8 Car Insurance Statistics for Canada to Check out in 2021

Car accidents happen all the time. That’s why car insurance is one of the best ways to make sure that a driving accident doesn’t seriously damage your budget. 

Today, we’ll focus on car insurance statistics for Canada. We’ll see how Canadians sort out this critical type of insurance, how much money they spend on it, and, finally, how auto insurance in Canada could change in the future. 

Now:

Canadians are known to be fairly careful drivers, with car accident rates being one of the lowest in the world. However, car insurance in Canada is still a thing since accidents will always happen. 

So, without further ado, let’s dive right in.

Fascinating Canadian Car Insurance Stats (Editor’s Choice)

  • Auto insurance has the biggest share of the whole insurance market – 40%.
  • Insurance premiums for cars in Canada go well over $24 billion.
  • Insurance claims are around $18 billion.
  • British Columbia is the most expensive province for auto insurance rates – $1680 per year.
  • Quebec is the cheapest province for auto insurance rate – $642 per year.
  • With user satisfaction ratings of over 780 out of 1000, The Co-operators is the most popular car insurance company in Alberta. 

General Car Insurance Statistics for Canada

1. The auto insurance market share in Canada is 40%.

(Source: Statista)

As of 2019, car insurance had $24 billion worth of net insurance premiums, compared to $12 billion worth of personal property insurance, $8 billion for commercial property, and around $10 billion for liability, special, and sickness, and accident insurance.

The COVID-19 pandemic has probably impacted all aspects of the insurance industry. However, the car industry particularly badly affected because people got around less frequently during the lockdown and were less financially able to purchase new cars. 

2. Car insurance claims in Canada rose to $18 billion in 2019.

(Source: Statista)

Car insurance Canada companies paid up around $18 billion in 2019 to cover the financial damage incurred by various traffic accidents. It’s easy to see why car insurance is such a lucrative business:

The money paid for insurance never exceeds the amount of money paid by the insurance companies.

What’s more:

Compared to 1990, the money paid by insurance companies has almost tripled from 1990, when the figure stood at $6 billion.

It is not clear why net claims increased so much in 30 years. But we’re likely seeing a combination of factors, such as the increasing population of Canada (more cars) and more efficient insurance plans. In addition, the sheer rate of car accidents has dropped in Canada in the last few decades. So, increasing net claims cannot be explained by Canadians becoming riskier drivers. 

car insurance statistics for canada

3. The average cost of a new car in Canada is around $40,000.

(Source: AutoServiceWorld)

Most Canadians prefer to buy a new car and are ready to pay thousands of dollars. That’s why it’s not surprising to see why in certain provinces, such as British Columbia, people are spending more money on annual car insurance than some people spend on second-hand cars.

And that’s not all:

The prices of new cars are only increasing. In 2015, the average new car in Canada cost around $37,000. Keep in mind that light trucks are included in these insurance statistics, as Canadians love their big heavy vehicles. Compared to light trucks ($43,000 on average), passenger cars are somewhat cheaper ($33,000)

4. The average mileage per year in Canada is 15,200 km.

(Source: AHAinsurance)

This is a very important factor in car insurance rate calculations and another reason why Canadian car insurance rates are somewhat high. 

Simply put:

Canada is a vast country, and people have to drive a lot to get to their intended destination. Atmospheric conditions are also important, and we all know that Canada has a lot of cold months with bad weather. 

Fun fact:

People in Newfoundland and Labrador drive the longest, with an average annual mileage of 18,000 km. Click To Tweet

Car Insurance Rates by Province

5. British Columbia has the highest insurance rates for cars – $1680.

(Source: Statista, Bankrate)

It’s not surprising that British Columbia has the highest average auto insurance rates by province, as it is one of the most developed provinces of Canada. The highest car insurance rates in Canada are related to more expensive cars being driven in British Columbia and people willing to spend more money on their vehicles. 

Now:

Still on the subject of the average cost of car insurance, BC is followed by Ontario ($1445), Alberta ($1251), Newfoundland and Labrador ($1132), Manitoba ($1080), and Saskatchewan ($936). As a comparison, the average car insurance rate in the US is US$1,670, significantly higher than BC’s $1680

6. Quebec has the cheapest Canada car insurance rates – $642.

(Source: Statista)

According to the most recent insurance statistics, Quebec is very cheap in terms of car insurance rates. It’s not easy to explain this, as Quebec is also one of the most developed provinces of Canada.

Just slightly above are Prince Edward Island ($736) and New Brunswick ($819)

7. With a 781 out of 1000 satisfaction rating, The Co-operators is the best-rated car insurance company in Alberta, insurance statistics confirm.

(Source: Statista)

The Co-operators is followed by Alberta Motor Association, Johnson Insurance, TD Insurance, Wawanesa, and Aviva Insurance. 

These are all top-rated Alberta companies with satisfaction ratings of over 700 (out of 1000). The study included more than 8,500 respondents.

8. The Co-operators also leads in the Atlantic region, with an 820 out of 1000 customer satisfaction rating. 

(Source: Statista)

We start to get the basic idea:

Canadians are quite satisfied with the services The Co-operators provides. In the Atlantic region, we see virtually the exact same distribution of customer satisfaction ratings across different Canadian auto insurance companies. 

The situation is a little bit different in Ontario:

Although The Co-operators still leads the pack, we encounter some new names, such as RBC insurance, Belaidirect, and Allstate. 

With all this in mind, it’s safe to assume that The Co-operators is the top rated insurance company in Canada.


In Conclusion

Car insurance is pretty much a part of the routine in Canada, and you can also buy car insurance online in Canada. There are many auto insurance companies in the Great White North. So, your choice ultimately depends on the type of car you drive, activities you use your car for, and province. 

While there are many private insurance companies in Canada, you can also opt for the Insurance Bureau of Canada and various government insurance bodies. 

Car insurance statistics for Canada reveal rates are pretty high. This is due to a variety of factors, such as a higher standard of living, Canada car cost, and mileage. All this combined adds up to a significant yearly expense, although not as big as that south of the border.

FAQ

How does car insurance work in Canada?

You choose a car insurance company (and there are many out there). They put your data in an algorithm that gives you a sort of score. Riskier drivers get higher rates, while less risky drivers pay less.

How much is car insurance in Canada per month?

It depends on the province. BC is the most expensive, with a $1680 average yearly rate. In contrast, Quebec is by far the cheapest province when it comes to car insurance – $642. Manitoba ($1080) and Saskatchewan ($936) are somewhere in the middle, with Ontario ($1445), Alberta ($1251), and Newfoundland and Labrador ($1132) situated in the more expensive end of the spectrum.

Why is car insurance so expensive in Canada?

Many factors determine the cost of car insurance. Suppose we disregard personal factors (being a bad driver, previous involvement in car accidents, parking tickets, etc.). In that case, we can say that Canada has expensive car insurance rates because, first of all, it’s a huge country, and people generally drive a lot.

With high yearly mileages, the chances of something going wrong increase. Furthermore, Canada enjoys a very high standard of living. So, people generally buy new expensive cars, which in turn increases the insurance rates.

Which province has the cheapest car insurance?

According to the latest car insurance statistics for Canada, Quebec has the cheapest car insurance – $642.

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