Most Canadians are paying higher insurance premiums overall for their home and car, a new report by Rates.ca shows.
Three in four Canadians (75 per cent) say their insurance premiums, for all types of insurance, have gone up in the last two years, the Leger survey conducted for Rates.ca has found.
This figure refers to Canadians who have at least one insurance policy on a home, apartment, condo and/or vehicle.
Canadians over 35 — who are more likely to own a car and home —experienced a higher rate (78 per cent) compared to Canadians aged 18-34 (64 per cent).
Six out of 10 (63 per cent) insured Canadians said they took steps to lower insurance costs, including shopping around (40 per cent), asking for discounts (30 per cent), changing or removing parts of coverage (21 per cent), the report said.
Home insurance costs rose steadily from 2022 to 2025 across six Ontario cities —Toronto, Hamilton, Oshawa, Windsor, London and Ottawa — with the sharpest increases in 2024 before easing off in 2025, it added.
Aside from severe weather events, from fires to floods, home insurance costs were also impacted by construction costs going up because of U.S. President Donald Trump’s tariffs on Canada.
A look at local data reveals that car insurance premiums have been rising rapidly, accounting for most household expenditure on insurance.
Get weekly money news
Between 2022 and 2025, the average auto premium increased from $3,453 to $3,997 in Toronto, accounting for 70 per cent of all household insurance costs in Canada’s most populous city.
Across six major cities in Ontario, auto insurance consistently makes up the majority of the average household’s insurance cost burden, ranging from 60 per cent to 70 per cent of total premiums.
This is, in part, because repair costs have risen sharply since 2022, owing to labour shortages and parts delays caused by supply chain disruptions.
“If insurance companies have to pay more money than anticipated … premiums will go up,” said Daniel Ivans, Rates.ca insurance expert and licensed insurance broker.
Every stage of a repair, including diagnostics, parts, and labour, costs more than it did just a few years ago, Ivans said.
“As incomes inflate, the cost of living, goods, parts, and labour inflate. Insurance premiums have to match the cost of losses,” he added.
The kind of car you buy can also determine your insurance premium, said Dan Park, CEO of Clutch Canada, a platform that facilitates the sale and purchase of pre-owned vehicles.
If a car is “fancier,” it is not only more likely to be a target for thieves, but also more likely to cost more to repair, Park said.
“We’ve had customers cancel purchases on CR-Vs and Civics specifically because their premiums spiked when they quoted a high-theft model,” he said.
“One customer saw their premium nearly double and walked away entirely.”
But this is Canada, where the budgets balance themselves.
Canadian taxpayers need something to rid their backs of all the bloodsucking pests that have attached themselves without invitation.
This might be crazy, but as the cost of goods and services go up, so does the cost of repairing or replacing damaged cars and properties, and hiring the tradespeople who do that work. Insurance companies aren’t charities, as vendors increase costs, your premiums go up. Not to mention more catastrophic weather events now than ever before.
We had a 2007 Dodge Calibre, a real wreck if the truth were known but it was a good second car. The insurance bill in 2024 for basic was $1400, the car was worth $1000. No accidents, no tickets, no claims. We sold the car.
Agree. Have seen all our premiums go up!
There is no fair explanation why 1 car in the house stayed the same, and the other jumped over double in premium. Its seems like gouging at its best.
Canadians are paying more for everything
You pay more for everything in Canada!
Just one more financial burden on top of the terrible inflationary economy that exists now in Canada under the Carney Liberals, and with no relief in sight for struggling families and young people.
Only in the last 2 years?? This is a f * u * c * k * ing joke right Global???
Oh really? That’s a new revelation?
Each and every year I pay more and more for my car and home insurance, even though I never had any claims, they say… because everything goes up… (besides the value of my cars of course).
So it’s not just the last 2 years.
With ALL THE WAITS for parts and repairs driving up the cost of repairs would it NOT BE CHEAPER to just write off damaged vehicles and give owners the money to buy new ones that do NOT cost an arm and a leg to fix now. Someone needs to add up the differences in both cases and see IF it is not better to just write off damaged vehicles and let people buy new ones that are ready to drive. No more waiting for parts or LONG REPAIR TIMES.
And the other 1/4 say elbows up and then make sheep sounds and blame Trump.