Jun 13, 2019
Ontario average car insurance rates are some of the highest in the country. We pay more than most drivers for auto insurance – considerably more compared to some provinces. But, why do we have higher than average auto insurance in Ontario? Why do we pay so much for car insurance?
In this blog, we’ll take a look at the average cost of car insurance in Ontario and the key factors that influence the average auto insurance cost.
What Is The Average Cost of Car Insurance In Ontario?
The average auto insurance cost in Ontario is approximately $1500 per year. However, this doesn’t mean this will be the car insurance premium you pay.
Most drivers pay in the range of $1300 to $1800 annually. Rates are higher or lower depending on your location, the type of vehicle you drive, driving history and many other factors.
What Is Average Cost For Car Insurance Per Month In Ontario?
The average cost of car insurance in Ontario per month will vary based on the amount of your annual premiums. You can estimate your average car insurance in Ontario per month by dividing your total premiums by 12 months.
For example, if you pay the provincial average of $1500 annually, your average monthly car insurance rates in will be $125.
What Factors Impact The Average Car Insurance Rates In Ontario?
There are many factors that have a direct impact on average car insurance rates. Some you have control over (the car your drive, driving history) and others you don’t (insurance industry factors).
Average Auto Insurance Rates In Ontario – Industry Factors
There are some average car insurance rate factors that drivers in Ontario have no control over :
- Insurance fraud
- High cost of insurance claims
- Approved rate increases
Average Vehicle Insurance Rates – Individual Factors
There are certain factors you can control to help keep your insurance costs down :
- Coverage type and limits
- Deductible amount
- Driving history
- How much you drive
- Car insurance claims history
Will The Average Car Insurance in Ontario Go Down?
Even though the Government of Ontario has made promises to get insurance rates under control, rates are still on the rise. Average insurance rates have not significantly decrease at all since 2014 and rates have actually increased in 6 consecutive quarters since Q4 2017.
With rates on the rise, it’s very important for drivers to take important steps to keep costs down – such as comparing quotes annually and working with an insurance broker.
Average Car Insurance In Ontario By Age and Gender
Age and gender both play a role in how much you will pay for auto insurance. Even though you have no control over them, they will still influence your insurance costs.
Average Car Insurance Rates By Age In Ontario
Age is an important factor considered by insurance companies when determining rates. Drivers tend to pay less for insurance as they get older. Drivers in the 18-25 age range pay higher average car insurance rates in Ontario.
Young drivers pay more for insurance because they are more likely to get into an auto accident. Therefore, they are deemed higher risk to insurers, which results in more expensive rates.
Average Car Insurance Rates By Gender In Ontario
Gender is another factor used by insurers to set auto insurance rates. Men are considered to be a greater risk than women. They tend to drive more, are more likely to be involved in accidents, and partake in riskier driving behaviors. Males on average pay more for car insurance than females.
Average Car Insurance Rates in Ontario For A New Driver
New drivers, especially if you are under 25 years of age, will pay some of the highest insurance premiums in Ontario. Drivers with a G1 driver’s license will pay more than a driver with a G2 or a G driver’s license. As you progress through the licensing system, your rates will decrease.
Expect the average car insurance rates in Ontario for a new driver to be considerably more than the provincial average rates.
Get more information about Ontario’s Graduated Driver’s Licensing System.
Ontario Car Insurance Average By Location
Your location plays a huge role in your insurance costs. Depending on where you live your rates could vary by hundreds of dollars annually. For example, the Average car insurance cost in Toronto is just over $2000 annually.
The average car insurance in Brampton is about $2400 annually, which is the highest in the province.
The cheapest car insurance area in Ontario is the north eastern area of the province. Cities such as Kingston and Belleville average about $1000 per year.
Here are the average car insurance costs for Ontario cities:
- The average car insurance in Ottawa is about $1150 annually.
- The average car insurance in London is about $1300 annually.
- The average car insurance in Mississauga is over $2000 annually.
- The average car insurance in Hamilton is approximately $1900 annually.
Rates vary by driver. Compare insurance quotes to get an accurate estimate based on your driving needs.
Compare quotes to find the average price of car insurance in Ontario. Check out our Ontario car insurance calculator page to learn more about determining average car insurance cost in Ontario.
Want to learn about home insurance costs in Ontario? Check out the average home insurance cost in Ontario and compare rates.
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