Car insurance definitely tends to take up a huge part of one’s budget. With the increase in costs, owning a car these days is very expensive. Moreover, if you live in Ontario, it’s a little more expensive for you.
Even in Ontario, some areas are super expensive as compared to others. So, if you live in Ontario, you might have to spend way more money than people in other cities or provinces when it comes to auto insurance.
What you pay for auto insurance depends on a variety of factors. The most important factor for insurance premiums is your postal code. So, where you live plays a significant role in your insurance premium. Also, there are various other factors too.
These include your driving records. Moreover, your vehicle rating also determined your premium. So, the kind of car you drive also influences your premium.
In the past few years, insurance premium rates have gone down due to the COVID-19 pandemic. This is because fewer people were using their cars to drive to work cause of working from home.
Also, there were fewer new drivers on the road cause of the backlog in the driving test. Thus, a decrease in the number of vehicles means lesser claims and so lesser prices. The same is true for lesser new drivers.
The Financial Services Regulatory Authority of Ontario (FSRA) has approved more than 100 rate reductions and 42 various rebates during the pandemic. However, having said that rates in Ontario are still pretty high as compared to some other cities.
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10 Expensive Cities for Car Insurance In Ontario
Here is the list and the average insurance in the city—
- Vaughan: $2,232
- Ajax: $2,205
- Brampton: $2,139
- Mississauga: $2,093
- Toronto: $2,003
- Richmond Hill: $1,989
- Markham: $1,923
- Hamilton: $1,889
- Pickering: $1,850
- Oshawa: $1,815
On an average, drivers in Ontario pay $1,598 for their auto insurance. However, people living in Vaughan pay around 40% more. Drivers pay approximately $634 more. Similarly, drivers in Ajax pay around 38% more. Brampton drivers pay around 34% more than the provincial average.
In Alberta and New Brunswick, there is no postal code discrimination. In these areas, rates are determined on the basis of personal credit score data in risk calculation. However, in Ontario, this is not going to happen anytime soon. But, if it did, it would help a lot of drivers in Ontario.
However, even in Ontario, some companies are more expensive than others. This is because some providers decide the rates majorly based on your age and your driving record and less on your postal code.
So, make sure that you check with a couple of insurance providers before getting an insurance policy.
Shanvi Kaur is a content writer at Immigration News Canada. She moved to Canada as an immigrant and now focuses on bringing the latest news to immigrants to make their journey easier in Canada!