Cheap Ottawa Car Insurance Quotes

How does Ottawa auto insurance work?

Every driver in Canada is required by law to have car insurance. While coverage options in each province are different, Ontario drivers must purchase private insurance.

Mandatory coverage

At a minimum, they must have the following four mandatory coverage:

• Accident benefits/bodily injury: Following injury from a vehicle collision, this coverage provides compensation for medical costs as well as wage replacement and homecare. If the collision results in death, funeral costs will be covered.
• Direct Compensation Property Damage (DCPD) – If the insured driver is in a collision and found to be not at-fault, this coverage provides compensation for the cost of vehicle damage, its contents and/or a rental car. DCPD, as it’s often called, allows the not at-fault insured driver to quickly receive compensation from their own insurance provider. Without DCPD, they might instead have to pursue compensation through a lengthy and expensive legal process.
• Third party liability: Covers legal costs, up to a limit, in an at-fault collision where a third party is injured or killed. Often referred to as ‘TPL’, this coverage also compensates the at-fault insured driver for property and vehicle damage, medical costs and damages for others injured.
• Uninsured motorist: Kicks in if the insured driver is injured or killed in a collision with an uninsured driver or a hit-and-run collision when the other driver cannot be identified.

Optional coverage

Beyond mandatory coverage, a driver in Ottawa can expand their auto insurance protection further. While there is a wide range of optional coverage, most insurance providers offer the following auto insurance packages:

• Collision: Provides financial compensation for replacing or repairing a vehicle where the insured driver is found to be at-fault. Without this coverage an at-fault driver must pay to repair or replace their vehicle.
• Comprehensive: Protects the insured driver if their vehicle is damaged by debris, earthquake, explosions, theft, vandalism and weather events.
• Specified perils: Protects the insured driver against named perils such as theft, damage in transport, earthquake, explosions, fire, lightning, riots or windstorm.
• All perils: Protects the insured driver against many perils except those explicitly named in the policy as exclusions. This policy type is often thought of as a combination of collision and comprehensive coverage.

Common endorsements

Drivers seeking coverage beyond what’s available through the above-named package types can also add endorsements. Some of the most common endorsements in Ontario include:

• Damage to non-owned vehicle – Kicks in when a vehicle the insured driver does not own is damaged. Also covers bodily injury, property damage and uninsured automobile. This endorsement is also called an SEF\OPCF 27 or, ‘a 27’. When a driver ‘adds a 27’ to their policy, it’s redundant for them to purchase a Loss Damage Waiver (LDW) when renting a car.
• Depreciation waiver – Compensates the insured driver for the full value of a the car following a collision in which the vehicle is deemed a write-off. This endorsement, an OPCF 43, is worth considering for drivers who have purchased a new vehicle.
• Emergency road service – Covers the cost of labour at a breakdown site as well as those for towing, locksmith assistance and battery, gas or tire replacement.
• Family protection – In the event of collision with an at-fault third party who has inadequate liability coverage, this endorsement kicks in to cover the difference. Also known as an OPCF 44R this endorsement means that the insured drivers costs will be paid even if the at-fault third party can’t pay.
• Loss of use – Compensates insured drivers who have all perils, comprehensive or specified perils coverage for costs of a replacement vehicle or transportation costs if their vehicle is damaged.

Changes to Ontario's auto insurance in 2024

Ontario is currently in the process of reforming how auto insurance works in the province. The goal of this is to reduce the amount of coverage drivers are forced to take out, and in turn, lower their premiums.

Some of the proposed changes include:

• Option to remove the caregiver benefit, housekeeping and home maintenance expenses benefit, income replacement benefit, and death and funeral benefits (benefits for medical, rehabilitation, and attendant care will remain mandatory, however).
• Making auto insurance companies the first payer for medical and rehabilitation benefits (at the moment, a person's private medical insurance is the first payer). This change is meant to streamline the claims process and lead to earlier resolution.
• Option to remove direct compensation for property damage (DCPD) coverage (in effect since January 2024).

The cheapest car insurance in Ottawa

In 2021, rates varied across Ottawa, from a low of $1,217 to a high of $1,335. While drivers based in postal code regions K1A, K1N, K1P, K1R, K1Y, K1Z, K2A, K2B and K2P paid the least, those in the postal code area of K2C paid the most.

Many factors go into determining a car insurance rate, but some of the most significant are claims frequency and auto theft. In parts of the city where there is a higher concentration of drivers, there are likely to be more claims and rates will be higher. If there’s a high volume of car thefts in a city or a concentration of thefts in a part of the city, rates are also likely to be higher.

According to RATESDOTCA’s 2021 Auto Insuramap tool, auto insurance premiums were decreasing in many Ontario cities largely due to COVID-19 pandemic lockdowns which kept many drivers off the road. In Ottawa, however, between 2021 and 2020 rates increased about 3.6%, going from $1,213.

Factors that determine your Ottawa car insurance rate

When insurance providers are writing a new policy, they consider many factors. Some of the most common include:

• Age: More experienced drivers are more likely to secure a cheap auto insurance premium. Insurance providers consider them less likely to make a claim because of the number of years they’ve been driving – presumably without incident.
• Claims history: Any driver who has made an auto insurance claim in the last 10 years may be subject to a higher premium. Insurance providers consider past behaviour indicative of future behaviour and adjust premiums accordingly.
• Driving record: A driver with a clean driving record (no claims and no tickets) may be able to secure a lower car insurance premium.
• Location: Cities with dense traffic or residents who commute daily may have higher auto insurance rates because there is likely to be more claims in the area. If there are many incidents of auto theft in the area, residents are also likely to pay more for auto insurance.
• Vehicle type: Cars that are expensive to repair or replace often result in a more expensive premium. Similarly, cars that are popular among car thieves may result in a driver paying more for insurance.