How Living in Ontario Impacts Your Car Insurance Rates

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Article Contents
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated on July 18, 2023

Visit author page
Picture of By <span>Aren Mirzaian</span>
By Aren Mirzaian

Updated July 18, 2023

Visit author page

3 minute read

Article Contents

ontario car
Demystifying car insurance will help you make an educated choice.

There are several factors that go into this but if you’re a safe driver then you can save on your premiums. Insurance companies want to make sure that drivers will be able to pay out the claims in case of an accident or other incident.

Because of this, companies look at the type of car, where you live, and your driving history to determine what kind of insurance rate they will offer you.

How do car insurance rates work?

It is illegal to drive without car insurance in Canada. When you go to your auto insurance company, they assess your risk level based on several factors. Once this is determined, you decide on an insurance premium that you pay on a pre-decided regular time period to maintain your insurance. There is a deductible amount that you also decide on with your auto insurer which is what you will pay out-of-pocket in case of an accident or an insurance claim for repair costs. You may be able to choose to pay lower premiums or a higher deductible.

Different companies have varying insurance policies and may offer discounts for specific factors. It is always a good idea to shop around to find the best deal. You can also look at the average auto insurance rates across Ontario to get an estimate of your insurance rate.

How are your insurance premiums calculated?

Car insurance in Ontario  looks at the different factors that go into calculating your insurance premiums which may include:

Driving Record

Your driving history becomes one of the most influential factors when determining the cost of your auto insurance. A clean driving record helps you save money on your insurance policy. This means you have avoided traffic violations and accidents or any other smaller traffic infractions from getting your cost to unnecessarily increase. Even if your driving history has some past accidents or traffic violation records, their impact on your insurance tends to decrease over time as long as your further driving keeps clean.

Purpose & Frequency

Driving for leisure versus driving for business or commercial purposes also impacts your insurance rates. The former may cost you less than if you use your car for work. Further, long hours of daily commute will face a higher insurance rate than an occasional or a weekend driver.

Vehicle Type

This factor also plays a big role in your insurance rates. Depending on the make and model of your car, you can save or spend more than the average. This price range can differ by more than $500. Some types of vehicles such as hybrid vehicles may also enjoy a discount from some insurers. Installing an anti-theft feature in your car may also help you save on your insurance premiums.

Age Of Your Car

The age of your vehicle is also a concern for your insurance rate. A person driving the same vehicle for five years may enjoy a lower rate than someone having driven the same car for less than a month. However, an old car’s insurance can also be heavier than a new car, especially if that car is a restored classic or expensive and tedious to repair. Ultimately, driving a car that is safe, affordable and inexpensive to repair can save you money on insurance in the long run.

Your Age

Young drivers are statistically more likely to be in an accident. Therefore, your insurance rates tend to be higher in the age bracket of 18-25 and start decreasing once your cross that threshold.

Gender & Marital Status

Both of these factors are based on assessing the perceived responsibility and accident-prone behaviour. As men are statistically more likely to drive more and to engage in dangerous behaviour such as speeding, they may face a higher insurance premium. The factor of marital status may vary depending on the insurance providers. Generally, marriage brings a greater sense of responsibility and may decrease insurance premiums.


Insurance providers assess your risk based on the neighbourhood you live in. Insurance providers account for various factors such as the prevalence of theft, claim histories, high traffic density and the frequency of collisions to calculate your insurance rate. Two neighbourhoods in the same city may have completely different insurance risks. Ontario is one of the most expensive provinces for car insurance. While this also differs by city within Ontario, Toronto tends to be among the most expensive. However, to find the cheapest car insurance in Toronto, head over to the free insurance quote tool on our website.

How does living in Ontario impact you?

The average auto insurance rates across Ontario are higher than most provinces due to a high instance of claim fraud as well as lawsuits against the insurers. Brampton is the most expensive, followed by Vaughn, Mississauga, Markham, and Toronto.

The factors of your driving history, age and type of your car, your age, gender, and marital status, location, and driving purpose and frequency determine your insurance rate in Ontario by location. 

Maintaining a clean driving record, living in a safe neighbourhood, and using a safe and affordable vehicle that is inexpensive to repair will decrease your insurance costs.

Congratulations! You made it to the end!

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