How Can You Get Cheap Car Insurance in London?
You can get cheap London car insurance by finding the best deals. Here are several tips to help you do so:
Compare Rates Between Insurers
London has a highly competitive auto insurance market, so insurers are constantly vying for your business. When insurers try to give you the best deals, it’s you who wins. Compare rates and shop around to see which insurance provider fits your auto protection needs affordably.
Take Bundled Policies
One of the best ways to save money while shopping is to buy a package deal, and insurance is no different. If you bundle home and auto insurance from the same company, you’re much more likely to get lower rates.
Ask For A Higher Deductible
You must pay a deductible on insurance claims before your carrier covers the remaining expenses. A higher deductible means paying extra if something happens to your car, but it also means you’ll get lower insurance premiums.
Request Group Discounts
Many insurance companies deal in group discounts for companies and other organizations. If you’re shopping for auto insurance in London for work, ask your agent about group deals and discounts.
Pay Annual Premiums
Paying annual insurance premiums might look expensive initially, but it’s generally cheaper than paying them monthly. Ask your insurers about half-year premiums if you can’t afford annual premiums.
Motor vehicle offences and accidents stay on your record for years. Unfortunately, any driving violation on your record will considerably increase your insurance rates. However, this also means you’ll get lower auto insurance rates if you have no offences on record.
Consider Taking Usage-Based Insurance
Usage-based insurance (UBI) or pay-as-you-go insurance tracks your driving behaviour to determine how much you must pay for insurance. Taking UBI lets you save up to 30% on your annual premiums, so it’s a good option if you consider yourself a safe driver.
Take Driving Courses
Accredited driving lessons make you a safer driver and let you earn discounts on auto insurance in London.
Choose the Coverage You Need
Naturally, more insurance protection leads to higher rates. While some auto insurance coverage is mandatory, you have optional insurance coverage like at-fault accident and theft protection. Review your policy and skip unnecessary optional coverage to save on insurance premiums.
Buy Affordable Cars
Cars that are expensive and hard to replace tend to get hit with higher premiums. If possible, buy affordable and reliable cars that are more common and easy to repair or replace if you want lower insurance rates.
Quick Facts About Auto Insurance in London
- London car insurance is MORE expensive than the Ontario average.
- The average annual car insurance cost in London for a driver with comprehensive/collision coverage and a clean driving record is around $1,654.
- Comparing London auto insurance quotes with MyChoice can save you up to $1,174 annually.
Who Provides Car Insurance Quotes in London?
Insurance brokers, agents, aggregators, and direct writers provide car insurance quotes in London. Here’s an overview of these four insurance quote providers:
Insurance brokers are independent professionals who help you shop for the best rates by comparing deals from multiple insurers. Because they have a bird’s-eye view of the current London insurance landscape, they can show you which companies offer the best insurance deals and answer any questions you may have.
Brokers take a commission from insurance companies, which could increase your rates. You might spend more money than if you had found an insurer yourself.
Like insurance agents, direct writers only sell insurance products from one company. Direct writers are typically found online and are cheaper because they don’t have physical offices.
Insurance agents work for a certain insurer, so they can only offer their employer’s insurance products. However, they know their insurer like the back of their hands and might even give you discounts that brokers don’t have access to.
Additionally, insurance agents can close insurance sales independently, meaning you can purchase insurance from them right then and there.
An insurance aggregator website like MyChoice compiles rates from various insurance brokers, companies, and direct writers in one place. You can browse aggregator websites to find the best deals from the top insurance companies and get quotes instantly.
Better yet, insurance aggregators are accessible online and entirely free for customers, so you can look up insurance rates without spending a single penny or leaving the house.
How Does Car Insurance Work in London?
Car insurance in London works by providing financial coverage in case something bad happens to you or your car, depending on the protection you choose. Auto insurance in London is mandatory by local laws, which means you need car insurance to avoid fines or driver’s licence suspensions.
Worse still, if you get convicted of driving without insurance, you’ll get higher premiums from carriers. This makes driving again prohibitively expensive or even nearly impossible after being caught driving without insurance. That’s why getting auto insurance is essential before buying a car or driving in London.
Here’s a breakdown of the key elements of your auto insurance policy:
The mandatory car insurance requirement for London drivers are:
Third-Party Liability (TPL) Coverage
This insurance component provides financial compensation if you cause an accident that results in car damage or somebody getting hurt or killed. Per Financial Services Commission of Ontario (FSCO) regulations, you need at least $200,000 in TPL coverage.
Statutory Accident Benefits Coverage
This insurance component pays for your medical bills, rehabilitation, and possible funeral expenses if you get hurt or killed in a car accident, regardless of who’s at fault. Accident benefits coverage also offers income replacement worth 70% of your gross income, capped at $400 per week.
Uninsured Automobile Insurance
Uninsured automobile insurance covers your medical bills and funeral expenses if you’re struck by uninsured vehicles or hit-and-run drivers. Additionally, it compensates for vehicular damage caused by uninsured drivers.
Direct Compensation – Property Damage (DC-PD) Insurance
DC-PD insurance compensates you for the damage other drivers cause in an accident. However, DC-PD only kicks in if the other person is at fault, they’re also insured, and the accident takes place in London.
Since minimum car insurance only goes so far, we’ve got some extra London car insurance recommendations for you:
Extra TPL Coverage
The mandatory $200,000 insurance minimum can be too small, so many drivers choose to get coverage up to $2 million if they cause property damage or hurt somebody in an accident.
Additional Statutory Accident Benefits
Many people get additional coverage for medical bills and funeral expenses in their statutory accident coverage. You can also get extra income replacement protection if 70% income capped at $400 a week seems too limited.
More Comprehensive Property Damage Protection
DC-PD coverage has very specific coverage terms like the other driver also needs to be insured, and the accident must occur in London. To cover their bases, many people purchase extra insurance that still protects them even when the other driver is uninsured, and the accident happens in other provinces.
In addition to mandatory insurance coverage outlined by the FSCO, you can take optional insurance coverage like:
Specified Perils Protection
Specified perils insurance coverage protects you from loss or damage due to a specific cause. The most common perils insured are:
Many insurers also offer comprehensive auto insurance in London if you want protection from all these perils.
Insurers usually raise your premiums if you’re at fault for causing an accident. If you’ve been a safe driver for several years, you can take extra accident forgiveness coverage so you won’t get higher premiums if you cause an accident. Note that accident forgiveness only works on your first accident, and subsequent violations will still raise your rates.
Limited Depreciation Waiver
If you take a limited waiver of depreciation, you can receive your car’s purchase price as compensation if it’s been stolen or deemed a total loss after an accident.
How Your Car Insurance Quotes Are Calculated in London
Your car insurance rates are calculated based on how risky you are to insure. Naturally, drivers more likely to get into accidents will have higher premiums than those less likely to be in an accident.
Here are seven factors that influence your London car insurance quotes:
Age, Gender, and Marital Status
Your personal demographics influence auto insurance premiums in London because different people have varying accident risks.
Younger people tend to get higher premiums because insurance companies see them as more accident-prone than older people. Generally, your car insurance rates start decreasing when you hit 25 years old as long as you keep a safe driving record. However, insurance premiums increase again for people aged 65 and older because they’re more likely to be injured or killed in traffic accidents.
Women often get lower insurance rates because they’re seen as more careful drivers and don’t take as many risks as men.
Marital status also determines your rates because most insurance companies see married people as more financially stable and less-risky drivers. Married couples also tend to bundle home and auto insurance, saving more on premiums.
People who live in urban areas often see higher insurance premiums because they’re more prone to car accidents and theft.
Car Make and Model
Expensive cars are more costly to repair or replace, so insurance premiums are usually higher than more common vehicles. You can install security features like anti-theft devices if you have an expensive car and want to save on insurance premiums.
People who drive safely are rewarded with lower premiums because they’re usually less likely to get into a traffic accident. Conversely, people who have gotten into multiple accidents get higher premiums because they’re more likely to be involved in another accident down the line.
Logic dictates that people who drive frequently are more likely to get in an accident. Therefore, kilometres driven is one of the determining factors that set your London auto insurance rates.
Insurance Coverage Chosen
Your coverage options influence your insurance rates because taking more coverage gives you more protection. Naturally, the more coverage you choose, the higher your rates.
Getting discounts can lower your auto insurance rates and make them more affordable. You can typically get discounts by bundling home and auto insurance or asking for a group discount for your workplace or organization.
Most Expensive Postal Codes in London
The average cost of car insurance in London, Ontario, is roughly $1,654, which is higher than the Ontario average of $1,385 yearly.
London’s most expensive postal code for car insurance is the N5Y region, encompassing Carling and the northeastern part of the city. While your quotes may differ, below are the expected premium rates in this area:
|Average annual car insurance premium
Least Expensive Postal Codes in London
The N5X region in London has the cheapest auto insurance rates. This region includes Stoney Creek, Northdale, Fanshawe, and Stoney Brooke. Below is a breakdown of how much you can expect to pay for car insurance in the cheapest areas for auto insurance in London:
|Average annual car insurance premium
Car Insurance Cost in London by Age
As with any city in Ontario, car insurance rates can rise and fall according to your age. Generally, drivers under 30 pay the highest premiums because they are perceived to lack experience. Similarly, drivers over 65 can expect higher premiums, as senior citizens are more likely to sustain injury or death during an accident.
Below are the average car insurance rates by age in London, Ontario:
|Average annual insurance cost
|Average savings with MyChoice
Car Insurance Cost in London by Driving History
Insurance companies are likely to charge higher premiums if:
- You have a shorter driving history
- You don’t have a full licence
- You have a driving conviction
While driving demerits typically only remain on your record for about two years, some insurance providers will review driving history up to ten years prior.
Below are general estimations of how your driving record can impact insurance premiums:
|Average annual car insurance rate
|Clean driving record
|Insurance cancellation due to non-payment
|Licence suspension for alcohol-related offences
Other Factors That Affect Car Insurance Prices in London
We’ve covered several factors that influence car insurance rates in London. Aside from those, several extra factors play a part in determining your London auto insurance premiums:
Vehicle Model Accident Rates
Some cars are just more accident-prone than others. Even if you have a spotless driving record, owning a car model infamous for having high accident rates will increase your insurance premiums.
Naturally, older cars are more expensive to insure because they may not have all the safety features of newer vehicles. If you insist on driving a vintage car everywhere, make sure you can pay the insurance premiums.
Vehicle Repair Costs
The harder it is to repair a car, the more expensive it is to insure. You can expect high insurance premiums on luxury cars and foreign cars that don’t have a large dealership or service centre presence in Canada.
Vehicle Primary Usage and Annual Mileage
You may spend more or less time on the road depending on what you use the car for. Car usage influences insurance rates – generally, the more you use it, the higher your premiums. For instance, insurance premiums on a car you use as an Uber will be higher than on a car you almost exclusively take on weekend cruises.
A good way to measure how much somebody uses a car is by its annual mileage. If your car has low annual mileage, insurers may determine that this car is low-risk and thus grant you more affordable insurance rates.
Local Crime Rates
Living in high-crime areas means your car is at higher risk of being stolen or vandalized. If you live in an area where theft or vandalism often occurs, you may get higher car insurance rates.
Past Insurance Claims
Any auto insurance claims will drive your premiums up, regardless of who’s at fault. If you make many insurance claims, the insurer will see you as a high-risk policyholder and give you higher rates.
Many insurance companies reward long-term customers with discounted rates. If you’ve been a policyholder at the same insurance company for several years, ask for a rate reduction or discount when you renew your policy.
The Best Car Insurance Brokerages in London
Auto insurance brokers can negotiate premiums with a company on your behalf. With the help of a car insurance broker, you can save valuable time and money and get the insurance rates you want. Plus, you can ask them questions about the process so you can make more informed decisions.
Below is a list of brokerages you can visit in London, Ontario:
|McConville Omni Insurance Brokers Ltd.
|685 Richmond St #300
London, ON N6A 5M1, Canada
|My Insurance Broker
|1255 Commissioners Rd W #227
London, ON N6K 3N5, Canada
|Kenny Insurance Brokers
|360 Springbank Dr
London, ON N6J 1G5, Canada
|69 Wellington St Unit A
London, ON N6B 2K4, Canada
Driving in London
London has the 11th largest population in Canada, so expect it to be a melting pot of diverse drivers. In addition, ever-changing driving conditions make it imperative to have the best possible insurance. Below are some key facts you should know about driving in London:
- Major highways in London: None (connected to junctions of Highway 401 and 402)
- Public transit options: London Transit Commission (bus)
- Ridesharing services: Uber, Lyft
- Parking space providers: City of London, private lots
- Top tourist attractions: Springbank Park, Banting House, Fanshawe Pioneer Village, Museum London, Storybook Gardens, Boler Mountain
- Busy intersections: Richmond Street and Fanshawe Park Road
- Airports: London International Airport
Main Mode of Commuting in London
Most of London’s commuters take cars, trucks, and vans to work. Out of 118,720 personal vehicle commuters, 12,180 of them are passengers. Meanwhile, public transit is the second-most popular commuting mode in London, with 8,790 users. Here’s a closer look at the modes of commuting in London:
|Main mode of commuting
|Total – 25% sample data
|Car, truck or van
|Car, truck or van – as a driver
|Car, truck or van – as a passenger
Commuting Duration in London
London is one of the busier cities in Ontario, so traffic can get congested. Fortunately, for a busy city, commute durations are still reasonable. Almost 80% of London’s commuters spend under 30 minutes during their commutes. Here’s an in-depth look at commuting duration in London:
|Total – 25% sample data
|Less than 15 minutes
|15 to 29 minutes
|30 to 44 minutes
|45 to 59 minutes
|60 minutes and over
Driving Conditions in London
Driving conditions in London are often prone to change. These conditions can directly impact your insurance premiums. Here are some key facts about driving conditions in London:
- Average daily commute time: 44 minutes round trip
- Average annual rainfall: 946 mm
- Average annual snowfall: 1,943 mm
- Rainy days per year: 106 days
- Rainiest month in London: June
- Driest months in London: November – March
- Snow days per year: 60 days
- Snowfall months in London: November – April
Traffic in London
London has a population of roughly 422,324, making it one of the busier cities in Ontario. As such, you can expect traffic conditions to fluctuate constantly. Here is a quick overview of traffic conditions in London:
- City area: London’s city limits span 420.6 km2.
- Time spent in traffic annually: London drivers spend 89 hours in traffic per year.
- Busiest highways: Highways 401 and 402 are the busiest in London.
- Average motor vehicle thefts: There are roughly 1,175 auto thefts a year in London.
- Average instances of distracted driving: There are 418 instances of distracted driving a year in London.
- Average number of speeding tickets: Roughly 2,108 people receive speeding tickets every year in London.
The Most Common Questions About Car Insurance in London
Is ridesharing insurance available in London?
Yes, ridesharing insurance is available in London through Intact Insurance. However, ridesharing drivers are still required to have a personal insurance policy.
How much does London car insurance cost?
The average cost for London car insurance is $1,654 a year. However, this rate may vary depending on your age, driving history, insurance coverage, and vehicle make.
Is car insurance cheaper in London than in Toronto?
Yes, car insurance is cheaper in London ($1,510/year) than in Toronto ($1,796/year).
What are the best car insurance companies in London?
Because each insurer offers a unique pricing scheme, the best car insurance companies in London will vary from person to person. Get help from our experts at MyChoice – we pair you up with the best one for your circumstances.
Who has the cheapest auto insurance in London?
You can get the cheapest auto insurance in London by shopping around with MyChoice. Just provide your postal code and basic information, and we’ll match you up with affordable options.
Which cars get the lowest car insurance premiums in London?
Hatchbacks and sedans with smaller engines get the lowest car insurance premiums in London. Currently, the cheapest car to insure is the Honda CR V-LX.
Why should you compare car insurance rates in London?
You should compare car insurance rates in London because not all policies have the same coverage requirements. In addition, you’ll want to pick a policy best suited to your driving habits.
What information do you need for an auto insurance quote in London?
The information you’ll need to provide for an auto insurance quote in London includes your basic information, driver’s licence, vehicle identification number (VIN), marital status, and accident prevention course completion date, if applicable.
Can I use my London car insurance to drive in the United States?
Yes, you can use your London car insurance to drive in the United States. However, most insurance providers recommend carrying additional cash in case of an accident. If you pay more upfront, you won’t risk an increase on your future premiums.
How do you find affordable car insurance for students in London, Ontario?
You can get affordable car insurance for students in London by taking a driver’s education course. Earning a certificate lets insurers know you are a safe and dependable driver. In addition, you can apply with an insurer that offers student discounts or get listed as a secondary driver on your parents’ insurance policy.
Which auto insurance is best for young drivers in London?
You can find the best auto insurance for young drivers in London by comparing quotes with MyChoice. Not only do we connect you with insurance companies that could work for you, but we can also provide tips on how to make your car insurance more affordable in the long run.