To find the best car insurance in Canada, start by comparing quotes from multiple providers and assessing the coverage options, including liability, collision, and comprehensive insurance. Additionally, look for companies with strong customer service, high claims satisfaction, and available discounts that suit your driving habits and needs.
Key Takeaways
- Sonnet Car Insurance and TD Auto Insurance are the best car insurance products in Canada, based on prices, quick quotes, and customization options.
- Car insurance is mandatory in Canada, where all drivers must at the very least have liability coverage and accident benefits.
- Collision and comprehensive insurance are considered standard, even if not legally mandatory.
Best car insurance in Canada 2025 winner: Sonnet Car Insurance and TD Auto Insurance
Our pick for the best car insurance in Canada for 2025 is a tie between Sonnet Car Insurance and TD Auto Insurance. Both options have great online platforms, flexible policies and plans, competitive rates, and excellent service.
Both insurers process claims quickly and have 24/7 support. Drivers can rely on these services to get the protection they need on the road without paying for unnecessary extras.
How we picked the best car insurance
To evaluate car insurance products, we analyze over 20 data points to generate a trustworthy Genius Rating. We consider all aspects of a car insurance plan, including its accident forgiveness policies, overall coverage, variety of perils coverage, customer satisfaction, and the option to have a disappearing deductible, to assess its overall value. Then, the car insurance plan’s features are rated based on how they stack up against other available options.
Accident Benefits / Bodily Insurance
Emergency Road Service
Accident Forgiveness
Replacement Value For Total Loss
Sonnet Car Insurance is a fully online insurance provider offering home and auto coverage, backed by Definity Financial Corporation. Their biggest draw is competitive rates on car insurance, made possible by their online model that passes savings directly to customers. Sonnet promises an auto insurance quote in just 5 minutes after answering a few easy questions.
Pros
- Ticket forgiveness and other perks
- A user-friendly digital experience
- Fast, precise quotes
- Vroom service bundle and other customization options
Cons
- Mixed online reviews
- Unexpected rate hikes
- Not available in all provinces
- No in-person opportunities
Provinces
PE, NB, NS, ON, QC
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Get a quick quote online for competitive rates + Add on optional coverages.
Special Features
- Optional coverage that provides reimbursement for roadside assistance expenses
- Company is committed to achieving net-zero emissions by 2040
Liability Insurance
Accident Benefits / Bodily Insurance
Collision Insurance
Comprehensive Insurance
Emergency Road Service
Uninsured Motorist Coverage
Direct Compensation Property Damage
All Perils
Specified Perils
Accident Forgiveness
Replacement Value For Total Loss
Family Protection
New Vehicle Protection / Depreciation
Loss Of Vehicle Use Endorsement
Rented Or Borrowed Car Protection
Ride Sharing
Conviction Protection / Ticket Forgiveness
Disappearing Deductible
Accident Benefits / Bodily Insurance
Emergency Road Service
Accident Forgiveness
Replacement Value For Total Loss
TD auto insurance is one of several types of insurance coverage offered by TD Insurance. With a comprehensive array of options available to drivers in most of Canada, TDs car insurance has something to offer for pretty much everyone.
Pros
- Comprehensive offering
- Reasonable rates
- Claims Free Reward
- Save with TD MyAdvantage
- Disappearing deductible
- Backed by a big bank
Cons
- Not the lowest rates you’ll find
- Doesn’t cover ridesharing or delivery work
Provinces
AB, NB, NL, NT, NU, NS, ON, PE, YT, QC
Eligibility
- Canadian citizen
- Age of majority
Why You Want It
Membership discounts for 750+ groups + Save with TD MyAdvantage.
Special Features
- Save an average of 30% when you're claims-free
- Convenient TD Insurance app
- TD MyAdvantage driving program rewards safe drivers
- Save 5% on car insurance when you buy online
Liability Insurance
Accident Benefits / Bodily Insurance
Collision Insurance
Comprehensive Insurance
Emergency Road Service
Uninsured Motorist Coverage
Direct Compensation Property Damage
All Perils
Specified Perils
Accident Forgiveness
Replacement Value For Total Loss
Family Protection
New Vehicle Protection / Depreciation
Loss Of Vehicle Use Endorsement
Rented Or Borrowed Car Protection
Ride Sharing
Conviction Protection / Ticket Forgiveness
Disappearing Deductible
What is car insurance?
Car insurance is an agreement between a driver and an insurance company – in exchange for monthly payments (premiums), the insurer covers the driver against financial losses resulting from a car accident.
Insurance can help protect you financially if you're found at fault for damage to other cars or injury to other people. Car insurance can also protect you from expensive repair damage to your own car caused by accidents or vandalism.
However, if you decide to let someone else drive your vehicle and they’re not included on your insurance policy, any accidents that occur may be your responsibility – not the driver’s.
No cheaping out – car insurance is mandatory
Canadians aren't given the option to live dangerously – it's mandatory for vehicle owners in all provinces and territories to purchase car insurance.
But the type of auto insurance you purchase is up to you, for the most part. All Canadians are legally required to purchase liability insurance and accident benefits. Anything beyond that is up to you.
Why is it a requirement? Insurance provides extra protection for everyone involved in a car accident – the drivers, passengers, and the vehicles themselves. Without it, the involved parties could face significant out-of-pocket expenses, both for the repair or replacement of vehicles and the medical treatment of injured parties.
Standard car insurance coverage
Every auto insurance policy covers different things. Details range from policy to policy, but there are commonalities among most.
The most common policy aspects are those required by the government. However, a few others have become standard.
Here are four examples of coverage you'll get pretty much anywhere:
Liability car insurance
Liability insurance covers damage caused by your car to other people and vehicles. If you're found at fault for an accident, your liability insurance will cover the other party’s medical bills and legal fees, plus repairs to their car.
It's important to note that liability insurance doesn’t cover damage to your own vehicle, so you'll have to rely on other parts of your coverage for those repairs – or pay them out-of-pocket.
Car insurance collision coverage
In the event of an accident, collision insurance covers damage to your own vehicle.
It'll cover damage to your car in a collision, be that with another car or an object. You can also be covered in the event of a rollover.
This is often included with mandatory coverage but not always, so be sure to ask your insurance company if it's something you'll need to add.
Car insurance accident benefits coverage
Accident benefits will cover any medical expenses resulting from a car accident, plus any loss of income if you can't work for a while afterwards.
If you live in Quebec, you're automatically enrolled for bodily injury insurance, which is essentially the same thing. Your premiums are paid as part of your driver's license registration, so no need to worry if you don't see this on your car insurance paperwork.
Comprehensive car insurance
For everything else life can throw at you and your car, comprehensive insurance is available to help you out.
This covers damages that aren't related to collisions, like:
- Vandalism and theft
- Extreme weather (tornados, earthquakes, etc)
- Falling objects
- Fire
- Flooding
Optional car insurance coverage
On top of standard insurance coverage, you can add some extras to your policy. Just be wary that these will cost you extra, and oftentimes may not be worth it.
Insurance companies call these extras "riders." Here are 13 examples:
- Emergency roadside assistance
- Uninsured motorist coverage
- Specified or all perils insurance
- Direct compensation property damage
- Accident forgiveness
- Replacement for total loss
- New vehicle protection
- Loss of vehicle use
- Rental car insurance
- Ride-sharing insurance
- Ticket forgiveness
- Disappearing deductible
- Family protection car insurance
1. Emergency roadside assistance car insurance
If you're ever stuck on the side of the road because your car broke down, emergency roadside coverage will cover the costs of getting your car running again.
Whether you need a tire change, a tow, or locksmith assistance, this coverage can provide peace of mind.
2. Uninsured motorist coverage
If you're hit by a driver without insurance or who's underinsured, or if you're involved in a hit-and-run accident, uninsured motorist coverage covers damages that driver’s insurance would've paid for.
Since all drivers are required to have a minimum amount of auto insurance, this will be most helpful in a hit-and-run situation, or if the other party's insurance can't cover the full cost of repairs.
3. Specified or All Perils insurance
Specified Peril and All Peril are two different types of coverage, and yet they’re the same.
"Perils" include wildly unpredictable things that damage your vehicle, such as:
- Fire
- Lightning
- Explosions, riots, or other civil disturbance
- Aircrafts falling or being forced to land
- Aircraft parts that fall
- Earthquakes
If you opt for Specified Perils (sometimes also called Named Perils), your insurance will only cover the individual perils listed in your policy.
You can also opt for All Perils (or All Risk) coverage, which means that if any or all of these perils occur, your insurance will take care of it.
4. Direct compensation property damage insurance
This is mandatory in a few provinces:
- Alberta
- New Brunswick
- Newfoundland
- Nova Scotia
- Ontario
- Prince Edward Island
- Quebec
It protects against losses and damages after an accident that wasn't your fault – your insurance will pay for the damage to your vehicle even if it was the other driver who caused it.
5. Accident forgiveness car insurance
If you have a clean driving record and have never made a claim for an at-fault accident, your premiums will be lower.
If you do end up having your first accident, accident forgiveness prevents your premiums from rising. If you get into another accident afterwards, that will be treated as your first accident.
6. Replacement for total loss
With this optional insurance, you could receive the full replacement value of your car in the event that it's totalled in an accident.
7. New vehicle protection insurance
This insurance will replace your new vehicle with the same model, or one of similar value to your car if it is totalled in a crash.
Without this coverage, a new car totalled in a crash would only be covered according to the car’s current value – this includes depreciation, which chips away at the value of your new car the moment you drive it off the lot.
8. Loss of vehicle use
If you get into an accident and can't use your car for an extended period of time, this insurance covers the cost of alternate transportation, including renting another car.
9. Rental car insurance
This protection covers damage to a rented car or one borrowed from a friend.
If you rent cars frequently, this coverage can save you big time over the course of any rental. Rental car companies can charge $30 or more per day for insurance. With this option, you can save yourself $200 or more over what the rental car company would charge.
Rental car insurance may not be as convenient as using the rental agency's insurance. But it can be worth the extra hassle to save a significant amount of money.
Always check to see the details of this coverage – you may only be covered for a vehicle similar to what you own.
Also, with the right credit card, this type of insurance may be included. One point to note – this is secondary coverage. Other insurance takes precedence over what a credit card provides.
10. Ride-sharing insurance
If you're an Uber or Lyft driver, this type of insurance is tailor-made for you. It provides coverage for any accidents that occur between accepting a job/trip and reaching the rider's destination.
Standard car insurance usually doesn't cover commercial or for-profit use of your car, so this may be worth considering.
11. Ticket forgiveness insurance
Your first ticket can cause your premiums to increase because it is treated as an indication of unsafe driving, marking you as an at-risk driver.
Ticket forgiveness, or conviction protection, ignores your first (mild) conviction and ensures your premiums don't go up.
12. Disappearing deductible car insurance
With disappearing deductible insurance, every year you don't make a claim your deductible will go down without increasing your premium.
13. Family protection car insurance
This provides financial protection for any uninsured family members hurt or killed in a car accident you were also involved in.
How much does car insurance cost?
To find out how much car insurance will cost you, you'll have to get a quote directly from an insurer itself, or from a site that consolidates quotes.
To give you an idea of what you might be paying, here's a look at the average annual rates per province:
| Province/Territory | Average rates (yearly) |
|---|---|
| Alberta | $1,578 |
| British Columbia | $1,832 |
| Manitoba | $1,200 |
| New Brunswick | $1,014 |
| Newfoundland and Labrador | $1,251 |
| Northwest Territories | $1,050 |
| Nova Scotia | $1,066 |
| Nunavut | $1,033 |
| Ontario | $1,927 |
| Prince Edward Island | $885 |
| Quebec | $857 |
| Saskatchewan | $1,235 |
| Yukon | $889 |
Sources: Thinkinsure
What factors are considered
But when it comes to you specifically, your monthly premium will be based on a variety of factors.
According to the federal government's info on car insurance, these are some of the main factors that determine your insurance rate:
- Your age and gender
- Where you live
- What car you drive
- How often you drive and for what distance
- Your driving record and claim history
- The type of coverage you're looking for
- The amount of your deductible
What are car insurance deductibles?
Understanding your insurance deductibles means understanding what a deductible is: it's what you agree to pay before insurance covers the rest.
Say you get into an accident that costs you $2,000 in repairs. You have a $500 deductible on your accident benefits insurance – you pay $500 out of pocket and your insurance company handles the rest.
A good rule of thumb is to aim for a $500 to $1,000 deductible. Going higher will likely mean your premiums are less, which can save you money in the long run.
How to save on car insurance
Here are some tips to save on car insurance.
- Bundle insurance for all your cars with the same provider for bundle discounts
- Bundle your car and home insurance to get a discount
- Increase your deductible as much as you're comfortable
- Consider removing collision coverage if you drive an older car – It'll only cover up to the current value of your car, so if your car’s age means it isn't worth much anymore, you won't get much value out of the coverage if an expensive accident occurs
- New drivers should consider taking a driver's training course
- Have anti-theft devices installed
- Pass up on the little, optional coverages for specific situations you most likely won't encounter
Editorial Disclaimer: The content here reflects the author's opinion alone, and is not endorsed or sponsored by a bank, credit card issuer, rewards program or other entity. For complete and updated product information please visit the product issuer's website.
FAQ
What is car insurance?
Car insurance covers you and your vehicle in case of accidents, vandalism, and other unexpected mishaps. This type of insucane can also provide coverage in the event you’re at fault for any accidents while on the road.
What different types of car insurance coverage are there?
There are four main types of car insurance coverage: liability, collision, accident benefits, and comprehensive insurance. While only two of these are mandatory in Canada – liability insurance and accident benefits – the other two are highly recommended.
Where can I get car insurance quotes?
You can always get a car insurance quote by directly contacting individual insurance providers. You can also check out sources online that provide multiple quotes. Lowestrates.ca and Thinkinsure.ca are two sites that offer this service.
Who has the cheapest car insurance rates?
Your rate depends on where you live, your age, and the type of car you drive. You may be eligible for discounts on insurance if you’re a member of an alumni association, professional network, and/or trade organization too.
What's the best car insurance Ontario has to offer?
The best car insurance comes from Sonnet Car Insurance, but each person wants and needs different coverage options, so it's hard to say what's best for you. Review what's mandatory in your province and consider which optional insurance types you need.
How can I find the best car insurance near me?
Using an online comparison site can help you with this, or Google "best car insurance rates in…" using the name of your city or province. You can also keep rates low by bundling with any other forms of insurance together.
Learn more about insurance products
Want to see more insurance options for you? Here are some top products we've looked at.
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