Auto Insurance Deductibles in Ontario
A deductible is the portion of an eligible claim you are responsible for paying. Ontario auto policies can use different deductibles for different coverages.
The deductible you choose can affect your premium
FSRA says insurers may offer separate deductibles for collision or upset, comprehensive, all perils, specified perils and DCPD. As a general rule, a lower deductible is associated with a higher premium.
FSRA — What determines your auto insurance rate →One policy can have more than one deductible
The deductible is not necessarily one single number that applies to every kind of auto claim. Collision, comprehensive, all perils, specified perils and DCPD can each have their own deductible structure depending on the policy.
That means two policies with the same annual premium can still expose the policyholder to different out-of-pocket amounts after different types of loss.
Higher deductible versus lower premium
A higher deductible leaves more of a covered loss with the policyholder. That can reduce premium, but the amount saved varies by insurer, vehicle and coverage.
The useful question is not whether a higher deductible is generally cheaper. It is how much annual premium you actually save compared with the additional deductible you would have to fund after a claim.
FSRA — How to save on auto insurance →Use your real numbers
Canada Rate Lab's Deductible Break-Even Calculator compares two real premium and deductible options and shows how many years of premium savings equal the extra deductible. It does not estimate your probability of a claim.