, it is certainly the most effective way to offer insurance coverage as a whole.
To give you an idea of what insurance rates look like across Canada, here is a breakdown of the least expensive to the most expensive insurances rates within the country – as well as some facts about the auto insurance climate within each province.
Note: This data is current as of July 2021 according to the Insurance Bureau of Canada.
Canadian Auto Insurance Rates by Province
Quebec – $710 Average Annual Premium
- Quebec has the least expensive insurance premiums in all of Canada.
- The combination of private and public insurance within the province allows for additional coverage on top of basic insurance packages.
- The no-fault system for accidents limits liability and reduces the overall cost of insurance.
Prince Edward Island – $860 Average Annual Premium
- PEI is considered to have one of the most efficient privatized car insurance systems in Canada.
- Rates remain low in this province due to competition and a decrease in auto insurance claims each year.
New Brunswick – $865 Average Annual Premium
- Auto insurance in New Brunswick accounts for 2.8% of after-tax disposable income – the lowest percentages within the nation after Alberta.
- Insurance reforms in New Brunswick maintain premiums on the lower end of the scale and reward safer drivers.
Nova Scotia – $890 Average Annual Premium
- Nova Scotia experiences 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 run by the provincial government, giving residents no choice when it comes to insurance.
- The province did agree in 2021 to reduce auto insurance rates by 8.8%.
Newfoundland and Labrador – $1,165 Average Annual Premium
- The rise in average annual premiums since 2007 is due to the increase in accident claims and vehicle-related lawsuits (although the average rate is only up $33 since 2018).
- Newfoundland and Labrador offer only private insurance options so rates are competitive.
Saskatchewan – $1,230 Average Annual Premium
- Saskatchewan uses a government-run insurance program.
- Saskatchewan drivers must have third-party liability insurance on their vehicles that provides $200,000 of coverage.
- This province does not take age, gender, or location into consideration when determining rates – only your driving record.
Alberta – $1,310 Average Annual Premium
- In the province of Alberta, insurance expenses only account for 2.7% of disposable income.
- Previously, insurers could only face rate increases of 5% per year, but this cap was removed in 2019.
Ontario – $1,500 Average Annual Premium
- The high insurance rates in Ontario are due to a high frequency of claims, lawsuits, and injuries.
- There are also high levels of fraud and organized crime that impact private insurance companies.
- Overall, the higher rates in Ontario can be contributed to the fact that this province has 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 runs a break-even profit system, but operational costs often outdo revenues.
- However, in spring 2021 the Insurance Corporation of BC reduced premiums by around 20%.
How to Save Money On Your Car Insurance
While you can’t change the average annual premium in the province you call home, there are certain things you can do to lower the cost of your car insurance:
- Increase your claims deductible amount to lower your premiums. This means you will pay more out of pocket when making a claim, so it is a bit risky.
- Consider dropping collision coverage from your policy if you own an older car. You’ll likely get less if you total your car than you’ll save on your coverage.
- Combine your car insurance with your home insurance. Many insurance companies offer discounts for multiple products.
- Check out usage-based insurance which bases your insurance rates on your driving habits.
- Take a driver’s training course. In some provinces (Alberta included), a driving certificate can qualify you for an insurance discount.
- Keep your driving record clean – many provinces base their rates on your driving record and even offer discounts for every year you are claim-free.
- Consider the cost of insurance before purchasing a vehicle. Some vehicles are cheaper to insure than others.
- Some insurance companies will discount your insurance rates if you install an anti-theft system in your vehicle.
- Drive your vehicle less in order to qualify for low-mileage discounts.
- Pay your premiums in full each year to avoid monthly administration fees.
Most importantly, you should always shop around for insurance before signing any papers. Many companies, including ARC Insurance, are more than happy to offer you a free quote to help you get started!
Car Insurance in Alberta
ARC Insurance is proud to offer a variety of insurance needs in the Edmonton area! Our expert team of brokers is ready and available to provide you with a quote or to answer any questions you may have.
Your insurance policy should not break the bank or prevent you from purchasing a vehicle. Get in touch with us today and we can help you find the perfect insurance product to meet your unique and individual needs.