Auto insurance in Hamilton
Unfortunately, Hamilton is nestled in the Golden Horseshoe, which is an area of Canada with the most expensive auto insurance in the country. This collection of urban areas include Toronto, Kitchener, Hamilton, Niagara, and Waterloo.
There are reasons why this geography is the most expensive region to insure a vehicle:
The collection of cities represent the largest and most populated urban ribbon in Canada and one of the largest in North America. Cities are always expensive markets for auto insurance because the volume of vehicles and people leads to more collisions and more thefts. Insurance companies work on risk, deciding a premium price depends on how likely an insurer thinks it will lose money through a claim.
Fraud is a huge problem in Ontario and contributes to high car insurance cost in the province. Hamilton is part of the most populated region, which has become a hot bed for insurance fraud. Crime rings are in operation in the city and it is believed to cost customers over $1 billion per year.
Ontario as a whole is expensive for car insurance with an average premium of around $1,400. However, this price has a lot to do with the Golden Horseshoe, with Hamilton being among the most expensive. The average auto insurance premium in the city is $1,683, which is 16% higher than the provincial average, making Hamilton the seventh most expensive auto insurance market in Canada.
Like the rest of Ontario, there is a set way in which the private insurance industry calculates auto insurance, but some of the most common criteria include:
- Driving experience
- Driving record
- Use and location of your vehicle
- The type of vehicle you drive
- The amount of coverage you’ve selected
- Your age and gender