Toronto drivers face the highest auto insurance premiums among six major Ontario cities, with higher claims costs, theft and repair expenses identified as key factors.
The report Toronto Auto Insurance Burden Report 2026, released by Rates.ca, shows the average annual auto insurance premium in Toronto reached $3,997 in 2025, up from $3,453 in 2022.
Premiums were lower in other cities, including $3,096 in Hamilton, $3,038 in Oshawa, $2,929 in Windsor, $2,879 in London and $2,519 in Ottawa.
The report also compares total household insurance costs across the same markets. Toronto households paid $5,693 in combined home and auto insurance in 2025, the highest in the group.
Hamilton, Windsor and Oshawa were tightly grouped at $4,757, $4,758 and $4,762, respectively. London followed at $4,673, while Ottawa was lowest at $4,197.
Over the 2022–2025 period, Toronto households paid $20,946 in total insurance costs, compared with $17,381 in Hamilton, $16,508 in Windsor, $16,342 in Oshawa, $16,193 in London and $14,401 in Ottawa.
Insurance accounted for about 5% of median after-tax household income in Toronto in 2025, compared with about 4% in Hamilton, Windsor, Oshawa and London, and about 3% in Ottawa.
The report attributes higher premiums in Toronto to a combination of more frequent and more costly claims, linked to traffic density and increased exposure to collisions. It also links rising premiums to higher repair costs, noting that increasingly complex vehicles and electric models require more expensive parts and specialized labour.
In the release, Dan Park, chief executive officer of Clutch, says, “In the luxury and tech-heavy segments, a sensor failure or cooling system issue on a nearly new vehicle can result in a repair quote of around $10,000.”
In the release, Daniel Ivans says: “If insurance companies have to pay more money than anticipated… premiums will go up. As incomes inflate, the cost of living, goods, parts, and labour inflate. Insurance premiums have to match the cost of losses.”
