How Much Is Drivers Insurance in Ontario?

Many types of insurance are optional, but drivers insurance is not. If you want to be on the road in Ontario, you’re legally obliged to at least have liability cover. However, even if it wasn’t mandatory, auto insurance can protect you from huge financial harm.

The important question for many people after passing their test is how much is drivers insurance in Ontario? That’s what we’re going to find out here, as well as breaking it down by different age groups. Let’s get started!

Average Cost of Driver’s Insurance in Ontario

The average cost of car insurance in Ontario is around $1,800 per year, or $150 per month. However, that doesn’t begin to tell the story of how much you’ll pay. Younger people can pay much more, and experienced drivers much less.

For those with a long driving history and a clean record, you may pay a little over $1,000 per year. New drivers with other increasing factors can often pay over $10,000. Let’s take a close look at how these costs breakdown by age.

Related Article: https://www.rjins.com/resources/our-blog/how-does-car-insurance-work-in-ontario/

How Much is Drivers Insurance per Age Group

Here we’ll look at the average cost and range for different age groups.

For those who prefer to see those numbers as a monthly figure, here they are:

Why is the Cost of Car Insurance in Ontario Higher?

If you have looked around at car insurance costs in other provinces, you may have noticed that Ontario costs more than most, but why is that? It ultimately comes down to the province being a larger insurance risk than others.

Due to the large population, the likelihood of accidents and theft increases. Insurance fraud is also more prevalent in Ontario, driving up costs. This combination of higher risks, more claims, and fraud sadly means Ontarians need to pay more for auto insurance.

However, not everyone in Ontario will pay the same price. Those who live in less densely populated areas, or those who live in areas with lower crime rates, will pay less for their premiums. Even within cities, specific postcodes can affect your premium.

What Other Factors Affect Drivers Insurance Cost?

Age and location are two key factors in insurance cost that we’ve already looked at, but what about others?

Experience – The more driving experience you have, the less you’ll pay. This usually links in with age, but not always.

Driving Record – A history of accidents and claims will increase the cost of your premium.

Vehicle Type – The more expensive and powerful a vehicle, the more you’ll pay. A lack of safety features can also increase costs.

Coverage Level – If you just get the mandatory coverage, your premiums will be lower. Comprehensive insurance will be more expensive, but gives you much greater coverage.

Deductible Amount – The deductible is how much you pay out of pocket to make a claim. The higher it is, the lower your premiums will be.

Insurance History – You may receive discounts for continuous coverage and loyalty with one company.

Usage of Vehicle – The more you use your vehicle, the more you’ll pay.

Credit Score – If your insurer uses a credit score, a poor score can lead to increased premiums.

Related Article: https://www.rjins.com/resources/our-blog/what-is-comprehensive-car-insurance/

How to Reduce Drivers Insurance Costs

By looking at the above, you can already work out how to reduce your drivers insurance. Make sure you keep your record clean and if you fear high insurance costs, look for a budget car with a great insurance rating.

The most vital thing to do is shop around. All insurance companies offer different rates as they assess risk differently. Compare quotes from multiple insurers or, alternatively, contact an insurance broker who will happily find you the best rate.

Other methods to reduce drivers insurance premiums include bundling policies together, increasing your deductible, and checking with the insurer to see if they have any discounts. Installing safety features or going with usage-based insurance can also decrease your premium.

Final Thoughts

The cost of drivers insurance in Ontario can be high, which is why it pays to shop around. It’s important to know the factors that affect the cost, as this allows you to work out ways to reduce your premiums to something more manageable.

It’s also important to remember that while cost is important, it’s sometimes worth it to pay that little bit extra to get the coverage you need. If you’re looking for drivers insurance in Ontario, then contact Ron Johnston Insurance today, and we’ll be more than happy to find you a quote.