Hey, Canadian drivers! From snowy Toronto streets to Vancouver’s rainy roads, car insurance is non-negotiable—but it doesn’t have to empty your wallet. In June 2025, rates are climbing in some provinces, but there are ways to save. This article covers the latest rates across Canada, why they’re changing, and practical tips to get the best deal. Let’s rev up and find you some savings!
Car Insurance Rates in Canada: June 2025 Snapshot
The average full-coverage premium in Canada is CAD 1,750/year ($1,250 USD) in 2025, up 13.2% from 2024, per Applied Systems. Rates vary widely by province due to different systems and risks. Here’s the breakdown:
| Province | Average Annual Premium (Full Coverage) | Change from May 2025 | Key Factors |
|---|---|---|---|
| Ontario | CAD 2,050 (~$1,464 USD) | -0.9% | High claims and traffic in Toronto drive costs; private market keeps competition. |
| British Columbia | CAD 1,832 (~$1,305 USD) | -1.1% | ICBC’s public system stabilizes rates, but urban claims raise costs. |
| Alberta | CAD 2,443 (~$1,745 USD) | +0.7% | Weather-related claims (hail, ice) and theft push premiums up. |
| Quebec | CAD 1,112 (~$794 USD) | -0.5% | Public-private hybrid and low accident rates keep costs lowest in Canada. |
| National Average | CAD 1,750 (~$1,250 USD) | -0.8% | Rising repair costs and theft offset competition-driven savings. |
Data Sources: Ratehub, Insurance Bureau of Canada, Surex
Why Are Rates Changing?
Canada’s car insurance rates are up 13.2% from 2024, driven by several factors:
- Rising Costs: Repair costs jumped to CAD 18 billion in 2019 from CAD 6 billion in 1990, fueled by pricier car tech and inflation (2.5% in May 2025).
- Theft and Claims: High-end SUV thefts and urban claims in Ontario and Alberta push premiums up. Quebec’s low rates benefit from a hybrid public-private system.
- Weather Risks: Alberta’s hailstorms and BC’s flooding increase claims, raising rates in those provinces.
- Competition in Private Markets: Ontario’s private insurers compete fiercely, keeping rate hikes moderate compared to Alberta’s volatile market.
Top Tips to Save on Car Insurance in Canada
Keep your premiums in check with these practical tips:
- Compare Quotes: Use Ratehub or Surex to compare 50+ insurers in Ontario or Alberta. Drivers save up to CAD 500/year by shopping around.
- Install Winter Tires: In Ontario, winter tires can cut premiums by 5%. Ask insurers like Intact about discounts.
- Bundle Policies: Combine car and home insurance with providers like TD Insurance to save 10-15%.
- Use Telematics: Apps like Desjardins’ my Drive track safe driving and can lower rates by 20-30%, especially for young drivers.
- Choose a Cheaper Car: Avoid luxury models or high-theft SUVs in Alberta. Pick vehicles with low repair costs to keep premiums down.
What This Means for You
In June 2025, Canada’s car insurance rates average CAD 1,750/year, with Quebec offering the lowest at CAD 1,112 and Alberta the highest at CAD 2,443. Rising repair costs and theft are pushing premiums up, but competitive markets in Ontario and Quebec offer savings opportunities. Use our tips to compare quotes and drive smarter, not harder.
Why We’re Cheering You On
Car insurance costs can feel like a speed bump, but we’re here to help you navigate the road ahead. Whether you’re in bustling Toronto or scenic Quebec, we want you to find coverage that protects your wallet and your ride. Start comparing quotes today and hit the road with peace of mind!
Sources:
- Ratehub: Compare Car Insurance Quotes
- Surex: Car Insurance Quotes Canada
- Insurance Bureau of Canada: Auto Insurance Data
- Moving2Canada: Auto Insurance for Newcomers