Adjustments to auto insurance coverage throughout Canada in 2021

Province by province, this is a recap of what drivers can anticipate going ahead

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Loads has modified within the auto insurance coverage business in the final two years.  

Shortly after the pandemic started, many individuals throughout the nation deserted their morning commutes for a work-from-home mannequin. Throughout this time, fewer drivers took to the roads. In response, auto insurance coverage firms supplied rebates to scale back premiums and further emergency reduction measures to help these dealing with monetary hardships. Nonetheless, many drivers noticed their charges rise on the finish of 2020 

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Because the COVID-19 vaccines grew to become extra extensively obtainable in 2021, retail companies reopened their doorways to in-person procuring, and firms welcomed workers again to places of work. The pent-up shopper demand rapidly impacted the automotive business, and a world microchip scarcity made sure vehicles onerous to purchase. And, since new automobiles had been in brief provide, used automotive costs soared.  

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In an effort to scale back automotive insurance coverage prices, many drivers turned to usage-based insurance coverage (UBI). In reality, knowledge confirmed a 43 per cent year-over-year improve within the share of drivers selecting UBI when filling out an auto insurance coverage quote on our web site in 2020. 

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On the similar time, regulatory our bodies from a number of provinces laid the groundwork for auto insurance coverage reform and took steps to enhance insurance coverage techniques. Lots of these initiatives will take impact in 2022.  

Right here is a glance again at the vital auto insurance coverage adjustments throughout Canada from 2021 and what drivers can anticipate this 12 months.  


Some Albertans confronted premium will increase upon renewal final 12 months following the scrapping of the former NDP authorities’s 5 per cent charge cap in 2019. Whereas the common improve was about 3 per cent, one man reported an 18 per cent improve in his auto insurance coverage charge.  

Happily, drivers can anticipate reform. On January 1, 2022, Invoice 41 got here into impact, aiming to stabilize Alberta auto insurance coverage prices and enhance medical advantages for Albertans injured in collisions. Legislative adjustments have additionally enabled direct compensation for property injury (DCPD), which means drivers will work with their very own insurance coverage firm to cowl restore prices if they’re discovered not at fault for the collision slightly than a third-party, decreasing prices.  

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British Columbia 

On Might 1, 2021, The Insurance coverage Company of British Columbia (ICBC) rolled out its no-fault auto insurance coverage system, referred to as Enhanced Care. Underneath this method, drivers obtain accident advantages from their insurance coverage firm for a declare, no matter fault.  

The brand new care-based system will help anybody injured in a collision in B.C., offering them with medical care, restoration choices, and monetary help.  


In April 2021, Manitoba Public Insurance coverage (MPI) started providing enhanced Autopac protection and deductible choices. MPI elevated primary third-party legal responsibility to $500,000 from $200,000 to present higher safety. Car homeowners may also get a primary most insured worth of $70,000, up from $50,000.  

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New Brunswick 

A number of auto insurance coverage firms in New Brunswick acquired approval to use drivers’ credit score scores to formulate their premiums — regardless of heavy pushback from shopper advocates. Drivers on the lookout for auto insurance coverage in New Brunswick who conform to share their info can obtain a reduction; nevertheless, those that decline is not going to be penalized.  

Nova Scotia 

In 2021, the Cap on Minor Accidents was adjusted to $8,937 as per the Car Accident Minor Harm Laws. The cap represents the overall compensation an individual can obtain for minor accidents sustained in a collision.  

Auto insurance coverage premiums in Nova Scotia proceed to be among the many most cost-effective within the nation. 


In November 2021, the Monetary Companies Regulatory Authority of Ontario (FSRA) launched “Take-All-Comers” steerage to clearly state the authorized obligations of auto insurance coverage suppliers within the province. Insurance coverage firms, brokers and brokers should present shoppers with the bottom obtainable charge, provide all eligible shoppers a quote or renewal, and settle for all enterprise from shoppers that meet insurance coverage suppliers’ accepted guidelines.  

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This steerage intends to enhance equity within the Ontario auto insurance coverage system.  

Prince Edward Island 

The Canadian Car Affiliation (CAA) began providing pay-as-you-go insurance coverage to drivers on Prince Edward Island. The MyPace coverage expenses charges based mostly partly on driving file and partly on kilometres pushed. Individuals who drive fewer than 12,000 kilometres yearly can profit from the sort of auto insurance coverage in P.E.I. 


Quebec drivers noticed a meagre improve in their insurance coverage contributions relevant to driver’s licences in 2021. Nevertheless, holders of Class 5 or 6 licences — aside from Learner’s licence holders — will obtain a cost vacation for the insurance coverage contribution in 2022 and 2023.  

The insurance coverage contributions maintain a public vehicle insurance coverage fund within the province. Insurance coverage charges improve when extra site visitors collision victims or their households are awarded compensation. Nevertheless, a major decline in claims has led to a fund surplus, permitting some drivers to skip insurance coverage contributions this 12 months. 

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Drivers will nonetheless must pay for his or her licence charges and non-public Quebec auto insurance coverage prices. 


Saskatchewan Authorities Insurance coverage (SGI) adjusts charges yearly based mostly on the Canadian Loss Expertise Car Score (CLEAR) system, which seems at a number of threat components, reminiscent of automobile kind and threat of declare, to find out charges.  

The CLEAR updates in 2017-2019 had been revenue-neutral and had no influence on charges. In 2020 and 2021, the CLEAR updates had been cancelled as a result of pandemic. Nevertheless, charge adjustments will take impact on April 1, 2022, as a charge rebalancing effort.  

SGI additionally applied enhanced damage advantages in Might of 2021. The extra help benefited greater than 1,200 clients.  


Shopping for automotive insurance coverage within the Yukon grew to become barely dearer final 12 months. As of January 1, 2021, a single tax charge of 4 per cent might be utilized to a driver’s premium in the event that they buy insurance coverage from a supplier that’s not licensed in the territory — a rise of two per cent from the 12 months earlier than. 

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Auto insurance coverage adjustments drivers can anticipate in 2022 

As extra drivers return to their commutes and take journeys for leisure, extra collisions (and, as a end result, claims) will probably happen, driving auto insurance coverage charges up. Since auto insurance coverage is regulated, nevertheless, the speed adjustments gained’t occur instantly. The excellent news is that after collision charges return to earlier numbers, financial savings ought to discover their method again to the patron. is a free and impartial charge comparability web site that permits Canadians to match charges from 75+ suppliers for varied monetary merchandise, reminiscent of auto and residential insurance coverage, mortgages, and bank cards.


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