Auto Insurance – Canada’s Expensive!

When I landed in Canada and arrived at what would be my first home, I needed to get mobile straight away.  I rented a car (well, my new employer picked up the cost) for the first two weeks. After that, however, I would need my own car.

I didn’t know if I would be staying in Canada for long, so I didn’t want to make a big investment in a car – I wanted to spend $5000 or less, all taxes included.  I bought a 2001 Kia Rio for $4600 all in at a local car lot.

Auto insurance in Ontario is expensive. Real expensive.  Eye-wateringly expensive. The quotes I got ranged from $2000 to $4000 per year!  As a comparison,in the UK I paid about GBP 200/year for fully comprehensive insurance with ten years’ no claims bonus on a Nissan Micra.

Unfortunately Canadian insurance companies don’t take into account your UK no claims bonus.  The cheapest quote was from ING Insurance (now Intact Insurance), which came to about $180/month.

In the two years I’ve been here, my insurance has dropped to $167 because of my presumably good driving record. A bit better, but still no great shakes.

If you’re thinking of moving to Canada, and Ontario in particular, be ready to pay lots for auto insurance.


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