Markham car insurance like other major cities in Ontario has one of the highest rates in the province. Markham drivers and vehicle owners have different expectations and goals when it comes to auto insurance coverage. Hence, the different car insurance providers ensure that each driver in the city is provided with various options of car insurance policy, coverage, and rates.
Like other cities in the province, private insurers provide car insurance service in Markham. Therefore, there is no fixed rate, and there is competition among car insurance providers in terms of service, rates, and coverage options/benefits.
However, there is no escape route in Markham in terms of car insurance coverage. Car insurance is mandatory for all vehicle owners and drivers in Canada. Whether you are a regular commuter who drives daily to work or an occasional driver, auto insurance is a legal requirement for all Canadian and Markham drivers.
Moreover, anyone caught driving without proper car insurance coverage faces the possibility of having his or her driver’s license seized, the vehicle impounded, and the payment of fines. Thus, it is essential for all drivers and vehicle owners to have the proper car insurance coverage on their vehicles.
However, getting the proper car insurance coverage can be challenging and confusing without the proper information. You might also discover that you are paying a higher premium than your counterpart for the same auto coverage. Therefore, it is important to equip yourself with the right information and understand the nitty-gritty of the car insurance market in Markham to enjoy the best and lowest auto insurance deal available in the city.
This page is entirely dedicated to providing you with detailed and proper information to get the best car insurance coverage and a cheaper car insurance premium rate in Markham.
Markham is a Canadian city located in the York Region in the southern part of Ontario. Mostly considered a part of or satellite to Toronto, Markham is the fourth largest city in the Greater Toronto Area (GTA) and the 16th largest in Canada.
Markham is known as the High Tech capital of Canada and is a diverse community with a rich cultural heritage. Markham attracts a lot of visitors as a result of its culture and attractions such as parks, theatres, concerts, sports events, galleries, museums, and historic sites.
Moreover, the city is home to over 350 thousand residents (328,940 according to the 2016 census data). A lot of tech and life science companies have their corporate head offices in the city.
Markham has over a thousand technology and life sciences companies such as IBM, Hyundai, Honda Canada, Honeywell, Oracle, Motorola, Toshiba, and more, with several employees in the city.
Markham Car Insurance: How It Works
As an integral part of the Greater Toronto Area (GTA) and its close proximity to Toronto, Markham is an important business hub in Ontario. Therefore it is no surprise that the city experiences an increasing growth in its population figures. This factor has also led to Markham being one of the most expensive cities in relation to car insurance premium rates in Canada.
Markham is seen as an extension of Toronto. Thus, a lot of people either live in the city or commute to the city to work on a daily basis. Besides, a number of Highways and roads such as Highway 407, Highway 7, Highway 404, and Steeles Avenue connect Markham to Toronto and other Ontario cities.
This invariably means rapid traffic growth and congestion, which is a contributory factor to high car insurance rates. That is why most vehicle owners and drivers in the city are constantly looking for lower/cheaper car insurance rates.
Markham car insurance is provided by private insurance companies and agencies. Although these car insurers have their rates approved and regulated by the Financial Services Regulatory Authority of Ontario (FSRA, formerly FSCO), each of these insurance companies is at liberty to charge different rates as long as it is in conformity with the approved provincial rates.
Furthermore, the competitive nature of car insurance in Markham implies that there is no fixed rate. Though there are some general factors that determine how high or low your premiums will be, these auto insurance providers have different methods of determining premium rates paid by their clients.
Meanwhile, the car insurance rate in Markham is quite expensive when compared to other cities in the province, but it is still possible to get a cheaper rate. That is why the FSRA/FSCO often advises drivers in the province to compare quotes and rates to get the best and cheaper premium rate. This will also enable you to know if you are getting a decent rate from your insurer.
The FSCO/FSRA reviews, approves, and publishes car insurance rate changes every three months. Hence, it is important to compare rates regularly to ensure that you are not overpaying for coverage.
Types of Car Insurance in Markham
Car insurance coverage is a legal requirement for all drivers and vehicle owners in Canada. Here are the coverage options available to drivers in Markham.
Mandatory Car Insurance Coverage in Markham
- Accident Benefits Coverage
Accident benefits are compensations you receive or are entitled to receive if you are injured in an accident, irrespective of who is at fault. It covers medical bills, rehabilitation, lost income benefits, etc.
- Third Party Liability Coverage
If you are liable for an accident that leads to bodily injury or damage to a third party’s property, this third party liability coverage pays for legal claims against you. The minimum required limit is $200 thousand, though most drivers opt for an average coverage of $1 million.
- Uninsured Motorist/Vehicle Coverage
This coverage protects you if you are involved in a collision caused by an uninsured driver or a hit and run driver which leads to injury or death.
- Direct Compensation Property Damage (DCPD)
In a crash/collision that you are not at fault, this coverage provides cover on any damage to your vehicle and any property inside the car at the time of the accident.
- Collision Coverage
This provides coverage on any damage done to your car as a result of a collision with another car or object.
- Specified Perils
This coverage covers the loss or damage to your car as a result of perils specifically included in your policy, such as fire, earthquake, lightning, etc.
- Comprehensive Coverage
This coverage protects against damage or loss suffered in a non-collision event such as vandalism, theft flood, and more.
Average Markham Car Insurance Rate
Ontario car insurance rates are some of the highest in the country. There are some major cities in the province that pay higher than the provincial average rate of $1,528.
Vehicle owners and drivers in Markham pay higher than the provincial average. Hence, drivers in Markham pay between $1800 and $2000 for the car insurance premiums. However, depending on some factors like coverage type and insurance provider, some drivers pay more than this figure.
What Factors Determine My Premium Rate?
- Type of Car
The type, model, and year of manufacture of your car can determine your premium rate. Other factors include the theft rate, engine size, safety ratings, and repair or replacement cost.
- Driving History
Another factor considered is your driving record, especially in terms of the number of tickets, accident records, and traffic charges. If you have a high record of traffic offenses, expect to pay more auto insurance rates.
- Your Commute
This involves how frequent the car is put to use. The longer your commute or period you spend on the road, the higher your premium.
- Coverage Options
Apart from the mandatory coverages, if you add any extra protection from the additional coverages, it will increase your premium.
How to Get Lower Car Insurance Rate in Markham
- Shop and Compare
To get the best and lower car insurance rates, it is essential to shop around and compare rates from different auto insurance providers. The FSCO/FSRA reviews car insurance rates every three months, which is four times in a year; hence, it is advisable to shop and compare rates to get the best deal available and ensure that you are not overpaying for coverage.
- Bundle Your Policy
You can get a discount from your insurance provider when you use the same insurer for your home and auto insurance coverage.
- Increase Deductibles
A deductible is the portion of a claim you agree to pay. If you increase your deductibles, your insurer will reduce your premium.
- Annual Premium
You can also get a discount when you pay your premium annually instead of monthly payments. Monthly premium payments come with administrative fees.
- Buy and Install Winter Tires
You can also get up to a 5 percent discount from your auto insurer when you buy and install winter tires during its season. This equally shows that you value your safety.
Popular Vehicles in Markham Car Insurance
The following are some of the most popular cars and brands insured by Markham drivers and vehicle owners.
- Toyota Rav4
- Nissan Rogues
- Lexus GS 350
To get the best and lowest car insurance rate in Markham, follow the tips above, and maintain a clean driving record. A better car insurance rate does not necessarily mean expensive coverage.