Average monthly car insurance rates in Ontario range from $125 to $158, depending on which part of the province you live in. This is the highest average car insurance rate among all provinces in Canada. however, monthly averages can be a misleading number because rates can vary significantly from city to city and driver to driver.
To further complicate the situation, there are a variety of factors used to determine a driver’s individual auto policy. policies are based on the individual characteristics of the driver, the vehicle, the reason for driving, personal data and more. Insurance providers may use standardized formulas to determine a driver’s premium rates, but they may also use internal methods of the specific company. All of these elements affect the average monthly cost of your auto insurance.
how high are auto insurance rates in ontario?
The average monthly auto insurance rate in Ontario will obviously change every year. insurance companies may submit rate changes for approval once a quarter (or every three months), which means average prices will change as well. In Ontario, it has become very rare in recent years to have a quarter in which rates decline at all. These frequent rate changes over time can make it difficult to declare a single fixed monthly average auto insurance rate for any province.
To simplify this situation, consider the highest, lowest, and average rate amounts for recent periods. This provides a good variety for consumers who really want to know what to expect from average monthly auto insurance prices in Ontario. low estimates put the average rate at around $1,500 per year, and the high estimate is around $1,900 per year. these estimates can be used as a general range to obtain a more accurate monthly average.
At the higher end of this spectrum, the average Ontario auto insurance policy costs about $1,900 per year. this equates to around $158 per month.
The next thing to consider is how these rates are actually calculated so drivers like you can find out if there is a viable way to lower your monthly auto insurance cost.
how are premiums calculated?
Basic information such as location, driving experience, gender, and age are always used to calculate Ontario auto insurance rates. According to a manager at the Insurance Bureau of Canada, this actuarial method derives risk from historical data and statistics. this provides a guideline aimed at charging more premiums for more high-risk drivers.
In Ontario, we have a private auto insurance system, which means drivers have the freedom to shop around for auto insurance rates from multiple companies. In some other provinces, such as British Columbia, a public insurance system is used and all drivers are insured by the governing body, ICBC.
There have been many debates about which system is really better for drivers, and each has its advantages and disadvantages.
When providing a quote, insurance companies request information from the driver that allows them to determine rates. this includes all of the driver’s personal information, including address, date of birth, gender, vehicle make and model, and more. Driving history and the total number of years of driving will also play a central role in determining the cost of any insurance policy. insurers also look at the total number of kilometers expected per year, as well as the reason for driving.
what other factors affect premium costs?
There are many factors that affect the cost of the premium. As mentioned, the make and model of the vehicle will play a role. Each vehicle has a unique rating based on safety, theft rate, repair cost, and other claim history data. A vehicle’s rating can make a significant difference in your car insurance premium, so ask your insurance agent about the car you want to buy before you close.
Some aspects of the driver’s risk level cannot be changed. age, gender and place of residence play a role in the cost, but there is nothing the driver can do to change these elements. however, the most important qualifying criteria for determining your auto insurance rate are under his control; your driving record.
Avoiding tickets, accidents, and other auto insurance claims will help you build a stellar driving record and, over time, allow you to find the cheapest auto insurance rates available.
what makes car insurance more expensive?
Ontario drivers face high insurance rates primarily due to the province in which they live and drive. The average cost per claim in Ontario is higher than in any other province. Additionally, an increase in claims fraud has also had an impact on the average cost of an insurance claim. And when claim costs go up, so do average auto insurance rates.
what makes auto insurance cheaper in ontario?
Although Ontario is the most expensive place to drive in Canada, you can still take steps to lower your auto insurance costs. Maintaining an impeccable driving record over time is the best way to reduce rates. be sure to research the type of car you plan to buy and ask your insurance broker what your premium would be for each vehicle.
- Consider raising the deductibles on your auto insurance policy: You may get a better rate if you can afford to pay a higher deductible amount in the event of an incident.
- Place your policies with the same carrier: Combining home and auto policies can also lower your total amount by adding valuable multi-policy discounts. Make sure each person added to the policy has a clean driving record.
- select the amount of coverage that fits your budget: “full coverage” will obviously cost more than “liability only”. Plus, policies with $2 million in liability will cost more than policies with $1 million in liability coverage.
- Finally, you should always ask your insurance agent for discounts: discounts are available for students, winter tires, monitoring devices, car alarms, multiple vehicles, retired drivers and more. make each premium payment on time and maintain continuous coverage.
Lower your average monthly auto insurance rate on your Ontario auto insurance policy by putting these ideas into action today.
why do car insurance rates change every year?
Even if your circumstances remain the same (ie you drive the same car and live in the same city), car insurance rates can still change annually. In fact, in most cases, the price of auto insurance may not stay the same. Insurance companies are constantly underwriting behind the scenes, meaning even drivers with stellar driving records could see their rates change yearly. That’s why it’s so important to shop around for auto insurance every time your policy is up for renewal.
Is car insurance more expensive for women or men?
Gender is one of many factors insurance companies use to calculate premiums. More specifically, insurance providers use historical data to identify patterns and predict the likelihood of future insurance claims. This means that the driving records of men and women in your area can influence your auto insurance costs.
Historical data reveals that men are at greater risk of accidents and reckless driving behavior than women. This means that male drivers tend to pay more for car insurance than female drivers. For more information on the factors that influence auto insurance premiums, contact BrokerLink.
what is the cost of car insurance for young drivers in ontario?
Car insurance rates for drivers under the age of 25 tend to be higher than those for older drivers. This is because young drivers have less experience on the road, which insurance companies believe makes them more prone to accidents. That said, as young Ontario drivers progress through the licensing system (for example, as they graduate from a G2 license to a G license), their insurance rates will likely gradually decrease. Generally speaking, young drivers should expect the cost of auto insurance to be above average, at least until they turn 25.
five tips to keep your monthly car insurance rates low in ontario
Looking to save money on monthly auto insurance in Ontario? brokerlink can help. Our expert insurance advisors have put together a list of tips and tricks to keep your monthly car insurance rates low. From choosing a car known for its affordable insurance to maintaining a stellar driving record, check out this list of money-saving tips:
1. choose a car known for its affordable car insurance
The make, model, and year of the vehicle you drive are the three main factors that affect auto insurance rates. So if you want to keep your monthly car insurance rates low, choose a car known for having affordable car insurance. cars with low insurance rates are often safe, reliable, and affordable vehicles. By contrast, ultra-luxury vehicles from automakers like Bentley or Lexus and sports cars (especially those with lots of horsepower) tend to cost more money to insure.
In addition, choosing a used or older model car over a new model can also save you money, as they will likely be less valuable, which often translates to lower auto insurance rates. In addition, many provinces in Canada, including Ontario, offer discounts to drivers who purchase green vehicles, such as hybrid or electric vehicles. So buying an EV could be a way to lower how much you pay for car insurance.
Furthermore, electric vehicles today are not exclusively luxury cars. Instead, you can find EVs from affordable automakers like Hyundai, Volkswagen, Nissan, and Mazda. Finally, when buying a car, research models with high theft rates and avoid them. the likelihood of your car being stolen is another factor insurance companies will consider. if you buy a car model that is known to be a target for thieves, your insurance may be more expensive. (Note that the vehicles with the highest theft rates in Canada are the Honda Civic, Honda Cr-V, Toyota Highlander, Chevrolet Silverado, Ford F-150, F-250, F-350 and F-450, Toyota corolla and honda accord.)
2. maintain a stellar driving record
brokerlink’s second tip for keeping monthly insurance costs down is to maintain a stellar driving record. Your driving record is a key factor that insurance companies use to calculate premiums. A clean driving record is one that is free of accidents, tickets, demerit points, DUIs, and other violations. Such a record indicates to the insurer that you are a safe and responsible driver who obeys traffic rules. you will likely be rewarded for your positive track record with a lower rate.
3. enroll in driving school
Enrolling in an approved driving course is another tip for reducing how much you spend on monthly auto insurance in Ontario. Whether you’re a new driver or have recently been in a collision, showing that you attended and graduated from a recognized driving school can make you eligible for an insurance discount.
4. install winter tires on your vehicle
Another way to keep your monthly insurance rates low is to install winter tires on your car. winter tires are not required in ontario, but insurance companies acknowledge that equipping a vehicle with them makes driving in winter conditions much safer and may even reduce the chance of an accident. So if you install snow tires on your car, you could be eligible for up to a 5% discount on your auto insurance policy.
5. choose annual payments instead of monthly
A final way to minimize your monthly ontario auto insurance costs is to pay for your policy annually instead of monthly. If possible, we strongly recommend paying your auto insurance bill up front rather than in monthly installments. why? Many insurance companies charge high administrative fees for monthly payments, which means paying monthly for auto insurance typically ends up being more expensive than paying annually.
An easy way to save money on auto insurance is to pay for your policy annually instead of monthly. paying monthly can cost more in the long run, as insurance companies add administrative fees for each payment.