In all likelihood, car insurance is the most expensive insurance costs for Canadians. The type of insurance you choose to purchase is much more expensive than life and home insurance. The rates for car insurance vary greatly across Canada. Did you know that the median price for Ontario is $1,920 annually however, it’s only 912 dollars in Quebec while $1,092 is in Nova Scotia?
Why Car Insurance Rates in Ontario are the Highest in Canada
Although there are government-led efforts to cut down on car insurance in Ontario DUI insurance Ontario. however, they remain to be among the highest rates across the nation. There are a variety of reasons behind this, such as:
- There is enough room for insurance fraud that leads to large claims settlements
- Highest population density
- The roads with the worst traffic
- The theft of vehicles is a major cause of crime.
There are many aspects to be considered when determining the insurance rates in Ontario which include the location, car model and year, driving history as well as driving background as well as marital status, age as well as gender. The factors with the greatest impact on insurance rates for cars are gender, driving record and the age.
Gender: On average women pay a little less than men, This is due to upon accident time. But, it’s important to remember that women aren’t more prone to accidents than men; their accidents tend to be more expensive.
Driving Record The history of a driver is a significant factor that affects the cost of car insurance. On average, drivers who have an impeccable driving record on the roads of Ontario pay $1,812 annually and those who have more than two convictions in the last three years or having a license suspension within the past six years, are charged $3,252 annually nearly twice the amount.
Age: Insurance rates for cars are higher for drivers who are under 25 because they are considered to be risky drivers. Senior drivers on contrary, enjoy lower cost of insurance.
How to Reduce Your Rate
The positive side is the fact that you can find tons of options to cut down the cost of car insurance that vary from purchasing your insurance in a bundle package that includes your home insurance, taking a driving class or modifying your options for protection and your deductibles.
Other options to cut down on the cost of car insurance include the completion of a driver’s education course, changing the amount of coverage (e.g. purchasing liability only insurance when your vehicle is older and doesn’t require the comprehensive insurance policy) or raising the deductibles (i.e. the amount you’d have to have to pay for each claim prior to the insurance kicks into) as well as a variety of other.
Insurance broker vs. Insurance agent.
An insurance broker is able to access to many different products from a range of vendors, unlike an insurance agent selling products from one particular company. Brokers are compensated by insurance companies, which means you do not have to pay additional fees to utilize one.
Make an Informed Choice
With this knowledge, you’ll be able put an end to the cost of car insurance in Ontario. Be aware that making an informed decision is the best decision. You don’t need to accept the price that an insurance company offers. It is a good idea to search around and compare the various costs.
Alexey Saltykov is a co-founder and director in charge for InsurEye Inc, a Canadian company that offers online tools to help consumers help them understand insurance, to create transparency in the insurance markets in Canada. InsurEye also connects consumers to the insurance broker in Edmonton and with insurance broker in Ottawa and across Canada.