Brace Yourself for High Car Insurance Prices in Ontario

One of the most expensive places to live in Canada is the province of Ontario. Living expenses such as housing costs, food, gas is much higher in Ontario than anywhere else in the country. Car insurance is no exception. There are multiple metropolitan cities within the province that range from highest to lowest costs on the spectrum. It is mandatory in Ontario to retain auto insurance for any vehicle that is registered. You can lose your driver’s license for having false insurance documents and be fined up to $25,000 as well.

Brampton, Ontario is number one on the list for car insurance. The average price for insurance could cost someone upwards of $2,400 annually. This is 65% higher than the rest of the province.

Following these two cities are the runners up for the average car insurance price, paid annually:

• Mississauga: $1,900
• Toronto: $1,880
• Richmond Hill: $1,800
• Hamilton: $1,700
• Pickering: $1,600
• Ajax: $1,550

It comes to no surprise that car accidents happen more often in higher populated cities than in rural areas. This accounts for one of the main reasons that cities are noted as more expensive. The cities listed above follow this example.

Of course, even within each city, insurance rates are determined by postal code. This will determine where you are located; within the inner city or on the outskirts. The outskirts, where the population does not seem to be as dense, will be much lower.

You may be asking yourself “should I become a car owner? What can I do to decrease my insurance rates?” Thankfully, there are a few things that one can do to keep their insurance rates on the lower side.

01. Drive safe and keep a clean record

Many variables are factored into how your premiums are determined. These include your driving record, insurance history and coverage options. you can lower your rates by maintaining a clean driving record. Accidents happen, but this means trying to ensure that your driving history is free of traffic convictions or collisions where you have been at-fault. There are 3 sets of tests to complete and pass in order to be issued an Ontario’s driver’s license. Driver’s have no excuse regarding traffic laws, making it fairly easy to maintain a clean record.

02. Research your car before you buy

Your brand-new sports car will probably cost you more to insure than an SUV or a sedan. Insurers watch for the kind of car you’re driving when setting rates. They’ll be looking at statistics such as how often your model gets stolen, its safety ratings, and repair costs.

The Insurance Bureau of Canada offers a list of the most stolen cars in Canada. If you’re shopping for a car, you can also use Kanetix.ca to compare quotes for different models. According to insurancehotline.com the cheapest car to insure in Canada is the Volkswagen Golf; the Chevrolet Cruz comes in as the runner up. Doing your research can save you hundreds of dollars a years and thousands of dollars over the long run.

03. Research different insurance companies

It might be surprising to learn that not many people actually take the time to research different insurance companies. In a recent survey, it was found that only 47% of Canadians do a lot of research before they get car insurance. One of the best ways to save on car insurance can be as simple as comparing multiple insurers. Insurance companies change their rates quite often, and the same driver with the same history can get a wide range of quotes. You could definitely be paying more with one company than another, so it’s so important to do your research and compare.

04. Plan your payments wisely

Another easy thing you can do to save on your insurance premium is to pay it annually in one lump sum, rather than on a monthly basis. This will avoid any extra fees that companies may charge for processing payments. Consumers can also save about 5 to 15% on insurance costs if they bundle auto and home insurance policies. So, if you’re also a home owner or even rent your current residence, it can be worth your while to look into multiple policies. It can save you big bucks over the long run.

As Canada becomes more populated and more metropolitan areas are being built-up insurance rates will continue to be on the rise. The most important thing you can do is remain a vigilant driver and obey the rules of the road. Maintain a clean driving record. Follow the rest of the tips listed to get and keep your costs lowered and manageable.