Comparing car insurance quotes in Toronto for the cheapest rate isn’t an unreasonable thing to do, especially considering the high cost of vehicle insurance in the metropolitan Toronto and surrounding area. Car insurance in Toronto can be a very expensive proposition, with BlogTO declaring the GTA as “officially the most expensive place to be a driver in Ontario…”
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What’s the average cost of car insurance in Toronto?
The average cost of car insurance in Toronto is roughly $2,000 according to thinksure.ca. However, even if a reasonable sample was used to generate an average monthly auto insurance cost of approximately $170 a month, every driver presents a whole new risk and auto insurance premium. This means that a driver’s history, past claims, at-fault accidents, tickets, a record of non-payment, the nature behind the use of the vehicle and the vehicle itself are all factors that can change the cost of car insurance for the Toronto driver.
FAQs about car insurance in Toronto
What’s the difference between an independent and captive insurance broker in Toronto?
The difference between an independent and captive insurance broker can be confusing. Many consumers assume that an insurance broker is always independent. This couldn’t be further from the truth!
The difference between independent and captive insurance brokers is that the former usually have many distribution contracts with several insurance companies, while the latter typically sells the insurance products of a single company.
Where can I buy auto insurance in Toronto?
Auto insurance can be purchased online or physically at an insurance agency or brokerage.
You can purchase car insurance directly through an insurance company; Insurance agent or you can choose to use an insurance broker of Ontario. Knowing the differences between insurance providers is crucial, especially if you’re looking for the best coverage for the best price.
– Insurance Agent – an Insurance agent sells and service auto insurance, mainly from one company. Insurance agents are usually employed by Direct Writer insurance companies, which means they can sell directly to the consumer public as employees of the insurance company. Essentially there is no “middleman” between the insurer and the insured. A good example of this would be TD or RBC insurance.
– Insurance Broker – An insurance broker is an intermediary who helps find the best and most affordable auto insurance for you. Insurance brokers are also responsible for ensuring that your insurance needs are met, through remarketing for better prices or explaining insurance coverages and auto claims procedure. Most insurance brokers and brokerages in Toronto, posit themselves as independent and a separate legal entity from the insurance companies they represent, but that is not always the case.
– Independent Insurance Agent – an independent Insurance agent is very similar to an Insurance agent but works as an independent contractor. From a legal business structure, independent insurance agents are a separate entity from the insurance company they represent. Although an independent insurance agent is a separate legal entity from the insurance company, they typically sell the insurance products of one company. A good example of this would be State Farm Insurance or Desjardin.
– Managing General Agent or Wholesale Broker – a Managing General Agent (MGA), or Wholesale Broker works as an intermediary for both retail insurance brokers, Insurers and sometimes with the insured. An MGA mainly works to find specialized insurance coverage, while having no contact with the insured.
How much does car insurance cost in Toronto?
The cost of car insurance in Toronto and surrounding Greater Toronto Area (GTA) can be very expensive, or even unaffordable!
According to Thinkinsure.ca, the average cost of auto insurance in the GTA is $2,071, which works out to be roughly $173 a month. However, this statistic is based on a Toronto driver with at least ten years of driving and insurance history, and also a clean driving record. Once driving tickets, at-fault accidents and driving experience are factored in the cost of car insurance, the price increases proportional to your driving record.
How much is car insurance in Toronto for a new driver?
Car insurance for a new driver in Toronto can range from $2,000 to $11,000. The broad range of auto insurance prices for new drivers in Toronto stems from the multitude of factors that factor in the whole auto insurance premium. Every driver in Toronto presents a different risk and location is just one factor in the entire car insurance premium.
Some additional factors that contribute to the cost of auto insurance for new drivers in Toronto are as follows:
– The Vehicle itself – based on insurance bureau statistics that measure the likelihood of an injury or extent of damages of a vehicle based on make and model of car.
– How you use the vehicle – whether you are using your vehicle for commuting, pleasure or for commercial reasons will affect the cost.
– Driver Training – Auto Insurance companies offer discounts to new drivers with accredited driver training, which can save some money, typically for three years of receiving your G2 driver’s license. Driver training accreditation will not affect your insurance cost if you’ve accumulated over three years of driving experience.
– A principal or Occasional Driver – being a new driver in Toronto can be an expensive proposition based on your location and lack of driving experience, alone. Being classified as a principal driver will cost you even more than as an occasional driver under your Parents or Guardian’s auto policy. The difference can be substantial but it is not a reason to fudge the truth about how the vehicle will be used. Keep in mind that there are serious consequences for omitting and being dishonest on an automobile insurance application. Your insurance company could drop you, deny a potential claim and will affect the cost of your future auto insurance.
– Out of Province or Country Driver’s Experience – most auto insurance companies in Toronto will honour and accept driving experience from another country, or from outside of Ontario, which could be credited towards your driving experience and history in Ontario. If you’re not new to driving, but new to driving in Toronto, getting credit for driving and auto insurance history from outside of Ontario might save you some money!
How do I get cheap car insurance in Toronto?
The best way to find the cheapest car insurance in Toronto is to simply shop around. Although getting auto insurance quotes is a simple task, it can be overwhelming, tedious and frustrating. The upside of doing a comprehensive search for cheap auto insurance is that you will find the most affordable auto insurance. By doing an exhaustive search, getting as many quotes as possible, trying different distribution agents, you will see that the cheapest car insurance is always relative to what that business can offer. This means that a company will always tell you the cheapest auto insurance quote they can offer. It doesn’t mean that more affordable options are out.
Here’s an example:
Insurance Brokerage A provides an auto quote from Aviva Canada, Economical Insurance, Jevco, Intact, Travelers and Aha Insurance
Insurance Brokerage B offers quotes from only three of the auto insurance companies that insurance brokerage A offers.
If the cheapest auto insurance quote came from an insurance company not being represented by Brokerage B, then the most affordable option would come from Brokerage A. An insurance company, Brokerage or Agency will only be able to offer the cheapest car insurance that they can sell you. So, if anyone claims “that’s the cheapest” it usually the cheapest they can offer, not necessarily what you could get in the marketplace.
Why is car insurance so expensive in Toronto?
Car insurance in Toronto is expensive mainly because of population and traffic density. Toronto has a population of over three million people. If you can imagine a population base where an average family has two vehicles, that’s a lot of vehicles on the road! The more people on the road, the more likely accidents, and injuries happen.
Insurance companies are forced to pay out on a higher claim frequency in Toronto, compared to cities that have less population and traffic density. This means that the insurance “pool” is being used mainly by drivers of the Toronto area which insurance companies calculate and make reflective on the cost of car insurance in that area.
Which car has the cheapest car insurance in Toronto?
It’s difficult to pick a singular vehicle and class it as the “cheapest” to insure. Your car insurance premium is an inclusive amount that includes your driving profile, driving history and other factors that make the sum of the premium cost. It would be difficult to separate the risk amount attached to the vehicle itself, from all the other factors that help calculate your auto insurance premium.
As mentioned earlier, auto insurance companies in Toronto use the CLEAR rating system to establish auto insurance premiums. Based on statistical data, insurance Actuaries and Underwriters can determine the likelihood and extent of injuries or damages resulting from an accident involving a particular make and model of vehicle.
Car insurance premium in Ontario is broken down into specific coverages, which include all mandatory and optional loss coverages. Each specific coverage is attributed to a price that reflects the rating basis that was calculated by the CLEAR system. The price associated with each insurance coverage reflects the likelihood and severity of injuries and/or property damage resulting from that specific make and model of vehicle could or has already statistically proven.
For example, a Honda Civic has been historically known as a very popular vehicle to get stolen. Therefore, the cost of comprehensive insurance coverage would cost more, since the peril of theft is covered by comprehensive or All Perils car insurance coverage.
Another example could be a pick-up truck. Pick-up trucks usually generate a lower premium cost for Accident Benefits coverage compared to a private passenger sedan or car. Since pick-up trucks are usually larger and heavier than a car or motorcycle the odds of becoming injured in a vehicle accident while in a pick-up truck are much lower. This would probably result in a lower accident benefit cost
A third example could be a higher-end luxury vehicle. The cost to repair higher-end vehicles such as Mercedes, BMW, Audi and exotics vehicles generate a higher collision, All-Perils, and Direct Compensation Property Damage (DCPD) coverage. Since the cost of repairs and maintenance for higher-end vehicles is much more, the cost of Collison, All Perils and DCPD coverages will also cost more.
Getting car insurance quotes directly from your insurance broker or agent is the most convenient way to price out car insurance in Toronto, or anywhere else! All you need to do is call or email them, provide the vehicle details (VIN# would be ideal) and they will try and find the most affordable auto insurance coverage.