Ontario is reported to have the highest premiums for car insurance in Canada. According to a study from the Fraser Institute, Ontario car insurance premiums averaged $1,281 as of October 2011 whereas Quebec premiums averaged just $642—the lowest in the country.
In an effort to control the high cost of insurance, Ontario introduced reforms last year intended to bring some stability to consumers. Now in full effect, the reforms offer consumers the ability to pick and choose between options that didn’t previously exist. While more choice means you have more options to save, there are even more opportunities at your fingertips that can help you find the coverage that is right for you, your family, or your business.
While Ontario insurance costs did rise in 2011 according to Kanetix.ca’s quarterly Ontario auto insurance rate review, the year-over-year increase slowed each quarter—likely due to the reforms.
Quebec premiums averaged just $642—the lowest in the country.
Of course, there are a number of ways Ontarians can save on their auto insurance costs.
There are other ways to save too. By making a few very minor changes to your routine, saving potentially hundreds of dollars on your car insurance premium can be an easy task. Like, really easy.
- Consider the cost of paying monthly. You could save money paying your annual premium all at once, instead of on a monthly basis. Many companies charge you a little extra to cover the cost of administering your payments every month.
- Don’t believe the myth that all auto insurers are the same; they are not. What you pay with one insurer is not the same as what you would get with another. Rates vary considerably between companies, and often change.
- Ask about discounts. You may be eligible for discounts that you may not even know about like:
- Age/retiree discount – if available, the qualifying age differs from provider to provider
- Multi-vehicle discount – available if you insure multiple vehicles with the same insurer
- Anti-theft discount – if your vehicle has certain approved anti-theft devices installed
- Low mileage discount – if your vehicle is not driven often
- Preferred parking discount if you regularly park your car at home, in a private, residential driveway or garage you may get a break on your rate
Knowing fact from fiction is half the battle too. For example, according to the Insurance Bureau of Canada 40 per cent of Canadians believe the colour of their car affects a car insurance rate. The fact is that car colour doesn’t actually affect your insurance rate. Put simply, the Canadian insurance industry is absolutely colour-blind.
The key to getting the very best auto insurance suited for you is to shop around, because insurance rates can vary significantly between companies. Be it those purchasing auto insurance for the first time, or long time veterans of Ontario roadways, a great place to compare company prices is using an online insurance quoting service – they’re safe, smart, fast, and free.
Using these cost saving tips, paying for auto insurance in Ontario can be less damaging to your wallet, saving you those hard-earned dollars.