All licensed drivers in Ontario are required by law to have car insurance. However, insurance rates may differ per city depending on several factors.
A data study piece conducted by My Choice, an Ontario based insurance savings solution provider that quickly compares quotes from the best car insurance companies in Ontario, shows that Thorold’s average car insurance rate for 2022 was 12% lower compared to the Ontario average of $1,385 for 2022.
My Choice predicts the average price of car insurance in Ontario will rise in 2023, as more people transition back to full-time office work and there will be plenty of drivers on the road.
Usually, more drivers mean more accidents and more accidents usually lead to higher claims and insurance premiums. Also, to be considered is the rising price of car repair costs due to supply chain issues and the recent trend of car insurance companies filing for rate increases with the FSRA (Financial Services Regulatory of Ontario).
My Choice used internal data generated from car insurance quotes on its platform in 2022 to see the average rate by postal code across the province.
So, how does Thorold’s car insurance rate compare against other cities In Ontario?
City |
Average insurance premiums |
| Barrie | $1,255 |
| Bradford | $1,465 |
| Burlington | $1,276 |
| Cambridge | $1,267 |
| Collingwood | $1,186 |
| Elliot Lake | $1,286 |
| Elora and Fergus | $1,212 |
| Guelph | $1,267 |
| Halton Hills | $1,403 |
| Innisfil | $1,455 |
| Midland | $1,196 |
| Newmarket | $1,375 |
| North Bay | $1,242 |
| Orillia | $1,202 |
| Sault Ste. Marie | $1,244 |
| Stratford | $1,152 |
| Sudbury | $1,228 |
| Thorold | $1,220 |
| Timmins | $1,267 |
How are car insurance rates calculated in Ontario?
Not all auto insurance rates are made equal. Your neighbour down the street may end up having a completely different premium amount for a number of reasons. Insurance companies determine your rate according to the following factors and risk characteristics.
Vehicle Make and Model
What kind of vehicle you drive can influence insurance premiums. If your car costs more to repair or has a low safety rating, expect your premiums to be higher. Other model-related factors that make your vehicle more expensive to insure include:
- Higher theft rates
- More powerful engines
- Luxury vehicles
- Additional custom features
Driving History
Your driving record plays a significant role in determining premium rates. The more tickets and accidents you have on your record, the higher your premiums will be.
Conversely, drivers with more experience on the road will pay lower premiums. If you’ve recently emigrated from another province, you may have to provide your new insurer with a letter of experience that corroborates your provided information.
Location
Auto insurance rates are higher in areas that experience more thefts, accidents, and vandalism. While this isn’t always the case, insurance premiums are typically higher in larger cities and more congested urban areas.
Age, Gender, and Marital Status
Generally, drivers above 25 are more likely to pay lower insurance premiums because they have more experience. Teenagers typically pay the highest insurance rates.
Regarding gender, men often pay higher premiums, as claims data shows they are more likely to get into accidents. In addition, these collisions are more severe and cause more damage.
Finally, your marital status can also affect premiums. Insurers assume that married couples with children are more likely to practice safer driving habits.
Driving Habits
Insurers also calculate your insurance rates according to how many kilometres you drive per year. The more you drive, the higher your premiums.
Number of Drivers
While policies that include secondary drivers can come in handy for family members that share vehicles, listing multiple people on a plan can increase insurance premiums.
Why Insurance Rates Differ Across Cities & Ways to Save On Your Auto Insurance
Ontario drivers don’t always have the same insurance rates as their neighbours due to the above mentioned factors. The average rate for car insurance in Ontario in 2022 was $1,385. While you can’t help factors like location, age, and gender, there are a few ways you can save on insurance premiums.
Compare Insurance Plans
Car insurance rates vary per company. In addition, rates can fluctuate according to economic factors, so shopping around can point you in the right direction. If you plan on switching insurance companies to chase lower rates, wait for your term to end in case of cancellation penalties.
Work With Insurance Brokers
Insurance brokers can help you shop for the best quotes. While you have to pay for a broker’s services, Canadian law requires them to recommend insurance companies in your best interest, so you’ll likely save money in the long run.
Purchase the Appropriate Amount of Coverage
Canadian law requires drivers to apply for the following mandatory coverage:
- Third-party liability (TPL)
- Accident benefits (AB)
- Uninsured automobile
If you want additional coverage, such as a comprehensive plan to protect against theft and vandalism, ensure that it is necessary. Extra coverage can increase your rates.
Get Usage-Based Insurance
Usage-based insurance is ideal for individuals who drive less than 12,000 kilometres a year. These policies provide more flexibility, and drivers don’t often purchase more than they can afford.
Buy a Cheaper Car
Unfortunately, luxury vehicles often fall victim to theft, which can drastically increase your insurance premiums. Buying a cheaper car with a smaller engine and easily replaceable parts are less expensive to insure.
Increase Your Deductible
Insurance companies offer multiple deductibles to cover collisions, perils, and direct compensation for property damage. Generally, the lower your deductible, the higher your premiums. If you choose to pay more out of pocket after an accident, insurers will consider lowering your rates.
Closing Thoughts
Because of record-high inflation and an increase in cars on the road, you can expect insurance rates in Canada to continue rising. The good news is that there are ways to keep your insurance premiums low, such as keeping a good driving record, buying an inexpensive vehicle, comparing insurance plans, and purchasing the appropriate coverage.
To shop for affordable insurance rates, My Choice can match you up with the best insurance providers in the province. In just under three minutes, you can have cheap and tailored auto insurance that won’t break the bank.