Why is my car insurance so high Canada?

Asked by: Dr. Morton Tremblay  |  Last update: August 5, 2022
Score: 4.9/5 (25 votes)

We all know that car insurance in Ontario is expensive, and this is why. On average, Canadian insurers are paying out as much in claims as they're earning in revenue. Insurance fraud, increasingly severe weather, and a handful of secondary factors have raised the cost of insurance in Ontario over the last two decades.

How can I lower my car insurance rates in Canada?

8 Ways to Reduce Your Auto Insurance Premium During the COVID-19 Lockdown
  1. Take one of your two cars off the road. ...
  2. Reduce your auto insurance coverage. ...
  3. Lower your annual kilometre count. ...
  4. Enrol in a usage-based insurance program. ...
  5. Up your auto coverage deductibles. ...
  6. Drop comprehensive coverage on older vehicles.

Why would my car insurance be high?

Common causes of overly expensive insurance rates include your age, driving record, credit history, coverage options, what car you drive and where you live. Anything that insurers can link to an increased likelihood that you will be in an accident and file a claim will result in higher car insurance premiums.

What do I do if my car insurance is too expensive?

Listed below are other things you can do to lower your insurance costs.
  1. Shop around. ...
  2. Before you buy a car, compare insurance costs. ...
  3. Ask for higher deductibles. ...
  4. Reduce coverage on older cars. ...
  5. Buy your homeowners and auto coverage from the same insurer. ...
  6. Maintain a good credit record. ...
  7. Take advantage of low mileage discounts.

How much does car insurance cost per month in Canada?

The average monthly car insurance rates in Ontario are between $125 to $158, depending on which part of the province you live in. This is the highest average car insurance rate among all provinces in Canada.

Why is my insurance so high and how you can fix it

45 related questions found

How can I lower my car insurance in Ontario?

How can I lower my premium rate in Ontario?
  1. Bundle your policies. Bundling your policies is a great way to save some money on your premium. ...
  2. Take advantage of discounts. There are so many discounts available for car insurance policies in Ontario. ...
  3. Adjust your payments. ...
  4. Review your existing policy.

How much is the average car insurance in Canada?

How much does car insurance cost in Canada? On average, Canadian drivers pay between $1,300 and $1,800 for car insurance coverage each year.

Why did my car insurance go up $100?

Claims in your area

If your city has a high rate of theft, accident, and weather-related claims, it becomes riskier for an insurance company to cover drivers in your area. That risk can lead to an auto insurance price increase, even if you have a perfect driving record.

How do I lower my auto insurance?

Here are some ways to save on car insurance1
  1. Increase your deductible.
  2. Check for discounts you qualify for.
  3. Compare auto insurance quotes.
  4. Maintain a good driving record.
  5. Participate in a safe driving program.
  6. Take a defensive driving course.
  7. Explore payment options.
  8. Improve your credit score.

Does credit score affect car insurance?

A higher credit score decreases your car insurance rate, often significantly, with almost every company and in most states. Getting a quote, however, does not affect your credit. Your credit score is a key part of determining the rate you pay for car insurance.

Why does my auto insurance go up every year?

Because car insurance is designed to pay for the costs after an accident — including both property damage and medical costs — anything that raises these costs is likely to raise rates. Insurers need to make sure they have enough funds to pay claims, so when inflation hits, car insurance rates are affected.

Why did my car insurance go up 2022?

Rates will likely continue increasing in 2022 due to inflation and increased insurance claims.

Should my car insurance go down each year?

When do car insurance premiums go down? From ages 16 to 25, your car insurance rates will steadily go down for every year that you keep your driving record clean. Car insurance rates go down at age 25 by a large margin. Rates then decrease slowly but surely until age 65, before increase again.

Does insurance drop when you turn 25 Ontario?

Statistically, drivers who are 25 or older are less at risk. But there are many other factors that affect your premium, too: the type of car you drive, your claims record, how you use your vehicle, where you live, and many other factors.

Why did my car insurance go up for no reason Ontario?

Auto premiums can increase because of claims, traffic violations or even inflation (darned inflation!). As auto repair and equipment costs increase, this can impact your auto insurance premium.

Is insurance cheaper if your car is paid off?

No, paying off your car doesn't reduce your insurance rates, but it does give you more control over the type and amount of coverage you have, which can help you save money on your insurance rates.

What is the simplest way to lower your auto insurance premium?

Ways to Lower Your Car Insurance Costs
  1. Choose the Right Coverage.
  2. Pick the Best Vehicle Insurance Provider.
  3. Bundle Insurance Together.
  4. Pay for Car Insurance in Advance.
  5. Take a Defensive Driving Course.
  6. Get a Low-Mileage Discount.
  7. Improve Your Credit Score.
  8. Opt-in to a Usage-Based Insurance Program.

Is it more expensive to insure a new or old car?

Due to their value, cost to repair, risk of theft and other factors, it may cost more to insure a new car versus an older one. If your new vehicle is financed, your lender will likely require you to carry more insurance than the legal minimum, which typically results in higher premiums.

Why does my car insurance fluctuate every month?

Auto insurance rates fluctuate frequently for a number of reasons. These reasons include your driving record, drivers on the policy, vehicles on the policy, state laws, and the accidents and crime in your area. Driving Record – Your driving record is one major contributor to higher rates.

What causes your insurance rates to go down?

Car insurance costs typically go down for the following reasons: You grow older. You drive safely for three years following an accident or other infraction. You switch insurance companies.

Which province has the highest car insurance in Canada?

British Columbia – $1,832

Drivers in Canada's westernmost province pay the highest insurance rates in Canada, averaging just over $1,800 a year. That's up over $700 since 2015 – a whopping 63% increase in less than five years!

Why is new driver insurance so expensive?

Young drivers are more expensive to insure because they're statistically more likely to have an accident — around 25% of all claims are made by drivers under the age of 25. Insurers also look at lots of other things when working out how much you should pay for a policy, including your: Vehicle. Job title.

Does adding another driver lower insurance?

Despite how it might sound, adding a named driver (a second driver) to your car insurance policy won't automatically mean you'll be paying more for your insurance - it's not like paying for “double the cover”- but it could land you with a lower premium.

What is the average car insurance in Ontario?

What is the average cost of car insurance in Ontario? The average cost of car insurance is $1,634 per year in the province. Most pay in the range of $1,300 to $2,000 annually. They are higher or lower depending on your location, the type of vehicle you drive, driving history, and many other considerations.