In Ontario, a 2017 report from the Special Adviser to the Minister of Finance showed that car insurance rates were on average USD 1,458 per car. That’s almost 55 percent more than the average rate in the rest of Canada. Why car insurance is so expensive in Ontario?
In Ontario, drivers must have car insurance. If you don’t have car insurance, a car owner, tenant and driver without a valid car insurance can be fined between $ 5,000 and $ 50,000. If you find that you are driving without a valid car insurance, your driving license may be suspended and the vehicle confiscated.
Ontario insurance fraud increases rates
Insurance fraud costs $ 1.6 billion annually, which is about $ 165 in additional insurance paid for each of 9.7 million Ontario drivers every 365 days. It is also worth noting that insurers paid $ 1.02 for every $ 1 earned in 2016. They don’t make as much profit as we think!
Insurance fraud in Ontario is a significant contributor to higher rates, so it’s doubly important to get all possible information from a second driver in the event of an accident. Cheating is not a problem in Ontario itself, but the province is more affected than other provinces because of its size.
Why is it still so expensive?
While claims insurance in Ontario (the province is affected by insurance fraud) costs more, private insurers say actuarial evidence used to assess drivers indicates that men under the age of 25 have the worst statistics in the group. Therefore, people in the group from 16 to 24 years pay more, even if they have never been involved in an accident or have not received a ticket for violation of traffic rules. Basically, young men are found guilty until they prove innocent – at the age of 25.
Tips to Reduce Auto Insurance Costs
- Buy Best Prices And Reach
Our team of brokers can do shopping for you! We will ask you a few questions and make purchases at over two dozen insurance companies in order to get the best car insurance protection at a competitive price. We will compare ranges and prices in dozens of companies to get what you need. All it takes is one phone call to get many offers, professional advice and services at Morison Insurance.
- 2. Get all the discounts you deserve
These “extras” save a significant amount of money. Here are the many discounts we offer:
- Car and home insurance bundled with the same insurance company
- Discounts for students and students away from home
- Accredited discounts on driving courses
- Discount without complaint
- Discount for the owner of the house
- Higher discount
- Discount on low mileage
- Long-term and loyalty discount
- Many car discounts
- Discount for completing driver education
- Good discount on credit data
- Accident-free discount
- Discount on anti-theft devices
- Discount for students with good grades
- Discount for winter tires
- Consider Insurance Costs Before Buying a Car
Before buying a car, consider insurance costs to insure them. In short, some cars cost more than others. Contact our team of brokers and we will give you all the details.