January 25, 2024 – If you’re a car owner in Ontario, you know the mandatory drill – car insurance is a must. It’s your financial shield in case of vehicle damage or personal injury, thanks to the province’s no-fault insurance system.
But if you live in Brampton, prepare to take a hit in the savings account because it is home to the highest car insurance rates in Ontario, according to recent data.
Breaking Down the Numbers
In 2022, Ontario drivers, on average, shelled out $1,662 annually or $139 per month for car insurance. Fast forward to June 2023, and the estimates vary – the Financial Services Regulatory Association of Ontario pegs it at $1,737 annually, while RATESDOTCA data from early 2023 lands at $1,744 annually. But it’s worse locally – Bramptonians faced an average premium of $2,707 in 2023, topping the list of Ontario cities.
Why the High Cost?
Various factors play into your car insurance premium, and Ontario’s rates are no exception:
- Vehicle Matters: The make, model, and safety features influence your premium.
- Driving Record: Speeding tickets and accidents hike up costs.
- Location: Urban areas, like Brampton, often mean higher premiums due to auto theft.
- Usage: More mileage, more payment.
- Coverage Choices: Extras beyond the basics mean a higher bill.
How to Save on Premiums
While Brampton faces the highest rates, there are ways to cut costs:
- Shop Around: Compare quotes to find the best deal.
- Increase Deductibles: Paying more out-of-pocket lowers your premium.
- Bundle Insurances: Combining home and auto can bring discounts.
- Winter Tires: Save 5% by switching during the harsh Ontario winters.
- Review Coverage: Trim unnecessary extras to save.
- Drive Less: Fewer miles mean lower premiums.
- Driver Education: Completing a driving course can lead to discounts.
- Group Discounts: Being part of associations can be a money-saver.
- Safety Features: Anti-theft devices can earn you discounts.
Brampton Leads the Pack
The numbers are in, and Brampton takes the crown with a 2023 premium of $2,707. Toronto and Mississauga follow closely, making the top three priciest cities. On the other end of the scale, resident of Cloyne, Ontario pay just $546 – about a fifth of what a Bramptonian pays.
You can find the average estimated car insurance rate for your postal code using the RATESDOTCA Auto Insuramap.
Why the Disparity?
Dense urban areas like the Greater Toronto Area (GTA) see more thefts, fraud, and accidents, pushing up rates. Vaughan and Toronto drivers pay significantly more than the provincial average – $2,179 and $1,953, respectively.
Age and Gender Impact on Insurance
For young drivers, age and gender are major players. A 17-year-old boy with a G2 license might face a whopping $8,000 yearly, while a girl of the same age pays $6,000. Rates even out by age 30, dropping further with a clean record.
Ontario’s Rising Insurance Premiums
At $1,744 per year, Ontario’s average premium has surpassed all other provinces. The province’s populous nature, rich benefits, and factors like inflation, increased accidents, and insurance fraud contribute to the rise. It’s a 12% increase since 2021 and the increases show no signs of slowly down.
What Can You Do For Insurance?
If your policy is up for renewal, don’t panic. Shop around, compare quotes, and consider the advice of Ontario’s regulatory authorities – it might save you a significant amount in these changing times.
