The Government of Ontario is considering introducing car insurance sales in car dealerships in a test and learn environment (TLE).

A recent article on Driving.ca caught our attention that warrants some added clarification: Careful buying auto insurance at an Ontario dealership

First, auto insurance in Ontario is complicated. It requires a significant amount of knowledge and continuing education to be prepared and competent at recommending the right insurance product for a person or family’s specific circumstances.

Ontario Brokers are licensed and bound by legislation and professional codes of conduct to act in the best interest of the consumer. Price, or commission earned, is not to be a consideration when recommending car insurance solutions. Brokers are obligated to understand their customers’ insurance needs and give them the best, unbiased, and independent advice based on that.

Other Provinces Have Tried

Other Canadian provinces, including Quebec and British Columbia, launched this model in the past and are backing away partly because some dealers have repeatedly not followed the rules and have been fined for non-compliance by their regulatory authorities.

“The issues that these two other provinces are finding are that the motivation of the sellers… [is] to generate margin and profit… They’re not necessarily looking at the consumer’s interest,” said the Insurance Brokers Association of Ontario (IBAO) CEO Colin Simpson earlier in 2025. “A broker doesn’t sell [an insurance] product to make a margin. It sells it to match against the consumer’s risk profile, their needs.”

Meanwhile, consumers already have the option to go through the insurance buying process alone, without independent advice from a broker — including buying directly from select insurance companies and/or purchasing their auto insurance online. The choice of skipping an experienced broker exists and for certain consumers who feel that model may work for them.

Staebler’s View

At Staebler Insurance, we hold the practice of giving consumers all the information they need along with un-biased recommendations and advice on which insurance products suit their lifestyle best as our highest value. When purchasing a vehicle, there are already an endless list of add-ons and types of “insurance products” that dealers offer. Think GAP insurance, loan protection (if you’re injured and can’t work), extended warranties, and rust protection packages. There’s already enough to consider during an expensive and stressful transaction when purchasing a vehicle.

Adding auto insurance at the point of sale is not a solution that will help auto insurance become cheaper or easier to obtain for consumers, nor is it in the consumer’s best interest. Licensed insurance brokers remain the best option for Ontario drivers.

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Staebler Insurance is a general insurance broker specializing in car insurance, home insurance, small business insurance, and commercial insurance. Staebler Insurance Brokers proudly serve Kitchener, Waterloo, Cambridge, Guelph, Stratford, Listowel, Fergus, Elora, Wellington County, Perth County, Waterloo Region, the Greater Toronto Area, Golden Horseshoe, Niagara Region, and all over beautiful Ontario, Canada. Get a Quote to get started today.