By: Luke Jones, Published on October 20, 2016 04:19 PM, Last Update on October 21, 2016 01:09 PM
The Financial Services Commission of Ontario (FSCO) approved auto insurance premium increases in the province this week. Some insurers will be increasing their rate by as much as 12%, reversing the good work done in Ontario to lower excessively high car insurance costs. With the sector in turmoil again, it is even more important to know how the market looks and which are the most expensive auto insurance locations in Ontario.
Kanetix.ca has released a list of the most expensive cities in Ontario to insurance a vehicle. Neighborhoods in the Greater Toronto Area (GTA) continue to dominate the list and make the overall market in the province much higher than other regions in Canada.
Brampton was found to be the most expensive place in Ontario for auto insurance with an average annual premium of $2,392. At that cost, the average consumer in Brampton is paying 65 percent more than the provincial average for car insurance. In contrast, Hawkesbury is the least expensive city in Ontario with an average of around $1,000. These more affordable locations are away from Ontario’s big cities and especially Toronto.
Cities tend to cost more for auto insurance because the insurance company assumes more risk when giving a policy to a customer. There is more traffic and more accidents, while theft is typically more frequent in highly populated areas.
The company shows that some GTA locations, however, are relatively affordable:
“It's worth noting that some areas within the GTA are below the provincial average, such as Whitby, where premiums are estimated at $1,443, and Oshawa, where motorists likely pay about $1,354 per year. Other less expensive cities include St. Catharines ($1,317), Kitchener ($1,251), Cambridge ($1,172), Waterloo ($1,165), Ottawa ($1,142) and Guelph ($1,128). Hawkesbury had the lowest typical premiums, coming in at $956.”
All of the results are based on an average policy for a single 35-year old driver with a clean driving record, Kanetix points out.