Insurance premiums have become the fastest-rising vehicle ownership expense in Canada over the past four years, outpacing increases in gasoline, maintenance and vehicle purchase prices, according to new Consumer Price Index (CPI) analysis from DesRosiers Automotive Consultants (DAC).
The report found insurance premiums rose 29.4 per cent between June 2022 and June 2026, including a 6.0 per cent increase over the past year. By comparison, gasoline prices were up 20.5 per cent from June 2025 but remained 17.9 per cent below their June 2022 peak, reflecting the market volatility caused by global conflicts, including the wars in Ukraine and Iran.
Other ownership costs also continued to trend higher. The CPI for vehicle parts and accessories increased 17.2 per cent since June 2022, while repair services rose 19.3 per cent over the same period. Although maintenance and repair inflation has moderated recently, costs remain well above pre-2022 levels.
Vehicle purchase prices have also continued to rise, though at a slower pace than during the pandemic-era supply shortages. New vehicle prices increased 11.7 per cent since June 2022, while used vehicle prices experienced more modest growth after peaking during the inventory shortages that followed the pandemic.
“While gasoline costs may not be quite at all-time heights, they remain elevated compared to much of the past few years,” said Andrew King, Managing Partner at DAC. “From a longer-term perspective vehicle acquisition and operating costs have increased significantly, placing significant strain on consumers.”
DAC said ongoing geopolitical uncertainty and renewed tariff threats from the United States could continue to place upward pressure on vehicle ownership costs, making sustained relief for Canadian drivers unlikely in the near term.
DAC’s update matters because rising insurance, repair and ownership costs are becoming a larger part of consumers’ affordability calculations than fuel prices alone. Dealers may increasingly need to demonstrate total cost of ownership, offer F&I products that help manage ownership expenses, and help customers understand financing and maintenance options as affordability remains a key purchase consideration.
