The Canada car insurance market is very competitive. Choosing which insurance policy can be a hell of work, at the same time; the law mandates all motorists to be covered by an insurance policy.

Policy premiums vary from one provider to the next, which is why you have to shop around and compare different quotes to help you choose the best provider at the time.

There are four types of car insurance policies:

1. Third-party liability insurance

This is a mandatory policy which every driver has to hold in the roads of Canada. It provides coverage in the event of a lawsuit resulting from an accident where you are at fault, It also covers any damage caused by you to someone else’s car, or pays for a third party’s death or injury. The minimum amount of third-party liability insurance you have to purchase varies, depending on the province you are in. However the average premium per year in most provinces is $200,000.

2. Collision insurance

In a case where you’re involved in an accident, this insurance covers the actual cash costs of repairing or replacing your car. Although it’s not compulsory, getting it will save you money during unfortunate instances. Most drivers choose not to get this type of insurance because they have cars of low value and not worth fixing. However, for new drivers with new vehicles it is highly recommended to get the collision insurance.

3. Comprehensive insurance

Comprehensive insurance covers the actual cash costs of repairing or replacing your vehicle scenarios of unexpected circumstances like fire, flying objects, natural disasters, vandalism or theft.

4. All perils insurance

This is a combination of the collision and comprehensive insurance.

Factors to consider

Before taking you to the list of best car insurance companies, it is fair to share with you a few things to keep in mind when choosing car insurance.

  • Look beyond just the cost

The cheapest insurer is not necessarily the best you have, check the scope of you insurance policy to make sure you a really covered. Look at the coverage, deductibles, and other fees and terms.  Read website reviews to hear what the company’s active clients are saying about the services they are receiving.

  • Consider your circumstance

If you are a new driver and just got a new car, you might want the insurance to fully cover you, whereas if your car is old, you would want to get the cheaper policy to avoid paying more than what your car is worth.

  • Take advantage of discounts and packages

Most insurance companies would offer you lower premiums if you have other family members signing up with them, you can get your children or spouse to sign up so that you pay less.

10 best car insurance companies:

  1. Intact Financial Corporation
  2. TD Insurance
  3. Co-operators Insurance
  4. Belairdirect Insurance
  5. Desjardins General
  6. Aviva Canada
  7. RBC Insurance
  8. Sonnet
  9. Economical Insurance Group
  10. Wawanesa Mutual Insurance

Intact Financial Corporation

Intact Insurance is Canada’s largest home, auto and business insurance company, with more than four million signed up clients. The company offers discounts to car insurance policy holders for various factors. When you have many vehicles insured with Intact you may get a discount. Also, if you bundle your car and home insurance policy you might qualify for a 17.5% discount. They have a solid financial stability allowing them to offer a 30 minutes claim guarantee and a 24 hours claims support.

TD Insurance

TD Insurance is part of the TD Bank Group, one of Canada’s largest financial services organizations. Each claim free year may reduce your deductable by 10%. There are also discounts for bundling your car and home insurance or if you drive an electric or hybrid. TD Insurance also offers discounts when you insure two or more vehicles and if you install an anti-theft system.

Co-operators Insurance

The Co-operators Group Limited is a leading Canadian multi-line insurance and financial service co-operative with over $41.7 billion assets under management. You may get 5% – 25% initial savings when you sign up for their telemetric program. You can choose to receive your claims payments either by cheque mailed to your home address or Interac e-Transfer for claims payments up to $10,000.

Belairdirect Insurance

In 1997, belairdirect became the first car insurance company in North America to offer an online car insurance quote directly to its clients. You can save up to 15% on your car insurance for low mileage and up to 15% for safe driving. The low mileage discount is good to consider if you are rarely driving long distances.

Desjardins General

Desjardins Insurance is a trademark used by Desjardins General Insurance Group (DGIG), which was founded in 1944. Whether the accident is your fault or not you pay no deductible when making a claim. There is also an Accident-Free Protection, meaning, car insurance premium won’t increase as a result of your first at-fault accident. Get 5% discount if your car is equipped with four winter tires. Full-time students less than 25 years could get up to 10% discounts. If you safely park your vehicle in your garage or private driveway, that could get you an additional discount.

Aviva Canada

In 1835, the first Canadian-based Aviva heritage company, ‘Canada Accident Assurance’ Company was incorporated followed by the incorporation of The General Accident Assurance Company of Canada in 1906.the company gives you exceptional savings, reliable coverage and auto insurance the way you want it. There is up to 15% discounts for bundling insurance policies, being a retiree, insuring more than one vehicle and maintaining good driving record.

RBC Insurance

In 2016 Aviva Canada Inc. acquired an RBC division of home and auto insurance through a $582-million deal for RBC General Insurance Co. The two former rivals also struck a 15-year arrangement allowing RBC to continue selling products under its existing brand name. RBC offers up to 12% discounts when you bundle policies and up to 5% for an online quote.


Sonnet is Canada’s 100% online home and auto insurance company. The company has pre-set packages which you can customize to fit your own needs. There are discounts for equipping your car with winter tires, families with multiple drivers, retirees, and bundling your home and car insurance.

Economical Insurance Group

The Economical Insurance Group started operations in 1871 and their claims satisfaction survey score around 93%. There are rewards smart, safe, and loyal drivers with better rates.

Wawanesa Mutual Insurance

Wawanesa Mutual Insurance started to offer auto insurance in 1928 and have since maintained a fair and quick claims procedure. The company has competitive insurance prices that other companies can’t even come close to.

What affects the cost of car insurance?

Insurance companies consider the following before giving you a quote:

Age and gender, the young and elderly often pay higher rates. In Canada, women drivers pay about 5% lesser as compared to men.

You province, drivers in cities usually pay higher insurance premiums than in those rural areas because the risk of accidents and theft is greater.

Type of vehicle, The age, make, model of your car and potential cost of repairs are all taken into account. Premiums for a European sports car will cost more than a modest, domestically made sedan.

Driving history, Insurers will look at any past car insurance claims you’ve made, as well as tickets and other driving violations. Hence it is important to maintain an impressive driving history by adhering to road rules and speed limits.

Car usage, how often you drive and how you use your vehicle are considered. A daily commuter will pay more for insurance than someone who drives only occasionally for personal use.

Safety equipment, the insurers will look if your car have air bags, car alarm and winter tires during the season. These reduce chances of perils, hence low premiums.

We hope this article gave you a clear picture of how to get the best car insurance. You might also consider using online insurance search platforms, these will help you get multiple quotes from just one application.  

By Parddon Khumalo

Parddon Khumalo is personal finance expert. His primary focus is banking but also tends to venture into wealth creation, fintech and data analytics.

Leave a Reply

Your email address will not be published. Required fields are marked *