The average cost of car insurance in Ontario is around $1,528, ranking it among the provinces with the highest car insurance rates in Canada. However, your car insurance rates may be higher or lower depending on your personal circumstances.
Insurance providers in Ontario consider several factors, including age, gender, driving record, and location, to determine your car insurance premiums. Specifically, age and gender significantly influence car insurance rates in Ontario.
In this blog post, we will explore the intricacies of car insurance costs in Ontario, focusing on age and gender and delving into other factors that impact insurance expenses. Additionally, we will provide insights on how to secure more affordable car insurance rates in Canada.
How Much is Car Insurance in Ontario?
The average annual cost of car insurance in the province is $1,655, with most individuals paying between $1,300 and $2,000. Notably, this is significantly higher than the national average in Canada.
Actual insurance costs vary based on individual circumstances. In Ontario, insurers determine premiums by considering factors such as age, gender, driving history, vehicle make and model, etc.
Understanding these influencing factors and their impact on car insurance rates is crucial for making informed decisions when selecting a policy. By gaining insight into these elements, you can navigate Ontario’s insurance landscape more effectively and make choices that align with your needs and financial considerations.
How Much is Car Insurance in Ontario Per Month?
The average cost of car insurance in Ontario typically falls within the range of $100 to $300 per month. However, it’s crucial to understand that these figures are approximations. Many insurance providers in Ontario determine monthly payments by simply dividing your annual premium by 12, resulting in an average monthly cost of $127.3.
Keep in mind that payment schedules can vary among insurers. While most insurers offer a standard 12-month payment plan, some providers may have different options. Opting to pay the entire annual amount upfront can often result in cost savings, as it helps you avoid administrative fees.
How Much is Car Insurance for New Drivers in Ontario?
If you’re a new or young driver in Ontario, you can anticipate monthly car insurance costs ranging from $300 to $700 on average, especially if you are under 25. Several factors contribute to the higher rates for new drivers:
- Lack of Driving Experience: Young drivers have less experience on the road, making them higher-risk individuals.
- Higher Likelihood of Accidents: Due to limited experience, new drivers are statistically more likely to be involved in accidents, especially those related to speeding or distracted driving.
- Lack of Driving History: Without a proven track record of safe driving, insurance companies have less data to assess a young driver’s risk profile, resulting in higher premiums.
- Higher-risk Vehicles: Young drivers often choose more expensive-to-insure vehicles, such as sports cars or SUVs, further driving up insurance costs.
- Insurance Fraud: Unfortunately, some young drivers may engage in insurance fraud, like filing false claims, contributing to higher rates for all drivers.
How Much Does Car Insurance Cost in Ontario By Age?
Below are the average car insurance rates in Ontario based on age:
Age | Monthly average | Annual average |
18 | $783 | $9,338 |
19 | $655 | $7,818 |
20 | $570 | $6,809 |
21 | $488 | $5,825 |
22 | $435 | $5,201 |
23 | $399 | $4,764 |
24 | $368 | $4,396 |
25 | $339 | $4,051 |
30 | $279 | $3,334 |
40 | $251 | $2,997 |
50 | $237 | $2,830 |
60 | $225 | $2,693 |
70 | $231 | $2,755 |
80 | $245 | $2,928 |
How Much is Car Insurance for Teens in Ontario?
Teenage drivers often face higher insurance costs. The average insurance premium for teenagers (aged 16-19) is $3,568 per year. This is considerably higher than the average cost for a 40-year-old, which is around $2,068 per year—a substantial difference of approximately $1,500 annually.
The significant gap in insurance costs is primarily attributed to the elevated risk associated with teenage drivers. Their limited experience behind the wheel makes them more prone to accidents, hence the increased premiums.
You can easily add your teens as secondary drivers on their parent or guardian’s insurance plan. This often proves to be a more economical option.
Here is a breakdown of average rates for teens by age:
Age | Yearly | Monthly |
16 | $4,430 | $369 |
17 | $3,581 | $298 |
18 | $3,647 | $304 |
19 | $3,500 | $292 |
20 | $2,239 | $270 |
How Much Does Car Insurance Cost in Ontario By Gender?
Historically, there has been a notable discrepancy in car insurance costs in Ontario based on gender, with men typically facing higher premiums than women. On average, men pay approximately 5% to 11% more annually than their female counterparts.
This discrepancy stems from statistical evidence revealing that men are more prone to road accidents and tend to file more insurance claims. Their higher frequency of driving, increased likelihood of accidents, and participation in riskier driving behaviours contribute to the higher premiums for males compared to females.
Here is a table comparing insurance costs for males and females across various age categories:
Gender | Yearly | Monthly |
Male (20-29) | $2,852 | $238 |
Female (20-29) | $2,650 | $221 |
Male (30-39) | $2,432 | $203 |
Female (30-39) | $2,364 | $197 |
Male (40-49) | $2,076 | $173 |
Female (40-49) | $2,006 | $167 |
Male (50-59) | $1,724 | $144 |
Female (50-59) | $1,602 | $134 |
Male (60-69) | $1,422 | $119 |
Female (60-69) | $1,245 | $104 |
How Much Does Car Insurance Cost for Seniors?
Seniors aged 70 and beyond typically pay a monthly auto insurance premium ranging from $100 to $600, translating to an annual cost of $1,300 to $6,800. As you enter your 70s, it’s common to observe an increase in insurance rates, with the upward trend continuing as you age.
The rise in insurance costs for seniors is attributed to several factors. Elderly drivers are statistically more prone to accidents and injuries due to various elements, including visual impairment, cognitive issues, memory problems, physical functioning, and medications. These factors collectively contribute to insurers adjusting premiums to account for increased risk.
How Car Insurance Rates are Calculated in Ontario
There are a few other factors that influence the cost of your insurance in Ontario. Some factors will be completely out of your control, while others, such as how much you drive, can be managed to a certain extent.
Here are some of the key influencing factors:
- Gender: Statistically, males often face higher insurance quotes due to a higher likelihood of making claims.
- Driving Record: A clean driving record signals to insurers that you pose a lower risk of expensive accidents, resulting in a more affordable insurance premium.
- License Class: G2 drivers generally receive higher quotes, reflecting their lesser experience compared to fully licensed drivers.
- Vehicle Type: In general, the more expensive your vehicle, the higher your insurance costs, given the greater repair or replacement expenses. However, certain SUVs and minivans might cost less than sedans, as they are often associated with families, who are considered safer drivers.
- Location: Urban areas characterized by high traffic or crime rates tend to incur higher insurance costs compared to rural or suburban areas.
- Storage: Storing your car in a private garage when not in use can lead to lower insurance costs compared to street parking.
- Driving Activity: The frequency of car use directly influences your insurance quote. The more you drive, the higher the likelihood of accidents, leading to increased insurance costs.
How To Get Cheap Car Insurance in Ontario
Saving money on car insurance in Ontario can be achieved through various strategies. Here are some tips to help you secure affordable rates:
- Compare Quotes: Easily compare car insurance quotes from different insurers to find the most cost-effective coverage. When considering a new vehicle purchase, obtain quotes for different models to identify the cheapest ones to insure.
- Increase Your Deductible: Opting for a higher deductible means you pay more out of pocket in the event of a claim, but it also lowers your premium.
- Bundle Home and Auto Insurance: Consolidate your home and auto insurance with the same provider to benefit from a 5 to 15% discount, known as a multi-line discount.
- Review Coverage Needs: Regularly assess your coverage requirements and eliminate any unnecessary add-ons. For instance, if you own an older car, it might be cost-effective to drop collision coverage.
- Pay Annually: If possible, pay your premiums annually instead of monthly. Some insurers offer discounts for upfront annual payments.
- Drive Less: Reduce your premiums by driving less. If feasible, switch to public transit for your daily commute. Inform your insurer if your driving habits change.
Safety Features: Install approved anti-theft devices and safety features to your vehicle, as they can lead to insurance discounts. Ensure device eligibility before purchase and installation.
RECOMMENDED READINGS:
- How Much Is Car Insurance In Manitoba? (2024)
- How Much Car Insurance Do I Need? (2024)
- How Much Is Car Insurance in BC (2024)
Final Thoughts on How Much Is Car Insurance in Ontario
Unravelling the intricacies of car insurance in Ontario has hopefully provided you with valuable insights into the factors influencing premiums. By staying informed and leveraging the information gathered here, you are better equipped to make informed decisions that align with your budget and preferences.
Whether you’re a seasoned driver or a newcomer to the world of auto insurance, the key is to tailor your coverage to your specific circumstances. So. embrace the power of comparison shopping, explore available discounts, and engage with reputable insurance providers to find a policy that strikes the perfect balance between affordability and comprehensive coverage.
