Toronto car insurance is one of the top ten most expensive auto insurance rates in Canada. Although, a lot of factors determine the premium paid by an average driver in Toronto, but being a significant part of the Greater Toronto Area (GTA), one would expect nothing less than the provincial average as a result of the popularity, population and economic activities in the capital city of Ontario.
It is mandatory for all Toronto drivers to have auto/car insurance. Not just for Toronto, all Canadian drivers must have car insurance on their vehicle as a legal requirement. Hence, there are numerous auto insurance companies in Toronto with various insurance coverage packages and rates.
Toronto is a major Canadian city and the capital of Ontario province. The city is home to people from all walks of life and tradition due to its array of tourist attractions like museum, galleries, zoo, parks, and the famous NC Tower. Living in Toronto can be quite expensive, but the city boasts of innumerable opportunities. The city is often ranked as one of the best places to live as a result of its conducive environment and safety, among others.
As a result, it is of no surprise that the city boasts of over 6 million populations, making it a large urban city with the highest ranked population center in Canada. Invariably, the city has one of the highest numbers of drivers, commuters, and vehicles.
About Toronto Car Insurance
Toronto has a lot of highway driving, drivers, and heavy traffic. The many drivers and vehicles on the road daily, increases the likelihood and risk of collisions and insurance claims. Therefore it is imperative for all drivers to have the right insurance policy and coverage in place, in the event of any eventuality.
Toronto drivers can be able to get the best insurance rates by comparing car insurance quotes from different auto insurance companies. Each driver in Toronto have their unique needs, hence the need to get coverage and an insurance company that suit your insurance needs. By comparing different quotes, Toronto drivers are able to save hundreds of Canadian dollars by opting for the cheapest rates available. As Toronto has some of the highest car insurance rates in Canada, it is essential for residents, and especially drivers in Toronto to search and opt for the lowest cost.
How it Works
As in other cities in Ontario, car insurance in Toronto are guided by the provincial insurance laws. Hence, all drivers in Toronto are mandated by law to have auto insurance on their vehicles. There are mandatory car insurance coverage such as third party liability, accident benefit, direct compensation, and more that each driver must have in their car insurance policy, irrespective of other factors or determinants. Any driver that requires or desires more protection can opt for additional coverage with their insurance provider.
Furthermore, Toronto car insurance is operated by private insurance companies, agents, and brokers whose activities are regulated by the provincial government. Thus, no insurance provider has the monopoly and drivers in the city are not bound to any particular insurance company. Toronto drivers can compare quotes from several insurance providers and opt for the best cheap rates available.
One significant aspect of car insurance in Toronto is its auto insurance system. Toronto operates a no-fault car insurance system which requires all drivers to submit claims to their respective insurance companies, irrespective of who is at fault in a collision or accident.
Average Cost of Toronto Car Insurance
One of the many reasons why people ask questions about their premium payment is when they compare their insurance cost to their friends or family living in other areas or provinces in Canada. As expected, Toronto car insurance rate is higher than the Ontario provincial average of $1,505 annual rate. A kanetix.ca report on the most expensive cities for Ontario auto insurance put Toronto in one of the top 5 expensive auto insurance cities.
For 2020, the financial services commission of Ontario has already projected an increase in car insurance rates by an average of 1.56% (or more) across the entire market. Some auto insurance companies have already had their premium rate increase approved by the Financial Services Regulatory Authority of Ontario (FSRA), and this has reflected in the premium paid by their clients.
Some people will eventually pay more than others even in the same province or city. This is because car insurance rate is based on certain factors such as driving record or history, auto insurance coverage type, make and model of vehicle, age and gender, and more. Other determinants for the cost of car insurance in Toronto are the number of insurance claims, high insurance fraud rates, and the provincial private insurance system. Like other Canadian cities, auto insurance in Toronto is operated by private insurance companies whose rates are regulated by the Financial Services Commission of Ontario (FSCO).
Based on the report of the Insurance Bureau of Canada (IBC), the average cost of car insurance policy for a Toronto driver is about $2,071 per annum, which is more than the Ontario provincial average of $1,505. Hence, a Toronto driver pays about $172 per month on car insurance.
Reasons for High Insurance Rates in Toronto
Among other individual and general factors that are related to each driver and insurance company, here are some of the reasons for high insurance rates in Toronto:
- Toronto has thousands of vehicles and drivers on its roads and highways daily.
- The high number of vehicles means more traffic, compared to other major cities.
- As a result, collision and accidents are more likely to occur on the roads.
- Carjacking, car break-ins, and car theft have high possibilities.
- There are an increased number of insurance claims. As in other GTA regions, there are more insurance fraud events in the city.
Factors That Determine Cost of Car Insurance in Toronto
The cost of car insurance in Toronto rests on several factors. The following are some of the factors that determine Toronto car insurance rates:
The age of an average driver will to a large extent determine their driving behavior. A young driver is in a high risk category and will end up having to pay high premiums. Hence, the older you are the lower your rates.
Your driving record behind the wheel also plays an essential part in your auto insurance premiums. Factors such as speeding tickets, accidents record, traffic related convictions, and more can be vital in increasing your rates.
Typically, women are more careful than men and thus get lower insurance rates.
The value of your car and its repair or replacement cost will determine your insurance rates. Cheaper cars with high safety measures will give you low premium rates.
Where you live will also have impact on your premiums. If you live in a high risk neighborhood, there is a likelihood that your car insurance rate will shoot up as a result of the possibility of your car being stolen or damaged.
Vehicle Usage and Mileage
The more distance or mileage you cover with your car the higher chances of being involved in a collision or accident.
Mandatory Toronto Car Insurance Coverage
To ensure that all drivers in Toronto are protected, the Ontario province has mandated all drivers by law to have car insurance policies. Here are some of the mandatory car insurance coverage that every Toronto driver must have:
Accident Benefits Coverage
This type of insurance coverage provides medical support and other expenses that you’re entitled to receive, irrespective of who is at fault in an accident.
In the course of driving, if you damage someone’s property or cause an injury to any individual, the insurance company makes payment on your behalf.
Uninsured Automobile Coverage
In this coverage type, if an uninsured driver is at fault in a collision, the insurance company will cover your medical costs and repair.
In a collision or accident, if you are not at fault, the cost of repair on your vehicle will be covered.
Collision or Upset Coverage
This covers the damage to your vehicle caused by collision with another vehicle or an object.
Car insurance in Toronto is operated under the guidelines and regulations provided by the Ontario provincial government. Toronto residents can take advantage of comparing quotes from different insurance providers and choose the best cheap rate that suits their insurance needs. Besides, there is a provision of changing your insurance company if you are not satisfied with their services. Likewise, there are safety and other measures that you can put in place and enjoy discounts on your premium payments.