How Much Does Car Insurance Cost in Ontario
It may come as no surprise that drivers in the Province of Ontario pay some of the highest car insurance averages across the country. And unfortunately, if you own a car and intend to drive it, possessing comprehensive car insurance is mandated by law to ensure you and other drivers are protected on the road in the event that an accident should occur.
With that being said, even though Ontarians are required to hold car insurance, not everyone pays the same rate. And every year, the monthly average car insurance rate in Ontario will also change. There’s a high chance your rate can vary, depending on who you purchase your insurance policies from as well. So, is there any way to really determine how much car insurance in Ontario costs? And, if so, what are people in the province paying?
At Levitt Insurance Brokers, we provide quick, simple insurance solutions that are customized to the specific requirements of each client. Request a quote and quickly compare insurance policies with Levitt Insurance Brokers today!
Frequently Asked Questions
Insurance providers can request modifications in their pricing once every three months. As a result of this, the average price of insurance in Ontario has the ability to change every quarter as well. While it has become more uncommon for prices not to change throughout the year. Therefore, it can be challenging to determine the average monthly insurance rate within the possible.
With that being said, at a minimum, individuals across the province, on average, are paying $1500, while at the other end of the scope, the average cost of insurance is $1900. However, it is essential to note that this is not a fixed price, and the average may be higher or lower depending on the driver and other factors that we will discuss in further detail later in this post.
As you may already know, the province of Ontario operates with a private car insurance system in comparison to provinces such as British Columbia, where the insurance system is public and mandated by the province. So, what exactly does this mean? Well, this means that Ontarian drivers are able to shop around for better premiums, whereas British Columbians do not have that option. Nonetheless, information including your age, gender, what you use your car for, the make and model of the vehicle, and the location where you drive are just some of the few factors that are taken into account. Furthermore, the driving history and the cumulative number of years of driving experience will also play essential roles in determining the price of any insurance plan. Insurers consider both the overall number of kilometres driven annually and the purpose of travelling as well.
In fact, this quantitative technique is utilized by the Insurance Bureau of Canada to calculate hazards from historical statistics and data. This information serves as a guideline for charging a higher price for higher-risk motorists compared to those who are deemed less of a risk. And, of course, this makes sense as someone with a clean driving record should not be expected to pay as much for their car insurance as an individual who has multiple speeding tickets, at-fault accidents, and other penalties towards their driving history.
As we mentioned above, insurance companies consider age to be a potential risk since young drivers have less expertise and are, therefore, more inclined to be involved in an accident that ultimately results in an insurance claim. As a result, your insurance rates will generally decrease as you age as long as your driving history remains clean. At the same time, as you get older, the price of your car insurance may start to rise again. This is due to the statistical risks associated with driving over the age of 65.
Therebefore is currently no specific age during which auto insurance quotes begin to fall because most insurance providers offer a reduced rate for each year you mature. Even so, after the age of 25, you can anticipate a somewhat more dramatic reduction when you go to renew your insurance each year as long as you keep your driving record clean. This means avoiding tickets and getting into accidents. It is important to also remember that the cost of your car insurance will also vary depending on the type of insurance plan you choose to purchase.
For example, according to the Government of Ontario website, “All vehicles must be insured for third-party liability for at least $200,000. This covers you in the event that you injure or kill someone or damage someone’s property while driving. Collision insurance to cover damage to your own vehicle is a good idea, but not required by law.” However, there are also additional insurance policies motorists are able to add onto their primary insurance plan, including the following:
Accident Benefits Coverage
If you are harmed in a vehicle accident, despite who caused the crash, your accident benefits insurance policy will provide you with entitlements such as supplementary healthcare, rehabilitative services, and associated treatment, caretaker, and income protection advantages. The majority of these coverages can be increased to better fit your needs, depending on what you want to pay.
Property Damage Coverage
This segment of your car insurance coverage would encompass the damage to your car or its belongings, as well as loss of use of your vehicle or your belongings if the collision was triggered by someone else. If this should occur, your insurance provider is in charge of paying you compensation directly for any and all damages associated with your claim.
Gender is one of the numerous factors used by insurance providers to determine premium costs. Insurance companies, in particular, use historical information to spot trends and anticipate the probability of future insurance payouts. This implies that the driving records of men and women in your neighbourhood may have an impact on your auto insurance expenses.
Data shows that men are more likely than women to be involved in accidents and engage in careless driving. As a result, male drivers generally pay more for auto insurance plans than female drivers because of what has happened throughout history. With that being said, it is essential to note that while gender does play a role in what you will end up paying for your car insurance in the province of Ontario, there are also several other factors that are also considered which will offset this, unless you have extensive penalties and claims on your driving history. In addition, it is also essential to shop around between insurance companies in order to get the best rate possible.
This is why if you’re looking to renew your car insurance in Ontario, you can benefit from partnering with an independent insurance broker such as Levitt Insurance Brokers. As insurance brokers are not affiliated with any specific insurance company directly, they are able to help you shop around for car insurance premiums that work with your budget and your needs. Customers are not obligated to pay a fee to their insurance broker when working with them. Instead, once you've chosen the right plan for your necessities, your insurance broker will receive a small commission from the insurance provider directly for handling the transaction. As such, you can experience several benefits, including the peace of mind of knowing that your insurance broker is working with your best needs in mind rather than the insurance provider.
Yes, car insurance is generally more expensive for new drivers in Ontario, especially for those who are under the age of 25. This is because insurance companies consider new drivers to be riskier to insure due to their lack of driving experience. As such, statistically, they are more likely to be involved in an accident than someone who is over the age of 25 and has years of driving experience. However, there are several ways that new drivers can save on car insurance, such as by taking a driver training course and choosing a car that is cheap to insure. It's also crucial for new drivers to shop around and compare quotes from different insurance companies to find the best rate for them and their budget.
In Canada, car insurance is generally not tax deductible. However, there are some situations in which the cost of car insurance may be tax deductible, such as if you use your car for business purposes. This means that if you use your vehicle for both personal and business purposes, you can only claim a deduction for the portion of your insurance premiums that relate to your business use.
For example, if you use your car for business 50% of the time and for personal purposes 50% of the time, you can claim a deduction for 50% of your insurance premiums. It's essential to keep accurate records of your business-related expenses, including car insurance, in order to claim the deduction.
If you have any questions about whether you can claim a deduction for your car insurance premiums, you should consult with a tax professional or refer to the Canada Revenue Agency's website for more information. You may also be able to speak directly with your insurance provider, as they typically have experience working with clients who qualify for tax deductibles when it comes to car insurance or other types of insurance.
Get a Car Insurance Quote with Levitt Insurance Brokers in Ontario Today
Is it time to renew your car insurance in Ontario? If so, the team at Levitt Insurance Brokers is able to assist you.
At Levitt Insurance Brokers, we collaborate with leading auto insurance companies across Canada to make sure that each client receives the most suitable insurance plan for their specific needs. There is no such thing as a one-size-fits-all solution for auto insurance requirements. Your necessities are as individual as you are, and we not only acknowledge this but also strive to produce products that meet your unique requirements. When partnering with us, you can have peace of mind knowing your needs and best interests are at the forefront of what we do.
Are you ready to get a quote for car insurance in Ontario tailored to your unique needs and driving history? It only takes a few seconds and a few mouse clicks to start saving money without sacrificing critical auto coverage. Request a quote today! We look forward to providing you with the insurance solutions you are looking for!