Which City Has The Cheapest Car Insurance in Ontario?
Location, location, location; this is something that you tend to hear when you're looking for a home or starting a small business in Ontario. But did you know that the town or city that you live in affects your car insurance rates?
It's true — while it's far from the only factor, your car insurance provider will consider your location when it comes time to determine your car insurance rates.
In this article, we'll give you the scoop on which city has the cheapest car insurance in Ontario (as of December 2020), along with some other important information that you can use next time you need to reshop your car insurance policy.
*Please reach out to a Surex insurance advisor for up to date information regarding accurate pricing, rates, claims, etc.*
Which towns and cities have the lowest insurance rates in Ontario?
As of December 2020, the towns and cities with the lowest car insurance rates were as follows:
- Kingston, Napanee, Port Hope, Coburg and Brockville — Average annual rate of $1,103
- Petawawa, Cornwall and Russell — Average annual rate of $1,107
- St.Thomas — Average annual rate of $1,124
- Sarnia — Average annual rate of $1,159
- Sudbury — Average annual rate of $1,165
As you can see, there's no single winner; the title of cheapest car insurance area in Ontario is split between Kingston, Napanee, Port Hope and Brockville. Considering that the provincial average for car insurance is $1,300 to $1,800, it's clear that drivers in this area (generally) pay less. However, these savings aren't guaranteed (more on this below).
Which towns and cities have below-average car insurance rates in Ontario?
Although they may not be at the top of the list, the following areas have reasonably priced insurance rates (on average):
- Ottawa — Average annual rate of $1,213
- Kitchener — Average annual rate of $1,341
- Windsor — Average annual rate of $1,412
- London — Average annual rate of $1,509
Although these rates aren't set in stone, knowing that the cities mentioned above have lower annual rates than the provincial average is useful.
What towns and cities have the most expensive car insurance rates in Ontario?
As of December 2020, the towns and cities with the most expensive car insurance rates were as follows:
- Brampton — Average annual rate of $2,698
- Mississauga — Average annual rate of $2,372
- Vaughan — Average annual rate of $2,334
- Richmond Hill — Average annual rate of $2,286
- Markham — Average annual rate of $2,222
- Toronto — Average annual rate of $2,201
- Ajax — Average annual rate of $2,141
- Pickering — Average annual rate of $1,961
- Whitby — Average annual rate of $1,777
- Hamilton — Average annual rate of $1,755
On average, drivers in the areas listed above pay more for car insurance than drivers in the locations mentioned in the first list. For instance, drivers in Brampton, whose rates (on average) sit around $2,698, pay more than double for car insurance than drivers in areas like Kingston, whose rates (on average) sit at approximately $1,103.
Why does your location influence your car insurance rates?
The area that you live in can affect your car insurance rates due to the fact that it can increase or decrease the likelihood of an event that can damage your vehicle.
For instance, if you live in a town or city with a high accident rate, you're more likely to get into a collision than a driver who lives in a locale with a low accident rate.
Similarly, if you live in a town or city with a high car theft rate, then your vehicle is more likely to get targeted by thieves (in comparison to a driver who lives in an area with a low car theft rate).
Car insurance companies in Ontario (and the rest of Canada) take this information into account while determining your rates. So, if you live in a town or city with a high accident or theft rate, your car insurance provider will need to charge you more to offset the potential expenses they'll incur if an event takes place in the future.
Is your location the main factor that insurance providers use to determine your rates?
No, your location isn't the most important (or only) factor that's considered while determining your car insurance rates.
Some of the other factors that car insurance companies use to determine your rates include the following:
- Type of coverage you have (including add ons)
- Driving record
- Claim history
- Vehicle make and model
- Personal information (age, gender, etc.)
- Marital status
Reach out to your insurance provider or advisor for more information about how the factors mentioned above influence your car insurance rates.
Do car insurance rates change in Ontario?
Yes! Car insurance rates change all of the time. So, we don't suggest moving to a town or city just because it's mentioned on one of our lists. Our lists are simply meant to inform you, not persuade you.
Instead, we recommend that you reach out to a licensed advisor the next time you need to renew your policy or if you have questions about car insurance in Ontario. Speaking of which…
Want to save up to 25% on car insurance in Ontario?
As you now know, car insurance can be quite expensive in Ontario. In fact, the province is generally near the top of the list when it comes to average car insurance prices in Canada.
Thankfully, when you opt for expert advice from a Surex insurance advisor, you know that we've got you covered. At Surex, we turn finding car insurance into a quick, frictionless experience.
After a ten-minute chat, we can supply you with up to ten personalized car insurance quotes. Whether you live in an area with above-average rates or the cheapest city for car insurance in Ontario, we're always happy to help.
Contact one of our team members today to learn how we can help you save up to 25% by bundling your policies with one of our insurance partners.
What happens if you lie about your location?
Lying about your location is considered insurance fraud. The consequences for lying to your insurance provider depend on the severity, but it's generally considered a criminal offence. Drivers that get caught lying to their insurance providers can face anywhere from two to 14 years of prison time. Because of this, we urge you not to take the risk.