Ontario’s Steady Insurance Hikes: What’s Driving Them and How to Save
Despite industry efforts to curb costs, auto insurance premiums across Ontario continue to climb. In early 2025, nearly every city saw higher rates—even as regulators push new fraud-reporting rules. Here's the full story—and what it means for drivers like you.
What’s Behind the Increase?
Ontario drivers are feeling the pinch due to several converging trends:
Auto theft surge — Theft claims continue to rise, particularly in Greater Toronto, driving up comprehensive coverage costs. Ontario’s theft-related payouts now top $1 billion annually.
Repair costs for modern vehicles — Cars with advanced safety systems, cameras, and sensors are extremely expensive to repair. Even minor collisions now cost thousands of dollars.
Insurance fraud and staged accidents — Fraudulent claims—from fake injuries to re‑VIN schemes—are increasing premiums for all policyholders.
Rising claim payouts and inflation — As vehicle repair and medical costs rise, insurers are facing greater liabilities, which they must recoup through premiums.
Localized risk models — Insurers price policies based on granular postal-code data, meaning two neighbouring towns can see vastly different premiums due to collision frequency or theft history.
Ontario’s Premiums: The Numbers
MyChoice compared quotes from January–June 2024 against the same period in 2025, for a typical driver—35, married, with a clean record—insuring common models like Civics and Corollas.
Provincial average increase: 4.10% in the first half of 2025.
Cities With the Sharpest Increases:
Kingston: +14.73%
Barrie: +13.78%
Windsor: +12.69%
Innisfil: +12.15%
Belleville: +11.92%
Most Expensive Region:
Brampton: Average premium $3,341/year (11% rise over 2024)
Cities with Small Increases:
Scarborough (+0.52%), Ottawa (+1.04%), Guelph (+1.53%), Huntsville (+1.63%)
Cities Where Rates Fell:
Markham: −7.05%
Mississauga: −2.17%
Richmond Hill: −2.12%
Toronto: −1.06%
Can FSRA’s Fraud Reporting Rule Help?
On June 17, 2025, Ontario’s Financial Services Regulatory Authority introduced a new rule—requiring insurers to submit detailed, ongoing fraud data. The aim is to spot trends early and crack down on high-risk regions.
While this initiative offers hope for future moderation of insurance costs, changes are not immediate. Regulators emphasize that solving fraud over time may gradually lead to lower, more stable premiums.
How Can Drivers Offset These Increases?
Even as overall market trends remain headwinds, Ontario drivers have tools to manage their insurance expenses:
Install anti-theft features — Steering locks, GPS trackers, or alarm systems may earn insurers’ discounts of up to 15% if they meet provider standards.
Use winter tires — Many insurers offer 2–5% discounts when notified of winter tire installation.
Raise your deductible — Increasing your deductible (e.g. from $500 to $1,000) can reduce premiums by 5–15%, so long as you're financially prepared to cover it.
Bundle policies — Combining auto with home or tenant insurance often results in savings of 10–20%.
Shop around annually — Premiums vary widely among insurers—even for the same coverage. Comparison tools like MyChoice can help secure better offers.
Consider usage-based programs — Driving-behaviour-based insurance can shave off 10–25%, depending on activity and safety record.
Final Thoughts
Even within a single province, auto insurance is highly variable—both from city to city and policyholder to policyholder. Kingston and Barrie lead with double-digit increases, while Markham, Mississauga, and Toronto saw modest reductions. Brampton remains the most expensive city.
Macroeconomic pressures like theft growth, repair costs, legal insurance settlements, and fraud continue pushing rates upward. That said, newly mandated FSRA fraud reporting and savvy personal strategies offer some hope for stabilization in the coming years.