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Cheapest Insurance Toronto

Toronto car insurance quote is based on multiple criteria.

This is why insurance rates vary from company to company, from model to model.

It is worthwhile to "know thy enemy" to learn how to reduce your insurance rates in Toronto.

While most of these criteria are out of your control, there are a few things you can change in order to find a cheap car insurance in Toronto Canada.

Types of Car Insurance in Toronto

By now you probably know that car insurance is mandatory in Canada.

You are not obliged, however, to insure your car from "head to toe". If you own a cheap second-hand car, you could opt for very basic coverage.

Before you jump on the first "deal", read about the criteria and to make wiser decisions and pick the best Toronto car insurance quote.

There are three basic insurance types of car insurance in Toronto Canada.

Remember: If you own your car, you can only insure the liability, but if you lease or finance it, you MUST buy all three coverage plans.

  • Mandatory: Liability covers bodily injury or property damage caused to the third party by the insured driver. You cannot drive in Toronto without this basic coverage, so this applies to any car you want to insure.
  • Optional: Collision covers the insured car's damage which is a result of a collision. Think carefully before you decide to go with this option. In Canada, if you ever cause an accident (collision), and turn to your insurance company to fix the damage, your rates will raise dramatically. If the collision was caused by the other driver, your rates will not change. So including this onion into your Toronto car insurance quote is worth it if you have a brand new car. But if you are buying a cheap second-hand car for around $2000-$3000, paying extra $20-30 for collision coverage may not be worth it. It's up to you to include it or not.
  • Optional: Comprehensive covers all other incidents such as theft, fire, vandalism and so on. Again, if you buy a cheap car, it may not be worth in the long run to buy this plan.

What criteria affect Toronto Car Insurance Quote

Insurance brokers use multiple factors to determine Toronto insurance rates. Every insurance broker uses different criteria to calculate the quote, so individual brokers might offer the cheapest quote in one situation, and the most expensive in the other. It pays to shop around!

Car insurance in Toronto Canada - a picture of a highway in Toronto
  • Make, model, year, type (2 door, 4 door, hatchback), color (for some reason, red may be more expensive) of the car. Generally, American and Korean cars are cheaper to insure than Japanese cars.
  • Toronto neighborhood where you live: in criminally dangerous areas Toronto insurance rates are much higher. Usually if you live not in Toronto, but in the GTA, the rates will go down. The farther you have to drive from Toronto, the cheaper your rates. Vaughan and Markham have approximately the same rates, however - you have to live much farther, somewhere in Aurora or Durham to notice the difference.
  • Distance to work. Insurance brokers usually ask how many kilometers per day you drive. Naturally, the longer the distance - the higher the Toronto car insurance quote.
  • Primary use of the car. They will ask you if you only drive to and from work twice a day, or use it FOR work (for example, driving to your clients located in various places).
  • Age - for young drivers insurance rates are MUCH higher. Toronto car insurance quote usually goes down with age, if the driving history and everything else is OK.
  • Marital status - married people are considered to be safer drivers. Remember, however, that if you get a joint car insurance in Toronto Canada, and one of you gets a ticket or causes an accident, the insurance rates will go up for both of you. It may be worth paying a bit more for separate policies.
  • What type of license (G, G1, G2) you have and how long you have had it. Don't wait with getting your full G license - you might not notice the difference in Toronto insurance rates right away, but it will pay off in the long run.
  • Tickets received and accidents caused in Canada - in that case your quote for car insurance in Toronto Canada will raise considerably. Read my tips on how to reduce your
  • Deductibles - the amount of money you will pay yourself in case of an accident or other insured even. The higher your deductible is, the cheaper your Toronto car insurance quote will be. It may be worth to go for a higher deductible. In case of at-fault accident, turning to your insurance company to repair the damage will cause your rates to go up.

Also note that some companies offer an optional accident protection plan. This means that they will "forgive" you in case of an at-fault accident. This might seem like an extra expense, but remember that if you ever cause an accident, your insurance rates will at least double for 3 to 4 years!

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