What insurance costs mean for vehicle ownership

Cars are increasingly costly, says a new calculation from rate aggregator Ratehub.ca that places the average monthly cost of car ownership at $1,373, when factoring in insurance, financing, gas, parking and maintenance.

And insurance is a big piece of that cost puzzle, as are rising repair costs (which can drive premiums higher). All of this has some Canadians reconsidering whether owning a car is financially sound.

“While Canadians are starting to save on vehicle purchase prices, financing rates, and gas, those gains are being completely offset by rising insurance premiums and maintenance expenses,” says Ratehub’s vice president of insurance Matt Hands.

“Insurance costs have climbed due to inflation and higher claims costs. Despite recent news that auto theft is [declining], it remains one of the most expensive claims for the industry.”

Related: Myth-busting: How to help your clients grasp their auto policy limitations

Impacts from U.S. auto tariffs on Canadian auto markets are expected to also affect the cost of car ownership soon, he adds. 

And, while a report from Équité Association points out auto thefts fell 22% in Ontario and 18% Canada-wide last year, 46,999 vehicles were stolen across Canada in 2025.

That impacts insurance losses and premiums, says Steven Harris, a licensed insurance broker who provides commentary to LowestRates.ca. 

“While claim numbers are trending in the right direction, auto theft remains a significant risk factor in many parts of the country,” he says. “Insurance premiums are shaped by long-term trends, not short-term changes.

“This is a good time for drivers to review how a policy would respond in the event of a theft and confirm they understand their coverage, limits, and deductibles.” 

Related: Rate filing system is causing auto premium spikes: IBC

He offers five policy areas to review with drivers: 

• How theft is covered – both comprehensive and specified perils coverages address theft, but comprehensive provides the broadest protection. “Drivers should confirm which coverage is in place and understand the applicable deductible before a loss occurs,” Harris says.  
• Risk of vehicle theft – some makes and models are more popular with thieves. So, if a client hasn’t yet made their purchase, outline how insurers rate specific vehicles and discuss whether things like onboard tracking systems or anti-theft devices can impact premiums – and whether or not insurers require them. 
• Limits for loss of use – clients who need rental cars while a vehicle theft claim is processed or while a replacement vehicle is being secured may find benefits aren’t as generous as they’d hoped. In Ontario, the OCPF 20 endorsement covers rental expenses. Policies often standardize the limit around $2,000 but some insurers offer higher limits at extra cost. “Drivers should confirm whether the default limit would reasonably cover rental costs for the full period without a vehicle,” says Harris. 

Related: Two years later: Auto theft after the national summit

• Longer-term rental coverage – Sometimes, parts and labour scarcity can leave clients driving rental cars longer than they’d hoped. In Ontario, a OPCF 27 endorsement provides coverage for a rented or borrowed car that is damaged while the client is waiting for their own car to be fixed. The endorsement can extend existing insurance coverage to the rental, which means a driver might not have to take out a separate policy with a rental company. 
• How the car, and what’s in it, are covered – while comprehensive coverage protects the automobile and any permanently installed components, anything a driver leaves inside the car is usually covered by tenant or home insurance policies. That’s a separate coverage and if a vehicle owner wants to make a claim, they’ll have to pay that policy’s deductible. “Understanding how these coverages interact can help prevent unexpected out-of-pocket costs,” Harris points out. 

To avoid claims in the first place, he notes, clients should consider preventative measures such as parking in garages, installing tracking devices or using steering-wheel locks.

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Phil Porado

Phil, an award-winning journalist with over 30 years of experience in financial topics, has been managing editor of Canadian Underwriter for more than three years.