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HomeCar Insurance ResourcesBest Areas for Car Insurance in Toronto & GTA

Car insurance rates in and around Toronto can be the worst of the worst. Ontario is already the most expensive province in which to insure a car. The urban factors of the GTA contribute to the highest premiums in an already costly auto insurance market. However, insurance premiums are calculated, in part, based on postal codes. Each region could have different insurance influences than those in the surrounding area. While there are some car insurance cost nightmares, Toronto does have some neighborhoods with comparatively affordable rates.

How Car Insurance Costs are Calculated

To really understand the cost of a car insurance policy, knowing the contributing factors helps. The Insurance Bureau of Canada offers a comprehensive explanation of the process. When it comes to postal codes, factors such as lock crime, insurance claim rates, congestion, car ownership and the number of accidents occurring within the area contribute to premium rates. Urban neighborhoods that are well served by public transit may attract residents who don’t own cars. Those who do may use transit for commuting and cars for weekends. Fewer kilometers driven mean less accident risk. Areas further from downtown Toronto require longer commutes. Fewer transit options also push workers into cars.

The Best Areas for Car Insurance in Toronto

Sure enough, when examining car insurance rates in Toronto, the best prices are indeed found in centrally located areas. The lowest average rates are found in the M6G postal codes, the Christie area of downtown Toronto. Average rates in 2015 were just under $1,500 annually, about the overall average price for car insurance in Ontario. Forest Hill North, the M5P region, paid only a few dollars more. In the number three spot came Davisville North. The M4P postal code averaged just a bit over $1,500.

The Most Expensive Areas for Car Insurance in Toronto

The most expensive car insurance in Canada is located in Brampton and Vaughan. These GTA suburbs are to the northwest and north of Toronto. It’s no surprise then that the most expensive postal codes within city limits are located along the northern boundary. The M3N postal code, Downsview in North York, rivals the most expensive areas of Brampton. At $2,400 annually, car insurance is nearly $1,000 more than downtown Toronto, and almost $1,500 more than the most affordable parts of Ontario, in Kingston and Napanee.

The Albion region of Etobicoke, M9V, is only a few dollars less expensive than Downsview. Rounding out the three most expensive car insurance neighborhoods is the M1X postal code in Upper Rouge, Scarborough. About $50 less than the northwest hotspots, Upper Rouge reflects the generally high insurance rates in Scarborough.

Comparison Shopping for Car Insurance

comparison shopping

The car insurance market in Ontario is expensive, but it’s also served by private insurance companies in competition with each other for your business. This results in each company devising its own formula for calculating premiums. One driver’s car insurance needs could come with a different price from every insurer.

If you’re a Toronto resident looking for a break from high car insurance prices, consider Ratelab’s car insurance calculator as the perfect place to start. Searching through dozens of car insurance providers, Ratelab returns only the most aggressive car insurance estimates. This gives you the place to start shopping with the assurance you’re pursuing the best rates.

About the Author: Valerie D. Hahn

Valerie is an insurance editor, journalist, and business professional at RateLab. She has more than 15 years of experience in personal financial products. She strives to educate readers and ensure that they are properly protected.

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