The Average Cost Of Car Insurance In Ontario
The average cost of car insurance in Ontario is $1,659, with rates steadily increasing due to rate increases, insurance fraud, and vehicle theft.
However, this rate can vary depending on location, with rates in Vaughan reaching as high as $2,179. Meanwhile, compared to other territories like Quebec and Alberta, Ontario boasts one of the highest average car insurance costs in Canada.
What Factors Affect Vehicle Insurance Rates?
A more expensive car doesn’t always mean higher insurance rates. Below are a few factors that can influence how much you pay for auto insurance.
Make And Model
Make and model are the most significant factors determining how much you’ll pay for car insurance. Trusted vehicles with high safety ratings are cheaper to insure, whereas newer, more powerful, and faster vehicles cost more.
Engine Size
Larger engines cost more to insure because they are more likely to cause accidents. If you want to save on insuring your engine, hold out on your dream car for at least a year and purchase a different model with a smaller engine.
Potential Theft
While modifying your vehicle can be tempting, overdoing it with bells and whistles can increase the likelihood of it being stolen. In addition, common modifications are purely stylistic – not for safety purposes.
If you want to apply modifications to your vehicle, keep them sensible, not flashy. Take extra precautions by asking your insurance company how changes to your car might affect your rates.
Car Safety Features
Safer cars are cheaper to insure because drivers are less likely to get into accidents. The Insurance Bureau of Canada (IBC) assesses your vehicle’s specific risk factors using the Canadian Loss Experience Automobile Rating (CLEAR) system. CLEAR lists collision and insurance statistics regarding specific vehicle brands.
When shopping for a new car, good safety features can help you become eligible for comprehensive insurance.
Driving Record
Regardless of the make and model of your car, a poor driving record can dramatically increase your car insurance rate. If you’ve had a recent accident or multiple infractions, expect to pay more.
Colour
While vehicle colour and insurance rates aren’t directly correlated, more in-demand colours can raise the price of your premiums. The more in-demand a vehicle is, the more expensive it becomes. If a paint job increases your vehicle’s total value, it will also increase your insurance rates.
On average, black and white vehicles tend to be costlier to insure, whereas the cheapest car colours to cover are green, brown, beige, and red. Custom paint jobs can increase your premiums as they can be challenging to repair after a collision.