Sep 6, 2024
Learn how age and gender affect your car insurance
The amount you pay for car insurance in Ontario is among the country's highest. There are many factors insurers use to determine your auto policy rates. Two of the main ones are your age and gender.
This blog will give you a detailed breakdown of the average car insurance costs by age and gender. We'll also review some other key factors influencing car insurance quotes in the province.
What you should know about average car insurance rates
- The average cost of car insurance in Ontario is $1,927.
- Average premiums are on the rise in 2024.
- Your rates could be higher or lower than the average cost. Key factors include location, driving history, and coverage.
What's on this page:
What is the average cost of car insurance in Ontario?Average car insurance by age
Is auto insurance more for women or men?
Are you paying above average for auto insurance?
What is the cost of car insurance for new drivers?
How much is insurance for a teenage driver?
Some other factors that affect your auto insurance
Will the price of auto insurance go down in the province?
FAQs
What is the average cost of car insurance in Ontario?
The average cost of car insurance is $1,927** per year in the province. Most pay in the range of $1,500 to $2,500 annually. They are higher or lower depending on your location, vehicle type, driving history, and many other considerations.
Drivers pay on average $161 per month for insurance
How much you pay monthly in Ontario will vary based on your annual premium. You can estimate your monthly payments by dividing your total amount by 12 months. For example, at the provincial average of $1,927 annually, your monthly payment will be $161.
Note that payment schedules can vary by insurer. Most offer 12 monthly payment periods, but some providers don't. You can generally save more by paying the entire yearly amount upfront. This will save you on administrative fees. Be sure to ask your advisor about the payment schedule before purchasing your policy.
Average car insurance costs are on the rise in 2024
Car insurance rates are increasing in 2024. Now is a good time for drivers to compare prices and explore other options for better rates when their policy is up for renewal.
During the COVID-19 pandemic, insurance rates remained flat or even decreased due to fewer people on the roads, resulting in fewer claims and accidents. However, as things return to normal, costs are rising for insurers.
The top reasons for rate increases are:
- Claims frequency is returning to pre-pandemic levels, contributing to increased auto claims.
- Supply chain demands and labour shortages.
- Reduced availability of replacement parts and vehicles, leading to higher claims costs.
- The increasing complexity of car features translates to expensive parts and longer repair times.
- Auto theft is the biggest issue, raising insurance premiums. Ontario has the highest rate of vehicle theft in Canada.
Under these circumstances, insurers are implementing rate updates to stay competitive. Consumers should expect additional rate increases throughout the year as insurers adapt to the challenges of the current economic environment.
Average car insurance by age
Insurance companies consider age an important indicator. Premiums tend to decrease as you age, and mature drivers experience more savings. Men and women in the 18-25 age range have higher rates.
Insurance for young drivers is more expensive because they are more likely to get into an accident. This means there are higher claims costs associated with younger drivers. The same is true for seniors. Once you reach a certain age, you could see rates start increasing again. This happens because elderly drivers are statistically more likely to be involved in accidents.
Here is a look at yearly and monthly costs by age:
| Age | Yearly* | Monthly |
|---|---|---|
| 16-19 | $3,550 | $296 |
| 20-25 | $2,826 | $236 |
| 26-29 | $2,554 | $213 |
| 30-39 | $2,421 | $213 | 40-49 | $2,127 | $177 |
| 50-59 | $1,856 | $155 |
| 60-69 | $1,565 | $130 |
| 70+ | $1,425 | $119 |
Is auto insurance more for women or men?
Gender is another indicator used by insurers to determine premiums. Men are a greater threat to road safety than women. They tend to drive more, are more likely to be involved in an accident and partake in riskier driving behaviours. Males pay more than females.
To illustrate this point, we sourced data from our quoter and compared males and females in various age categories to the overall average for all drivers. In all scenarios, males pay more than females for coverage.
Average auto insurance by gender
| Gender | Age | Yearly* | Monthly |
|---|---|---|---|
| All | 20-25 | $2,826 | $236 |
| Male | 20-25 | $2,939 | $245 |
| Female | 20-25 | $2,634 | $220 |
| All | 26-29 | $2,554 | $213 |
| Male | 26-29 | $2,634 | $220 |
| Female | 26-29 | $2,395 | $200 |
| All | 30-35 | $2,461 | $205 |
| Male | 30-35 | $2,541 | $212 |
| Female | 30-35 | $2,299 | $192 |
| All | 36-39 | $2,347 | $196 |
| Male | 39-39 | $2,425 | $202 |
| Female | 36-39 | $2,196 | $183 |
| All | 40-49 | $2,127 | $177 |
| Male | 40-49 | $2,170 | $181 |
| Female | 40-49 | $2,054 | $171 |
| All | 50-59 | $1,856 | $155 |
| Male | 50-59 | $1,911 | $159 |
| Female | 50-59 | $1,747 | $146 |
| All | 60-69 | $1,565 | $130 |
| Male | 60-69 | $1,635 | $136 |
| Female | 60-69 | $1,412 | $118 |
| All | 70+ | $1,425 | $119 |
| Male | 70+ | $1,471 | $123 |
| Female | 70+ | $1,295 | $108 |
Are you paying above average for auto insurance?
How much is car insurance in Ontario? Find out by comparing rates from the top providers to see if you can save more.
What is the cost of car insurance for new drivers?
Insurance for first-time drivers tends to be the highest. New drivers, especially if you are under 25 years of age, have some of the highest premiums. People with a G2 licence will pay more than those with a G licence. As you progress through the licensing system, the amount will decrease. Remember that G1 drivers cannot be listed as the primary driver on a policy. However, a policy with a G1 licence listed will increase the rate.
You can get a policy with a G2. But this can be expensive because you are not fully licensed. You can get listed on a parent or guardian plan as an occasional driver to save money. It will increase the premium, but less than if you took out a separate policy.
Overall, expect rates for a new driver to be considerably more than the provincial or city average.
Prices can vary significantly by age, driving record, and insurance history. Check out our car insurance calculator to learn more about determining rates.
How much is insurance for a teenage driver?
Teenage drivers are known for paying a lot for insurance. Based on data from our quoter*, the average for a teenager (age 16-19) is $3,550 per year.
For example, it can be $4,430 per year for a 16-year-old. A 17-year-old taking out a policy can expect it to be approximately $291 per month or $3,502 annually.
Compare this to the typical amount of a 40-year-old, and you’ll see a significant difference of approximately $1,500 per year.
Why is there so much of a difference? Teens are a more significant threat to road safety. They have minimal experience behind the wheel. To save money, it’s recommended that younger people get added as a secondary driver on a parent or guardian’s plan. Also, teens may not qualify for regular coverage and may need to get high risk auto insurance which is much more expensive.
Here is a breakdown of average rates for teens by age:
| Age | Yearly* | Monthly |
|---|---|---|
| 16 | $4,430 | $369 |
| 17 | $3,502 | $292 |
| 18 | $3,647 | $304 |
| 19 | $3,500 | $292 | 20 | $3,223 | $269 |
Regardless of your age or gender where you live impacts the price of your insurance
Location plays a huge role in average auto insurance prices. Depending on where you live in the province your premium could vary by hundreds of dollars annually. For example, the average premium for car insurance in Toronto is $2,400 annually.
In Brampton, it is about $2,900 annually, the highest in the province.
The lowest area is the northeastern area of the province. Cities such as Kingston and Belleville average about $1,700 per year.
Here are the average costs for some cities:
- Ottawa is about $1,827 annually.
- London is about $2,225 annually.
- Mississauga is over $2,531 annually.
- Hamilton is approximately $2,396 annually.
Some other factors that affect your auto insurance
Many factors have a direct impact on the price of auto insurance. Some you can control (what you drive, driving history), and others you cannot (insurance industry factors).
Industry
Here are some of the things that you have no control over:
- Fraud: Fraud has been spiking claims expenses for drivers and insurers adding up to over $1.3 billion a year.
- Claims expenses: New technology and designs increase the MSRP and the cost of repairing or replacing vehicles.
- Approved rate increases: Insurers can apply to increase their rates each year based on overall expenses. If fraud and claims numbers are high, they are more likely to request an increase.
Individual
There are certain things you can control to help keep your payments down:
- Location: Where you live in the province will impact the price. It's more expensive in urban cities compared to rural areas. More vehicles increase the threat of a collision, theft, or claim.
- Coverage type and limits: The amount of coverage you have on your policy will affect the price. The more protection you have, the more it increases payments.
- Deductible amount: Lowering your deductible will lower the amount.
- Driving history: The more driving experience you have driving and being a good driver will help you save.
- Vehicle: The type of vehicle you drive can lower your monthly cost. Check out our article on finding a cheap car to insure.
- How much you drive: The more you drive, the higher your monthly premiums will be.
- Claims history: Having an at-fault accident on your record means higher rates.
There are also individual considerations you cannot control, such as your age and gender. For more information, visit our page and see what factors affect Ontario car insurance.
Average car insurance is going up in 2024. See if you can find a better rate!
Comparing car insurance quotes from Canada's top providers in minutes to find out if you are getting a good rate.
Will the price of auto insurance go down in the province?
Even though the provincial government has promised to control insurance costs, the yearly average has not significantly decreased since 2014. While rates did drop slightly for six consecutive quarters during the pandemic, they are on the rise once again.
You need to take important steps to reduce payments – such as comparing quotes annually and working with an insurance professional to save as much as possible.
In terms of age, you can expect to start seeing lower premiums once you turn 25. This is particularly the case if you started driving when you were 16. Insurers also tend to drop premiums again once you turn 40 and 50. That is if you have a clean driving record.
FAQs
While it’s tempting to compare with other drivers to see if you are getting a good deal, your premium is relative to your situation. There is no normal amount to use as a benchmark. Comparing auto insurance quotes from multiple providers is a good way to see the prices in the current marketplace.
Ontario car insurance decreased by a small amount for six consecutive quarters during the pandemic (Q4 2020 to Q1 2022). This was due to COVID and fewer people driving. Since then, the average quarterly increase has been at least 0.5%. Prices fluctuate frequently based on company-approved rate changes, on individual backgrounds and other factors. The best way to determine if you will pay more is to check prices yearly.
Prices for auto insurance will continue to change. They can go up or down based on the level of threat of fraud, the number of claims, company pricing, and many other factors that change over time. It is perfectly normal for your premium to change each year.
A final word on average car insurance costs
Your age and gender are key cost indicators, even though you have no control over them. Other things like your location, coverage choice, and vehicle type also matter. In general, young drivers have higher premiums. As you age, you’ll see your premiums go down over time. That is if you keep a squeaky-clean record and capitalize on savings opportunities.
*Quotes from January 1st, 2022, to August 31, 2024. Clean driving record and standard coverage.
