This guide walks through how cancellation works under Ontario’s standard auto policy, what it costs, and when suspending makes more sense. It is based on the Ontario Automobile Policy (OAP 1) owner’s policy used for policies on or after July 1, 2026, and on Ontario government guidance.

Can you cancel car insurance in Ontario at any time?

Yes. The standard Ontario owner’s policy says plainly that you may cancel your insurance at any time by advising your insurer. There is no fixed lock-in period for you as the policyholder.

The common reasons people cancel are:

• Switching to another insurer for a better price or coverage
• Selling the vehicle, or replacing it with another one
• Moving out of Ontario
• Taking a car off the road for a long period

Each of these has a slightly different “right way” to do it. The steps matter, because cancelling in the wrong order can leave you uninsured for a day or more.

How much does it cost to cancel car insurance in Ontario?

The cost depends on who ends the policy. The OAP 1 sets out two different methods.

So the “cancellation fee” people talk about is usually not a separate fee. It is the difference between a short-rate refund and a straight day-by-day refund. The exact amount depends on your insurer’s short-rate rules. Ask your broker for the dollar figure before you cancel, especially early in a policy term.

Refunds are paid “as soon as possible,” according to the policy wording. If your premium is subject to adjustment or reports are still pending, an insurer-initiated refund can take longer.

How to cancel car insurance in Ontario, step by step

1. Decide whether you really need to cancel. If the car is staying in your driveway or a garage for the winter, a suspension (see below) may cost less and keep theft and fire protection.
2. Line up your new coverage first. If you are switching insurers or buying another vehicle, confirm the new policy’s start date before ending the old one. The cancellation date should be the same day the new policy starts.
3. Ask for the numbers. Get the short-rate refund amount and any minimum premium in writing from your broker or insurer.
4. Give notice, and keep a record. The policy only requires you to advise your insurer, but an email or signed request gives you a dated record of when you asked.
5. Deal with the vehicle and plates. If you sold the car, remove your licence plates. Ontario uses a plate-to-owner system, so the plates stay with you, not the vehicle.
6. Watch for the refund and confirmation. Check that the cancellation date matches what you asked for, and that any pre-authorized payments stop.

If you pay monthly, stopping the payments is not the same as cancelling. Missed payments start the insurer’s non-payment process, described below, which can end with the insurer cancelling the policy itself.

Switching insurers: avoid a gap in coverage

Ontario has compulsory auto insurance. The Ministry of Transportation’s driver’s handbook says every vehicle registered in the province must be insured, and you must show proof of insurance to register or renew a registration. Your licence plate also only renews automatically if the vehicle has valid insurance.

That is why the order of steps matters. Start the new policy first, then cancel the old one effective the same date. Don’t cancel and “sort out the new one next week.”

If you are replacing your car, you may not need to cancel anything. Under the OAP 1, a newly acquired replacement vehicle gets the same coverage as the car it replaces, as long as you tell your insurer within 14 days of delivery and pay any extra premium. You must also tell your insurer when you sell or transfer a vehicle on your policy.

Before you switch, compare the coverage, not just the price. FSRA says that as of July 2026, only medical, rehabilitation and attendant care benefits remain mandatory; all other accident benefits are optional. Two quotes can look alike while covering very different things, so check our breakdown of which accident benefits to keep after the 2026 changes.

Storing your car for winter? Suspend instead of cancel

Late fall is when many Ontario drivers put a convertible, classic or second car away until spring. Cancelling outright leaves that vehicle with no coverage at all while it sits. The standard alternative is the OPCF 16 Suspension of Coverage endorsement, approved by Ontario’s regulator, the Financial Services Regulatory Authority of Ontario (FSRA).

Here is what the OPCF 16 does:

• Suspends third-party liability, accident benefits, uninsured automobile and direct compensation (property damage) coverage for the vehicle.
• Suspends collision or upset coverage, including the collision part of all perils coverage.
• Leaves in place the rest of your physical damage coverage, such as theft and fire protection, if you had comprehensive, specified perils or all perils coverage. (Our guide to car theft insurance in Ontario explains how a theft claim is paid.)
• Requires that the vehicle is taken out of use and not driven from the effective date.
• Pays no refund if coverage is suspended for fewer than 45 consecutive days.

When you are ready to drive again, coverage is restored with the OPCF 17 Reinstatement of Coverage endorsement. Ask for the reinstatement before the car moves, not after. During a suspension, the vehicle has no liability coverage, so even a short trip to the car wash is uninsured.

For the maintenance side of storage, such as fuel, battery and tires, see our winter car storage tips and our guide to preparing a vehicle for long-term storage. This article covers the insurance side.

When can your insurer cancel your car insurance?

Insurers have less freedom to cancel than you do. Under the OAP 1:

• In the first 60 days, an insurer may cancel only for a reason it has filed with FSRA.
• After 60 days, it may cancel only for non-payment, false particulars about the vehicle, knowing misrepresentation or non-disclosure, or a material change in risk.

The insurer must also give written notice. How much notice depends on the reason and the delivery method:

The registered-mail periods start on the second day after the letter is mailed. For non-payment, the notice must tell you that you can keep the policy by paying what is owed, plus an administration fee, by noon on the business day before the last day of the notice period.

You have a matching duty: tell your insurer promptly about significant changes, such as a new driver in the household or a change in how the car is used. Failing to report changes can put claims at risk.

Should you call a broker before cancelling?

A broker can check the short-rate cost, set up an OPCF 16 suspension, or move you to a new insurer with matching start and end dates. Because a broker deals with several insurers, it can also tell you whether a suspension or a switch is the cheaper route for your situation.

If you are thinking of switching because of your renewal price, read our guide to car insurance renewal in Ontario first. Then use our checklist on how to compare auto insurance quotes in Ontario properly so the new policy actually matches the old one.

This article is general information about Ontario auto insurance, current as of October 30, 2026. It is not legal advice. Your policy wording, endorsements and your insurer’s filed rules decide how your own cancellation or suspension works.

Frequently asked questions

Is there a penalty to cancel car insurance in Ontario?

There is usually no separate penalty line, but you get less back than the unused share of your premium. When you cancel, the Ontario owner’s policy says your premium is calculated on a short rate basis, which includes the insurer’s handling costs. Any minimum premium on your certificate is not refunded.

Can I cancel my car insurance in the middle of the term?

Yes. The standard Ontario Automobile Policy (OAP 1) lets you cancel at any time by advising your insurer. Ask for the refund amount first, and arrange replacement coverage if the vehicle is still registered and on the road.

How do I cancel car insurance in Ontario if I sold my car?

Tell your insurer or broker about the sale, as the policy requires, and ask them to end coverage on that vehicle from the sale date. Remove your licence plates before the buyer drives away, because Ontario plates belong to the owner, not the vehicle.

Do I need to cancel my insurance if I buy a new car?

Usually not. Under the OAP 1, a newly acquired replacement vehicle takes on the coverage of the car it replaces if you tell your insurer within 14 days of delivery and pay any extra premium. Your broker can then update the policy instead of cancelling it.

What is OPCF 16 in Ontario?

OPCF 16 is the Suspension of Coverage endorsement. It suspends liability, accident benefits, uninsured automobile, direct compensation and collision coverage for a vehicle that is taken off the road, while leaving other physical damage coverage such as theft and fire in place. No refund is paid if the suspension lasts fewer than 45 consecutive days.

How do I put my car insurance back after a suspension?

Ask your broker or insurer for the OPCF 17 Reinstatement of Coverage endorsement. It reinstates the coverages cancelled by the OPCF 16 from its effective date. Get it in place before the vehicle is driven, even for a short trip.

Can I drive my car while coverage is suspended?

No. The OPCF 16 requires that the vehicle is taken out of use and not operated, and its liability and accident benefits coverage are suspended. Driving it during a suspension means driving without the coverage Ontario requires.

Can my insurer cancel my car insurance in Ontario?

Yes, but only within limits. During the first 60 days an insurer can cancel only for a reason it has filed with FSRA; after that, only for non-payment, false particulars of the vehicle, knowing misrepresentation or non-disclosure, or a material change in risk. It must give written notice, for example 15 days by registered mail for reasons other than non-payment.

How much notice does an insurer give for non-payment?

The OAP 1 requires 10 days’ notice if delivered in person, by prepaid courier or electronically with your consent, or 30 days by registered mail. The notice must explain that you can keep the policy by paying what is owed plus an administration fee before the deadline.

Will my licence plate renew if I cancel my insurance?

Not automatically. Ontario’s plate renewal page says your licence plate renews automatically only if the vehicle has valid insurance and there are no outstanding fines or tolls. If you are keeping a vehicle registered, talk to a broker before cancelling.

Sources

• Ontario Automobile Policy (OAP 1) Owner’s Policy, OAP1-EN.2 (2026), Financial Services Regulatory Authority of Ontario (FSRA): cancelling by you and by the insurer, short rate and proportionate premium, minimum premium, notice periods, newly acquired automobiles, duty to report changes.
• OPCF 16 Suspension of Coverage (AF-140E), FSRA: coverages suspended, vehicle not to be operated, 45-day minimum for a refund.
• OPCF 17 Reinstatement of Coverage, FSRA, and the OPCF 17 form (AF-141E): reinstatement of coverages cancelled by OPCF 16.
• Changes in Statutory Accident Benefits coverage in Ontario, July 2026, FSRA: which accident benefits remain mandatory.
• Vehicle insurance and registration, Official MTO Driver’s Handbook, Government of Ontario: compulsory insurance, proof of insurance to register, plate-to-owner system, removing plates on sale.
• Renew a licence plate sticker, Government of Ontario (updated October 19, 2026): automatic plate renewal requires valid insurance.

The post How to Cancel Car Insurance in Ontario (and When to Suspend It Instead) appeared first on Aaxel.

If your renewal notice came in higher this fall, two releases from the past two weeks explain much of why. This post walks through what the data says, what it does not say about your own premium, and the steps that can still lower what you pay. Figures are current as of October 29, 2026.

What do the latest numbers say about home insurance prices?

Statistics Canada’s Consumer Price Index for September 2026, released October 19, shows home insurance rising faster than inflation again.

Sources: Statistics Canada, The Daily, Oct 19, 2026; Statistics Canada, “Insurance in Canada: What’s driving premiums higher?”, June 16, 2026.

Statistics Canada named faster growth in homeowners’ insurance as one reason shelter costs sped up in September. Over six years, the index has risen more than twice as fast as overall prices.

Three cautions before you compare these numbers with your own bill:

• They are national. The release does not break home insurance out for Ontario.
• They track the same coverage over time. Statistics Canada builds the index from quotes for fixed policy profiles and treats any change in coverage as a quality change, not a price change (methodology paper, April 2025). If your policy added coverage or a higher dwelling limit, your increase can be larger than the index.
• They are quotes, not bills. The index uses broker quotes for representative households, so it shows the market trend, not what any one homeowner pays.

Why is home insurance going up in Ontario if building costs have cooled?

This is the detail most coverage of the CPI skips. Statistics Canada’s methodology describes the homeowners’ insurance index as two parts multiplied together: the replacement cost of the dwelling, and the insurance rate for an identical policy on a home of a given value.

In September, the CPI’s separate homeowners’ replacement cost index fell 1.9% year over year. Yet insurance still rose 4.9%. So this year’s increase is not mainly about lumber or labour. It suggests the main driver is the price of the cover itself: what insurers expect to pay out in claims, and what they pay for their own protection against catastrophes.

That does not mean construction costs no longer matter. Statistics Canada’s residential building construction price index rose 69.4% from late 2019 to late 2025. It rose a further 2.3% in the year to the second quarter of 2026, although Toronto fell 0.8% from the previous quarter (Building construction price indexes, Q2 2026). Statistics Canada links recent pressure to fuel and transport costs, tariffs and a stretched skilled-trades workforce. Those higher rebuild costs stay in the base that dwelling limits are set from, even when the yearly change flattens.

How much is severe weather costing insurers in Ontario?

The Insurance Bureau of Canada (IBC) reported on October 22 that summer 2026 was the third-costliest summer on record, with more than $3.7 billion in insured damage nationally. Four of the five costliest summers have come in the last six years. Ontario featured repeatedly in 2026:

Sources: IBC releases of Oct 14, 2026, Sept 10, 2026 and Jan 20, 2026.

The long-term trend matters more than any single storm. IBC says average annual insured losses from extreme weather topped $3.7 billion over the last decade, up from $1.4 billion and $883 million in the two decades before. It also reports that flood and water-related insured losses over the last 20 years are more than 300% higher than in the previous two decades.

Insurers also pay more for reinsurance, the insurance they buy to protect themselves against catastrophes. A Statistics Canada analysis found reinsurance renewal rates rose by as much as 25% to 70% in 2023, largely because of 2022’s catastrophes. It warned consumer premiums could keep rising faster than historical averages.

Why did my home insurance go up if I never made a claim?

Because your premium reflects the risk of the whole group you are priced with, not only your own history. When water claims climb across a region, every policy in that region carries some of the cost.

Location is a large part of that. Statistics Canada’s index models price differences by the first three characters of the postal code. That reflects how the market prices risk neighbourhood by neighbourhood, not just city by city. A clean claims history still helps your rate, but it cannot fully offset a rise in your area’s expected losses.

Your own file can also change the price. A renovation, a new endorsement, a higher dwelling limit or a home-based business all affect the premium. FSRA reminds consumers to disclose renovations and home businesses, however small.

Who regulates home insurance rates in Ontario?

Auto and home insurance are regulated differently in Ontario. For auto, the Financial Services Regulatory Authority of Ontario (FSRA) says insurers need the regulator’s approval before changing the rates used to calculate premiums.

FSRA’s property insurance pages describe a different role for home insurance: licensing the people and companies who sell it, enforcing fair conduct and reviewing complaints when an insurer is not following the rules. They describe no rate-approval process like the one for auto. FSRA also notes it cannot force an insurer to sell you a policy or mediate a disputed claim.

The practical takeaway is that prices for the same home can differ between insurers. That is why FSRA’s 2024 home insurance review tells consumers to compare quotes from several insurers, through an agent or broker.

How can you lower home insurance costs in Ontario?

FSRA’s guide to navigating property insurance lists the main levers:

1. Compare quotes before you renew. If you plan to switch, FSRA suggests waiting until renewal to avoid a cancellation penalty.
2. Consider a higher deductible. A larger deductible may lower the premium. Make sure you could pay it after a loss.
3. Bundle home and auto. Some insurers discount when you hold two or more policies with them.
4. Ask about discounts. Alarm systems, upgraded smoke and carbon monoxide detectors, and better door locks may qualify.
5. Ask what counts as resilience. FSRA suggests asking whether improvements that make your home more resistant to natural disasters qualify for a discount.
6. Review coverage every year. Adjust limits and endorsements to your home as it is now, not as it was when you bought the policy.

In Toronto, the city’s Basement Flooding Protection Subsidy Program pays 80% of eligible costs, up to $6,650 per property. That includes up to $1,600 per backwater valve (two devices) and up to $2,250 for a sump pump, for work done on or after November 12, 2025. Owners of single-family homes up to fourplexes must apply within two years of installation. Check your own municipality for similar programs, and ask your insurer whether the work earns a discount.

One caution: don’t drop sewer backup coverage to save money. In a year when Ontario’s costliest summer and fall events were floods, that endorsement is often what pays for a flooded basement.

What should you check on your next home insurance renewal?

Use FSRA’s suggested questions as a checklist before you accept a renewal:

• Does the policy pay replacement cost or actual cash value?
• Am I covered for sewer backup, and to what amount?
• Am I covered for overland water, and what does the policy exclude?
• What are my deductibles, and are premiums billed monthly or annually?
• Do I qualify for any discounts?
• Is my dwelling limit based on today’s rebuild cost? FSRA warns that undervaluing your home or contents can leave you underinsured.

If the answers aren’t clear, or the increase is large, that is the time to have a broker re-market the policy.

How an Ontario broker can help with a higher renewal

A broker can quote your home with several insurers at once, explain why the prices differ and point out coverage gaps before a storm finds them.

Ready to review your renewal? Request a home insurance quote or contact an AAXEL branch. If you’ve already had storm damage this year, read our guide to storm damage insurance claims in Ontario. To check flood risk before you buy, see is your home in a flood zone in Ontario. You can also save by bundling home and auto insurance, and compare coverage on our home insurance page.

Frequently asked questions

Why is home insurance going up in Ontario in 2026?

Mostly because weather claims keep rising and the cost of rebuilding homes rose sharply after 2019. Statistics Canada’s homeowners’ insurance price index rose 4.9% in the year to September 2026, against 3.1% for overall prices. Insurers also pay more for reinsurance after years of large catastrophe losses.

How much has home insurance gone up in Canada?

Statistics Canada reports homeowners’ home and mortgage insurance prices rose 45.0% from December 2019 to December 2025. Overall consumer prices rose 21.0% over the same period. These are national figures; your own increase depends on your home, location and coverage.

Did the 2026 storms affect Ontario home insurance?

They add to the losses insurers price in. IBC and CatIQ estimate the September 2–3 GTA and southern Ontario storms caused $563 million in insured damage, and Niagara Region flooding in July and August caused nearly $360 million. Nationally, summer 2026 was the third-costliest summer on record at more than $3.7 billion.

Why did my home insurance go up when I didn’t make a claim?

Your premium reflects the expected losses of homes like yours in your area, not only your own record. When water and storm claims rise across a region, rates rise for policies there. Changes to your own policy, such as a higher dwelling limit or a new endorsement, can also raise the price.

Does FSRA approve home insurance rates in Ontario?

FSRA says auto insurers need its approval before changing rates. Its consumer pages on property insurance describe licensing, conduct oversight and complaint review, with no comparable rate-approval process for home insurance. FSRA recommends comparing quotes from several insurers.

How can I lower my home insurance premium in Ontario?

FSRA suggests comparing quotes at renewal, considering a higher deductible, bundling home and auto, and asking about discounts for alarms, detectors, locks and disaster-resistant upgrades. Review your coverage every year so you pay only for what fits your home now.

Is it a good idea to cancel sewer backup coverage to save money?

Usually not in Ontario right now. The province’s largest 2026 summer and fall losses came from flooding, and FSRA lists sewer backup coverage, and its limit, among the questions to ask before you buy. Ask your broker what the endorsement costs and what limit fits your basement.

Can a backwater valve lower my home insurance in Ontario?

It may: FSRA suggests asking whether improvements that make your home more resistant to natural disasters qualify for a discount. In Toronto, the city subsidizes 80% of eligible costs, up to $1,600 per backwater valve and $6,650 per property, for work done on or after November 12, 2025.

Should I switch home insurers mid-term?

FSRA suggests waiting until renewal to switch, to avoid a cancellation penalty. Start comparing quotes several weeks before your renewal date so there is time to review coverage, not just price.

Does the CPI home insurance figure show what I will pay?

No. Statistics Canada builds the index from broker quotes for fixed, representative policy profiles across Canada. It shows the market trend for the same coverage, not any individual household’s premium.

Sources

• Statistics Canada, The Daily — Consumer Price Index, September 2026 (October 19, 2026)
• Statistics Canada — Insurance in Canada: What’s driving premiums higher? (June 16, 2026)
• Statistics Canada — Enhancements to the passenger vehicle and homeowners’ home insurance price indexes (April 2025)
• Statistics Canada — Building construction price indexes, second quarter 2026 (July 24, 2026)
• Statistics Canada — Insights into the impact of extreme weather trends on homeowners insurance (May 15, 2024)
• Insurance Bureau of Canada — Summer 2026 third worst on record (October 22, 2026)
• Insurance Bureau of Canada — Early September storms cause $563 million in insured damage (October 14, 2026)
• Insurance Bureau of Canada — Niagara Region flooding causes nearly $360 million in insured damage (September 10, 2026)
• Insurance Bureau of Canada — Severe weather insured losses exceed $2.4 billion in 2025 (January 20, 2026)
• FSRA — How auto insurance rates get approved
• FSRA — Property and other insurance
• FSRA — Helping you navigate property insurance
• FSRA — Home Insurance Thematic Review Report (June 2024)
• City of Toronto — Basement Flooding Protection Subsidy Program

This article is general information about home insurance in Ontario as of October 29, 2026, not advice about your policy. Coverage, discounts and prices vary by insurer and by home. Figures from Statistics Canada are national averages and may not reflect your premium. Speak with a licensed broker about your own situation.

The post Why Is Home Insurance Going Up in Ontario? What the Fall 2026 Numbers Show appeared first on Aaxel.

Auto theft in Ontario is falling, but not fast enough to ignore. Équité Association, which tracks police-reported thefts for the insurance industry, counted 8,796 private passenger vehicles stolen in Ontario in the first half of 2026. That is down 8.4% from 9,601 a year earlier. The share of stolen vehicles recovered fell too, from 48.6% to 44.8%. In plain terms, if your car is stolen in Ontario, the odds are now better than even that you won’t get it back. That makes the coverage on your policy more important than ever.

This guide explains how car theft insurance in Ontario works: which coverage pays, what it pays, the gaps most drivers don’t notice until they make a claim, and how theft affects what everyone pays. If your car has just been stolen, start with our step-by-step guide on how to report a stolen car and start your claim, then come back here.

Does car insurance cover theft in Ontario?

Only the optional coverages do. The coverages every Ontario policy must include, such as third-party liability, statutory accident benefits and uninsured automobile coverage, don’t pay you for your own stolen car. Neither does direct compensation – property damage (DC-PD), which deals with collision damage caused by another driver.

Theft falls under Section 7 of the standard Ontario Automobile Policy (OAP 1), the “Loss or Damage” coverages. You choose one of these options:

If your policy shows only liability and the mandatory coverages, a stolen car is an uninsured loss. Drivers sometimes drop physical-damage coverage on an older car to save money, so check the “Loss or Damage” lines on your Certificate of Automobile Insurance. If you’re unsure which coverages make sense for your vehicle, our guide to the auto coverage you really need in Ontario walks through the options.

Which car thefts are not covered by Comprehensive?

This is the exclusion most drivers have never read. Under section 7.2.3 of the OAP 1, Comprehensive and Specified Perils won’t pay when a person who lives in your household steals the car. They also won’t pay when your employee steals it, if that employee’s duties include driving, maintaining or repairing the vehicle. The policy says this exclusion applies at any time, not just during working hours.

All Perils is the only standard option that covers those situations. That matters for:

• households where relatives or others living with you have access to the keys;
• small-business owners whose employees drive, maintain or repair the vehicle.

How much will insurance pay for a stolen car in Ontario?

If your car isn’t recovered, the payout is based on its actual cash value when it was stolen. That is not what you paid for it, and not what a new replacement costs. The standard policy wording values the loss “after taking into account depreciation,” then subtracts your deductible.

For example, if a stolen car’s actual cash value is $10,000 and your Comprehensive deductible is $500, the most the insurer pays is $9,500. The deductible applies separately to each claim and to each insured vehicle.

Two practical points follow:

1. Know your vehicle’s market value. Keep records of upgrades, maintenance and mileage. They support your valuation if you disagree with the insurer’s figure.
2. Watch for a loan gap. If you owe more on a loan or lease than the car’s actual cash value, the payout goes to the lender first and you may still owe the difference. That gap is what gap insurance on a leased or financed car is designed to cover.

Will insurance pay for a rental car if my car is stolen?

Yes, but with limits that surprise people. Under section 7.4.4 of the OAP 1, if you have All Perils, Comprehensive or Specified Perils, the insurer pays reasonable costs to rent a similar substitute vehicle. If you don’t rent, it pays reasonable taxi or public transit costs instead. Two limits apply:

• A 72-hour wait. Costs aren’t covered until 72 hours after the theft has been reported to the insurer or to the police.
• A $900 cap. The most the policy pays for these expenses is $900.

If a theft claim takes more than a few days to settle, $900 may not last the whole claim. The fix is the OPCF 20 – Loss of Use endorsement (often called transportation replacement), which covers the cost of a rental while your vehicle is being repaired or replaced after a loss caused by a peril you’re insured for. Ask your broker what daily and total limits your OPCF 20 carries.

Is there a way to avoid depreciation on a stolen new car?

For newer vehicles, yes. The OPCF 43 – Removing Depreciation Deduction endorsement (often called a waiver of depreciation) removes the insurer’s right to deduct depreciation when settling a claim for a covered peril. On a recently purchased car, that can make the difference between a payout based on the purchase price and one based on a depreciated value. Insurers set their own eligibility rules for this endorsement, such as vehicle age. If you bought a car in the last year or two, ask whether it is on your policy.

Does auto theft raise car insurance rates in Ontario?

Theft costs feed into what all drivers pay, and they remain high. Insurance Bureau of Canada (IBC) reports that auto theft claims in Ontario cost $485 million in 2025, down from $723 million in 2024. Even after that drop, IBC says the number of theft-related claims is up 97% since 2017 and losses are up 330%. Toronto, Brampton and Mississauga had the highest theft claims costs in Ontario in 2025.

IBC notes that cars less likely to be stolen, damaged or in a collision, and cheaper to repair, generally cost less to insure. The reverse is also true. A model that thieves target can cost more to insure, and some insurers may ask about anti-theft equipment on certain vehicles. These requirements and any discounts vary by insurer.

For context, the Financial Services Regulatory Authority of Ontario (FSRA) reports an average private passenger auto premium of $2,218 as of June 2026, and $2,868 in the Greater Toronto Area. If your renewal went up and you’re not sure why, our guide to why your car insurance premium changed at renewal explains the moving parts.

How can I reduce the risk of my car being stolen?

Équité Association’s 2026 survey found that 82% of thefts happened at or next to the victim’s home. That makes the driveway the place to focus. IBC and Équité recommend a layered approach:

1. Basics. Lock the doors, close the windows and never leave the keys in the vehicle. Don’t leave it running unattended, even on cold mornings. Park in a well-lit area or a locked garage.
2. Visible deterrents. Use a steering wheel or brake pedal lock, an OBD2 port lock, an audible alarm, or window etching.
3. Protect the key fob. Turn off the fob or keep it in an RFID-blocking (Faraday) pouch when you’re not using it, even at home.
4. An immobilizer. A quality aftermarket immobilizer can protect against relay, reprogramming and CAN bus attacks. IBC advises speaking with your insurer before installing aftermarket technology.
5. Tracking. Tracking systems that use several hidden devices can help locate a stolen vehicle. Check with your dealership first that the system won’t affect your warranty.

What to check on your car theft insurance this week

Before winter, pull out your Certificate of Automobile Insurance and confirm:

• You have Comprehensive or All Perils, not just Collision or liability only.
• Your Comprehensive deductible is an amount you could pay tomorrow.
• You know whether OPCF 20 (loss of use) is on the policy, and its limits.
• A newer vehicle has OPCF 43 (removing depreciation deduction), if it’s eligible.
• If others in your household or business use the car, you’ve considered All Perils.
• If the car is financed or leased, you know whether a gap in the payout would leave you owing money.

An AAXEL broker can review these points against the insurers we work with and quote the endorsements side by side. If a claim is already under way, our guide on how to file a car insurance claim in Ontario covers the process. Book a policy review.

4. FAQ (publish; mark up with FAQPage schema)

Does car insurance cover theft in Ontario?

Only if you have optional physical-damage coverage: Comprehensive, Specified Perils or All Perils. Collision coverage and the mandatory coverages, such as liability and accident benefits, don’t pay for your own stolen car. Check the “Loss or Damage” section of your Certificate of Automobile Insurance.

Does Comprehensive insurance cover a stolen car?

Yes. Comprehensive includes theft and attempted theft. The exception is theft by someone who lives in your household, or by your employee whose duties include driving, maintaining or repairing the car. Only All Perils covers those thefts.

How much will my insurer pay if my car is stolen and not recovered?

The standard Ontario policy pays the vehicle’s actual cash value at the time of the theft, after depreciation, less your deductible. For a car worth $10,000 with a $500 deductible, that means up to $9,500. The OPCF 43 endorsement can remove the depreciation deduction on eligible newer vehicles.

Will my insurance pay for a rental car if my car is stolen?

If you have Comprehensive, Specified Perils or All Perils, the standard policy pays reasonable rental, taxi or public transit costs. Coverage starts 72 hours after you report the theft to your insurer or the police, and the total is capped at $900.

What is OPCF 20 and do I need it?

OPCF 20 is an optional endorsement that covers a rental vehicle while your car is being repaired or replaced after an insured loss. It is useful if a theft claim could leave you without a car for longer than the standard $900 allowance covers. Ask your broker about its daily and total limits.

What is OPCF 43?

OPCF 43, Removing Depreciation Deduction, stops the insurer from deducting depreciation when it settles a claim for a covered peril. It is mainly relevant for newer vehicles, and each insurer sets its own eligibility rules.

Is my car covered if a family member steals it?

Not under Comprehensive or Specified Perils. The standard Ontario policy excludes theft by a person who lives in your household under those options. All Perils is the standard coverage that includes it.

Does auto theft affect car insurance rates in Ontario?

Theft claims are part of the claims costs that rates are built on. IBC reports Ontario auto theft claims cost $485 million in 2025, down from $723 million in 2024 but still far above 2017 levels. Vehicles that are less likely to be stolen generally cost less to insure.

How many cars are stolen in Ontario?

Équité Association counted 8,796 private passenger vehicles stolen in Ontario in the first half of 2026, down 8.4% from the same period in 2025. Only 44.8% of those vehicles were recovered in the same period.

How can I protect my car from theft at home?

Keep the key fob in an RFID-blocking (Faraday) pouch or switched off, and never leave the car running unattended. Add a visible deterrent such as a steering wheel lock, and consider an immobilizer or tracking system after checking with your insurer and dealer. Équité’s 2026 survey found 82% of thefts happened at or next to the victim’s home.

Sources

All sources were opened and read on October 26, 2026.

• FSRA – Ontario Automobile Policy (OAP 1) Owner’s Policy, OAP1-EN.5 (07-2026), approved for use on or after July 1, 2026 (form page) — coverage options and theft (s. 7.1.2), certain thefts not covered (s. 7.2.3), deductible (s. 7.3), loss of use due to theft, 72 hours and $900 (s. 7.4.4), seven-day written notice (s. 7.5)
• Standard OAP 1 wording, September 1, 2010 edition (insurer-hosted copy) — actual cash value “at the time it was damaged or stolen” and depreciation wording (s. 7.7); FSRA’s text extract of the 2026 form did not include s. 7.7, so this wording should be confirmed against the 2026 PDF
• FSRA – Understanding Automobile Insurance (archived FSCO consumer guide) — definitions of Specified Perils, Comprehensive, Collision, All Perils; OPCF 20 and OPCF 43 descriptions
• FSRA – Your average premium — $2,218 Ontario average and $2,868 GTA average, as of June 2026
• Équité Association – First Half of 2026 Auto Theft Trend Report (press release, Aug 11, 2026) and full report PDF — Ontario thefts 9,601 → 8,796 (−8.4%); recovery 48.6% → 44.8%; 82% of thefts at or near home (2026 survey)
• IBC – Ontario’s Top 10 Costliest Cities for Auto Theft in 2025 (May 13, 2026) — $485M in 2025 vs $723M in 2024; claims up 97% and losses up 330% since 2017; Toronto, Brampton, Mississauga top three
• IBC – Auto Theft Prevention — layered prevention tips; vehicles less likely to be stolen generally cost less to insure; speak to insurer before aftermarket tech
• IBC – Types of Auto Coverage — cross-check that Collision excludes theft and All Perils covers household theft

Disclaimer

This article is general information about Ontario auto insurance and car theft insurance Ontario as of October 2026 and is not legal or insurance advice. Coverage depends on your policy wording, endorsements and insurer. Read your policy and talk to a licensed broker about your situation.

The post Car Theft Insurance in Ontario: What Actually Pays If Your Car Is Stolen appeared first on Aaxel.

That last step is the easy one to miss. Buying the tires does not apply the discount by itself, and the rules for all-weather tires differ from one insurer to the next. Here is how it works.

Is the winter tire insurance discount mandatory in Ontario?

For insurers, yes. In October 2015 Ontario’s Ministry of Finance announced it would require all private auto insurers to offer a discount to drivers who buy and install winter tires, starting January 1, 2016 (CBC News). The requirement sits in the Automobile Insurance regulation under the Insurance Act (O. Reg. 222/15).

For drivers, no. Winter tires are not legally required in Ontario. Provinces decide that question, and Quebec is the only province that mandates them province-wide in winter (Transport Canada). The discount is Ontario’s incentive instead of a mandate, and most drivers already use them: 77% of Ontario drivers surveyed in October 2025 said they would use winter tires that season (Tire and Rubber Association of Canada).

How much is the winter tire insurance discount in Ontario?

Usually a few percent, and it varies by company. The regulation requires a discount to be offered but does not fix its size, so treat any claim of a set provincial rate with caution. Two published examples:

As a rough guide, 2% of a $2,000 annual premium is $40 and 5% is $100 (illustrative figures, not a quote). That will not pay for a set of tires in one year. But if you already own winter tires, the discount is money you are leaving on the table, and the safety case is stronger than the savings: the Insurance Bureau of Canada says winter tires let you stop up to 40% sooner than all-season tires (IBC).

What counts as a winter tire for an Ontario insurance discount?

Insurers generally look for two things: the right symbol and a full set of four.

The symbol. Look for the three-peak mountain snowflake on the sidewall. Under Transport Canada’s tire rules, tires carrying it must pass a traction test on medium-packed snow and score at least 10% better than a reference tire (Transport Canada). An “M+S” (mud and snow) marking alone is not the same thing.

Four tires. Transport Canada advises installing winter tires in sets of four, because mixing tread patterns, construction or sizes makes a vehicle less stable (Transport Canada). Two winter tires on the drive axle will not qualify.

If you run all-weather tires year-round, ask before you tick the winter tire box. Telling an insurer you have winter tires when its definition says you don’t is the kind of mistake you want to avoid (see below).

How to get the winter tire insurance discount in Ontario: step by step

1. Read your insurer’s rules. Find the discount amount, the install and removal dates, which tires count, and whether proof is needed. They are often in your policy documents; your broker can confirm them. Many insurers use a window of roughly November 1 to April 1 (Sonnet), but dates vary.
2. Check your tires. All four should carry the mountain snowflake symbol and have enough tread. Transport Canada advises against tires with less than 4 mm of tread (Transport Canada).
3. Install them early. Transport Canada and TRAC both point to 7°C as the temperature below which all-season tires lose grip. Temperatures can drop that low before your insurer’s deadline, so don’t wait for the date.
4. Keep the paperwork. Save the invoice showing the date, the tire model and your vehicle. Some insurers ask for proof when you apply; others may check after a claim.
5. Tell your insurer or broker in writing. The standard Ontario Automobile Policy requires you to tell your insurer promptly about changes to the information in your application (FSRA, OAP 1). An email to your broker creates a record.
6. Check that the discount appears. Look for it on your policy declarations or next renewal. If it’s missing, ask — discounts are not always applied automatically.
7. Follow the spring date too. Leave the tires on until the insurer’s removal date. If you stop using winter tires, sell the vehicle or switch to all-season tires, update your insurer.

What if your winter tires go on late — or not at all?

This is the question most guides skip. The answer depends on your policy wording, but the general picture is reassuring for honest mistakes.

The Ontario Automobile Policy requires you to tell your insurer about changes, and lets an insurer cancel a policy if you have knowingly misrepresented or failed to disclose information (FSRA, OAP 1). That is aimed at deliberate falsehoods, such as claiming winter tires you never bought.

Missing a deadline by a few days is different. In a Globe and Mail report, a representative of the Insurance Bureau of Canada said a late installation is technically a breach of contract, but she could not see an insurer refusing coverage if an appointment was booked. Brokers quoted in the same piece said a more likely outcome was losing the discount, with the insurer possibly asking you to repay it (The Globe and Mail).

The safest approach: book your swap early, and if you can’t meet the date, tell your insurer or broker before it passes. If you do have a collision this winter, our guide to filing a car insurance claim in Ontario walks through the steps.

Other ways to lower your Ontario car insurance this winter

The winter tire discount is one line on your premium. Others can be worth more. Check that your policy reflects multi-vehicle, conviction-free, low-mileage and anti-theft discounts where you qualify — our auto insurance page lists the common ones. Combining home and auto with one insurer can also help; see bundle insurance.

If your renewal arrives this winter, our guide to car insurance renewal in Ontario explains what to check before you accept. If you are shopping around, read how to compare auto insurance quotes in Ontario properly. And since several accident benefits, including income replacement, became optional on July 1, 2026 (RIBO), review which accident benefits to keep at the same time.

Why use a broker for the winter tire discount?

Because the rules differ by insurer, the right fit depends on your tires. If you run all-weather tires year-round, an insurer that accepts them may suit you better than one that doesn’t. A broker can compare insurers on the discount rules and on the price, and can make sure the discount is actually applied. Request a call back from an AAXEL broker before your tires go on.

This article is general information about Ontario auto insurance and is not legal advice. Discounts, dates and eligibility vary by insurer and can change; confirm with your insurer or broker.

Frequently asked questions about the winter tire insurance discount in Ontario

Do all Ontario insurers have to offer a winter tire discount? Yes. Since January 1, 2016, every private auto insurer in Ontario must offer a discount to drivers who install winter tires. Each insurer sets the amount and the conditions.

Are winter tires mandatory in Ontario? No. Ontario does not require winter tires. Quebec is the only province that requires them province-wide during winter, according to Transport Canada.

Do all-weather tires qualify for the winter tire discount? It depends on the insurer. Some accept all-weather tires that carry the three-peak mountain snowflake symbol on all four tires; others limit the discount to dedicated winter tires. Ask before you claim it.

When do winter tires have to be on for the insurance discount? By your insurer’s date. Published deadlines range from November 1 to December 1, with removal dates between about March 31 and April 15. Check your policy or ask your broker.

Do I need proof of winter tires? Some insurers ask for proof when you apply; others may verify after a claim. Keep your installation invoice either way.

Can my claim be denied if my winter tires go on late? An honest delay is more likely to cost you the discount than your coverage, but your policy wording governs. Knowingly claiming winter tires you don’t have is misrepresentation and can lead to cancellation. If you’ll miss the date, tell your insurer or broker before it passes.

Do I need four winter tires? Yes. Insurers and Transport Canada both expect a full set of four. Two winter tires will not qualify.

Sources

Publish this list at the end of the article. All pages were opened on October 23, 2026.

Regulators and government

• Government of Ontario, O. Reg. 222/15: Automobile Insurance (amending regulation under the Insurance Act; page did not render for full-text check)
• FSRA, Ontario Automobile Policy (OAP 1) Owner’s Policy, July 2026 edition — sections 1.4.1 and 1.7.2
• FSRA (originally FSCO), How to Save on Auto Insurance — last modified February 24, 2016
• Ontario Ministry of Transportation, Official MTO Driver’s Handbook: Maintaining your vehicle
• Transport Canada, Winter tires (briefing document)
• Transport Canada, Using winter tires
• RIBO, Ontario Auto Reform (SABS changes)

Industry bodies and insurers

• Insurance Bureau of Canada, Winter safety
• Tire and Rubber Association of Canada, Winter Tire Report 2025 (Probe Research survey of 1,069 drivers, October 6–11, 2025)
• CAA South Central Ontario, Winter tire discount
• Sonnet, Winter tire savings in Ontario

News reporting (secondary)

• CBC News, Winter tire insurance discount promised for Jan. 1 in Ontario (2015; reports the Ministry of Finance announcement)
• CP24, What makes a winter tire a winter tire? (November 27, 2025)
• The Globe and Mail, Do winter tires have to be on by a certain date to get the insurance discount? (date not shown on page)
• McCague Borlack LLP, Ontario Is Making Roads Safer One Winter Tire At A Time (cites R.R.O. 1990, Reg. 664, s. 14.1; used for the regulation cite only — not linked in the article)

The post Winter Tire Insurance Discount in Ontario: How to Get It and Keep It appeared first on Aaxel.