Auto insurance is a necessary expense for any driver, but it can be particularly expensive for those living in Ontario, specifically in areas such as Mississauga, the GTA, and the Peel region. In this blog post, we will explore some of the reasons why auto insurance is so expensive in Ontario and provide some tips on how to reduce your insurance costs.
One of the main reasons why auto insurance is expensive in Ontario is due to the high number of accidents that occur on Ontario's roads. According to the Ontario Ministry of Transportation, there were over 165,000 collisions reported in 2019, resulting in over 60,000 injuries and 538 fatalities. These numbers are significantly higher than the national average, which drives up insurance rates for drivers in Ontario.
Another reason for the high cost of auto insurance in Ontario is the prevalence of insurance fraud. Ontario has one of the highest rates of insurance fraud in Canada, with estimates suggesting that up to 15% of all insurance claims in Ontario are fraudulent. This drives up insurance costs for all drivers, as insurance companies are forced to increase their premiums to cover the cost of fraudulent claims.
In addition to these factors, the high population density in areas such as Mississauga, the GTA, and the Peel region also contributes to the high cost of auto insurance in Ontario. With more people living and driving in these areas, there is a higher risk of accidents and collisions, which again drives up insurance costs.
So, what can drivers in Ontario do to reduce their auto insurance costs? Here are a few tips:
Shop around for the best rate: Don't just stick with your current insurance provider – shop around to see if you can get a better rate from another provider. Use online comparison tools to quickly and easily compare rates from multiple insurers.
Increase your deductible: If you're willing to take on a higher deductible, you may be able to lower your insurance premiums. Just be sure that you can afford to pay the higher deductible if you do get into an accident.
Drive safely: One of the best ways to lower your insurance costs is to avoid accidents and tickets. Practice safe driving habits and follow the rules of the road to keep your insurance rates low.
Take advantage of discounts: Many insurers offer discounts for things like bundling your home and auto insurance, having a good driving record, or taking a defensive driving course. Be sure to ask your insurer about any discounts you may be eligible for.
While auto insurance in Ontario can be expensive, there are things you can do to reduce your costs. By shopping around, increasing your deductible, driving safely, and taking advantage of discounts, you can keep your insurance costs under control and enjoy the peace of mind that comes with being properly insured.