Research has shown that Ontarians (especially GTA residents) often pay the highest auto insurance premiums in the country. A recent FSRAO study found that the average Ontario auto premium is $1,674, and the most expensive cities are Brampton, Woodbridge, Vaughan and Toronto.

Why are the rates so high in Ontario?

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 are 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.

The Financial Services Commission of Ontario (the government agency that oversees insurers in Ontario) reported that although the 2023 indexation amount is at 6.9%, it’s only a 2.5% increase from 2022. This increase applies to monetary and deductible amounts related to specific court awards for claimants in auto injury claims. 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 – read more here!

If you have any questions about your auto insurance coverage, or want to find out ways you can possibly reduce your premium, call or email one of our isure brokers today. You can contact us toll-free at 1-877-514-7873.

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