How much is car insurance in Ontario

Just like in many popular provinces in Canada, car insurance is a legal necessity for all drivers or car owners in Ontario.

But while the average cost of car insurance in Ontario might be much, it remains one of the essential things to take out. In this guide, we will explore how much car insurance is in Ontario, the reason why it is high, and various factors that influence the cost. Keep reading!

Average Car Insurance Price in Ontario

Based on the research carried out in 2020, Ontarians pay an average of $1,445 for auto insurance annually. This is quite higher than the national average of $1,016. However, to know the amount paid monthly, many insurers in Ontario divide your yearly premium by 12, which by estimation is around $120.41.

Additionally, there are numerous reasons why the cost of car insurance in Ontario is high but before citing them let’s discuss some of the factors that determine car insurance rates.

Read Also: How is Car Insurance Valued in Canada

Factors That Impact The Rates Of  Car Insurance

The following are individual factors that influence the average cost of car insurance and also the rate you end up with. However, note that these factors apply to short-term car insurance plans such as policies connected to car rentals.

1) Driving Experience

The rule of thumb about most insurance firms is that any driver with driving experience from a country not listed among the selected few would be classified as a new driver. Hence, would pay the higher rates associated with it.

2) Your Age

According to the United States Centers for Disease Control and Prevention, individuals between the age bracket 16-19 are at an increased risk of accidents compared to those with higher ages.

They are classified to be more susceptible to accidents as senior citizens between the ages of 60, 70, and above. 

3) Your Driving History

Your premium rates may be reduced provided you have a clean and smooth driving history and no prior insurance claims. Be aware that records of driving carelessly in Ontario will stay on your record for about 3 years and can thereby increase your car insurance rates from 10% – 50%. However, depending on your policy plan and extent of charge.

4) Your place of Residence 

In Canada, Ontario is a huge city and one of the most populous provinces. However, there are discrepancies in rates owing to an increased record of city accidents compared to rural areas.

5) Gender

In Canada generally, male drivers are statistically more negligent due to  87 percent of drinking while driving hazards compared to their female counterparts. As a result are faced with higher rates to cover for the risk caused.

6) Vehicle Model and Usage

The cost of maintenance of expensive vehicles is higher and thereby influences the premium rate. Also, the rate of driving you engage in also impacts the average cost of your car insurance. That is, the more you drive, the more likely you get involved in an accident.

Note that Insurance companies also take into consideration how you use your vehicle. If you’re the type that drives to work every day or uses your vehicle commercially, you are susceptible to a higher premium. 

7) Usage of  Winter Tyres

Ontario is known to have harsh winters and using winter tires significantly decreases your chance of being involved in accidents, which is the reason insurance firms provide discounts for drivers who use them.

Read Also: How to find your social insurance number online

Why Car Insurance Rates in Ontario Are a Bit Expensive 

Here are some of the reasons why the average price of car insurance in Ontario is high:

Increased Rates of Insurance Scam

It might seem unfair but a typical Ontarian insurance premium goes directly towards offsetting the cost of fraudulent claims suffered by insurers

Urban Hotspots Increase the Numbers

Based on research, residents of any popular states experience increased occurrences of car accidents.

However, they pay more premiums that considerably increase numbers for the entire state.

Ontario’s Insurance Laws

Another reason for the increased rates of car insurance in Ontario is that the regional government authorizes greater minimum coverage than might be experienced in many other regions of North America.

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