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Car insurance Alberta VS Ontario

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Is Car Insurance Cheaper In Alberta Than Ontario?

Yes.

At one time Alberta vehicle insurance was quite a bit cheaper compared to Ontario. This has changed and as of 2020, the province of Alberta has the third-highest insurance rate of all the provinces in Canada.

Average Car Insurance Alberta 2020

alberta

$1,316 per year

Different statistics may show slightly different figures. This is because of the emphasis they put on the different metrics when reaching an average cost per province for insurance.

Average Car Insurance Ontario 2020

Ontario

$1,500 per year

Ontario takes second place for the cost of vehicle insurance according to most experts. Although not by two much.

When the Insurance Bureau of Canada calculates the average premium by province they will take the total premiums paid for insurance in the province compared to the total personal vehicles registered for the same province.

Is Alberta Better For Car Insurance Than Ontario?

No

Even though Alberta vehicle insurance is slightly cheaper than Ontario there are some regulations that differ between the two provinces that can make the overall insurance cover better than the other province.

For example:

In Alberta, the claim when it comes to a collision is a little different. They rely on a tort-based insurance system. What this means is that in the event of a collision the insured will only receive a specified amount from their insurance company. Then if they are entitled to more compensation they have to go after the other party’s insurance company for the balance.

In Ontario, the system operates off a no-fault system. No matter who is at fault in the accident the respective drivers will go through their own insurance companies. This is opposite to Alberta which operates At-Fault systems.

Coverage

Vehicle insurance is mandatory in every province and territories in Canada. Each province has its own regulations as to what the mandatory coverage must be.

Alberta:

  • This province requires coverage for third party liability
  • Accident benefits

Ontario:

  • Third-party liability
  • Accident benefits
  • Direct compensation- property damage
  • Uninsured automobile protection

Why is Insurance So Expensive in Alberta?

Reason Why

Once the insurance cap was lifted Alberta began to face vehicle insurance increases. Some drivers were seeing a 20% increase in premiums during 2020.

There may be some variations in the increases as it will depend on the increase in policies that each of the private insurance companies are setting for themselves. However, Insurance companies serving Alberta drivers must apply to the Alberta Insurance Rate Board for a rate increase approval.

Aside from just jumping at the opportunity not to deal with a rate cap, Insurance companies are providing additional arguments as to what Insurance costs are increasing in Alberta, which includes

Technology:

So many of the new vehicles are being built with high-end technology repairs for these can be expensive. Insurance companies would have to cover the costs of repairs or replacement if an insured vehicle were in an accident.

Distracted Driving:

This is another concern that Insurance companies are raising. There have been significant increases in claims as a result of distracted driving. This is not just applicable to Alberta but in many of the other provinces.

Weather Factors:

Insurance providers in Alberta are concerned about the weather changes that have taken place in Alberta which has increased the number of claims.

According to statistics Insurance companies serving Alberta have been experiencing losses over the past five years.

Why Is Car Insurance So Expensive In Ontario?

why

Ontario insurance providers will present similar reasons as Alberta does for the big costs of insurance in Ontario. Although for Ontario there can be some additional ones

Insurance Fraud

The cost of insurance fraud in Ontario is huge. This affects all the insured drivers throughout Ontario. About $236. Of Ontarian’s vehicle insurance costs goes towards covering the cost of fraud.

Common Types of Vehicle Insurance Fraud in Ontario

Fake Insurance:

This is where an individual is coerced into buying auto insurance from someone claiming to be an insurance broker. They will charge a fee for finding lower insurance. This is where the scam takes place. Insurance brokers are not paid by the insurance applicants. They are paid a commission from the Insurance company that provides the insurance.

The fraudulent broker will provide a low insurance rate quote, based on all the information that you are asked to provide him with. Where the problem arises is when a claim has t be made then the Insurance company denies it because they were provided with phony insurance information.

Fraudulent Car Accidents:

This is concerning accident staging. One instance is where two cars will be involved that target a third unsuspecting vehicle. One of the fraudsters will pull in front of this vehicle and hit the brakes. Then the second fraudster seeing their partner in crime will now hit the brakes who is behind the first car. The innocent car ends the fraudster’s car in front who in turn rear-ends the other fraudster. Now the innocent party is responsible for damage to two vehicles.

Drive Down:

So many drivers have been parked in a parking lot getting ready to back out. Another driver in close vicinity will wave them out. As soon as the driver pulling out follows their cue the waving driver will drive into them. This puts the driver pulling out at fault.

The Left Turn:

This is similar to the parking lot incident. The fraudster will wave a car to go ahead and make the turn acting as a courteous driver. Then when the innocent driver does the driver waving them through will hit their car.

Misc. Fraud:

There are some Ontarians that will commit vehicle insurance fraud without really realizing they are committing fraud. For example, they will register their car at a family member’s residence where that location is known to have lower insurance rates.

Then there is the exaggerated injury frauds. A common complaint is a whiplash which is hard to prove medically. Some will capitalize on this to the point where they say they can’t work because of this injury.

No matter whether it is Ontario or Alberta those in need of vehicle insurance should put the time and effort into research areas where they can reduce their insurance costs. One of several ways is to shop around for the best insurance rates using reliable resources.

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