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How Does the Car Insurance Calculator Work in Ontario

system-worksIn Ontario, if you get into an accident you will know how important it is to have car insurance. A good insurance policy will help you to mitigate the financial
risks when in a collision. So, it is equally important to get the proper coverage to protect your car against perils. Insurance companies consider several factors while calculating car insurance premiums. The FSCO regulates the car insurance industry and there are many updates done to policy terms and premium ratings on a regular basis. It is very vital to understand the framework within which car insurance premiums get calculated so that you can get the correct level of coverage.

Ontario has one of the highest average car insurance premiums due to the fact that insurance frauds are rampant and the cost of claims settlement per vehicle is pretty is high. Insurance rates are set by bodies such as FSCO. They set the mandatory coverage each car on the road has to carry as per the laws for minimum liability and accident benefits. When you shop for a good deal for car insurance you may approach insurance providers based on word of mouth referrals from your friends or family. It is not an easy task to actually sit down with many insurers to check out the best deal for your car. This is when you may use our insurance calculator for comparing different quotes with multiple insurance providers at our one-stop store online. You may enjoy the following advantages when you use our calculator:

  • Using our insurance calculator will ease the pressure of your mind while purchasing car insurance. It is a difficult task and may take a lot of time to manually check and compute the various combinations of coverage levels. This whole process could be a breeze if you may use our insurance calculator and make your search very efficient and result-oriented.
  • Our insurance calculator is a single-stop place to compare insurance rates from various providers with just some clicks. You may find the perfect deal for your car insurance that fits your needs and budget based on your conditions.
  • Use our calculator and see the difference that it makes to your search for the car insurance deal including all the different combinations you may try out. Just change your criteria and you can clearly watch the difference in your insurance premiums with each change in your coverage.
  • You have no deadlines to meet and appointments to keep when you use our calculator. No hassles and less haggling or negotiating with someone face to face.

How Do Car Insurance Companies Calculate Premiums

car insurance calculator

As per the Insurance Bureau of Canada, the primary factors for calculating premiums are various. Your location, the records of drivers named on your policy, the age, type, and make of the car you drive are the main ones. A vehicle is a big investment for many and insurance premiums are an additional cost.

The kind of Car: While measuring up a car, the repair costs, injury rates etc. are considered. Based on how expensive the car could be, the risk of theft or the probability of a car getting involved in a collision is high. The overall claims experience of various car models is also researched to gather this data.

The Abstract: Your driving records show your driving habits, any claims where you are more than 25% at fault, the license history and convictions, etc. Any impaired driving or speeding violations do show up as well. If you have taken a recognized driver education program it may look good on your abstract.

The Locality: The postal code you live in does matter when calculating car insurance premiums. Bigger cities do project higher collision rates as there are more vehicles on the road. Urban areas also have high theft rates of fancy cars.

Driver’s Age:  In Ontario, insurance premiums in the age range between 16 to 24 years are high. So, age does matter in the premiums rates as experienced drivers mostly steer clear of accidents.

When the insurance provider decides to either increase or maybe lower your car premiums, they have to submit an application in writing with the FSCO. Once FSCO determines the application to be justified and reasonable as per the insurance industry standard criteria, it is approved. The underwriting rules of each insurance company, the calculation method of rates used, and the grounds on which the rate change is requested are very crucial.

Is There Car Insurance Calculator Without Personal Information


You may have to disclose your personal information if you plan to discuss and shop for car insurance. There is no doubt that in today’s world identity theft is rampant. However, you may have to choose your car insurance over privacy. Only then can you assure your peace of mind if you get involved in any loss or damage. The Ontario Transportation Ministry has two databases based on some information you had already disclosed when you applied for your license and when you registered the car. The vehicle database does contain the details of all owners of the car; past and current.

The insurance companies can access all this information after paying a fee to the Ministry. Your personal information is already available so it makes no sense when you try to hide facts or provide false information. The personal information that you may not withhold when you buy car insurance is about you, the car, driving record, active insurance details, and other listed drivers.

Can You Suspend Car Insurance In Ontario

It is possible to suspend car insurance in Ontario due to any reason. If you intend to not operate or use your car for at least 45 days, you may submit the OPCF 16 form to your insurer. This will reduce your coverage level too. If you plan on suspending your car insurance, you may inform your insurer and check their terms. If you lease or finance the car, you may have to keep the collision and comprehensive coverage. Or you may just continue without road insurance until you start driving again. It is important to protect your car if it is in storage from sudden perils such as theft, vandalism, fire, etc.

When you decide to resume driving your car on the roads, you may reinstate coverage by submitting the OPCF 17 form to your insurer. It is very important to check and get your license plates and vehicle permit updated well ahead of driving on the road.

Can You Get Temporary Car Insurance In Ontario

Generally, annual and semimonthly auto insurance policies are sold in Ontario. There are certain insurance companies that provide temporary car insurance in Ontario. The seekers of temporary insurance fall into two categories.

  1. The drivers who are on a visit to Canada may wish to buy a car rather than rent it for various reasons. They may stay in Canada for a short duration of a month or more and prefer to drive.
  2. Drivers are required to get a temporary license plate sticker when transferring ownership and also need temporary car insurance. The gap during a transfer between the car owners could be bridged by a temporary license plate.

Can You Be Denied Car Insurance In Ontario

It is mandatory to have car insurance for a motorist in Ontario. The FSCO regulation stipulates not denying car insurance to any applicant as per the Auto Insurance Consumers’ Bill of Rights. The insurance companies have to submit the underwriting rules that they follow to the FSCO. So, when an insurance provider denies you coverage, the FSCO expects you to inform the reason for denial based on the rule in writing. Any denial of renewal or sale of a policy has to be based on an underwriting rule which is not prohibited as per Insurance Act. There are certain grounds on which you cannot be denied insurance coverage as below.

  • The location or postal code of your residence
  • Your credit history
  • The location of your vehicle
  • Any mental or physical disability that you may have
  • Whether you are a new driver to Canada or got a new license.

Some insurance companies may refuse to sell you a policy if you are a high-risk driver, but then you have the option to approach the Facility Association. This association has a pool of insurers who could provide cover to those who were denied in the regular insurance industry. As a high-risk driver, you may also get insurance cover through specialized ‘non-standard’ insurers but the premiums may be very high.

Can I Buy A Car Without Insurance In Ontario

You may buy a car in Ontario without insurance but there is no doubt that you may require insurance in order to register your vehicle. You cannot get on the roads in Ontario without registering your car. Also, to get your legal ownership proof and license plates, you have to register your car. Proof of insurance with minimum coverage is mandatory if want to drive your car on Ontario roads. In case you are wondering if you could try your luck and still buy a car without insurance, you may be disappointed.

Can I Drive A Car Without Insurance In Ontario

Whether you own, lease, or finance a car, if you intend to drive it in Ontario you have to buy car insurance with proper coverage level. It is highly probable that you may be asked to provide proof of insurance by traffic police who may demand to see your insurance certificate. Or it could be one of those days when you get into an accident. If you provide a fake pink slip or false disclosures, that could invite a penalty of $10,000. If you don’t have one, you may end up paying a hefty fine of up to $5000 and invite a surcharge of around 20%. Even if you were driving another person’s car, you may still have to present the pink registration slip, and could still be fined $65.

Can I Cancel My Car Insurance In Ontario

As an auto insurance consumer, you have the right to cancel your policy at any time due to any reason. It is wise to check with your insurance company about the cancellation terms of your policy, especially when you plan to cancel your policy mid-term. You may have to inform your insurance provider through writing, clearly mentioning all the details related to your policy. The policy number, vehicle details, names of insured, drivers listed, signatures or all insured, etc. needs to be on the letter that you could fax, email, or put in the mail.

car insurance policy cancelled

Your insurance company may follow the short rated table method or prorated method while calculating your refunds if you ask to cancel midterm. There could be early cancellation fees too that are deducted from your refund. You may not have to pay a penalty if you cancel the car insurance policy at renewal time. It is always advised to make arrangements for a new policy to take effect, on the same day as the cancellation of your old policy so that that is no gap. Any gaps in insurance are not recommended and if you decide to just cancel your policy by not paying your premiums that could be a very bad idea too. You may end up being a defaulter and your insurer may cancel your policy by notifying you in writing. Then, you will find it difficult to get a policy elsewhere as you then get placed in the high-risk category.

Does Car Insurance In Ontario Have HST

hst gst tax

The harmonized Sales Tax or HST was implemented in Ontario on 1st July 2010. There were many goods and services that were tax-exempt. Prior to this implementation, the Auto insurance premiums were exempted from the Retail Sales Tax too which was set at 8%. Financial services such as insurance premiums were also exempted from GST or federal Goods and Service Tax. As per the Chartered Professional Accountants of Ontario, there is no HST applicable on car insurance in Ontario.

How Much Is The Cost Of Car Insurance In Ontario

The car insurance rates in Ontario are higher than in most provinces in Canada. Finding a good insurance provider with the best deal and coverage is a daunting task. You could use our insurance calculator to find the best deals with multiple providers easily. Based on the details that you provide, the calculator computes the insurance premiums for you in a blink.

In order to estimate the car insurance premiums on the calculator, you may have to provide specific data such as the registration date of your car, the details about your car, the information about other extra coverage, and the start date of your insurance policy.

How Car Insurance In Ontario Works

In Ontario, it is compulsory to have the minimum level of car insurance coverage for liability, uninsured or unidentified insurance, and accident benefits. If you wish to own and drive a car you are required to have minimum liability coverage of $200,000 as per law in Ontario. Also, the collision cover for property damage in Ontario will cover you as per the fault determination rules of FSCO regulations. So, you may be covered for the losses or damages only up to the cost of the extent to which you were not at fault. For example, if you were involved in an accident and were found to be at fault for 60%, then your insurance company may pay for only 40% of the loss after reducing the deductible amount.

In case you suffer a small injury in a collision, you may be covered for some rehabilitation and medical expenses up to $3500 and it does not matter what type of coverage level you may have purchased for your car insurance. Any changes to the insurance, coverage, premiums, claims are all regulated by stringent guidelines as per FSCO rules and need to be followed by every insurer.

Is Car Insurance Mandatory In Ontario

Yes, there is no question about the fact that if you are a motorist and wish to drive in Ontario, you have to purchase car insurance with at least standard coverage. That is the law. In case you are involved in a collision causing property damage or personal injuries the losses could be huge. If you are not covered by insurance, the expenses may be too heavy for your pockets and it could be a difficult situation to deal with and may take several years to recover the losses.

It is not possible to buy a vehicle, register it or get license plates on your car without insurance. More than providing peace of mind it is a regulatory requirement strictly enforced by the FSCO and the Ministry of Transportation that you carry active car insurance with proper coverage at all times on the road. You may reduce your coverage level if you are storing away your car but based on the ownership of the vehicle, you may have to still keep some optional coverage.

List of Auto Insurance Companies in Ontario

RankingTop Auto Insurance Companies in Ontario2015 DIRECT WRITTEN AUTO
1Intact Financial Corporation2,093,956,000
2Desjardins General Insurance Group1,708,910,000
3Td Insurance, General Insurance1,302,511,000
4Aviva Canada Inc1,288,854,000
5Allstate Insurance Co of Canada819,126,000
6Economical Insurance740,104,000
7Co-Operators General Insurance Co663,529,000
8RSA Canada Group619,392,000
9Travelers Canada542,283,000
10RBC General Insurance507,364,000
11Wawanesa Mutual Insurance405,042,000
12Northbridge Financial Corporation270,480,000
13Ontario Mutual Insurance262,591,000
14Gore Mutual Insurance Company185,120,000
15Pembridge Insurance Company151,364,000
16CAA Insurance135,815,000
17Guarantee Company Of North America92,464,000
18Zurich Insurance Company Ltd86,963,000
19La Capltale Assurances Gen Inc86,697,000
20Unica Insurance86,697,000
21Echelon Insurance86,250,000
22Palco Insurance Company73,971,000
23Chubb Insurance Co of Canada64,021,000
24Old Republic Insurance Company53,130,000
25AIG Insurance Co Of Canada52,954,000
26SGI Canada Group47,350,000
27Cumis General Insurance40,115,000
28Portage La Prairie Mutual26,310,000
29Lloyd's Underwriters13,551,000

About the Author: Ashley Miller

Ashley is an insurance content professional and very knowledgeable on all related subjects. Ashley has over 12 years of insurance content writing experience working with various insurance companies throughout her career.