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features October 26, 2026

Why Canadian car insurance keeps rising: a province-by-province look

Car insurance prices rose 5% in a year, but Alberta jumped 22.8% while B.C. held flat. Here's what's driving each province and what actually lowers a premium.

AI-assisted · MotorLinks editorial team

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Car insurance in Canada costs 5.0% more than it did a year ago, according to Statistics Canada’s consumer price data for September 2026. That’s well ahead of overall inflation of 3.1%. The same insurance index is up 11.5% over the past two years.

But no one pays a national average. The same data show Alberta premiums up 22.8% in a year while British Columbia’s didn’t move and Quebec’s fell. This explainer breaks the numbers down by province, shows what’s behind the biggest gaps, and sorts the savings tips that work from the ones that just move money around.

Quick answer

Nationally, premiums rose 5.0% in the year to September 2026, versus 3.1% for all consumer prices, based on the Statistics Canada index.
Alberta is the outlier at +22.8%, and +41.4% over two years. Relief is scheduled: approved Care-First filings show an average drop of 13.7% from January 1, 2027.
British Columbia was flat, and Quebec fell. B.C. was unchanged at 0.0% and Quebec fell 1.5%. Saskatchewan rose 4.4% and Manitoba 6.5%. Ontario’s 1.0% rise was smaller than either of those.
Atlantic Canada is rising faster than the national rate, with each of the four provinces at +8.1% for the year.
The biggest savings come from comparing quotes, using every discount you qualify for and matching coverage to your car’s value, not from waiting for rates to fall.

Why the 5% national figure misleads

The headline number is an average of very different markets. In Ontario, the Atlantic provinces and Alberta, private insurers set prices under provincial regulators. In B.C., Saskatchewan and Manitoba, a Crown insurer sells the mandatory basic coverage at rates set by government or a utilities board. Quebec splits the two, with a public plan for injuries and private insurers for property damage liability and vehicle damage.

There’s a second catch. Statistics Canada prices the same set of representative policies each month, holding the driver and coverage constant. That’s the right way to measure price changes, but it means the index can’t see savings you get by buying less coverage, and it won’t match your own renewal notice.

Finally, the index level itself isn’t comparable between provinces. Alberta’s index sits far above B.C.’s because of how prices have moved since the base year, not because those levels are the premiums drivers pay. Only the percentage changes can be compared, which is what we use below.

The province-by-province picture

To make the changes concrete, we applied each province’s two-year index change to a $2,000 annual premium from September 2024. Over the same two years, overall consumer prices rose 5.5% nationally, which would have taken that $2,000 to about $2,110.

Passenger vehicle insurance premium index, change to September 2026, and what a $2,000 premium from September 2024 would cost at the same rate of change. Source: Statistics Canada Table 18-10-0004-01. MotorLinks calculation. Your premium will differ.

Province	1 year	2 years	$2,000 now
Alta.	+22.8%	+41.4%	$2,828
P.E.I.	+8.1%	+17.8%	$2,356
N.B.	+8.1%	+16.1%	$2,323
Man.	+6.5%	+14.1%	$2,281
N.S.	+8.1%	+12.8%	$2,256
Canada	+5.0%	+11.5%	$2,230
N.L.	+8.1%	+10.2%	$2,204
Ont.	+1.0%	+8.9%	$2,178
Sask.	+4.4%	+5.7%	$2,113
B.C.	0.0%	+0.3%	$2,006
Que.	−1.5%	−0.9%	$1,982

Two things stand out. Over those two years, insurance rose faster than that province’s own all-items prices in seven of the 10 provinces. That count uses each province’s all-items index in Statistics Canada table 18-10-0004-01 from September 2024 to September 2026, not the national 5.5%. Those provincial all-items increases were 5.6% in Alberta, 7.4% in Prince Edward Island, New Brunswick and Manitoba, 8.5% in Nova Scotia, 6.9% in Newfoundland and Labrador, 4.6% in Ontario, 6.0% in Saskatchewan, 4.9% in British Columbia and 6.5% in Quebec. Saskatchewan, British Columbia and Quebec are the three where insurance did not rise faster. The spread between the top and bottom of the insurance changes is more than 42 percentage points. Where you live matters more than almost anything else on this list, and it’s the one factor you can’t shop around.

Alberta: the steepest climb, with relief scheduled

Alberta’s 22.8% one-year rise is more than four times the national rate. The province capped increases for good drivers at 7.5% for 2026, but only drivers who meet its conditions, such as no minor traffic convictions in the past three years, are covered by it.

The turning point is January 1, 2027, when the Care-First system replaces the court-based injury model. The Automobile Insurance Rate Board says approved insurer filings show private passenger premiums falling an average of 13.7%, or about $297 a vehicle, with young drivers saving the most.

Timing matters: Care-First prices apply at your first renewal or rewrite after January 1. If your policy renews this fall, our Care-First renewal guide explains how to ask for a penalty-free rewrite in early 2027.

Public insurers: flat, small and hidden increases

British Columbia shows a 0.0% change because ICBC’s basic rates are frozen. The B.C. government said in October 2025 that there would be no basic rate increase through spring 2027, marking seven consecutive years without one. It credits the Enhanced Care model introduced in 2021, which it says cut the average customer’s basic premium by $496, or about 28%.

Saskatchewan’s 4.4% lines up closely with SGI’s first rate increase since 2014. The provincial government confirmed a 3.75% Auto Fund increase that took effect June 1, 2026, and a second 3.75% increase for June 1, 2027, worth about $39 a year for the average vehicle owner. The government cited “record claims again this summer.”

Manitoba is the interesting gap. The Public Utilities Board approved only a 1.77% basic rate increase for April 1, 2026, about $21.89 a year for the average vehicle, yet the index rose 6.5%. The same order raised the basic deductible from $750 to $1,000, and MPI said drivers with a $750 deductible would automatically be assigned an optional Extension product to keep it.

So a driver who keeps the same $750 deductible now pays for it through Extension, on top of the basic rate change. The index’s big monthly step came in April 2026, when the order took effect. Statistics Canada doesn’t publish a breakdown, so we can’t confirm how much of the gap this explains.

Ontario’s 1% hides a coverage choice

Ontario premiums rose just 1.0% in the year to September, after rising 8.9% over two years. The month to watch is July 1, 2026, when the province’s accident benefits reform took effect.

According to the Financial Services Regulatory Authority of Ontario (FSRA), only medical, rehabilitation and attendant care benefits remain mandatory. Benefits such as income replacement, caregiver and death benefits became optional. FSRA’s guidance to insurers says existing policies must renew with the same coverage unless the customer agrees to a change in writing.

Because Statistics Canada holds coverage constant, a driver who drops optional benefits and pays less doesn’t show up as a lower price. That’s a reasonable saving for some drivers, such as those with strong workplace disability coverage. But for others, it’s simply less protection. Check what your workplace and personal policies cover before you sign the form.

Atlantic Canada and Quebec

All four Atlantic provinces posted an identical 8.1% rise in the year to September, each above the national 5.0%, though their two-year changes differ widely, from 10.2% in Newfoundland and Labrador to 17.8% in Prince Edward Island. Over two years, three of the four are still above the national 11.5%. Newfoundland and Labrador’s 10.2% is not. The index jumped in September itself in P.E.I. and New Brunswick, so the one-year figure is worth watching in the next monthly release.

Quebec is the only province where the index fell, down 1.5% over the year and 0.9% over two years. Because the SAAQ plan covers injuries, the private policy Quebecers buy is mostly about property damage, liability and their own vehicle.

What actually lowers a premium

The province sets the backdrop, but your own choices still move the bill. The Insurance Bureau of Canada’s tips and FSRA’s savings guide agree on the levers below. Some are real savings. Others trade risk for a lower price.

Real savings, with little downside:

Comparing quotes. Insurers price the same driver differently. Getting quotes from several insurers or a broker before renewal is the single most useful step in the private-insurance provinces.
Discounts you already qualify for. FSRA says all Ontario insurers must offer a winter tire discount. Multi-vehicle and bundled home-and-auto discounts typically run 5% to 15%, and renewal discounts 5% to 20%, according to FSRA.
Usage-based programs. IBC lists telematics, which price you on how and how much you drive, as a way to lower rates for low-mileage and careful drivers.
Checking the vehicle before you buy. Premiums vary by model, partly on theft and repair costs. FSRA notes that models with high theft rates cost more to insure. National thefts fell 10.1% in the first half of 2026, according to Équité Association, but FSRA’s point about high-theft models still applies when you choose a vehicle.

Savings that shift risk to you:

A higher deductible lowers the premium, but you pay more after a claim. Pick one you could cover from savings tomorrow.
Dropping collision coverage on an older car. FSRA suggests it may not be worth carrying on a car worth less than $2,000. On anything you’d need to replace with a loan, keep it.
Declining optional benefits in Ontario, as covered above.

Worth knowing: In B.C., Saskatchewan and Manitoba, you can’t shop the basic coverage, but optional and extension coverage is a separate purchase. Review those deductibles and limits at renewal.

Checklist before your next renewal

Find your renewal date and set a reminder for 30 to 45 days before it.
Get at least three quotes, or ask a broker to, using identical coverage and deductibles so the prices compare fairly.
Ask each insurer about winter tire, multi-vehicle, bundling, renewal and usage-based discounts.
Compare your deductible with what you could pay from savings, and adjust it if it’s out of line.
Look up your car’s value. If it’s under about $2,000, price the policy with and without collision coverage.
In Ontario, read any optional benefits form carefully before declining coverage.
In Alberta, if your policy renews before January 1, 2027, note your Care-First rewrite window.
Before buying your next vehicle, get an insurance quote on it.

Bottom line

Over two years, car insurance rose faster than that province’s own all-items prices in seven of the 10 provinces. The national 5% still hides huge regional differences. Alberta drivers have absorbed the steepest increases and should start to see relief at renewals from January. B.C. drivers are on a freeze into spring 2027. Saskatchewan’s 5.7% two-year insurance rise stayed under that province’s own 6.0% rise in consumer prices, while Manitoba’s index rose 6.5% over the past year.

Ontario’s 1.0% rise over the past year came as optional benefits arrived. Each Atlantic province’s insurance index rose 8.1% in that year, above the national insurance increase of 5.0%.

Wherever you live, the most reliable savings come from comparing quotes before renewal and claiming every discount you qualify for. Cutting coverage can lower the bill too, but make that choice knowing exactly what you’re giving up.

FAQ

How much did car insurance go up in Canada in the past year?

Statistics Canada’s price index for passenger vehicle insurance premiums was 5.0% higher in September 2026 than a year earlier, compared with 3.1% for overall consumer prices. The change ranged from a 1.5% decline in Quebec to a 22.8% rise in Alberta.

Why did my Ontario premium drop when Statistics Canada shows insurance rising?

Since July 1, 2026, several Ontario accident benefits are optional at renewal. If you declined some of them, you bought less coverage, so a lower bill isn’t a lower price for the same policy. Statistics Canada’s index tracks the same coverage over time, so it doesn’t count a coverage cut as a price drop.

Will Alberta car insurance get cheaper in 2027?

For most drivers, yes. Insurer filings approved by Alberta’s Automobile Insurance Rate Board show private passenger vehicle premiums falling 13.7% on average, or about $297 a year, under the Care-First system that starts January 1, 2027. The new price applies at your first renewal or rewrite after that date.

What is the fastest way to lower a car insurance premium?

Get quotes from several insurers or brokers before your renewal date, then ask about winter tire, multi-vehicle and bundling discounts, a higher deductible and usage-based programs. Dropping collision coverage can make sense on an older car worth little, but only if you could afford to replace it yourself.