Does your address affect insurance?

7 minute read Published on Jun 1, 2025 by BrokerLink Communications

Two hands on a steering wheel

When you're shopping for car insurance, it's good to know what affects your premiums. Ever wonder if where you live makes a difference? Well, it does! In Canada, your address is just one of the many factors that can affect how much you pay. But why does your address matter? Let's find out.

How does an address affect car insurance rates?

Just to reiterate—yes, your address affects auto insurance. How? Well, when insurance companies calculate your auto insurance premium, they look at a bunch of factors, and your home address is one of them. They use your postal code to assess risk factors specific to your location, such as how many car accidents or car thefts happen nearby. Here's what we mean:

Local traffic and accident history

When an insurance company asks for your address, it's because they want to get a sense of the traffic in your area. If you live near a spot known for heavy traffic, high crime rates, or frequent accidents—like downtown Toronto—it could mean higher rates. Insurers will look at accident stats in your area, and anything like a rise or drop in accidents might affect your rate.

They might also ask for your work address if you have a regular commute. The more time you spend on the road, the higher the chances of an accident. If you move and your commute gets longer, your insurance premium could increase.

Population density

If you live in an urban area, there are more people and more cars on the road, which means a higher chance of accidents. For insurance companies, that adds up to more risk and higher premiums for drivers in big Canadian cities.

Crime rates

It’s not just traffic and population density that impact your car insurance rates—your neighbourhood’s crime rate matters too. For instance, if you live in an area with high rates of car theft, trespassing, or break-ins, your car is at a greater risk of being stolen or damaged. That added risk could mean higher premiums, especially if your neighbourhood has a reputation for frequent incidents.

Weather patterns

The climate in your area is another factor that affects your car insurance. If you have comprehensive coverage and live somewhere prone to floods, fires, or other extreme weather, your car is at a higher risk of damage, which can raise your rates. Even without comprehensive coverage, frequent rain, snow, hail, or other bad weather makes driving riskier and increases the chances of accidents—something insurers definitely take into account.

Parking

Where you park your car at night can also affect your insurance rates. If you keep your vehicle in a garage or carport, you’ll likely pay less than someone who parks on the street or in an open driveway. Parking in a more secure or covered spot lowers the risk of theft or damage, which insurers reward with lower premiums.

Your home province and auto insurance premiums

It’s not just your home address that affects your auto insurance rates—your province or territory matters too. Why? Because each province has its own car insurance rules and minimum coverage requirements. The higher those requirements, the more your policy is likely to cost. That’s why average car insurance rates in Ontario are different from the average car insurance rates in, say, Alberta or Quebec. In fact, rates tend to be highest in Alberta and Ontario and lowest in Quebec.

If you’re planning to move to a new province, let your insurance broker know. Where you live and drive can have a big impact on your premium! Plus, your insurance often can't carry over across provinces, so you'll likely need a new insurance policy once you move.

How does changing my address affect my car insurance premium?

Changing your address —whether it’s for car, home, or business insurance—can affect your rates for the reasons we've mentioned above, like the crime rate in your new location or how dense the population is. That's why it’s important to let your insurance provider know right away—your location is a big factor that insurance companies consider when calculating your premiums.

If you’re unsure how a change of address might impact your rates or need help with the process, reach out to BrokerLink. Our insurance advisors can guide you step by step and answer any questions you have.

It's important to note that using a fake or outdated address for car insurance to try to get a lower rate is considered insurance fraud.

What other factors affect my car insurance rates?

As we’ve mentioned, your location is just one piece of the puzzle when it comes to calculating your car insurance premium in Canada. Here are a few other important factors your insurance provider will look at:

Make and model of your car

Insurers look at things like your vehicle’s safety rating, how often it’s stolen, and whether it has extra safety features like anti-theft devices or winter tires.

Modifications to your car can also impact your rates—sometimes significantly. If you already have a car insurance policy and plan to modify your vehicle, it’s crucial to let your insurance provider know beforehand. Why? Some modifications might violate your policy, and if you don’t notify your insurer, you could end up without coverage. It’s always better to be upfront to avoid surprises later.

Age and gender

Younger drivers usually pay more than older drivers, and male drivers pay more than female drivers. For young drivers, it comes down to experience. Even if you’re older but new to driving, insurers may see you as a higher risk, which can lead to higher premiums. As for gender, statistics show that male drivers are more likely to be involved in accidents, so their rates tend to be higher.

Driving record

Your driving record also affects how much you pay. For example, in Ontario, insurers will check your driver’s abstract—a record that shows any traffic tickets, at-fault accidents, or other driving incidents you’ve had. The cleaner your record, the better your rates. On the other hand, a history full of infractions will likely mean higher premiums since insurers see you as a higher risk.

Keeping a clean record doesn’t just lower your rates; it could also qualify you for a safe driver discount. Plus, how long you’ve had your driver’s licence also affects how insurance companies assess your driving history.

Why and how often you drive

When applying for a policy, you’ll need to share details about your annual mileage —basically, how many kilometres you drive each year. If you spend a lot of time on the road, you’ll likely pay more than someone who drives occasionally. On the flip side, if you’re a low-mileage driver, you might even qualify for an occasional driver discount.

Further, if you’re using your car for business, like delivering items, transporting materials, or visiting job sites, you may need a commercial auto insurance policy or a commercial add-on to your existing coverage. Personal auto insurance usually doesn’t cover business-related use. Keep in mind that commercial insurance rates and coverage options can differ from personal policies, so it’s worth exploring the right fit for your needs.

Tips to find cheap car insurance

No matter where you live in Canada, there are plenty of ways to save on car insurance. Whether it’s taking a driver’s education course or putting winter tires on your car, here are some tips to help you find affordable auto insurance:

  • Bundle car and home insurance for a discount on both.
  • Keep a clean driving record.
  • Make your insurance payments on time.
  • Increase your car insurance deductible.
  • Sign up for a driver’s education course.
  • Minimize how much time you spend behind the wheel.
  • Buy a hybrid or electric vehicle.
  • Install snow tires on your car for a winter tire discount.
  • Use a telematics device.
  • Reach out to a BrokerLink insurance advisor for advice or better quotes.

Contact BrokerLink to learn more

Want to know more about what affects your premiums and deductibles in Canada? Reach out to BrokerLink! One of our insurance brokers can walk you through how your home address and other factors impact your car insurance rates.

Whether you need car insurance in Toronto, Calgary, Montreal, or anywhere else in Canada, we’re here to help you find the right policy and save money. You can reach us by phone, email, or in person at any one of our locations throughout Canada. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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FAQs: address and insurance

Does lying about my address invalidate my policy?

Yes, if you intentionally lie about your address in an effort to qualify for a cheaper car insurance rate, and your insurance company finds out about it, they could void your policy. This means that you would not have coverage, and trying to find coverage in the future would likely be more difficult and expensive.

How many days do I have to inform my insurer about a change of address?

The amount of time you have to notify your car insurance company about a change of address varies, but experts typically recommend notifying your insurer within 30 days of the address change.

How do I change the address on my car insurance?

Get in touch with your local insurance agent or insurance advisor and request the change be made. Sometimes, you can even do this at home by logging into your account with your insurance company.

Do I have to change my car insurance address when I move provinces?

Yes, anytime you move, whether you move to a new address within the same province or an entirely new province, you will need to notify your insurance provider. You typically have 30 days from the date you move to notify your insurer. If your current insurance company doesn't offer car insurance in your new province, you will need to cancel your current policy and purchase a brand-new one.

If you have any questions, contact one of our local branches.