Average Monthly Car Insurance Cost In Ontario
Ontario's average monthly car insurance cost is the second-highest in Canada, with only British Columbia having a higher figure. The average annual car insurance in Ontario is about $1500, which is about $125 per month. This data is traceable to different factors, such as car insurance being compulsory in Ontario and accident benefits laws in the province.
Today's blog will illustrate where and how to get the best car insurance deal in Ontario. The article will always review why car insurance is quite expensive in Ontario. Is it possible that Ontario's relatively large population is a factor in the high car insurance cost? Ontario is the most populous province in Canada.
Continue reading to learn more about the costs related to monthly car insurance Ontario rates.
If you're looking for car insurance quotes in Ottawa or the surrounding areas, you can visit https://www.surex.com/Insurance/auto-car/ottawa to compare quotes with the pros at Surex.
What is the average monthly car insurance Ontario rate?
In the past, Ontario used to have the highest car insurance rates in Canada; however, as of 2020, British Columbia had the highest rates. Why is car insurance high in Ontario as the average monthly car insurance cost is $125? It could be linked to several factors: the high rate of insurance fraud, severe weather, and the large population.
According to reports, insurance firms pay out $1.6 billion annually as fraudulent claims in Ontario alone. This figure translates to an extra $165 for about 9.7 million drivers in Ontario. It is a critical factor that affects the rate of car insurance in the province. Insurance companies try to recoup the losses they make from fraudulent claims.
Another factor is the increasingly disturbing weather in Canada. In a report by the Insurance Bureau of Canada, severe weather caused about $1.9 billion in insurance claims in 2018, with Ontario taking the majority of this sum.
Ontario's population is another factor that contributes to the high auto insurance rate. The high population of drivers in the Ontario province is a causative factor in the number of car accidents in that region. According to records from the Ontario province, deaths from distracted driving have doubled since 2000. Distracted driving can be linked to phones, as distracted drivers are four times more likely to be involved in a crash than undistracted drivers.
Another factor is the use of more expensive vehicles. Cars have become more costly to maintain than they were ten years ago. Nowadays, cars come with more features that make them more expensive to maintain and ensure insurance rates are higher than before. Inflation is the primary factor responsible for the increase in insurance rates and the increase in the rates of other goods and services.
One factor that affects the car insurance rate in Ontario is the deductible amount. In Ontario, the deductible amount offered by auto insurers for collision is $500 and $300 for comprehensive. This deductible amount is relatively low compared with the $500, $1000 and $2000 paid by car owners across Canada.
Monthly Insurance for Car in Ontario — Where Can You Get It?
Different auto insurance providers are operating in Ontario like Aviva, Wawanesa, Economical, PAFCO, GorePembridge, RSA and Intact, among others. These companies provide different rates for their clients based on their preferred option of coverage.
Factors that determine the car insurance rates in Ontario are pretty different from other parts of Canada. Your auto insurance history is a huge factor, as auto insurers want to know well you can handle a car. An individual with multiple claims from a former insurer may not receive cheaper insurance rates. Your payment history is another factor, as insurance companies will offer rates to you based on how well you are consistent with paying your insurance bills.
The type of coverage you are looking for is also a factor; however, there is a peculiarity in Ontario.
In Ontario, car insurance is compulsory for every car owner, and the minor auto insurance coverage required by law is the third party liability. This factor is critical in the province's high price of car insurance. Other car insurance coverage options available are collision and comprehensive coverage.
The maximum amount of car insurance you can get is adding both collision and comprehensive to your third party liability coverage. The collision coverage covers fixing or replacing your car when damaged after a collision with an uninsured driver or a hit-and-run. Comprehensive coverage covers every form of damage that may occur from nature's elements, vandalism or falling objects.
Other options available in an insurance policy include the car rental coverage that covers when you are driving a rented car for some time—depreciation coverage that protects you from depreciation. In the event of total depreciation of the car's value, depreciation coverage entitles you to the original sum used in buying the car. While windshield coverage is typically included in comprehensive coverage, you can separate it from the comprehensive coverage to lower your premium.
With the presence of these different options, clients may face difficulty choosing the option that best fits their pocket.
Once you're familiar with the car insurance monthly cost Ontario drivers need to pay, the best way to shop for coverage is by reaching out to a reputable insurance brokerage. Insurance brokerages help you get multiple insurance quotes from different insurance providers.
Insurance brokerages help their customers get discounts, as part of these advisors' job is to search for discounts you are eligible for as a customer. There are three major discount types: claims-free discount, convictions-free discount, and good credit discount.
A good credit discount is given to individuals with a good auto insurance history. With a good credit score and a record of always paying your insurance bills, you are liable to get a discount from insurers.
When you can also go years without seeking insurance claims, you are liable for a claims-free discount. Also, when you can avoid traffic convictions, you could receive a conviction-free discount.
How does insurance brokerages work?
After registering on the platform, you start a quote and get linked with licensed insurance advisors from an insurance brokerage. These advisors help you compare a collection of quotes from the leading insurance providers in Canada. When you have chosen an offer, you can then buy the insurance policy.
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