Auto Insurance in Markham
Markham is located within both the Golden Horseshoe and Greater Toronto Area. It is a center of business and commerce and helps to make up an urban sprawl that is the most economically fruitful in Canada. This area also carries a notoriety for having average auto insurance premiums that are the most expensive in Canada. Markham is certainly no exception to the rule.
The city is very expensive for customers insuring a vehicle. Ontario as a whole carries the highest premiums in the country, with a provincial average of around $1,400.
The Greater Toronto Area is the base that makes the average across the province so high. The top ten most expensive insurance markets in the country are located in the Golden Horseshoe region, and Markham is among them.
With an average auto insurance premium of $1,886, Markham is the fourth most expansive auto insurance market in Ontario and in Canada. Drivers in the city pay on average 30% more for their car insurance than the provincial norm. There are a number of factors that cause this, and here are some of the most important:
Insurance companies charge too much – The private auto insurance industry has been widely criticized for allowing rates to go too high over the last number of decades. In response, companies insist that market conditions resulting from other factors mean that premiums must be high to offset risk. In Ontario, companies assess insurance on factors such as driving experience, driving record, type of vehicle, policy required, and age/gender.
However, insurers will also look at external factors, such as the location a vehicle will be stored and used, how busy the area is, the amount of traffic, theft rate, and likelihood of a collision. Because of the population, size, and location of Markham, insurers essentially hedge their bets with high premiums to avoid losing money.
Fraud – Unfortunately, auto insurance fraud is a major problem in Ontario, with the focus on the Greater Toronto Area. Crime rings have formed that ship vehicles overseas and claim them as stolen to insurers. It is believed fraud costs customers over $1 billion per year and hundreds of dollars could be saved on an average premium if fraud was removed entirely.
Government failures – The government spent too many years ignoring the constant growth of premiums in Ontario. Over the last three years, the provincial government has enacted a number of initiatives to lower costs. It is a slow progress, but the hope is premiums will eventually fall.