Current State of Auto Insurance in Ontario (As of 2025)
1. Premiums Are on the Rise
- Average auto insurance premiums in Ontario increased by 4.10% in the first half of 2025 compared to the same period in 2024.
- Some cities have seen double-digit increases:
- Kingston: +14.73%
- Barrie: +13.78%
- Windsor: +12.69%
- Innisfil: +12.15%
- Belleville: +11.92%
2. Significant Rate Differences by City
- Brampton remains the most expensive city, with an average annual premium of $3,341 (↑ 11% YoY).
- Meanwhile, some cities saw slight decreases:
- Markham: −7.05%
- Mississauga: −2.17%
- Richmond Hill: −2.12%
- Toronto: −1.06%
3. Key Drivers of Premium Increases
- Rising repair and parts costs, especially for vehicles with advanced safety tech.
- Surge in vehicle theft, particularly luxury or high-demand models.
- Insurance fraud (e.g., staged collisions) continues to be a major issue.
- Higher liability and accident benefits payouts.
- Inflation impacting repair, labor, and replacement costs.
4. Regulatory & Government Actions
- The Financial Services Regulatory Authority of Ontario (FSRA) has introduced enhanced fraud reporting requirements to tackle fraudulent claims.
- The Ontario government is investing in crime-fighting efforts to combat organized auto theft (e.g., funding police forces and aerial surveillance).
5. Consumer Sentiment Remains Fairly Positive
- Despite rate increases, satisfaction levels remain strong:
- 82% of Ontario policyholders report being satisfied with their auto insurance provider.
- 76% say they trust their insurer.
- Key drivers of satisfaction include:
- Claims experience
- Transparency
- Communication around policy documents
6. Trends to Watch
- Localized pricing will likely become more refined based on theft, traffic, and accident data.
- Bundling discounts (auto + home) are increasingly popular as a way to offset rising costs.
- Consumers are comparison-shopping more, using online tools to find the best rates and possible cash rebates or loyalty rewards.