A car can give you incredible freedom to travel but it can come at a significant cost. One of those costs is car insurance, which is a legal requirement in Canada. Trying to work out exactly what you’ll be paying can be confusing.
Here we wanted to clear this up for you. We’ll look at the average car insurance cost per month, along with the factors that could mean you pay more or less. Let’s dive straight in to give you a better understanding of car insurance premiums.
Average Cost of Car Insurance
The average cost of car insurance in Canada is around $1,550, which works out to be roughly $130 per month. However, the amount you pay can be vastly different depending on a wide range of factors.
By far the biggest influence is age. For example, an 18-year-old in Ontario with a powerful car may need to pay over $1,000 per month. Due to this, it’s important to know all the main factors that affect car insurance so you can have a better idea of what you’ll pay.
Factors Influencing Car Insurance Costs
No two people have the same set of circumstances. This means everyone’s car insurance premium will be different from anyone else’s. Here are the key factors:
Age – As mentioned, this is the biggest factor. Younger people are seen as having a higher risk of crashes and therefore premiums will be much higher. Older drivers will benefit from lower premiums if they have a clean driving record.
Location – Different regulations, risk factors, and insurance systems can affect the insurance rate. Generally, more urban provinces will have higher insurance risks. For example, Ontario has high insurance premiums, while Quebec is generally much lower.
History and Experience – Having a clean driving record with no history of accidents and violations will result in lower premiums. This is also true if you have more driving history. For example, a 25-year-old who has just passed their driving test will pay more than a 25-year-old who has been driving for several years with a clean record.
Vehicle – Cars come with different safety ratings, specifications and average repair costs. If you own a car that is more likely to be involved in an incident or would be more expensive to repair, this would attract higher premiums.
Coverage – There are also different coverage options available such as basic and comprehensive. While comprehensive insurance will give you more protection, it does come at a higher cost. It’s important to get the right type of coverage that fits your needs.
Deductible – The deductible is the amount you pay to kick-start your insurance claim. The higher it is, the lower your premiums will be.
Use of Vehicle – High annual mileage and using the vehicle for business or commercial use will also mean higher premiums. Those who solely use the vehicle for personal reasons will pay less. It’s always vital to be honest about your details to avoid your claim being invalid.
Related Article: https://bucklerins.com/ontario-commercial-auto-insurance-types-coverage-and-requirements/
Tips to Reduce Car Insurance Costs
Knowing the factors that will affect car insurance premiums will give us a better understanding of how you can cut these costs. Let’s look at the steps you should be taking:
Shop Around – No two car insurance quotes will be the same. This is because each insurer has its own view on what the biggest risk factors are. Due to this, it’s vital that you shop around. Alternatively, you can ask an insurance broker to do the hard work for you.
Bundling Policies – Combining different types of insurance, such as your home insurance, with the same provider can reduce your overall cost. Check with your current insurers to see if this is possible, then compare this to other quotes you’ve been given.
Clean Record and Safety Features – Maintaining a clean driving record will ensure your quotes come down over the years. You can also install safety features, as some insurers will lower your premiums for the likes of anti-theft devices and winter tires.
Increase Deductibles – If you can afford the out-of-pocket costs that come with a high deductible, then it can be an easy way to save money. However, you need to be careful and ensure that you will always be able to afford it.
Usage-Based Insurance – A newer method for reducing premiums is with telematics or usage-based insurance programs. Here’s where an installed box will track your driving habits. This is especially good for younger people who face the highest premiums.
Final Thoughts
Car insurance can be expensive, especially for younger drivers. The reality is it’s extremely difficult to estimate what you may pay without knowing your circumstances. The factors we looked at above play a huge role in determining the premium you pay.
That’s why the best thing you can do is simply to get a quote. Here at Buckler Insurance, we’ll be able to do just that. Contact us today and we’ll not only provide you with quotes, but we’ll work with you to ensure you get car insurance that is perfect for your circumstances.
