London car insurance rate is one of the moderate premium rates in Ontario. Regardless of your driving experience or hours of commute, car insurance is compulsory for all drivers in the beautiful city. As obtained in all Canadian regions, provinces, cities, and municipalities, car insurance is mandatory for all drivers and commuters. Hence, all drivers must have a car insurance policy on their vehicles.
As a result, a lot of people are looking for the lowest auto insurance rate in the market. You cannot be too careful on the road. Whether you are a regular bumper to bumper traffic driver or a casual driver who drives only on weekends, everyone in London needs not just car insurance, but a reliable and dependable cheap car insurance coverage. No two drivers and insurers in London are the same; hence, there is a need to choose a car insurance company that suits your auto coverage needs.
Auto insurance in London and other Ontario cities is operated by private insurance companies whose rates and services are regulated and approved by the FSRA.
The competition among the private auto insurers ensures that London drivers have different car insurance rates. These rates can vary in hundreds and sometimes thousands of dollars. Some drivers are overpaying for their car insurance coverage, for the services that they could get for a lesser amount. Therefore, as advised by the provincial government through the FSCO/FSRA, it is important for drivers and commuters to shop around and compare different car insurance rates to get the best available cheap rate.
This page will give you detailed information and the idea of London car insurance premiums, methods used in fixing the rates by the insurers, saving cues, and other useful tips for getting the best and lowest auto insurance protection.
About London, Ontario
London is a Canadian city located in the southwestern region of the Ontario province. The forest City, as London is fondly called, is located about 200 kilometers west of Toronto. Since its incorporation in the 17th century, London has grown in popularity, population, and relevance in Canada. Although the city shares its name with its United Kingdom counterpart, London Ontario has its unique qualities.
The city has grown into one of the largest metropolitan cities in Canada. As a center of education, London is home to a number of institutions such as the University of Western Ontario, Fanshawe College, and more.
London enjoys its share of tourist visit every year. London is a fun and attractive city with parks, museums, and festivals. With a population of about 500 thousand residents (494,069 according to the 2016 census data), the city has witnessed an influx of cars and drivers of different levels of experience on its roads and streets.
London Car Insurance: How It Works
There are thousands of drivers and commuters going in and out of London daily. The increased number of cars and drivers implies that the city has its share of traffic congestions and collisions associated with other major Ontario cities, such as Toronto.
Therefore, before setting out, it is essential for London drivers to equip themselves with the right car insurance coverage. As a city in Ontario Canada, it is mandatory for all drivers in London to have a car insurance policy on their vehicles, with at least the mandatory coverage options. Any driver caught without a proper car insurance policy will have his or her driver’s license seized, and the vehicle may be impounded. Such a driver could also pay fines ranging from $5000 to $50,000.
Driving in London can sometimes be a challenge, especially with its busy streets and roads such as the Highbury Avenue, Wellington Road, Sundale Road, and Dundas Street. London lies at the junction of Highway 401 which connects the city to Toronto and Windsor, and Highway 402 that links to Sarnia.
The busy roads and traffic situations, especially at the rush hour, implies that car insurance providers will have a good number of collision claims on their table. Therefore, this is an indication for all drivers in the city to ensure that they have the right car insurance on their vehicles.
Private auto insurance companies offer car insurance service to London residents. The insurers have their rates approved and regulated by the Financial Services Regulatory Authority of Ontario (FSRA). London car insurance premium rates vary from one insurer to another. While some find it cheaper than the provincial average, others are paying higher than average rates. This difference is due to the competitive nature of the private insurance market in London.
Types of Auto Insurance in London
All drivers in Canada are required by law to have car insurance on their vehicles. These are the coverage options available to London drivers and vehicle owners.
Mandatory Car Insurance Coverage for London Drivers
Mandatory car insurance coverage is the minimum amount of coverage that every driver or vehicle owner must have in their auto insurance policy. They include the following:
- Third-Party Liability Coverage
In this coverage, payment will be made on your behalf if you cause bodily injury to someone, or damage another person’s property. Although the minimum requirement is capped at $200,000, most drivers opt for an average of $1 million.
- Accident Benefits Coverage
In this coverage type, regardless of who is at fault in a crash, you are entitled to receive payment for medical expenses including treatment, recovery and rehabilitation, income replacement, and other benefits.
- Uninsured Automobile/Motorist Coverage
If you are involved in a collision caused by an uninsured motorist or a hit and run driver, your medical cost for injuries and damage to your vehicle is covered.
- Direct Compensation Property Damage (DCPD) Coverage
In this type of coverage, if you are not liable or at fault in an accident, the cost of repair to your damaged vehicle is covered.
Additional Coverage Options
The following are the additional auto insurance coverages available to London vehicle owners. These additional coverages are meant for drivers who require extra protection. They include:
- Collision or Upset Coverage
This coverage pays for damage to your vehicle caused by upset or collision with an object.
- All Perils Coverage
This covers the damage to your vehicle caused by a theft attempt by someone in your household or an employee.
- Specified Perils
This covers the loss or damage to your vehicle caused by a peril specifically listed in your policy, such as fire, hailstorm, earthquake, lightning, windstorm, and more.
- Comprehensive Coverage
This coverage provides protection against non-collision damages such as natural disasters, civil disturbances, theft, etc.
Average Auto Insurance Rate in London
The auto insurance premium rate in London is a little lower than the provincial average of $1,528. London car insurance premium rates can vary greatly depending on the car insurance provider, coverage s you choose, and other factors like age, driving record, and more.
The average car insurance rate in London is $1320. It should be noted that this rate is not fixed. While some vehicle owners pay less than this average, other drivers have seen their premium rates going above the provincial average.
Factors That Determines London Car Insurance Rate
This involves the length of time you’ll spend on the road driving daily. If you make a short daily commute to work, your car insurance rate may be lower than a driver who drives regularly on a daily basis.
The driver’s age is another important factor considered by insurers. Young drivers are usually considered high-risk drivers; hence, they are charged high premium rates.
- Driving Record
Drivers with high collision records, lots of speeding tickets, and traffic convictions are considered high-risk drivers, which affects their car insurance rate.
- Vehicle Type
The make, year, engine size, repair cost, and theft rate of your car will also determine your premium rate.
Female drivers are perceived to be more careful and safety conscious than male drivers, hence, they pay less premium than their male counterparts.
How to Get Lower Car Insurance Rate in London
- Shop Around and Compare
The first approach to saving money on your auto insurance is to shop around and compare quotes and rates from different car insurers to get a better deal.
- Car Model and Type
If possible, choose a car that is less susceptible to theft and less expensive to repair or replace.
- Increase Your Deductibles
If you are capable of incurring higher payment for damages in an accident, you should consider increasing your deductibles to get a lower premium rate.
- Bundle Your Policy
You can also get a discount from your insurance provider if you bundle your home and car insurance policies.
- Professional Membership
If you are an alumnus or a member of a group, you might also be eligible for a certain discount by some insurance companies.
- Install Winter Tires
Buy and install winter tires and you will be eligible for up to 5 percent discount from your car insurance provider.
Popular Vehicles in London
The following are the most popular vehicles insured by vehicle owners and drivers in London.
- Honda Civic
- Toyota Corolla
- Nissan Altima
- Mazda 3
- Chevrolet Cruze
- Hyundai Elantra
- Volkswagen Jetta
- Ford Focus
- Toyota Camry
- Toyota Rav 4
- Ford escape
According to data from kanetix.ca, London drivers have more collisions but fewer tickets. This is not unconnected to the number of vehicles scrambling for a spot on the streets, major roads, and highways on a daily basis. Use the above tips and information to get the best deal car insurance rate and deal. Also, keep a clean driving record to enjoy a cheaper car insurance premium.