How to Get Car Insurance in Canada
Auto insurance is mandatory everywhere in Canada. But who sells it depends on your province. BC, Saskatchewan, and Manitoba run public insurers (ICBC, SGI, MPI). Ontario, Alberta, and the rest use private companies. Compare at least 3–5 quotes. Understand the mandatory minimums in your province. Newcomers should bring a driving history letter from home. It can cut premiums a lot.
At a glance
- Cost:
- Varies widely by province and record
- Total time:
- 1–3 days to compare and bind
- Steps:
- 6 steps
- Where to apply:
- fsrao.ca
Last reviewed October 2026 against official sources. Re-checked annually · next review due October 2027.
The Steps
Follow these in order
Each card shows the phase, expected time, and any cost. Data checked against official CAN sources(October 2026).
0 of 6 steps
- Before You Go 15 min
Know the system in your province
Public provinces are BC, SK, and MB. Basic coverage comes from the provincial insurer. Rates are regulated. Shop only for optional extras. Private provinces are ON, AB, and the Atlantic provinces. The full market competes there. So comparing quotes is where the savings are.
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- Before You Go 15 min
Learn the mandatory minimums
Every province requires third-party liability. For example, Ontario's minimum is $200,000. But $1–2 million is the sensible norm. Every province also requires accident benefits. They are mandatory everywhere except Newfoundland and Labrador. In Ontario, since July 1, 2026, only medical, rehabilitation, and attendant care accident benefits are mandatory. Income replacement and other benefits are now optional add-ons (O. Reg. 383/24). Collision and comprehensive cover are optional. But lenders require them on financed cars.
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- Fill / Prepare 1–2 hours
Gather quotes from 3–5 insurers or a broker
Use comparison sites, plus one independent broker. Brokers often find discounts that algorithms miss. Examples are multi-vehicle, winter tires, low mileage, and alumni groups. Quote the same coverage limits each time. If not, the comparison means nothing.
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- Fill / Prepare 30 min
Newcomers: bring proof of driving history
Insurers rate unknown drivers as high risk. A letter from your home-country insurer or licensing authority can help. It should show your years licensed and your claim-free history. It can move you from 'new driver' rates to experienced-driver rates. This is often the single biggest discount available.
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- Submit & Pay 30 min
Bind the policy and get your pink slip
Choose your deductibles with care. A higher deductible lowers your premium. But you must be able to pay it on the day you crash. Once the policy is bound, you get the insurance slip. In Ontario, it is the pink slip. Carry it in the vehicle. Driving without proof is an offence.
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- Follow Up 30 min yearly
Review yearly and report changes
Tell your insurer about changes. Tell them about a move, new drivers in the house, commuting changes, or a new car. A change you do not report can void a claim. Re-shop every year or two. Loyalty is rarely rewarded in private-province pricing.
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FAQ
Frequently Asked Questions
Why is insurance so expensive in Ontario?
Ontario has the country's highest premiums. The reasons are dense traffic, high fraud and theft rates, and generous accident benefits. Private competition also segments risk aggressively. Young men in the GTA pay the most. Your main levers are a move, higher deductibles, and telematics discounts.
Can I drive with foreign insurance or a foreign licence?
Visitors can drive on a valid foreign licence. An International Driving Permit is recommended. But the vehicle itself must carry insurance that follows Canadian rules. New residents typically have 60–90 days to switch to a provincial licence. Quebec allows up to 6 months. So check your province's newcomer rules.
What is accident forgiveness?
It is an optional add-on, or a loyalty perk. Your first at-fault accident does not raise your premium. It costs extra. But for drivers with one claim, it usually pays for itself many times over at renewal.
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