How much does car insurance cost in Ontario?

5 minute read Published on Nov 1, 2019 by BrokerLink Communications

In Ontario, the average car insurance rate tends to fall somewhere between $1,500 and $1,900 per year. However, this range unfortunately is not set in stone, as premiums are calculated based on each individual’s situation and circumstance. A number of different factors are looked at, and then compared to historical data and statistics to determine risk.

What factors determine your car insurance premium?

The entire list of factors looked at is always being updated, and can be quite long. Here are some of the most common ones that play a role in determining your premium rate.

Your age and gender: On average, women pay less for car insurance than men. Also, older customers tend to pay less than younger ones. This is all based on statistics and data relating to car accidents.

Your car make and model: The kind of car that you drive is looked at for its value, safety features and repair costs, all of which will affect your insurance price.

Your vehicle usage: Your rate will be different depending on if you simply drive your vehicle for pleasure versus if you have a long daily commute to work.

Your driving history: The number of years you’ve had your license, past speeding tickets and accidents will all be considered when determining your rate.

The area that you live in: Whether you live in Barrie, Peterborough, Hamilton or downtown Toronto, your address will be factored into the cost of your premium.

How do car insurance prices in Ontario compare to other provinces?

Unfortunately, Ontario has some of the highest car insurance rates in the entire country, second only to British Columbia. Quebec residents pay the lowest insurance rates in Canada.

Rates in Ontario are some of the most costly for a few reasons, including:

  • There are high fraud rates in the province
  • Ontario has the highest population density in Canada
  • There is a high rate of vehicle theft in Ontario
  • There are high overhead costs associated with operating Ontario’s private insurance system

What are the most inexpensive cars to insure in Ontario?

When looking at a list of the cheapest cars to insure, the majority of vehicles share some commonalities. Firstly, it is often found that minivans, trucks and SUVs are the cheapest vehicles to insure. This is based on statistics, which show that these types of vehicles are typically driven by someone who is married or has children. This group of people tend to practice safer driving than younger drivers.

Secondly, most of these cars have amazing safety ratings. A higher safety rating translates to lower premiums. These cars generally have features such as highest quality airbags, rearview camera and lane assistance programs. Lastly, the majority of these cars have very low replacement costs. This is because they are all very common and popular vehicles to drive, which makes their parts very accessible and sometimes even cheaper. The lower the cost to repair or replace a vehicle, the less it will be to insure.

Now that you know the reasons why a car would generally be cheaper to insure, here’s a list of some of the most inexpensive vehicle models to insure in Ontario:

  • Volkswagen Jetta
  • Kia Rio
  • Chevrolet Cruze
  • Honda Civic
  • Ford Fiesta
  • Toyota Camry
  • Volkswagen Golf
  • Nissan Micra

What different discounts are available to me to lower my premium?

There are so many discounts available for car insurance in Ontario, some of which you probably already know about, such as the winter tire discount, the multi-vehicle discount and the renewal discount. However, there are also a lot of amazing deals out there that many people simply don’t know about. Here are a few that you should be aware of:

Private Parking Discount

Did you know that where you park your car could make a different on your premium rate? A car that is parked in a private garage or driveway is way less likely to be stolen or damaged than one that is parked publicly on the street! Adding a private parking discount to your policy could save you 10 per cent off your collision, comprehensive and all perils coverage.

Safe Driving Discount

Wouldn’t it be amazing to be able to get a discount just for being a safe driver? Well, you can! Many insurance companies offer a safe driving discount, generally giving you up to 30 per cent off of your premium. Talk to your broker and see if this is available for you!

Good Student Discount

Did you know that students are eligible for discounts on their car insurance simply by having good grades in school? If you have an average of at least 80 per cent, students under the age of 25 years might be eligible for a 15 per cent discount off of their premiums.

Retiree Discount

If you are a customer who is retired, you may be eligible for an additional discount. This discount can save you up to 15 per cent off of your premium for accidental benefits coverage.

Post-Secondary Discount

When your child moves away for post-secondary, you’ll still want to keep them on your policy so that they are covered when they come home during the summer, reading week and for holidays. However, it doesn’t make that much sense to pay the full premium when they won’t be driving the vehicle for the majority of the year. The post-secondary discount will provide you with 50 per cent off of your child’s premium while they are away at school!

What are some other ways I can save on car insurance?

Other than taking advantage of all the discounts available to you, here are three other ways that you can save on your car insurance!

Increase your deductible

Insurance is in place in order to cover you for damages and repairs that you could not afford on your own. However, if you decide that you can afford a $1,000 repair job if need be, then you can raise your deductible and in turn, lower your premium.

Install an anti-theft device

Your vehicle will have a lower risk of being stolen if you have one of these devices, which will lower your premium. Even if your car already has an anti-theft device, installing an additional one can provide you with even more discounts. Some examples of these devices include engine immobilizers, car alarms and steering wheel locks.

Reduce your coverage

Don’t pay for coverage you don’t need; it’s that simple. For example, if you own a vehicle that is worth less than $2,000, you may not need collision or comprehensive damage coverages. This is because any claim you make would probably be less than the actual deductible itself.

Car insurance doesn’t have to be expensive; make sure you are taking advantage of all the options available to you!

Have more questions about car insurance discounts and ways to save on your premium? Get in touch with one of our licensed insurance professionals 7 days a week.