No two Canadian provinces are alike. So, it’s not surprising that each province handles auto insurance differently. Maybe you’re moving or travelling out of province for an extended period. Or maybe you’re just curious how much other Canadians pay for car insurance. From coverages to cost to how it’s managed, we’ve outlined the basics about car insurance across (most of) Canada.
Is car insurance mandatory in Canada?
Yes! You must have car insurance to legally own and drive a car in Canada. Whether it’s public or private insurance, you have to have at least the minimum required coverage to drive.
Private vs. public car insurance – what does it mean?
Newfoundland and Labrador, Nova Scotia, P.E.I., New Brunswick, Ontario, Alberta and Quebec all have private insurance. (Quebec’s is a little different – but we’ll explain why a little later.) Private insurance companies compete against each other for your business. As a customer, you can shop around and choose which one best suits your needs. This means comparing coverages and customer service – and who’s got the best price, of course.
B.C., Manitoba, and Saskatchewan have public insurance. The provincial governments run it, along with other services. Coverage options are more limited. But, you can still add some extra coverages if you wish.
Here’s how car insurance differs by province:
British Columbia
Cost: The average cost of car insurance in B.C. is determined by ICBC.
Mandatory coverage in British Columbia:
• Third party liability
• Enhanced accident benefits
• Underinsured automobile protection
• Inverse liability protection
• Basic vehicle damage coverage
How does car insurance work in British Columbia?
The Insurance Corporation of British Columbia (ICBC) is B.C.’s public insurance provider, and you’ll buy your policy through an Autoplan broker. ICBC doesn’t just deal with auto insurance. You’ll also get your driver’s license and registration through them (among many other services). The
Click here to check out ICBC’s website for everything you need to know.
Saskatchewan
Cost: The average cost of car insurance in Saskatchewan is determined by SGI.
Mandatory coverage in Saskatchewan
• Physical damage coverage for your vehicle
• Third party liability for damage to other vehicles, property or injury to others
• Personal injury coverage if injury results from a vehicle collision
How does car insurance work in Saskatchewan?
Saskatchewan Government Insurance (SGI) covers all vehicles in the province. Every driver must have basic plate coverage. When you register a vehicle in this province, you just pay a flat fee for basic insurance. It includes the mandatory coverage you need to legally drive. You can always buy extra damage and/or liability coverage through a broker, if you want to.
The default plan also includes no-fault personal injury coverage in its basic package. But, you can actually opt-out of no-fault and choose a tort (or “at-fault”) policy instead. Switching would mean that not as many expenses are covered by the policy, but it allows you to sue (or take to court) the other person involved.
With both no-fault and tort, there are exceptions to what’s covered.
Manitoba
Cost: The average cost of car insurance in Manitoba is determined by MPI.
Mandatory coverage in Manitoba:
• All-perils
• Third-party liability
• Personal Injury Protection Plan (Manitoba’s version of accident benefits)
How does car insurance work in Manitoba?
Manitoba’s mandatory coverage is called Autopac, provided through Manitoba Public Insurance (MPI). MPI also takes care of licensing, registration, and more. You can get your insurance through an Autopac broker. Coverage for damage to your vehicle is included in your Autopac plan under All-perils. But, you still have the option to add on things like rental car insurance. You can even add extra coverage for high-value cars (since Autopac will only pay up to $70,000 for the value of a vehicle).
Did you know? Manitoba uses a driver safety rating system for car insurance discounts. If you have merits (meaning you’re a good driver), you’ll get a discount on your driver’s license and your insurance costs. If you’ve reached the max of 16 merits, you can get up to a 37% discount! But of course, if you have demerits you won’t qualify for a discount.
Want to know more about MPI?
Alberta
Cost: The average cost of car insurance in Alberta is $191/month.
Mandatory coverage in Alberta:
• Third party liability
• Accident benefits
• DCPD (Direct Compensation for Property Damage)
How does car insurance work in Alberta?
As with all private insurers, you have to have at least the minimum coverage. Then, you can add on your optional coverages as you need them. These include extras like collision, comprehensive, and coverage for a rental car if you get into an accident and need a backup set of wheels.
Most auto policies in the province include an endorsement called SEF 13D. This limits coverage for damage to glass caused by rocks, chips, and other debris. Now, Alberta is known for hailstorms. And, it has more than your average number of rocky, gravelly roads. This means windshield damage is common – which could also mean a lot of glass claims for you, along with higher insurance payments.
So what’s the point of SEF 13D? Well, if you have it you could pay much, much less for your comprehensive coverage. Some insurers even reduce it up to 50%. That’s because you’d be responsible for paying for damage to your glass – like windshield chips from flying rocks. Keep in mind you might need a higher level of glass coverage, so SEF 13D isn’t for everyone. Speak with your insurer to find out what will work best for you.
Did you know? On January 1, 2022, Alberta became the latest province to adopt the DCPD model. With DCPD, a driver is compensated directly through their own insurer for
Ontario
Cost: The average cost of car insurance in Ontario is $196/month.
Mandatory coverage in Ontario:
• Third party liability
• Accident benefits
• DCPD
• Uninsured automobile protection
How does car insurance work in Ontario?
Auto policies from private insurers in Ontario are heavily regulated by the FSRA. The provincial government outlines a standard auto policy that companies need to align with. It always includes liability, accident benefits, uninsured automobile protection, and DCPD. You can get collision, comprehensive and other extras. In terms of saving, a nice bonus is the Ontario winter tire discount!
Ontario was also one of the first provinces to approve user-based insurance (UBI) – or pay-as-you-drive insurance. UBI can help cut insurance costs if you’re driving less. Plus, it rewards you for being a good driver. But, a recent update to the Ontario UBI guidelines means you can also be penalized for poor driving. And, you could pay extra if you’re driving a lot more than usual. If switching to UBI interests you and you live in Ontario or another province that offers it, talk to your insurer. They’ll help you decide if it’s right for you.
Québec
Cost: The average cost of car insurance in Québec is $78/month.
Mandatory coverage in Quebec
• Accident benefits (provided by the SAAQ)
• Civil liability
How does car insurance work in Québec?
The SAAQ doesn’t cover other kinds of damage – like damage to your car, or to someone else’s. For that, you’d have to get civil liability and other coverages from a private insurer. Civil liability covers damage to other people’s property (like their car). It could also cover some injuries you cause that aren’t covered by the public plan. And, it covers damage to your car if you’re not at fault. You can also buy collision through private insurance to cover damage to your vehicle if you are at fault (since the SAAQ won’t cover that), along with other optional coverages.
Quebec’s plans can be pretty tricky to understand. Lucky for you,
Newfoundland and Labrador
Cost: The average cost of car insurance in Newfoundland and Labrador can vary. Get quotes from different companies to see how much you might pay.
Mandatory coverage in N.L.:
• Third party liability
• Uninsured motorist
• DCPD
How does car insurance work in Newfoundland and Labrador?
This is the only province with private insurance where medical, funeral, disability and death benefits coverages are optional for drivers. But of course, they’re highly recommended. Without them, you’d be left to pay out of pocket for injuries. It also covers death expenses if the worst should happen – a burden nobody wants to bear after a tragedy. If you want more coverage for your car, you can add things like collision and comprehensive, along with other optional extras.
New Brunswick, Prince Edward Island and Nova Scotia
Cost:
• Average cost of car insurance in New Brunswick: $144/month
• Average cost of car insurance in P.E.I.: $116/month
• Average cost of car insurance in Nova Scotia: $134/month
Mandatory coverages in all three provinces:
• Third party liability
• Accident benefits
• Uninsured automobile protection
• DCPD
How does car insurance work in New Brunswick, Nova Scotia and Prince Edward Island?
Each of these three provinces is beautifully unique – but, their private car insurance plans are pretty similar. This is why we’re grouping them together. All three provinces offer private insurance and have more or less the same mandatory coverages. And you’ll expect to pay about the same amount too. In each province, you can enhance your policy to cover damage to your car. Plus, you can also always add extras like rental car coverage, and more.
Did you know? Life as a new driver isn’t cheap. New Brunswick has a unique discount where new drivers applying for their license can receive the “First Chance Discount” on their policy for up to 6 driving years. The discount gives new drivers a break when starting to pay for insurance – provided they keep a clean record for those 6 years.
We hope this overview helps! It’s a good idea to learn about your own province’s mandatory and optional coverages. You’ll want to make sure you’re fully protected. If you’re moving to a new province, don’t get stuck scrambling for new insurance after you move. Do your research before the move so you can switch without a hitch. If you’re travelling out of province or out of the country, you should also find out how your coverage could be affected. Contact your insurer about your car and how you use it. They’ll help you find a plan that works best for you.
Have more questions about your insurance? Get in touch! We’re always happy to help.