Home/Car Insurance British Columbia vs Ontario

Car Insurance British Columbia vs Ontario

When looking to buy insurance it doesn’t matter what province one may live in they need to have an understanding of what spurs the cost of the insurance. Many learn that the premiums for vehicle insurance can vary greatly from one province to another. Two of the most expensive provinces for vehicle insurance are British Columbia and Ontario. But which one is the highest?

Is Car Insurance Cheaper In BC Than Ontario?

No.

British Columbia has earned the reputation for being the province with the highest insurance rates.

How Much Does It Cost To Insure A Car In BC?

british-columbia

$1,832.

Getting insurance in British Columbia is different compared to several of the other provinces. Insurance applicants don’t have the option of being able to shop around for their insurance. It comes from one source which is ICBC.

How Much Does It Cost To Insure A Car In Ontario?

Ontario

$1,500.

This is just the average figure and it could be as low as $1,300 or as high as $1,800. The significant variation between these is because of all the other factors that are taken into account. To begin with, each insurance company is different. While they all use the same basic metrics they will determine which ones they want to put the most emphasis on. This then affects the premium costs. Plus, they are all seeking out new clients so they offer as many incentives as possible by way of vehicle insurance discounts. All of these factors are what cause the difference in insurance rates for a specific province.

In BC the premiums are focused on user-based driving. Meaning the insurance is heavily based on the driver history with the emphasis on crash history plus driver experience. This may not sound like a big change but it does have some significance to it.

Originally under this insurance, if someone borrowed an insured’s vehicle and was in an accident it would affect the insured’s premiums. The borrowing of cars in BC is a common occurrence. Statistics show that out of the crashes that occurred during a set period of time one out of every five claims was involving a driver who had borrowed the vehicle.

Listed Drivers

Insurance applicants are required to list the drivers who may be using their vehicle. Their driving history is then reviewed so it can be factored into the premiums.

Another factor that will be considered is the type of vehicle and location where the driver lives

What Is The Cheapest Car To Insure In BC?

2021 Honda Insight

Small car Honda Insight 4-door sedan

This is just an example of one of the cheapest vehicles to insure within a specific category. This Honda is considered to be one in general across Canada for cheaper insurance. The type of car is important when it comes to obtaining insurance for a few reasons. Many think that if the car is cheap to buy that it will be cheap to insure. This is not always the case. Many insurance companies will rate cars by their categories which are:

  • Small cars
  • Midsize cars
  • Midsize luxury cars
  • Large call
  • Large luxury cars
  • Small SUVs
  • Midsize SUVs
  • Midsize Luxury SUVs
  • Large SUVs
  • Large Pickups

What Is The Cheapest Car To Insure In Ontario?

toyota-rav4-prime-2021

Toyota RAV4

This car is classed as one of the cheapest to insure in Ontario basic on sales and is applicable to 2019.

Why Is Car Insurance So Expensive in BC?

There are several reasons why vehicle insurance is so costly in British Columbia. One of these is because insurance is purchased through a public insurance company which is ICBC. This is a company that needs to balance its books. Which they can only do by increasing their premiums. It is projected that rates will continue to go up in British Columbia until this insurance provider achieves this. The company has experienced significant losses that need to be recouped. This is what was being said in 2017/

This is not something that drivers in BC are happy about and have looked for alternatives. The only conclusion they have reached is if the vehicle insurance market were to become competitive in BC. There is an option for insurance shoppers to also buy private vehicle insurance, but it is mandatory that they have the basic policy with ICBC. The argument to this is that private insurance providers have their own difficulties they are facing which is making them keep their premiums high as well.

Some Changes

The ICBC did make some changes in 2019.  They begin with a base premium of $1,63. Then from there, they add on the extras according to the metrics they use which will include:

  • Driving history
  • Listed drivers
  • Location
  • Vehicle use
  • Discounts that the driver can qualify for.

Why Is Car Insurance So Expensive In Ontario?

Increase in claims

It is being reported that Ontario insurance providers are not realizing any substantial profits. Data shows they are paying out close to the same amount in claims as they are bringing in on premiums.

What Are Increasing the Costs?

  • Fraud is a big factor in the rising causes
  • The major changes in weather patterns
  • Distracted driving
  • Increase in high-end vehicles
  • Inflation increases

How Can You Keep The Vehicle Insurance Costs Down In BC?

Although the base insurance must be purchased from ICBC, buying additional insurance from private insurance companies may be cheaper than buying ICBC.

  • Keep the mileage low
  • Get the discount for the immobilizer
  • See if there are discounts for rate class for public transit
  • Pay for the insurance on a yearly basis instead of monthly
  • Keep a clean driving record

How Can You Keep The Vehicle Insurance Costs Down In Ontario?

There are steps that can be taken to find cheaper insurance in Ontario

  • Do some comparison shopping. Using sites that will obtain quotes is a big time saver.
  • Review your driving record. To make sure anything that should be removed from the record has been done
  • Look for discounts that you can utilize
  • Pay annually instead of monthly
  • Bundle your insurance

Although BC and Ontario have high vehicle insurance as a common denominator, drivers in each of these provinces can take individual steps to lower their insurance.

Leave A Comment

At RateLab, We Compare 30+ Leading Insurers at Once!