The 15 Best Car Insurance Companies in Canada

By Arthur Dubois | Published on 07 Sep 2023

best car insurance companies canada

    When searching for the best car insurance companies in Canada, it’s crucial to find a provider that offers comprehensive coverage tailored to your unique needs. After all, who do you call first when you have a car accident? Your insurer! So it’s critical to find a policy that protects your vehicle against damages and medical expenses, and other costs resulting from collisions, thefts or other events.

    Finding the right car insurance company for your needs can be difficult, as you have to compare the offers of several car insurance companies to find the one that best suits your needs. This article is meant to ease the task of finding the right car insurance by providing a review of the best car insurance companies in Canada, in no particular order.

    Public vs Private Car Insurance Companies in Canada: What’s The Difference?

    Public or private car insurance companies in Canada? This is a key distinction and each province and territory has made its own decision. Private car insurance companies in Canada are competing for the market in Ontario, Quebec, Newfoundland & Labrador, Nova Scotia, Prince Edward Island, Alberta, the Northwest Territories, Yukon and Nunavut. These provinces place car insurance in whole or in part in the hands of private insurers.

    British Columbia, Manitoba and Saskatchewan have a public car insurance plan, with compulsory basic protection and the possibility of additional coverage. It is possible to take out an additional policy if necessary.

    Exploring The Best Car Insurance Companies in Canada

    Searching for the best car insurance companies in Canada? Here’s a comprehensive review of top contenders offering unmatched coverage, discounts, and benefits:

    Best car insurance company in Canada for usage-based coverage: Intact Insurance

    Recognized as one of the top contenders among the best car insurance companies in Canada, Intact is a private-sector giant. Their diverse portfolio covers cars, motorcycles, ATVs, RVs, boats, and snowmobiles. With their innovative My Driving app, users can opt for usage-based car insurance and save up to 25%.

    Intact rewards its customers with myriad discounts. For instance, seniors who are FADOQ members get a 5% discount. People who drive an electric car, who have an anti-theft system or who combine their auto and home insurance also save money on their premiums.

    Vehicles that can be insured by Intact include cars, trucks, vans, motorcycles, boats, snowmobiles, RVs and ATVs. The company’s expansive reach covers personal and commercial insurance, including specialized products like surety bonds. Intact serves all Canadian provinces and territories, excluding British Columbia, Manitoba, and Saskatchewan.

    Best car insurance company in Canada for holistic financial services: TD Insurance

    Another major player among the best car insurance companies in Canada, TD Insurance boasts a rich history since 1969. Buying car insurance online with TD can give you a 10% discount.

    The company’s basic insurance policies include civil liability in the event of an accident. It is possible to extend your coverage to include specific risks and obtain comprehensive coverage, including reimbursement in the event of total loss of your vehicle.

    TD also offers insurance options for motorcycles, travel trailers, ATVs and snowmobiles. If you own a car and a motorcycle, for example, you can save on your coverage by using bundling your insurance.

    TD is of course one of the largest banks in Canada. It offers all kinds of insurance, as well as credit cards with generous travel and car rental insurance, such as the TD First Class Travel Visa Infinite card.

    Other TD insurance options include but are not limited to, travel, life and health protection. This means that if you need complex coverage, you can save money by bundling multiple policies under one green roof.

    Like most other insurance companies, TD does not offer automobile insurance in Saskatchewan, British Columbia or Manitoba, as residents of these provinces obtain government automobile and motorcycle insurance under provincial law. The other provinces and territories of Canada are all served.

    Best car insurance company if you have a long history of safe driving: Aviva

    As one of the largest and best car insurance companies in Canada, Aviva offers extensive options that set it apart. Unique offerings include a declining deductible program and cutting-edge coverage options driven by their substantial financial base.

    In addition, the company has significant financial resources. This allows them to innovate with new products and offer coverage options that you won’t find with other companies.

    Auto insurance coverage offered by Aviva comes with several discounts for bundling auto coverage with other insurance policies and the possibility of having your deductible reduced to $0 after five years of accident-free driving. Its Aviva Journey application shows you in real-time the behaviours that influence your car insurance premium. You get 10% off when you sign up and up to 20% thereafter. In addition, if you own an electric vehicle, Aviva encourages you with a 10% discount on your premium.

    Aviva primarily operates in the Atlantic region, Ontario, Alberta, British Columbia and Quebec.

    Best car insurance company in Canada for young drivers: Desjardins Assurance

    Within the league of the best car insurance companies in Canada, Desjardins also stands out, offering tailor-made insurance solutions. As a Desjardins client, you can choose from a variety of coverage options to meet your specific needs, ranging from liability insurance to more comprehensive all-risk protections. Desjardins also offers benefits such as discounts for safe driving, for vehicles equipped with advanced safety features, and for people who bundle their insurance policies (up to 15%).

    Car insurance is expensive for young drivers. Desjardins is an interesting auto insurance company for new car owners, as it offers numerous discounts and optional coverages. Are you 25 or under and a member of Desjardins? If you do, hold on tight, because you get free Desjardins Roadside Assistance. In addition, its Ajusto application allows you to obtain a discount that reflects your driving behavior and habits.

    Desjardins offers insurance services in Quebec, Alberta, New Brunswick and Ontario.

    Best car insurance company in Canada if you need multiple policies: Belairdirect

    With over 50 years in the industry, Belairdirect is undeniably one of the best car insurance companies in Canada, also providing home insurance. Their basic insurance plan offers civil liability coverage, direct compensation, accident benefits and uninsured driver coverage. If you need additional coverage, you can opt for a collision damage waiver and roadside assistance, among others.

    Belairdirect offers several discounts. For example, if you insure two or more vehicles, your premium may drop by 15%. Other savings opportunities include a bundle discount if you insure both your car and your home, a student discount if you’re under 23 and studying full-time, a safe driving discount and low mileage, a group discount if you are part of a group program and a discount for seniors aged 50 and over. Its Automerit program is among the best. It rewards safe driving with a 10% discount.

    Belairdirect provides auto and home insurance in British Columbia, Alberta, Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland and Prince Edward Island.

    Best car insurance company in Canada with accident forgiveness: Co-Operators Insurance

    The Co-operators offers one of the best customer experiences, discount options and optional coverages for those who need to insure their belongings, including their car. One of the reasons this company is so popular is that it offers financial advisory services in addition to insurance services. The Co-operators site explains very well the details of all the protections offered according to your province of residence.

    To save on your car insurance, you can combine it with home insurance. You also benefit from amnesty in the event of a car accident if you have not had any for 6 years. This means that a first collision will not increase your premiums.

    In addition to auto insurance, The Co-operators also offers life, home, business, farm, and travel insurance, as well as investment and asset management services.

    The Co-operators does not provide car insurance in British Columbia. In Saskatchewan and Manitoba, but it offers extended coverage to supplement the public insurance plan required by law or it helps to adapt your policy to your needs.

    Best car insurance company in Canada for all your life & health insurance needs: iA Financial Group

    The iA Financial Group is a well-established and respected company in Canada. Their auto insurance offers a combination of comprehensive coverage and competitive rates, making it a popular choice among Canadian car drivers. iA customers can choose from a range of coverage options, including liability, collision, and vandalism protection. In addition, iA offers a series of additional protections, such as forgiven claims. With this option, you will be protected against premium increases following any type of accident, whether at fault or not.

    In order to save money, having other financial products from the iA group can give you up to 10% off your car insurance. For example, this is the case if you have life or disability insurance, an RESP or other savings product. By insuring more than one car under the same contract, you could get up to 15% off, even if you install an approved anti-theft or tracking device on your vehicle. Driver of an electric car, a premium reduction of up to 10% awaits you.

    With an extensive presence across Canadian provinces and a network of experienced brokers, iA is able to provide quality service and efficient claims management to meet the diverse needs of its clients.

    The best car insurance company in Canada for high-risk drivers: Beneva

    Beneva is a relatively new insurance company in the Canadian market, but it has quickly gained popularity thanks to its attractive offers and its flexibility. It brings together the companies that were previously La Capitale and SSQ Insurance.

    Their auto insurance products are designed to meet the unique needs of Canadian drivers, offering a variety of customizable coverage options. Whether you’re an occasional driver or an experienced driver, Beneva has policies to suit your profile, including options for luxury vehicles and high-risk drivers.

    With each renewal without a claim, your deductible decreases by $50 at Beneva. The company also stands out for its post-disaster psychological assistance service. If you have suffered an event that causes you difficulties and you are insured with Beneva, you can get support from a psychologist for free and in complete confidentiality, 24 hours a day.

    Beneva offers auto insurance in Quebec only. In the other Canadian provinces and territories, it focuses on life and health insurance.

    Best ar insurance company in Canada to bundle with home, pet, and travel insurance: The Personal

    The Personal is a subsidiary of Desjardins Insurance. The basic automobile insurance package offered by The Personal includes the usual protections, namely civil liability, benefits in the event of an accident, protection against collisions and comprehensive insurance for loss or damage caused in situations other than collisions.

    Like many auto insurance companies, The Personal offers a variety of optional coverages. Insurance options for recreational vehicles include coverage for motorcycles, ATVs, snowmobiles, trailers, campers and trailers. You will have 10% off if your main car is also insured with The Personal.

    The discounts offered by the company go up to 15% if your driving record has no violations or claims in the last six years, if you bundle auto and home insurance packages, and if you are a young driver (30 years old or under). If you are also looking for other types of insurance, know that The Personal also offers insurance for home, pets and travel.

    The Personal offers car insurance services in Quebec, Alberta, New Brunswick, Newfoundland and Labrador, the Northwest Territories, Nova Scotia, Nunavut, Prince Edward Island, Yukon and Ontario.

    Best car insurance company in Canada for customer loyalty: Wawanesa

    Wawanesa is a well-established automobile insurance company in Canada, offering a full range of products and services tailored to the needs of car drivers. Their car insurance is renowned for its reliability and flexibility. As a Wawanesa customer, you can expect a variety of coverage options, ranging from basic liability insurance to more comprehensive protections, such as comprehensive insurance. You can then add personalized guarantees, such as civil liability for damage caused to vehicles of which the named insured is not the owner (which protects you when you rent or borrow a car).

    Additionally, Wawanesa often offers discounts and discounts for safe drivers, vehicles with advanced safety features, or those who bundle their insurance policies.

    Interestingly, Wawanesa can provide you with additional coverage in the three provinces where auto insurance is public. It operates across Canada.

    Best car insurance company in Canada for specialized vehicle coverage: Economical Insurance

    Economical Insurance provides coverage options for cars, trucks, vans, SUVs, ATVs, snowmobiles, mopeds, campers, motorhomes and motorcycles. Besides auto insurance solutions, the company also provides personal, business and farm solutions.

    With Economical Insurance, you get coverage for damage to other vehicles, legal fees in case of being sued, accident repair, medical expenses, theft and vandalism, rental costs and cracked windshields.

    This company also provides home insurance, meaning you can save money by pairing your auto insurance with home insurance. Other discount offerings include multi-vehicle discount, safe driver discount, conviction-free discount and renewal discounts.

    Economical Insurance serves residents across Canada. Residents located in British Columbia, Saskatchewan, or Manitoba, may be eligible for additional coverage through Economical Insurance. However, in most parts of Canada, you will have to access the car insurance options offered by this company through an insurance broker.

    Best car insurance company in Canada that invests in the local community: SGI Canada

    If you are looking for a public insurance company that must adhere to the rules of the Canadian government, SGI Canada might be for you. Indeed, since 1944, SGI has been a Saskatchewan provincial Crown corporation. In 1980, following legislative changes, the company became the insurer offering supplementary insurance to the compulsory insurance.

    The company’s auto insurance options include collision or upset coverage, all peril, comprehensive liability protection, family liability protection, 14-day coverage, uninsured driver protection and civil liability coverage.

    If you decide to insure your car with this company, you can choose between three main packages: comprehensive coverage, collision or upset coverage, and all perils coverage. You may qualify for one or more discounts, including keeping a policy for three or more years, not having any conviction for three consecutive years, insured multiple vehicles with SGI, being retired, having a good driving record, having farming as your main source of income, having both your home and vehicle insured with SGI, and others.

    If you are a business and don’t fit in other packages offered by SGI, you can take advantage of its commercial pak, which is customizable business insurance that covers a wide range of needs.

    SGI Canada provides insurance services to residents in British Columbia, Saskatchewan, Alberta, Ontario, and Manitoba.  

    Best car insurance company in Canada for one-stop financial management: Royal Bank of Canada (RBC)

    RBC auto insurance in Canada offers a full range of coverage to meet the needs of drivers. As one of the nation’s leading insurance companies, RBC offers options such as third party liability, comprehensive coverage, uninsured driver protection and more. It also offers additional options such as Family Protection which complements the included uninsured car coverage. It protects you if you or one of your family members is injured or killed in an accident caused by an uninsured, insufficiently insured or unidentified driver (hit-and-run).

    Customers can benefit from advantageous discounts depending on their driving history and the combination of multiple insurances. Through its renowned customer service and extensive presence, RBC strives to provide reliable, personalized auto insurance that provides peace of mind for Canadian drivers.

    Best car insurance company in Canada for non-standard insurance coverage: Echelon Insurance

    If you are looking for a car insurance company that is particularly open to customers who have difficulties acquiring or affording insurance, Echelon is one option to consider. Insurance products offered by Echelon include personal and commercial auto insurance, business insurance, motorcycle insurance and commercial property insurance.

    One of the reasons you might struggle with finding a suitable insurance company for your car is that you have a bad driving record. Other reasons include having had frequent claims, multiple traffic violations, impaired driving or license suspensions.

    Because Echelon does not employ in-house agents, it can offer lower premiums through a few insurance brokers. Non-standard auto insurance offerings from this company provide coverage for automobiles, RVs, motorcycles, travel trailers, collector vehicles and trail bikes. Commercial insurance offerings include commercial pak, commercial liability, commercial auto, creditor protection, and warranty programs.

    Echelon’s non-standard automobile insurance is available in Quebec, Ontario, New Brunswick, Prince Edward Island and Nova Scotia.

    Best insurance company in Canada for digital-only service: Sonnet

    Sonnet provides a basic package that includes accident benefits, collision, and liability insurance. Optional coverage includes rental vehicle coverage, roadside assistance, vehicle replacement and a hit-and-run deductible waiver. You can also use Sonnet to insure your home or condo.

    Sonnet operates exclusively online. As a result, it has lower expenses than many brick-and-mortar businesses, which should allow it to pass on savings to you. Furthermore, the initial quote for your premium is exactly what you will pay, which is not always the case with initial estimates provided by other car insurance companies.

    Sonnet insurance is available to residents in Alberta, New Brunswick, Nova Scotia, Ontario, Prince Edward Iceland and Quebec.

    What is The Best Car Insurance Company in Canada?

    There are many insurance companies in Canada that offer car insurance packages. Choosing one can be overwhelming, especially if you are not sure about your insurance needs. One mistake that many people make is choosing the cheapest insurance they can get.

    In some cases, this can end up costing you more in the long run, as not having enough coverage, or having the wrong coverage, will leave you exposed financially in the case of an accident or other event involving your car.

    Buying the right insurance policy depends on your location, financial situation, and particular needs. When in doubt, it’s best to talk to an expert who can help you choose the right car insurance company and policy.

    How to Choose the Best Car Insurance Company for You

    When searching for the best car insurance companies in Canada, it’s essential to recognize that the “best” is subjective and varies based on your individual needs. Here’s a guide to help you navigate this decision:

    Assess Your Needs

    Coverage Types: From comprehensive insurance to just collision coverage, and liability to uninsured motorist protection, determine what coverages are most essential for your situation.
    Vehicle Type: Some insurers specialize in specific vehicles, from everyday cars to rare collectibles and high-end luxury cars, motorcycles, commercial vehicles, and more.
    Usage: How often and how far you drive can influence your choice, especially with companies offering usage-based policies.
    Deductible Options: The ability to choose or adjust your deductible can influence your premiums and out-of-pocket costs after an accident.
    New Driver Support: For those new to driving or the country, certain insurers might provide specific resources or programs catered to their unique needs.
    Roadside Assistance: While not exclusive to insurance, many companies bundle or offer roadside assistance with their policies, which can be a lifesaver during breakdowns or emergencies.
    Rental Car Coverage: If you often rent vehicles, understanding how your policy interacts with rental cars or if it includes rental car coverage can be crucial.
    Gap Insurance: Especially relevant for new cars, this covers the ‘gap’ between what you owe on a car and its current market value.
    Temporary Insurance: If you need short-term coverage, like when borrowing a car, some companies might offer specific solutions.

    Research Company Reputation

    Customer Reviews: These can provide insights into a company’s customer service and claim processing experiences.
    Financial Stability: This ensures your insurer can cover claims, especially in widespread events like natural disasters.
    Look for Discounts: Many insurers offer discounts for safe driving, multi-policy bundling, or having safety features in your vehicle. These can significantly reduce your premiums. Some even reward long-term customers with loyalty discounts or perks, which can make sticking with a provider more beneficial. And ask about eco-friendly incentives, as some insurers offer discounts on hybrid and electric vehicles.

    Understand the Claims Process

    A seamless claims process can make a difference during stressful times. Look for companies known for swift, fair claims handling. Read customer reviews to find out how satisfied they were once their claim was settled. This speaks volumes about the fairness and effectiveness of an insurer.

    Price vs. Value

    While competitive rates are essential, the cheapest option isn’t always the best. Consider the value you’re getting for your premiums, such as additional services, coverages, and customer support.

    Personalized Service

    Some people prefer local agents who provide personalized advice, while others might opt for digital platforms with online tools and resources.

    Geographical Coverage

    If you frequently travel or move, choose a company that provides broad geographical coverage and understands regional insurance requirements.

    Flexibility & Customization

    The best car insurance companies in Canada will allow you to tailor your policy based on your specific needs, rather than offering a one-size-fits-all solution.

    Ask for Recommendations

    Friends, family, and colleagues can provide first-hand insights into their experiences with specific insurers.

    Re-evaluate Regularly

    Your needs can change over time. Regularly review your policy to ensure it still aligns with your current circumstances.

    FAQs about the best car insurance companies in Canada

    How do insurance companies decide to write off a car?

    In general, a car insurance company decides to write off a car when the estimated repair cost and salvage value of the damaged vehicle exceed the cash value of the vehicle before the accident.

    Do car insurance companies check mileage?

    Yes, car insurance companies check mileage so that they calculate whether you are at a high risk of an accident or not. The more you use your car, the higher are your chances of having an accident. Insurance providers differ in how they check mileage. While some companies will rely on the information you provide by asking you for an annual mileage estimation, others will require you to attach a computer to the vehicle in exchange of lower premiums.

    How do insurance companies determine car value when totaled?

    The cash value of a vehicle, when totaled, is calculated according to several factors by your car insurer. These include vehicle type, customization, number of km driven, condition and the average sale price of the car in your location.

    Can I change car insurance companies anytime?

    Yes, in Canada, you can compare car insurance companies and change whenever you want. If you change your insurance provider mid-term, you will most likely have to pay a cancellation fee.

    Arthur Dubois is a personal finance writer at Hardbacon. Since relocating to Canada, he has successfully built his credit score from scratch and begun investing in the stock market. In addition to his work at Hardbacon, Arthur has contributed to Metro newspaper and several other publications