75% of Canadians report rising home and car insurance costs. Learn why premiums are climbing and what Canadians are doing to save.
Most Canadians See Insurance Costs Climb
Three in four Canadians are feeling the pinch as insurance premiums for homes and cars continue to rise, according to a recent survey by Rates.ca. The Leger survey found that 75% of Canadians with at least one insurance policy have faced higher rates over the past two years.
Interestingly, the increase hits Canadians over 35 hardest. About 78% of this age group reported higher premiums, compared with 64% of younger adults aged 18 to 34, reflecting that older Canadians are more likely to own cars and homes.
Canadians Take Action to Cut Costs
Despite rising rates, many Canadians aren’t standing still. The survey found that 63% of insured Canadians have actively tried to reduce costs. Strategies include shopping around for better deals (40%), asking for available discounts (30%), or adjusting coverage levels (21%).
Home Insurance Hits Record Highs in Ontario
Ontario homeowners have seen steady home insurance increases from 2022 to 2025, especially in cities like Toronto, Hamilton, Oshawa, Windsor, London, and Ottawa. Rates peaked in 2024 before slightly easing in 2025.
Severe weather events—ranging from fires to floods—are a major driver, along with rising construction costs partly influenced by U.S. tariffs. These factors have combined to push homeowners’ premiums upward, leaving many residents searching for affordable coverage.
Auto Insurance: The Biggest Household Expense
For most households, car insurance now represents the largest slice of insurance spending. Between 2022 and 2025, Toronto’s average auto insurance premium jumped from $3,453 to $3,997, accounting for roughly 70% of total household insurance costs. Across major Ontario cities, auto insurance consistently represents 60% to 70% of total premiums.
Rising repair costs play a key role. Labour shortages and delays in parts supply have made vehicle repairs significantly more expensive since 2022. “If insurance companies have to pay more than expected, premiums rise,” said Daniel Ivans, a licensed insurance broker and Rates.ca expert.
Car Choices Affect Premiums
The type of car you drive also influences how much you pay. Vehicles that are more expensive or prone to theft often lead to higher premiums. Dan Park, CEO of Clutch Canada, explained that some buyers cancel purchases after seeing quoted premiums spike. One customer even saw their insurance nearly double and chose to walk away entirely.
What This Means for Canadians
With premiums climbing, Canadians are weighing their options more carefully. From comparing policies to adjusting coverage, households are actively seeking ways to protect themselves without breaking the bank. The trend underscores the importance of staying informed, especially as home and auto insurance remain essential financial protections.
