Car insurance is mandatory across Canada, but premiums vary widely depending on the province, your driving history, and the insurer you choose. In 2025, with the cost of living on the rise, many Canadians are searching for low-cost car insurance that still provides decent coverage.
This guide explores affordable car insurance providers in Canada (2025) and practical ways to save money.
Why Low-Cost Car Insurance Is Important
- Provincial variation – Ontario and BC are among the most expensive, while Quebec remains the cheapest.
- Budget pressure – Families want affordable monthly premiums without cutting necessary protection.
- Legal requirement – Driving without insurance is illegal and risky.
Affordable Car Insurance Providers in Canada (2025)
1. Belairdirect
- Why it’s affordable: Digital-first model keeps costs lower.
- Highlights:
- Competitive premiums for tech-savvy drivers.
- Easy-to-use mobile app for claims.
- Discounts for safe drivers.
- Best for: Young drivers and online shoppers.
2. Desjardins (Ajusto Program)
- Why it’s budget-friendly: Usage-based discounts.
- Highlights:
- Savings for safe and low-mileage drivers.
- Bundling discounts (home + auto).
- Strong presence in Quebec and Ontario.
- Best for: Students and drivers with clean records.
3. Aviva Canada
- Why it’s popular: Affordable coverage with flexibility.
- Highlights:
- Discounts for hybrid/electric cars.
- Multi-policy savings.
- Affordable third-party liability plans.
- Best for: Families looking to bundle multiple policies.
4. TD Insurance
- Why it’s competitive: Bank-backed affordability.
- Highlights:
- Lower premiums for TD customers.
- Online claims management.
- Strong reputation for reliability.
- Best for: Drivers who already bank with TD.
5. The Co-operators
- Why it’s trusted: Community-driven with good deals.
- Highlights:
- Affordable entry-level car insurance.
- Discounts for members and eco-friendly vehicles.
- Strong customer service network.
- Best for: Drivers who want low-cost but personalized support.
6. Intact Insurance (Basic Plans)
- Why it’s affordable: Canada’s biggest private insurer with flexible tiers.
- Highlights:
- Affordable basic coverage.
- 24/7 claims support.
- Discounts for experienced drivers.
- Best for: Budget-conscious experienced drivers.
Average Car Insurance Costs in Canada (2025)
- Ontario: $1,600 – $2,100/year.
- British Columbia (ICBC): $1,800+/year.
- Quebec: $900 – $1,200/year.
- Alberta: $1,300 – $1,800/year.
Tips to Get Cheaper Car Insurance in Canada
- Bundle your policies – Combine home, renters, or life insurance.
- Choose usage-based programs – Apps like Ajusto reward safe driving.
- Increase your deductible – Higher deductibles reduce premiums.
- Compare quotes yearly – Don’t stay loyal; switching often saves money.
- Drive safely – Clean driving records lower costs significantly.
Final Thoughts
Low-cost car insurance in Canada is possible if you shop smart.
- Belairdirect and Desjardins are great for tech-savvy and safe drivers.
- Aviva and TD help families save with bundles.
- The Co-operators provides affordable, community-focused options.
- Intact delivers budget coverage for experienced drivers.
By comparing and tailoring your coverage, you can stay protected on the road without paying more than necessary.