A high loss ratio means an insurance company isn’t generating as much profit because they’re paying a lot out in the form of claims. The loss ratio is the amount of revenue earned through premiums versus claims paid out. Loss ratios - Insurance companies have different loss ratios in every province or territory that they operate in.Elsewhere in Canada, auto insurance is provided by private companies, which are also subject to provincial regulations. Regulatory regime - Some provinces have public insurance: B.C., Manitoba, and Saskatchewan, and Quebec, which actually has a hybrid public-private regime.There are multiple factors that affect rates in each province: The provinces with the highest car insurance premiums are Ontario and B.C. That’s why it’s so important to compare quotes online. Car insurance costs vary considerably throughout the country. Car insurance estimator tools geared for Canadian drivers require less information, but this also makes them less accurate. Is the extra cost worth the benefit your insurance company will pay? It’s your call.Įstimating your car insurance premiums can be challenging. When it comes to shelling out for optional coverages like collision and comprehensive this is the general rule: it’s worth it for brand new cars and luxury cars.Īny car that you couldn't buy new again or pay to repair should have extra insurance on it.Ī car’s value depreciates rapidly, and after a few years of use, you may decide to drop your extra coverage. They want to protect the underlying asset in the event you get in an accident and the car is a total write-off.īut if you’re not relying on third-party financing, the choice is yours.

Outliers are Quebec ($50,000) and Nova Scotia ($500,000).īut, if you're financing your car with a car loan, or are leasing, your lender may require that you buy more coverage than the mandatory minimum. The minimum benefit you need to purchase in most parts of Canada is $200,000. Every province and territory has rules around the mandatory amount of insurance you have to buy to legally operate a car.Įssentially, no matter where you live in Canada you need to buy third-party liability insurance.

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