Driving in Toronto may mean heading down Lakeshore, past cyclists and runners, on a hot summer day. It may also mean sitting in traffic on the Gardiner Expressway, gazing at the skyline in the distance. If you live in Toronto, you’ve mostly been stuck in traffic wondering if driving a car in the city is worth it. With congestion, construction, and high insurance premiums, it sometimes doesn’t seem worthwhile to own a car. Let’s examine what’s affecting your premiums, and break down which auto insurance discount strategies you need in Toronto.
Toronto auto insurance premiums: A breakdown
In Canada, the highest car insurance rates are found in Ontario. Within the province, the most expensive averages reside in Toronto and the Greater Toronto Area (GTA). As a resident living in Ontario, you likely pay some of the highest interest rates compared to other provinces. It extends as narrowly as the city you live in.
The entire city of Toronto, and indeed the GTA as well, suffers from typical big-city pressures that drive up car insurance rates:
- High population density means more traffic: The average age of Toronto drivers is 40.6 years old, with approximately 575,260 regular drivers on Toronto roads.
- A greater risk for collisions: Toronto has an 8.27% collision rate, one of the highest in the country.
- A higher likelihood of car theft and vandalism: Canadian insurers paid out over $1 billion in claims for the first time in 2022, according to the Insurance Bureau of Canada (IBC).
Each of these factors drives up Toronto auto insurance premiums and spreads costs to each insured driver in the city.
Who shops for car insurance in Toronto?
Toronto residents are among the most diverse in the country, with millions of people behind the wheel each day. The average resident in the Toronto area who shops for car insurance is between 35 and 36 years of age. Further analysis reveals that 71.4% of drivers shopping for Toronto auto insurance are males, and 28.6% are females.
Toronto drivers have a surprisingly low rate of accidents and tickets, given the millions of motorists on the road and long commutes in heavy traffic.
How much is car insurance in Toronto?
The lowest cost areas inside Toronto’s city limits are within residential areas surrounding the city core. This is typically where residents may either not own cars or have cars, but use transit for much of their day-to-day transportation. The most expensive areas for coverage are found in both northeast and northwest corners. These areas are not as conveniently served by transit, and car use becomes more necessary to get around.
Factors that affect Toronto auto insurance rates:
- Postal code: Where you live affects your risk as a driver, therefore, having a direct effect on your premium.
- Make, model, and year of car: Different vehicles and vehicle types have different risks.
- How much the car is driven: Daily use makes insurance more expensive than occasional use.
- Your driving records: Your driving history and each motorist named on a policy are considered.
- Age, gender, and marital status: Though some provinces limit the impact of these potentially discriminatory factors, Toronto and Ontario continue to consider these.
- The level of coverage you choose beyond the provincial minimum requirements.
- Deductible limits: Low deductibles equal higher premiums and vice versa.
- High car prices: In the first quarter of 2023, a new car cost around $61,000, up from $45,000 in 2021. A used vehicle also increased from about $26,000 up to $39,000.
- Cost of servicing and replacing vehicle parts.
- Rise in auto insurance claims costs.
- Inflation plays a role in Toronto’s auto insurance rates.
The average resident who shops for Toronto auto insurance is between 35 and 36 years old. Further analysis reveals that 71.4% of drivers shopping for car insurance in Toronto are males, and 28.6% are females.
Discount strategies for Toronto car insurance rates
There are ways for you to combat high Toronto car insurance costs, even in the pricey Toronto market. Every car on Ontario roads must carry basic insurance. This coverage principally ensures that other people remain protected in an accident with an at-fault driver. That driver – and their vehicle – are not typically well-covered by basic policies. You can get cheap Toronto car insurance by finding the best deals. Here are several tips to help you do so:
1. Compare Toronto auto insurance rates between insurers
Toronto has a highly competitive auto insurance market, so insurers are constantly vying for your business. When insurers try to give you the best deals, it’s you who wins. Let our isure representatives help you to compare rates and shop around to see which Toronto insurance provider fits your auto protection needs affordably.
2. Bundle policies
One of the best ways to save money while shopping is to buy a package deal, and insurance is no different. If you bundle home and auto insurance from the same company, you’re more likely to get lower rates.
3. Ask for a higher deductible
You must pay a deductible on Toronto auto insurance claims before your carrier covers the remaining expenses. A higher deductible means paying extra if something happens to your car. However, as a result, it also means you’ll get lower insurance premiums.
4. Request group discounts
Many insurance companies deal in group discounts for companies and other organizations, like CAA memberships.
5. Pay annual premiums
Paying annual Toronto auto insurance premiums might seem expensive initially, but it’s generally cheaper than paying them monthly. Ask your isure broker about half-year premiums if you can’t afford full-year premiums.
6. Drive safely
Motor vehicle offenses and accidents can stay on your record for years. Unfortunately, any driving violation on your record will considerably increase your insurance rates. However, this also means you’ll get lower Toronto auto insurance rates if you have no offenses on record.
If you have been accident-free for the last six years, you may qualify for an OPCF 39 Accident Forgiveness endorsement. Ask one of our isure brokers if you qualify.
7. Consider Usage-Based Insurance or Telematics
Telematics puts the power of the best car insurance rates in your control! Usage-Based Insurance (UBI) or ‘Telematics Insurance‘ tracks your driving behaviour to determine how much you must pay for insurance. UBI allows you to save up to 30% on your annual premiums, so it’s a good option if you consider yourself a safe driver. This amazing technology can also give you helpful, personalized feedback on how to make you a safer driver. It’s one of the easiest discount strategies to implement and can save you hundreds of dollars annually!
8. Take driving courses
Accredited driving lessons make you a safer driver. As a result, you’ll earn discounts on Toronto auto insurance rates.
9. Choose the Toronto auto insurance you need
Naturally, more insurance protection leads to higher rates. While some auto insurance coverage is mandatory, you have optional insurance coverage like at-fault accident and theft protection. Review your policy and skip unnecessary optional coverage to save on insurance premiums. Examples that you may qualify for are conviction-free, retiree, or winter tire discounts.
10. Buy affordable cars
Cars that are expensive and hard to replace tend to get hit with higher premiums. If possible, buy affordable and reliable cars that are more common and easy to repair or replace if you want lower Toronto auto insurance rates.
11. Go green
Although the cost to replace electric/hybrid vehicle batteries is high, the benefits, such as fuel efficiency, outweigh the price tag. According to a 2014 study by AutoTrader, hybrid batteries last, on average, for 10-15 years with up to 200,000 miles (approx. 321,869 km.) Another added benefit is that you can save thousands on fuel costs per year, as well as routine maintenance costs.
Nothing compares to being in the center of it all. Having hundreds of options at your fingertips is what draws most people to the bigger urban centres, like Toronto. But you shouldn’t have to pay premium Toronto auto insurance rates for the privilege. At isure, putting your insurance needs first is our priority. We love working with our Toronto clients, helping you find ways to save money on your car insurance. We hope that our auto insurance discount strategies assist you in reducing your premiums. Speak with one of our isure representatives today to discuss your options.
