What affects the price of your car insurance in Canada?
Quick summary
The Insurance Bureau of Canada says insurers weigh your driving record, your vehicle and broader market conditions, and that each province and territory regulates auto insurance. The page also lists where you live, how much you drive, your licence history and more. For the official average premiums, see how much car insurance costs in Canada.
Checked November 10, 2026. Main source: Insurance Bureau of Canada: How auto insurance rates are set (no date shown, last confirmed November 10, 2026). See all 1 source.
Key facts
- Who regulates it
- Each province and territory
- Source: IBC, page shows no date
- Driver factors
- Age, driving and insurance history, licence history, kilometres driven
- Source: IBC, page shows no date
- Vehicle factors
- Make, model, year, value, safety features, repair cost, theft likelihood
- Source: IBC, page shows no date
The factors the IBC lists
| Group | What the IBC lists |
|---|---|
| Driver | Age, gender and marital status; driving and insurance history, including claims and convictions, and possibly driver training; how long you have held your licence and your licence class; the driving records of other household drivers on the policy; how often you drive, including annual kilometres |
| Location and use | Where you live; whether the vehicle is also used commercially |
| Vehicle | Make, model, year and value; safety features such as airbags and collision avoidance; potential repair costs; theft likelihood; CLEAR ratings |
| Market | Repair costs including parts, labour, towing and rental vehicles; supply and demand; rising auto theft and fraud; inflation |
Source: Insurance Bureau of Canada: How auto insurance rates are set (no date shown, last confirmed November 10, 2026).
What you may be able to change
The IBC says the harder a car is to steal and the less expensive it is to repair, the less you pay. So the vehicle you choose matters. A clean driving record and fewer kilometres are other items on the list that you may influence over time.
You cannot change your age, the market or the province's rules. Ask your insurer which discounts it offers, because the IBC page does not list them.
Source: Insurance Bureau of Canada: How auto insurance rates are set (no date shown, last confirmed November 10, 2026).
What the IBC page does not say
The page does not list credit score as a factor, and it does not say how much each factor counts. Insurers may differ, and provincial rules differ. Ask your insurer how it sets your rate.
Questions people ask
What affects car insurance rates in Canada?
The IBC lists driver factors, location, the vehicle and market conditions such as repair costs, theft and inflation.
Does where I live matter?
Yes. The IBC lists where you live as a factor, and each province and territory regulates auto insurance.
Does my credit score affect my car insurance?
The IBC page we read does not list it. Ask your insurer, because rules differ by province.
Why is the same car cheaper to insure than another?
The IBC says cars that are harder to steal and cheaper to repair cost less to insure, and insurers use CLEAR ratings to estimate claims.
Does your province have its own rules?
Sales tax on a vehicle and car insurance costs differ by province. Pick yours to see where to look. We remember your choice on this device only.