The Best Car Insurance Companies in Canada

What sets apart the various car insurance companies in Canada? Do they not essentially offer identical products?

While it’s accurate that these companies offer a standardized range of policies and add-ons, disparities arise in their premium calculations and customer service provisions.

Evaluating insurance providers entails considering multiple criteria.

Take, for instance, online reviews, though they often lean negative due to customers typically posting after encountering poor service or denied claims. Utilize such feedback as a reference for extreme cases. Subsequently, engage with your insurance broker to strategize on mitigating potential issues akin to those outlined in the reviews.

The flaws of car insurance reviews

Example #1:

Intact Insurance, the largest auto insurer in Canada, maintains a 3.9-star rating on Google from 658 reviews. However, amidst the positive feedback, one-star reviews stand out, labeling it as the “WORST insurance company.”

Critics express grievances such as policy termination due to multiple infractions, delays in repair shop services, and disagreement over deductible payments for claims. While these encounters are undoubtedly distressing, they are not exclusive to Intact nor are they entirely within the company’s purview; the blame is often misplaced by the reviewers for their negative experiences.

Example #2:

Aviva Canada, another prominent car insurance provider, has similarly been denounced as “THE WORST” by some of its Google reviewers. Instances cited include prolonged wait times for a replacement vehicle, policy cancellation for missed payments, and dissatisfaction with settlement offers for total losses.

Once again, these unfavorable reviews echo customers’ frustrations with scenarios that likely persist across various insurance companies.

How to define the best car insurance companies in Canada

Although many customer reviews lack insight, third-party data offers a more objective assessment of which car insurance companies excel in customer satisfaction.

J.D. Power, a renowned consumer insights firm, conducted its latest Canadian Auto Insurance Satisfaction survey in 2019. This study prioritizes factors such as product offerings, pricing, billing procedures, payment processes, and non-claims interactions over the claims process, aiming to alleviate issues related to claims-related frustrations.

According to the study, The Co-Operators ranked highest in overall customer satisfaction in Ontario and Atlantic Canada. In Alberta, The Co-Operators tied with the Alberta Motor Association, while The Personal claimed the top position in Quebec.

It’s worth noting that British Columbia, Saskatchewan, and Manitoba operate under public car insurance systems and were consequently excluded from the study.

Another method for gauging the best car insurance companies in Canada is by evaluating the cost of insurance.

The best car insurance companies in Canada by price

• Aviva Canada
• Economical Insurance
• SGI Canada
• Pembridge Insurance
• Unica Insurance
• Onlia Insurance
• Intact Insurance
• CAA Insurance
• South Easthope Mutual
• Echelon Insurance

Our car insurance calculator utilizes your driver and vehicle details along with your insurance history to determine quotes from various companies, employing an algorithm for analysis.

Internal data reveals which companies currently offer the lowest prices, determined by an aggregate score. However, this average doesn’t necessarily indicate that the best car insurance companies will always provide the most competitive rates. Individual circumstances may yield better prices from different insurers.

Considerations of customer service versus price arise. Does superior customer service invariably equate to higher premiums? And if so, to what extent does the quality of customer service improve with increased expenditure?

To explore this, we compared top-rated insurers for customer service with those rated slightly lower, aiming to identify the optimal balance between price and customer satisfaction.

Our findings demonstrate that in every region examined by J.D. Power (excluding Ontario), the second or third-ranked insurer offered significant premium discounts compared to the highest-rated counterpart.

Our analysis methodology involved measuring the variance in premiums among the top three highest-rated insurers in each region. We employed a fictional driver named Jennifer, representative of the average Canadian according to Stats Canada. Jennifer, aged 41 and a mother of two, leads a busy lifestyle with frequent driving, covering approximately 20,000 kilometers annually. Her vehicle of choice is a 2020 Toyota Rav4 XLE, a popular and fuel-efficient crossover suitable for her family’s needs.

Jennifer boasts a clean driving record with no convictions or at-fault collision claims. By aligning her car insurance quotes with customer satisfaction scores, we devised a price-satisfaction index, indicating the value of each insurer relative to customer satisfaction points per dollar spent. Higher index values signify better value propositions.

The best car insurance company in Alberta

In our analysis of Alberta car insurance quotes, we observed the smallest discrepancy in cost and customer satisfaction ratings. Nevertheless, a definitive victor emerged, with Johnson Insurance quoting Jennifer $34 less per month than The Co-Operators and Alberta Motor Association.

While Johnson Insurance emerged as the clear winner, its margin of victory might be even greater due to certain anomalies in the quotes. For instance, the Alberta Motor Association’s refusal to allow a comprehensive coverage deductible above $500 could have artificially lowered its premium. Conversely, Johnson Insurance’s quote included a depreciation benefit that couldn’t be removed, unlike the other two insurers.

Despite its success in Alberta, the Johnson quote exceeded Jennifer’s best quotes in any other region. Moreover, outside of Alberta, she received only one additional quote surpassing $200.

The best car insurance company in Atlantic Canada

In Atlantic Canada, we opted to evaluate Halifax car insurance quotes for Jennifer. Surprisingly, her quote from Intact Insurance stood out, being $42 per month cheaper than the leading Co-Operators and $4.08 per month lower than TD Insurance.

However, it’s worth noting a caveat in this comparison: Intact Insurance did not permit the addition of an accident forgiveness endorsement to Jennifer’s quote, a feature that could prevent her premiums from rising after her first at-fault accident. Consequently, we excluded this endorsement from the other two quotes, resulting in savings of approximately $7 per month for each.

Once again, our fictional driver’s prudent approach to comparison shopping paid off, as her optimal car insurance quote did not originate from the top-rated insurer.

The best car insurance companies in Ontario

In our examination of the Ontario car insurance landscape, Jennifer’s most favorable quote stemmed from The Personal, the second-ranked company in customer satisfaction. Impressively, it was $45 per month cheaper than the top-ranked Co-Operators and garnered the highest price-satisfaction score in this analysis.

Contrary to its lower customer satisfaction rating, RBC Insurance presented Jennifer with the highest quote in Ontario, nearly $72 per month higher than The Personal.

The best car insurance companies in Quebec

*Following the merger, La Capitale and SSQ General have combined to establish Beneva Insurance. Their satisfaction scores of 832 and 834, respectively, have been averaged for the sake of this article.

In the realm of Quebec car insurance, Jennifer’s quote from Beneva Insurance fell significantly short in competitiveness. Priced at $360.25, this quote stands as the highest among all Jennifer received, ranking last in this comparison of price and customer satisfaction. This instance underscores the crucial need to compare multiple car insurance quotes before reaching a decision.

Conversely, The Personal excelled in both aspects. Not only does it boast the highest customer satisfaction score among the companies in this article, but it also presented Jennifer with her lowest quote in Quebec, surpassing Industrial Alliance by $40 per month.

The ultimate value of customer service and car insurance costs

So, what exactly do you receive when you invest in higher-rated customer service?

According to J.D. Power’s survey of 8,688 auto insurance policyholders, satisfaction levels were notably higher among those who possessed a comprehensive understanding of their policy, billing process, and available discount options. This trend was particularly pronounced among individuals who experienced rate increases in the previous year.

Moreover, a personal touch proved to be a significant determinant of satisfaction. Policyholders who received communication from their insurer within the past year were more likely to report satisfaction compared to those who did not receive any outreach.

In summary, the key takeaway from this comparison is that the most expensive insurance isn’t always synonymous with the best. While customer service plays a vital role, cost remains an important consideration.

To attain optimal value, it’s crucial to juxtapose car insurance quotes alongside satisfaction ratings, thereby identifying the most suitable car insurance company in Canada for your needs.

What is the average cost of car insurance?

For those residing outside major urban centers, parking expenses might not weigh heavily on their minds. However, for individuals situated in bustling cities, parking costs can constitute a significant financial consideration.

While recent statistics on parking expenditures in Canada are lacking, a cursory examination with parking provider Impark reveals a spectrum of rates. In Vancouver and Montreal, monthly parking spots range from $200 to $300, while in Toronto, prices extend from $200 to $400. In Calgary, parking expenses range from $200 to $500 or more.

Naturally, your own parking costs may differ. For the sake of this analysis, let’s assume an average of $200 per month. However, it’s essential to acknowledge that this estimate could be either conservative or exorbitant, depending on where you choose to park your vehicle when it’s not in use.

Methodology

This analysis evaluates the differences among various car insurance companies in Canada, focusing on their offerings, customer service, and pricing. The methodology involves the following steps:

1. Comparison of Standard Offerings:

Car insurance companies in Canada typically provide a standardized range of policies and add-ons. We examine how these offerings vary among different insurers.

2. Disparities in Premium Calculations and Customer Service:

Despite offering similar products, insurers differ in their premium calculations and customer service provisions. We assess these disparities to understand their impact on customer satisfaction.

3. Evaluation Criteria:

Multiple criteria are considered when evaluating insurance providers. These include customer reviews, premium costs, customer service experiences, and third-party satisfaction surveys.

4. Utilization of Online Reviews:

Online reviews are analyzed, recognizing that they may be skewed towards negative experiences. Extreme cases are used as reference points, and insights are gained to mitigate potential issues through communication with insurance brokers.

5. Third-Party Satisfaction Surveys:

The analysis incorporates findings from reputable consumer insights firms such as J.D. Power. These surveys prioritize factors like product offerings, pricing, billing procedures, payment processes, and non-claims interactions to gauge customer satisfaction.

6. Exclusion of Public Insurance Systems:

British Columbia, Saskatchewan, and Manitoba operate under public car insurance systems and were excluded from certain studies.

7. Comparison of Insurance Costs:

Insurance costs are compared across different regions in Canada, utilizing a fictional driver named Jennifer as a representative. Quotes from top-rated insurers are juxtaposed with customer satisfaction scores to determine value propositions.

8. Parking Expenses:

Parking costs in major Canadian cities are analyzed, although recent statistics are unavailable. A range of monthly parking fees is provided based on a spot check with a parking company, Impark.

9. Bottom Line:

The expense of owning a car in Canada continues to rise, with each vehicle now imposing an average monthly cost of $1,387. To mitigate your car-related expenses, consider opting for a more budget-friendly vehicle, utilizing alternative transportation whenever feasible, and securing the most advantageous car insurance deal by comparing quotes online.

The analysis concludes by emphasizing the importance of cost-effective car ownership strategies, including selecting affordable vehicles, utilizing alternative transportation, and comparing car insurance quotes online to optimize expenses.

Overall, this methodology aims to provide comprehensive insights into the factors influencing car insurance costs and customer satisfaction in Canada, facilitating informed decision-making for consumers.

FAQs (Car Insurance):

1. What sets apart the various car insurance companies in Canada? Do they not essentially offer identical products?

While Canadian car insurance companies offer standardized policies and add-ons, differences arise in premium calculations and customer service. Evaluating providers involves considering multiple criteria.

2. How reliable are online reviews for assessing car insurance companies?

Online reviews can be skewed, often leaning negative. They are best used as a reference for extreme cases. Consulting with your insurance broker is recommended to address potential issues.

3. How can I determine the best car insurance company in Canada?

Utilize third-party data, like J.D. Power surveys, which offer an objective assessment of customer satisfaction. Comparing quotes online is crucial, considering factors such as product offerings, pricing, and non-claims interactions.

4. Which car insurance companies offer the best value in Canada?

Based on a combination of price and customer satisfaction, companies like The Co-Operators, Johnson Insurance, and The Personal stand out across different regions.

5. What is the average cost of car insurance in Canada?

On average, car insurance costs $1,387 per month in Canada. However, this varies based on factors like location, driving history, and vehicle type.

6. What are the parking costs in major Canadian cities?

Parking costs range from $200 to $500 or more per month in cities like Vancouver, Montreal, Toronto, and Calgary. However, individual parking expenses may differ.

7. How can I save on car expenses in Canada?

Opt for a more affordable vehicle, use alternative transportation when possible, and compare car insurance quotes online to secure the best deal.