All across Canada, drivers are required to have a minimum amount of auto insurance. Above and beyond this, drivers can add optional coverage, such as comprehensive and collision. British Columbia, Saskatchewan, and Manitoba are provinces with government-owned insurance companies. Quebec has a combination of government and private insurance. Everywhere else in Canada auto insurance is provided by private insurance companies.
Average Car Insurance Premiums in Canada
You have fewer options when dealing with government-run, public car insurance companies. You can’t do much shopping around. You can buy basic insurance from the public insurer and then get additional coverage elsewhere, it’s just a bit more effort.
Cities in Canada which have more accidents necessitate more payouts, which results in higher premiums. Some cities also have higher incidents of insurance fraud. Rates are directly related to the number of claims and types of claims. Right now injury claims are rampant; medical expenses are costing insurance companies way more than vehicle repairs. All of these things are taken into account when companies establish the pricing of their premiums.
The largest cities in Canada generally have the highest rates for auto insurance. It is makes sense that the cities with the most traffic also have the most accidents. Toronto and Vancouver rate among the top 10 cities in North America for high levels of traffic, but even though Calgary doesn’t have the same traffic problems it still has some of the highest rates in the country. Alberta consumers, in general, pay higher rates than consumers in neighboring provinces. Ontario, however, has higher rates than any other province. Quebec is second to Ontario in population numbers, but it has much lower rates for auto insurance.
In both the public and private systems there are common factors which affect insurance rates:
- Make, model, and year of vehicle– the more expensive your vehicle the higher the insurance. Some specialty vehicles like classic cars will have higher insurance rates.
- Use of the vehicle– driving your car to work and how far you drive to work affects your rate.
- Region– cities with more accidents, theft, and vandalism have higher insurance rates. Living in the suburbs, outside of city limits, helps decrease rates.
- Driving Record– You receive discounts on your insurance for having a good driving record.
- Claims History– making claims raises your insurance.
- Age, Gender, and Marital status can also affect your rate with certain companies.
So, keep the above things in mind. If you live in any of the cities listed below, you will want to use them to your advantage. The national average for auto insurance is $900 per year. The seven cities listed below have rates well above that.
Photo By – kevbo1983
- Toronto has the highest consumer auto insurance rates in Canada. People in Toronto pay double the national average.
- Ontario, overall, has the highest rates in the country, so it isn’t surprising that other cities, like Ottawa, are also right up there on the list of highest premiums.
- Calgary doesn’t have as many traffic problems as other major cities, but the cost of insuring your car there might provoke some rage.
- Edmonton is another expensive prairie city for car insurance, but the cost is not much more than other cities in Alberta.
- New Brunswick is the third most expensive province to insure your car in. St. John, being the most populated city there, takes the lead in premium pricing.
- British Columbia is the province with the fourth highest car insurance rates. Vancouver is the city with the highest rates in BC. It is also one of the worst cities to drive in.
- Saskatchewan has the fifth most expensive average provincial auto insurance rates. That rating is a bit skewed though, because residents of its capital city, Regina, pay up to 40% more for their insurance than others in the province. A high vehicle theft rate is the culprit.