Average Car Insurance Rates Across Canadian Provinces

Average Car Insurance Rates Across CanadaCar 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.

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 - $695 average annual premium

  • Considered one of the most efficient privatized car insurance systems in Canada
  • Rates appear to be declining thanks to competition & a decrease of auto insurance claims each year

8. New Brunswick -         $728 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  

7Nova Scotia -             $735 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. Newfoundland & Labrador - $749 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.

5Alberta –                   $1,004 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.
  • When looking at costs in this point of view, Alberta’s auto insurance rates can be seen as the second most affordable in the country.

 

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4. Manitoba –                 $1,027 average annual premium

  • Cost has fluctuated drastically over the past 5 years, 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 $1,027 average, making the province the 4th most expensive in Canada.

3. Saskatchewan –         $1,049 average annual premium

  • One of the more expensive provinces in the country
  • Rates tend to fluctuate each year as result to changes in the public insurance system

2. British Columbia –      $1,112 average annual premium

  • The most expensive insurance rates out of all publicly run insurance providers in Canada.
  • BC runs a break-even profit system, although operational costs often outdo revenues

1. Ontario –      $1,281 average annual premium

  • 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
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