A growing number of Canadians are facing higher insurance costs for their homes and vehicles, according to a recent report by Rates.ca based on a survey conducted by Leger.
The survey found that 75 per cent of Canadians who hold at least one insurance policy whether for a home, apartment, condominium, or vehicle have seen their premiums increase over the past two years. Rising costs have become a widespread concern for households already dealing with broader cost-of-living pressures.
The impact appears to be greater among older Canadians. About 78 per cent of people aged 35 and older reported paying higher premiums, compared with 64 per cent of those aged 18 to 34. Experts suggest this difference is largely because older Canadians are more likely to own both homes and vehicles, which exposes them to multiple insurance costs.
Faced with rising premiums, many Canadians have started taking steps to manage their expenses. The report notes that 63 per cent of insured Canadians have tried to reduce their insurance costs in some way. The most common approach was shopping around for better rates, cited by 40 per cent of respondents. Others said they requested discounts from insurers (30 per cent) or adjusted their policies by changing or removing certain types of coverage (21 per cent).
Home insurance costs have also been climbing steadily. Data collected from six Ontario cities Toronto, Hamilton, Oshawa, Windsor, London, and Ottawa shows premiums rising each year from 2022 to 2025. The sharpest increases occurred in 2024, although growth began to slow slightly in 2025.
Industry experts say several factors are pushing home insurance costs upward. More frequent severe weather events, including floods and fires, have increased the number of claims insurers must pay. At the same time, construction costs have risen significantly. Analysts also point to higher material costs linked to tariffs introduced by U.S. President Donald Trump on Canadian goods, which have made rebuilding and repairs more expensive.
While home insurance has increased, auto insurance remains the largest insurance expense for many households. In Toronto, the average annual auto insurance premium rose from $3,453 in 2022 to $3,997 in 2025, accounting for roughly 70 per cent of total household insurance spending in the city.
Across the six major Ontario cities analyzed in the report, car insurance consistently represents the majority of household insurance costs, ranging from 60 to 70 per cent of total premiums.
According to Daniel Ivans, an insurance expert and licensed broker at Rates.ca, rising repair costs are a major driver of these increases. Labour shortages in the automotive industry and supply chain disruptions have made parts harder to obtain and more expensive.
“When insurance companies have to pay more money than expected for claims, premiums will inevitably increase,” Ivans explained. He added that nearly every aspect of vehicle repairs from diagnostics to replacement parts and labour costs significantly more today than it did just a few years ago.
The type of vehicle a person owns can also affect insurance rates. Dan Park, CEO of Clutch Canada, said cars that are more expensive or frequently targeted by thieves often carry higher premiums.
He noted that some buyers have even abandoned vehicle purchases after learning how much their insurance would cost. “We’ve had customers walk away from buying certain models like CR-Vs or Civics after receiving a quote for insurance,” Park said. “In one case, a customer saw their premium nearly double and decided not to proceed with the purchase.”
With repair expenses, theft rates, and rebuilding costs continuing to climb, analysts say insurance premiums may remain under pressure in the coming years, leaving many Canadians searching for ways to keep their coverage affordable.
