Research has shown that Ontarians (and especially GTA residents) often pay the highest auto insurance premiums in the country. A recent industry study found that the average Ontario auto premium is $1, 538, and the most expensive cities are Brampton, Woodbridge, Vaughan and Toronto.
But why do Ontarians pay so much for auto insurance in the first place?
There are a number of factors that come into calculating auto insurance premiums. One of them is where the driver lives. Insurers set premiums based on the likelihood of break-ins and accidents in the area. The GTA is densely populated with many highways, where the chances of a collision may be greater. Age and gender also greatly affect insurance rates. On average, younger drivers (especially males) pay more.
Different provinces also have different insurance models. For example, in Saskatchewan and Manitoba, there are public auto insurance programs where there are standard rates for all drivers, regardless of age or gender. Public insurance systems also reduce the costs of having multiple insurance companies and offices and curbs charges from tow trucks, garages and medical clinics.
In contrast, in Ontario’s private auto insurance system, age and gender play a big role in determining driver premiums. There are also many more cases of fraud in Ontario, which increases the costs for everyone. This results in higher than the national average for auto insurance rates.
However, there are more competitive rates, and insurance customers have the choice to shop around for the best price. At isure, we do your insurance shopping for you to make sure you are getting the best quote possible.
However, Ontario auto insurance rates are starting to decrease.
The Financial Services Commission of Ontario (the government agency that oversees insurers in Ontario) reported that approved auto insurance rates decreased on average by 3.07% when applied across the total market in the first quarter of 2016. This is to comply with the auto reforms to decrease costs and fraud in the auto insurance system.
And don’t think that just because you live in Ontario, you are doomed to be paying expensive premiums forever! There are lots of tips and tricks for you to save on your insurance without compromising on coverage.
If you have any questions about your auto insurance coverage, or want to find out ways you can reduce your premium, call or email one of our isure brokers today. You can contact us toll-free at1-877-514-7873 or email [email protected].