If your car insurance renewal came with a higher number this year, you are not alone. Across Canada, auto premiums rose again in 2026 — by roughly 6% year-over-year on a national basis by mid-year — continuing a multi-year climb. The causes are a familiar mix of rising claims costs and broader inflation, but the size of the increase, and the base you are paying it on, depends enormously on where you live.
At a glance
- National auto premiums rose around 6% year-over-year by mid-2026.
- Alberta saw one of the steepest increases; several Atlantic provinces and Ontario also rose.
- Ontario has the highest average premium in Canada, around $1,920 a year, while Quebec is among the lowest near $750.
- Key drivers include vehicle theft, higher repair and parts costs, and general inflation.
- Provinces with public auto insurance (such as B.C., Saskatchewan, Manitoba and Quebec) operate differently from private-market provinces.
What is pushing premiums up
Insurers price premiums to cover the claims they expect to pay, plus costs. Several pressures have all pointed the same way. Vehicle theft has been a significant and well-documented problem in parts of Canada, adding to claims. Repair costs have risen as modern vehicles pack in sensors, cameras and electronics that are expensive to replace or recalibrate after even a minor collision. And general inflation has lifted the price of parts, labour and replacement vehicles. When the cost of settling claims rises, premiums tend to follow.
Why the province matters so much
Canada does not have one car insurance market; it has many. Some provinces — including British Columbia, Saskatchewan, Manitoba and Quebec — run public auto insurance systems, while others, such as Ontario and Alberta, rely on private insurers, sometimes within a regulated framework. These structural differences, along with local factors like accident frequency, theft rates, legal costs and regulation, produce dramatically different price levels.
The spread is striking. Ontario carries the highest average premium in the country, in the neighbourhood of $1,920 per year, and drivers in some parts of the province pay considerably more. Quebec, by contrast, is among the least expensive, with averages closer to $750. Two drivers with similar records and vehicles can pay very different amounts simply because of a provincial border.
| Factor | How it affects your premium |
|---|---|
| Province and postal code | Sets the market structure and reflects local accident and theft rates |
| Vehicle make and model | Repair cost, safety features and theft risk all feed into pricing |
| Driving record | Tickets and at-fault claims generally raise premiums |
| Coverage and deductible | Higher coverage costs more; a higher deductible usually lowers the premium |
| Annual mileage and use | How much and how the vehicle is driven can change the price |
What drivers can check
While no single step guarantees a lower premium, a few are worth reviewing at renewal:
- Compare quotes. In private-market provinces, prices vary between insurers; a comparison can reveal meaningful differences.
- Ask about bundling. Combining auto and home or tenant insurance sometimes earns a discount.
- Review your deductible. Raising it lowers the premium but increases what you pay out of pocket after a claim — a trade-off, not a free saving.
- Consider usage-based (telematics) programs. Where offered, they may reward lower-risk driving, though they involve sharing driving data.
- Check anti-theft measures. Given theft’s role in rising costs, some insurers recognize certain immobilizers or trackers.
- Confirm your coverage still fits. Coverage needs change as a vehicle ages; review rather than auto-renew.
Cheaper is not the only test
The lowest premium is not automatically the best policy. Coverage limits, deductibles, service and claims handling all matter. When comparing, look at what the policy actually covers, not just the monthly figure.
The bottom line
Car insurance is one of the household costs where the headline “average” hides enormous variation. The national trend in 2026 is upward, driven by theft, repair costs and inflation, but the size of any individual increase — and whether shopping around can help — depends on the province, the vehicle and the driver. Reviewing coverage at renewal, rather than accepting it automatically, remains one of the few levers most drivers actually control.
Sources: Global News, why car insurance is getting more expensive in 2026, Ratehub, inflation and car insurance rates in Canada and Canada Drives, average car insurance by province. Figures are approximate market averages that change over time and by individual circumstances.
This article is for general information only and does not constitute insurance, financial or legal advice, nor a recommendation of any specific insurer or policy. Premiums and coverage depend on individual circumstances and provincial rules. For advice on your own coverage, consult a licensed insurance professional and compare current quotes.