How Much is Car Insurance in Ontario? A Comprehensive Guide
Car insurance is a legal requirement for all drivers in Ontario, providing financial protection in the event of accidents, theft, or other unforeseen circumstances. However, the cost of car insurance can be steep, and it’s understandable that you’re looking to find out how much you’ll need to pay.
The cost of car insurance can vary significantly based on various factors, making it essential for drivers to understand the key components that influence their premiums.
Here, we’ll delve into the cost of car insurance in Ontario while also exploring factors that affect pricing and providing insights into the average costs. Let’s get started!
How Much is Car Insurance in Ontario?
Ontario’s average yearly car insurance cost is around $1,500 to $2,000. However, before thinking that’s what you’re going to be paying, it’s important to note that for some drivers (especially young people), the costs are going to be significantly higher.
Teenagers looking for insurance, for example, can expect to pay around $8,000 per year on average. While that may seem like a lot, if you have a powerful vehicle, have already made a claim on your insurance, or have a ticket on your driving record, your costs could be even higher than this.
We appreciate that the above information may be vaguer than you were hoping for. To make it a little clearer what you’re going to pay, we’ll first look at the factors influencing the cost of your insurance. Following that, we’ll look at the average costs for specific driving groups.
Factors Influencing Car Insurance Costs in Ontario
There are a wide range of factors that affect your car insurance Ontario. However, some have a much bigger impact than others. Let’s check out the biggest influences on your car insurance premium:
Age and Gender
Age is by far the most significant factor in your insurance premiums. Younger drivers, especially those under the age of 25, often face higher insurance premiums as they are considered higher-risk drivers. Simply put, the younger you are, the more you’ll pay.
Additionally, gender can impact premiums, with young male drivers typically facing higher costs than their female counterparts. While both of these factors may feel unfair, they are based on evidence-backed risk assessments.
Driving Record
One of the other most significant factors influencing car insurance premiums in Ontario is your driving record. Safe drivers with a history free of accidents and traffic violations are often rewarded with lower premiums.
On the other hand, drivers with a record of accidents or tickets may experience higher insurance costs.
Vehicle Type
The make and model of your vehicle play a crucial role in determining insurance premiums. High-performance cars or luxury vehicles typically come with higher insurance costs due to their increased repair and replacement expenses.
For younger drivers, it makes sense to get a lower-powered vehicle as this will likely give you the cheapest insurance premium.
Location
Your residential address is another crucial factor in determining car insurance rates. Urban areas usually have higher premiums due to increased traffic density and a higher likelihood of accidents. Conversely, rural areas may have lower premiums, as the risk of accidents is generally lower.
Coverage Type
The type and extent of coverage you choose also significantly impact your insurance costs. Comprehensive coverage that includes protection against theft, vandalism, and other non-collision events tends to be more expensive than basic coverage.
There are other add-ons you can put onto your insurance, too, such as personal injury protection. However, this is often automatically included in many provinces. Reducing your coverage can save you money on your car insurance, but you then run the risk of having less protection.
Average Car Insurance Costs in Ontario
Let’s look at the average insurance costs for some specific groups:
Minimum Coverage – In Ontario, the minimum required coverage includes third-party liability insurance, accident benefits, direct compensation-property damage, and uninsured automobile coverage. On average, drivers can expect to pay between $1,300 to $1,800 per year for minimum coverage.
Full Coverage – If you opt for full coverage, including collision and comprehensive insurance, the costs can increase significantly. Full coverage premiums in Ontario often cost $2.000 or more, depending on various factors. However, older drivers with clean records may pay less than this.
High-Risk Drivers – For drivers with a history of accidents, traffic violations, or other high-risk factors, insurance premiums can be substantially higher. High-risk drivers may face costs ranging from $2,500 to $5,000 or more annually.
Luxury and High-Performance Vehicles – If you own a luxury or high-performance vehicle, be prepared to pay higher insurance premiums. Costs for insuring such vehicles in Ontario can range from $3,000 to $6,000 or more per year. These costs can rise even higher if you’re a young driver.
Young Drivers – Young drivers under the age of 25 often face higher insurance costs due to their perceived higher risk. On average, young drivers can expect to pay between $3,000 to $8,000 annually for Ontario car insurance.
It’s important to note that these are approximate figures, and actual premiums may vary based on individual circumstances. For accurate car insurance quotes Ontario tailored to your specific situation, it’s advisable to consult with a car insurance broker.
Final Thoughts
While car insurance is vital for all drivers, it can come at a significant cost. While most drivers pay in the region of $1,500 to $2,000, it can be more or less depending on all the factors above. Due to this, it’s a great idea to use an insurance broker to find the best quotes for you.
If you’re in Ontario and seeking reliable auto insurance coverage, contact Ron Johnston Insurance. Our team is ready to assist you in finding the right coverage to protect you on the road while keeping your budget in mind.