Car Insurance in Burlington

Factors influencing car insurance premiums in Burlington, Ontario

Between December 2022 and 2023, auto insurance premiums in Canada increased by about 6%. Rates also continued to rise throughout 2024. As of last year, the average annual cost of car insurance in Ontario was $1,927.

How car insurance companies work is by generating a risk profile on all drivers using various factors. Higher premiums are given to those who pose more of a risk on the road, while cheaper insurance is afforded to safer drivers. Factors auto insurance providers use when calculating car insurance rates include:

Driver age

Statistically, young drivers with less driving experience pose more of a threat on the road than those who have been driving for numerous years. Because of this, drivers under the age of 25 pay some of the highest car insurance premiums across the country. The best thing you can do as a younger motorist to acquire cheap car insurance in the future is to follow the speed limit, avoid traffic violations, and drive defensively to prevent accidents.

Driving history

Your driving history is also something all insurance companies review when you renew your car insurance policy. For example, drivers with multiple speeding tickets, accidents where they are the at-fault driver, or have previously had their driver's license suspended will pay more for their automobile insurance compared to those who follow the speed limit and have no claims on their insurance history.

Vehicle make and model

Luxury vehicles and sports cars often have higher car insurance rates, given that they are more likely to be targeted by thieves. They also have more expensive repair and replacement costs, which insurance providers will also consider. Over the last three years, the average price of new passenger cars has risen by 12.1%, while auto parts and replacements have risen by 18%. To ensure you're comprehensively protected, you'll likely need to opt for higher limits and optional coverages given this increased risk.

Location

Burlington has a low crime rate compared to other cities in the Greater Toronto Area. However, because it's located close to downtown Toronto and due to high traffic congestion in the area, Burlington drivers can be exposed to accident risks more frequently. Therefore, depending on your postal code, your rates will be affected by where you live.

Annual mileage

How often and how far you drive matters when it comes to your insurance rate. Daily commuters who travel on the highway and during high traffic times may face more expensive Burlington car insurance rates compared to infrequent drivers.

Insurance coverage and deductibles

The higher your coverage limits are, the more protection you'll receive from your insurance company in the future, should you need to file a claim. While most drivers opt for higher limits, it will come at a more expensive cost to you. Choosing a lower deductible will also lead to higher Burlington car insurance premiums.

The importance of choosing the right deductible

A deductible is the amount you pay out of pocket before your insurance coverage kicks in when filing an insurance claim. Choosing the right deductible can influence not only your premium, but also how much you'll need to pay in the event you are involved in a car accident. As a rule of thumb:

Lower deductible = Higher premiums

A lower deductible, such as a $300 or $500, means you won't need to spend as much of your own money when filing a claim. For example, if the damage to your car is quoted at $3,000 and your deductible is $500, your insurance company will cover the remaining $2,500 after you submit your deductible.

Higher deductible = Lower premiums

Opting for a deductible of $1000 instead of $500 can help you save on your Burlington car insurance. However, it will require you to pay more if you do need to file a claim. Only opt for a higher deductible if you feel comfortable doing so financially.

When choosing between the two options, consider your financial situation and total savings. If you have a large emergency fund, then opting for a higher deductible may be worth it. On the other hand, if you drive an older vehicle with a low replacement cost, choosing a lower deductible should be fine, as your premiums should be lower in general, compared to someone driving a luxury or new car.