Vaughan is one of only two locations in Canada where the average auto insurance policy exceeds $2,000, making it the second most expensive insurance market in the country. Its position in Ontario and the Greater Ontario Area means Vaughan can be prohibitively expensive when insuring a vehicle.
It is true that cities are more expensive in general, but the GTA region surpasses what is normal for auto insurance quotes. Ontario’s position as the most expensive province for insurance is largely because of Toronto and surrounding cities, such as Vaughan.
Yes, usual city factors contribute to Vaughan’s high rates. For example, high traffic flow, more theft, and more accidents all mean insurers leverage the risk with higher premiums.
However, this is not the whole story for cities in the Greater Toronto Area. A number of market conditions mean insuring a vehicle in the region is daunting. Fraud is a major contributor to excessive rates. Ontario is a hotbed of insurance fraud and the GTA region is the hub of this criminal activity. Customers end up paying as much as $200 per year on their policy because of province-wide fraud.
The insurance situation in Ontario is improving. The government has pledged to continue to cut rates until a 15% reduction is achieved, while insurance companies and law enforcement are attacking fraudulent activity with a renewed determination. Progress has been slow and will continue to be, but hopefully cities like Vaughan will become more affordable.
Unfortunately, the change hasn’t happened yet. Vaughan residents pay on average $2,018 for their car insurance policies. Considering the provincial average in Ontario is $1,400, its clear customers are overpaying for coverage. Indeed, Vaughan drivers 39% more compared to the average Ontarian.