Households across Ontario are increasingly burdened by high insurance costs, with auto premiums accounting for the largest share of total household insurance expenses. In six major cities, auto insurance represents between 60% and 70% of overall premiums. Ottawa sits at the lower end at roughly 60%, while Toronto households pay the highest proportion, around 70%. Hamilton, Oshawa, Windsor, and London fall in between, with Hamilton at 65%.
Between 2022 and 2025, all six cities experienced sharp rises in auto insurance premiums, with the steepest increases in Ottawa (+40%) and Windsor (+38%). Oshawa followed closely at +37%, while Toronto saw a smaller but notable 16% increase. Average annual auto premiums per household in 2025 reached nearly CAD 4,000 in Toronto and over CAD 3,000 in Hamilton and Oshawa.
Average Auto Premium per Household (CAD)
| City | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Toronto | 3,453 | 3,510 | 3,888 | 3,997 |
| Hamilton | 2,531 | 2,647 | 3,001 | 3,096 |
| Oshawa | 2,220 | 2,396 | 2,764 | 3,038 |
| Windsor | 2,128 | 2,254 | 2,654 | 2,929 |
| London | 2,203 | 2,317 | 2,716 | 2,879 |
| Ottawa | 1,804 | 1,924 | 2,321 | 2,519 |
Why Auto Insurance Costs Are Rising
1. Persistent theft risks despite falling incident numbers
Although vehicle thefts have declined, insurers face higher payouts because stolen vehicles are increasingly unrecovered, often processed through sophisticated theft networks. Dan Park, CEO of Clutch Canada, notes that high-theft risk models have driven some buyers to cancel purchases. “One customer saw their premium nearly double and walked away entirely,” Park said.
2. Rising repair costs for modern and luxury vehicles
New vehicles, particularly EVs and tech-heavy models, carry higher replacement and repair costs. Park explains that even minor repairs can cost upwards of CAD 10,000 due to complex electronics, sensors, and specialized labor. Rising vehicle prices further increase insurers’ exposure.
3. Supply chain challenges and labor shortages
Repair costs for standard vehicles are also up, fueled by labor shortages, higher wages, and ongoing supply-chain delays. Daniel Ivans, an insurance broker at Rates.ca, says insurers pass these higher claims costs onto consumers. Extended repair timelines also lead to increased rental car costs, further inflating premiums.
Home Insurance Costs Also Climbing
Home insurance premiums have risen steadily from 2022 to 2025, with the sharpest increases in 2024. Across Ontario, homeowners now face higher baseline premiums, driven by climate-related losses, rebuilding costs, and material price inflation.
Average Home Insurance Premium per Household (CAD)
| City | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Windsor | 1,421 | 1,546 | 1,747 | 1,829 |
| London | 1,256 | 1,348 | 1,680 | 1,794 |
| Oshawa | 1,251 | 1,383 | 1,566 | 1,724 |
| Toronto | 1,397 | 1,415 | 1,590 | 1,696 |
| Ottawa | 1,309 | 1,278 | 1,568 | 1,678 |
| Hamilton | 1,406 | 1,445 | 1,594 | 1,661 |
Key Drivers of Home Insurance Increases
1. Climate-driven losses
Floods, fires, and other extreme weather events are increasingly common, raising the cost of claims and reinsurance. Southern Ontario alone has seen over CAD 1 billion in flood-related losses in recent years.
2. Rising rebuilding costs
Replacement costs for residential construction have surged approximately 66% since 2019, outpacing general inflation. Daniel Ivans notes that even minor damages can now result in high claims due to content replacement and temporary living expenses.
3. Tariffs and material price increases
The 2025 U.S.–Canada tariff cycle has increased costs for core building materials by up to 20%, directly impacting the cost of property damage repairs.
As a result, Ontario households have spent over CAD 15,000 on insurance—both auto and home—over the past four years, reflecting the combined pressures of theft, repair costs, climate risks, and inflation.
