The excitement of passing your driving test can soon be tempered when you see the cost of life insurance. For young people especially, premiums can be high, but what exactly is the cost of car insurance in Ontario?
Here we’ll give you all the info you need. We’ll look at the cost of insurance for different age groups in Ontario, the factors that affect that cost, and how you can get a cheaper quote. Read on to find out more!
What is the Cost of Car Insurance in Ontario?
The average cost of car insurance in Ontario will be approximately $1,500 to $2,000 per year. However, it’s important to note that this is an average which takes into account those who have been driving for many years. The cost for younger drivers is usually much higher.
Ontario is nearly the most expensive province in Canada for car insurance, with only British Columbia being higher. That’s generally to do with Ontario being the most populous province, and with a high population comes plenty of traffic.
Teenagers looking for car insurance can expect to pay approximately $8,000 per year, but this can vary hugely based on several factors. Some teens may be quoted over $16,000 for their insurance, whereas others may be able to get a quote for around $5,000
Let’s have a look at the approximate prices for different age groups.
Teenage – $8,000 per year
20 to 29 – $3,500 per year
30 to 39 – $2,500 per year
40 to 49 – $2,000 per year
50 to 59 – $1,750 per year
60+ – $1,500 per year
As you can see, as you get older, the cheaper your car insurance will be. Once you get to around the age of 25, you’ll see a significant drop in your car insurance cost.
If you want to find a cheaper quote or understand the price you’ve been given, it’s a good idea to understand the factors that go into it. So we’ll look at those next.
Factors That Affect Car Insurance
There are main factors which have a huge impact on your quote price and secondary factors which are still important but won’t affect the cost as much.
Main Factors
Age – This is by far the most significant factor in your car insurance quote. While it seems unfair, the stats indicate that young and inexperienced drivers are more likely to crash.
Vehicle – An insurer will consider the value of the vehicle, how powerful it is, the safety features, and modifications. Vehicles will be placed in an insurance category, determining their level of risk.
Driving History – You will be asked how long you’ve been driving and if you have any recent claims. You will also be asked if you have any demerit points on your license.
Coverage Type – There are different levels of coverage for car insurance. For example, some policies won’t cover theft or non-collision damage.
Deductible – A deductible is an amount you pay when you need to make a claim. The higher the deductible, the less you’ll need to pay, but you need to make sure you can afford the deductible if you have an accident.
Secondary Factors
Gender – Males are statistically more likely to have high-value collisions and therefore will be expected to pay slightly more for their insurance.
Location – Any province or area, such as Ontario, will have areas with higher and lower crime rates. If you live in a low-income, high-crime area, you’ll need to pay more as the risk is higher.
Employment – An insurer will also have certain jobs that they view as high-risk. On top of that, they will also consider the distance you need to commute each day.
Car Security – Do you have a secure garage, or do you need to leave your car on a side street overnight? The more secure your car is, the lower your premium will be.
Marital Status – Again, this is based on statistics. Those who are married tend to make less expensive claims on average. Therefore, couples will get a slightly cheaper premium.
Winter Tires – Those that use winter tires over the colder months will get a reduction in their premium.
How to Save Money on Car Insurance?
If you’re worried about car insurance payments, there are a few things you can do to keep your costs down:
Driving Record – Make sure that you drive as sensibly as possible. As you build up a clean driving record, you’ll see a big decrease in your payments.
Slimline Your Policy – Try to go for the least cover possible that you’re comfortable with. For example, you won’t need all the coverage options if you have a low-value car.
High Deductible – Having a sky-high deductible is tempting as no one ever expects to crash. While a higher deductible means lower payments, be realistic about what you can afford.
Small Engine Vehicle – The best car to get for a low quote would be one that is in good condition, doesn’t have a high value and has a small engine.
Should I Lie On My Car Insurance Application?
It’s tempting to lie on your car insurance application about factors such as your address, commute distance, or having winter tires, but this is never worth it. If you are found to have made false statements, then it can invalidate your insurance when it comes to making a claim.
Should a Child Go on a Parent’s Policy?
You may be tempted to have a policy where a parent is the main driver, and their child is an additional driver. If the child will actually be the main driver of the car, then this is called fronting, and it’s illegal. Unless the parent is genuinely the main driver, then you not only risk invalidating your policy but also breaking the law.
Final Thoughts
For new drivers in Ontario, or anywhere else, car insurance can be expensive, but there are plenty of things you can do to bring the quote down. With a sensible car and a few years of clean driving, those prices will soon come tumbling down.
