Without any iota of doubt, the most expensive insurance for Canadians are car insurance rates. This kind of insurance is obviously more expensive than life and home insurance. Auto insurance rates vary remarkably across Canada. Are you aware that the average car insurance rate in Ontario is $1,920 per annum, $1,092 in Nova Scotia and $912 in Quebec?
But why are car insurance rates in Ontario the highest in Canada? In spite of the fact that the government has led initiatives geared towards reducing car insurance rates in Ontario, they are still the highest in the country. The reasons for this include the following:
- High rate of car theft
- Enough space for insurance fraud resulting in high payout claims
- The worst roads
- Highest population density
There are many factors that are put into consideration when deciding insurance rates in Ontario. They include: car make and year, location, gender, marital status, age, driving history, and driving experience. The factors which are more important in deciding car insurance premiums are age, driving history, and gender.
Age: Auto insurance quotes are greater for persons under the age of 25 as they are considered high risk. On the contrary, older drivers are charged lower insurance costs.
Driving History: The driving history of a driver significantly impacts on car insurance premiums. On average, drivers who have clean driving records in Ontario pay $1,812 per annum, while those who have a license suspension in the last 6 years or more than two violations in the last 3 years pay $3,252 per annum, which is almost twice that amount.
Gender: Women on an average pay a little less than the male folks; this is purely based on accident history. It is imperative however to note that women do not have less accidents than men, their accidents only tend to be less expensive.
Reducing your rate:
It is comforting to know that there are lots of ways through which you can reduce your vehicle insurance costs: they include completing a driving course, buying bundled insurance with your home insurance, and customizing your deductibles and protection options.
Other ways include adjusting the amount of your coverage e.g. subscribing to liability protection if your car is old and does not require a comprehensive protection, increasing your deductibles i.e. the amount you will pay for each claim before you get a refund from an insurance company, etc.
Insurance agents vs. Insurance brokers.
An insurance broker has access to many different products across many suppliers while insurance agents sell the products of one insurance company alone. Brokers are paid by insurance companies, so you will not be paying extra fee for their services if you use them.
Armed with this information, you should be able to reduce the amount of money you will pay for car insurance rates in Ontario. Keep in mind that the best choice is an informed choice. You are not obligated to settle for the rate offered by one insurer. It really pays to shop around and compare different prices from different insurers.
For details of your auto insurance rate, please visit us in person:
45 Driftwood Ave Unit 1301
North York , Ontario