Ottawa Car Insurance 2021 Review and Prices

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Compared to other major Ontario cities, Ottawa car insurance rate is considerably lower than the provincial average. Hence, drivers and vehicle owners in the nation’s capital enjoy lower premiums.

Although the car insurance rate is flexible in Ontario, as there are no fixed rates, there seems to be an upward increase in the cost of insuring vehicles in Ottawa. The reason may not be far from the fact that Ontario ranks high among the most expensive provinces in Canada in terms of car insurance premiums.

As the capital city of Canada, Ottawa is home to thousands of drivers (residents and tourists). Therefore, traffic congestion and collision are inevitable in the city’s busy roads, Streets, Highways, and Parkways.

Hence, there is a need for drivers and vehicle owners in the city to equip themselves with proper car insurance coverage. It is illegal for anyone in Canada to drive around without proper car insurance coverage and policy. There is a severe punishment for anyone found guilty of such a traffic offense.

Car Insurance Market in Ottawa

Meanwhile, private insurance companies provide car insurance services in Ottawa. The competitive nature of the auto insurance market implies that there will be differences in premium rates.

The car insurance rates in Ottawa can vary widely in hundreds and sometimes thousands of dollars. That is why it is important for drivers and vehicle owners in the city to compare rates from different car insurance providers, to get the best and lowest available rates.

The Financial Services Regulatory Authority of Ontario (FSRA, formerly known as FSCO) is the body that reviews and regulates the activities and rates charged by the private car insurers.

The FSRA reviews and publishes new car insurance rates every three months, which indicates that car insurance rates in Ottawa and other Ontario cities changes four times in a year. This will help you as a driver or vehicle owner to determine whether you are getting the best deal or overpaying for coverage.

To get the best and lowest premium rate in Ottawa, this review will help you to understand how your premium is calculated and tips for saving money on coverages.

About Ottawa

Ottawa is a Canadian city and the capital of Canada, located in the southern part of Ontario. The city is home to more than one million residents (934,243 according to the 2016 census data). The population of the city is constantly on the increase. This is due to the fact that the city has the most educated population among Canadian cities, and attracts a lot of tourists.

Besides, Ottawa has a lot of research, educational, and cultural institutions including the famous Parliament Hill. Ottawa is a bilingual city with both French and English languages fluently spoken by residents.

About Ottawa Car Insurance

As one of the largest cities in Canada, Ottawa’s population and the number of vehicles on the roads daily implies that the city has its share of traffic congestion. The high number of visitors and commuters in the city often create traffic situations along the roads, streets, and Highways including Highway 416, Highway 417, Highway 401, Queen Elizabeth Driveway, and Aviation Parkway.

Private insurance companies provide car insurance in Ottawa with different rates and services. Hence, it is important to identify a car insurance provider that suits your auto insurance needs, and that has the coverage options that you need.

Types of Ottawa Car Insurance Coverage

In Ottawa and other Ontario cities, there are mandatory coverages that every vehicle owner and driver must have in their car insurance policy. Likewise, there are supplementary or additional coverage options available for any driver that requires extra protection on the road. The additional coverage however comes with an extra cost in premiums.

Mandatory Car Insurance Coverage in Ottawa

  • Third Party Liability Coverage

This coverage covers injuries or damage done to another person in an accident caused by you.

  • Direct Compensation Property Damage (DCPD)

This covers the damage to your car if you are not at fault in an accident.

  • Accident Benefits Coverage

If you are injured in an accident, this coverage provides support for medical expenses and other related benefits, regardless of who is at fault.

  • Uninsured Driver Coverage

This coverage protects against damages on your car and bodily injury sustained in an accident caused by a hit and run driver or an uninsured motorist.

Additional Coverage in Ottawa Car Insurance

The supplementary coverage options include:

  • Comprehensive Coverage
  • Collision Coverage
  • Specified Coverage
  • All perils Coverage
  • Waiver of Depreciation

Average Cost of Ottawa Car Insurance

Car insurance rates in Ottawa are lower than other Ontario large cities, and the provincial average of $1,528. Drivers and vehicle owners in the capital city can expect to pay between $1100 and $1400 premium per annum.

However, these rates are flexible and subject to a number of factors such as driving record, age, among others, considered by auto insurance companies in determining premiums. Hence, while some drivers can expect to pay less than $1000, other vehicle owners can see their rates above the provincial average.

Factors That Affect Car Insurance Rates in Ottawa

The following are some of the factors that could affect the cost of your car insurance premiums in Ottawa.

  1. The type, brand, sophisticated nature, and repair cost of your vehicle.
  2. The age, gender, and marital status of the driver.
  3. The driving record or history of the driver, including traffic charges, speeding tickets, collision claims, and more.
  4. The type of coverage included in your car insurance policy.
  5. How frequent you drive and the distance the car is expected to cover daily.

How to Get Lower Car Insurance Rate in Ottawa

The following tips can help you to enjoy a lower premium rate and discounts in Ottawa.

  1. Shop around, compare rates, and choose the best and lowest available rates.
  2. Bundle or combine your home and auto insurance with the same insurer.
  3. Increase your car insurance deductibles.
  4. Ask for and take advantage of discounts offered by your insurance provider.
  5. Buy and install winter tires, and enjoy up to 5 percent discount.
  6. Pay your premiums annually, and cut off administrative fees associated with monthly premium payments.
  7. Maintain a good and clean driving record.

Popular Vehicles in Ottawa

Here are some of the most popular vehicles and brands insured by drivers and vehicle owners in Ottawa.

  • Toyota Corolla
  • Dodge Grand Caravan
  • Honda Civic
  • Hyundai Elantra

Conclusion

Although the car insurance rate in Ottawa is considerably affordable for drivers in the city, it is still possible to enjoy a lower premium rate on your auto insurance policy.

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Kareena Maya

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Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.

Kareena Maya is a freelance writer focused on the personal finance and travel spaces. He frequently writes about credit cards, banking, student loans, insurance, travel rewards and more. His work has been featured in publications such as Forbes Advisor, Bankrate, Credit Karma, Finance Buzz, The Ascent and Student Loan Planner.