Car Insurance Quotes & Coverage

What factors affect the cost of car insurance in Canada?

As an insurance brokerage, BrokerLink doesn’t set your rates. Your insurance company does. Our job is to help you compare options from multiple insurers and find coverage that suits your needs and budget. Here’s what these companies will consider when putting together your quotes:

Your vehicle

The type of vehicle you drive, including its technology and safety features, can influence your insurance premium. Vehicles with advanced or specialized technology may cost more to repair, which can result in higher rates. Insurers rely on Canadian loss experience data to assess how likely a specific vehicle is to be involved in a damage or theft claim and what those claims typically cost.

Vehicle theft also remains a significant issue in Canada and recovery is not always guaranteed. That’s why it’s important to really think about the type of car you want to buy, because if it ends up on the top 10 most stolen vehicles list, you may be looking at higher insurance rates.

Your age and gender

Your age and driving experience both play a role in how insurance premiums are calculated. Drivers with fewer years behind the wheel, regardless of when they were licensed, typically pay more because limited experience is statistically linked to higher collision injuries and deaths. National road safety data consistently show that new or younger drivers are involved in collisions at higher rates than older, more experienced drivers.

In some provinces, rating factors such as age and driving experience are used to help determine premiums, as statistically, men are more likely to be involved in accidents than women.

Where you live

People who live in densely populated cities tend to pay higher insurance premiums than those living in more rural areas. That’s because when there are more vehicles on the road, the likelihood of a car accident is much higher than living in a small town with little traffic.

Insurers will also look at the local crime rates for where you live and the surrounding area to determine how likely your vehicle is to be vandalized or stolen and adjust your rates accordingly. If you live somewhere with a much higher risk of auto theft, like Edmonton or Calgary, this will likely affect your rates.

Regional claims trends

If you live in a region where hail, flooding, wildfires or winter storms occur more frequently, your insurer may increase your premiums as a precaution, as vehicles account for a significant share of insured losses every year. For instance, during the 2024 Calgary hailstorm, auto claims represented more than half of reported losses. A severe ice storm in 2025 also hit parts of Ontario and Quebec that led to many more vehicle damage claims.

Overall, Canada recorded another high-cost year in 2025 with more than $2.4 billion for insured catastrophe losses. On top of that, Catastrophe Indices And Quantification Inc. (CatIQ) reports that total insured losses from severe weather in 2024 are now up to $9.1 billion as of January 2026.

Your credit score

In some provinces, insurers may consider credit-based insurance scores as part of underwriting. Having a higher credit score can lead to lower insurance premiums in many regions. However, rules differ by province. For example, Ontario prohibits insurers from using credit information to rate auto insurance.

The coverage you choose

Higher liability limits and optional coverages such as collision and comprehensive increase the insurer’s potential payout in the event of a claim, which can result in higher rates. But while more protection comes at a higher cost, it offers greater financial security when you truly need it.

Your deductible

A higher deductible typically lowers your premium because you are taking on more of the upfront financial risk. A lower deductible, on the other hand, usually results in higher premiums but less out-of-pocket cost if you need to file a claim.

Your driving history

You are more likely to have lower premiums with a clean driving record than a driver with traffic violations, at-fault collisions or a lengthy claims history.