Unfortunately, there are too many factors influencing car insurance premiums to provide a simple answer to the monthly car insurance cost question. In Ontario, as well as your personal driving record, there are many factors that not only affect what you pay, but also that maintain upward pressure on car insurance costs. Understanding how premiums are calculated will also help you manage car insurance expenses. For a complete picture on how car insurance premiums are calculated, visit the Insurance Bureau of Canada.
Average Car Insurance Costs
In 2015, the average monthly car insurance premium in Ontario was about $160 for one car. Unfortunately, that’s a combination of all cars, all areas and all drivers. In Brampton that amount could be much closer to $250 a month, as the roads, congestion and claims history affects all drivers in the region. An average driver in Kingston could pay about $92 a month. That’s an extensive range. Across Canada the average monthly premium is about $110.
Car Insurance Coverage Choices
Ontario requires a minimum amount of insurance to obtain ownership and licensing necessary to drive legally. This amount, $200,000 of third party liability coverage, is about average across Canada. While it isn’t required in Ontario, many drivers opt for collision and comprehensive coverage as well, so that in the event of an accident or other damage, the costs they incur for repairs are limited to the deductible, before their insurance company pays the remainder.
Removing collision and/or comprehensive coverage saves money when it comes to monthly premiums, though of course this puts the risk of expensive repairs on the motorist. For someone driving an older vehicle, however, it might be a viable option. In the event of an accident the owner could simply write off the older car and put money toward a replacement vehicle.
A more reasonable compromise between protection and monthly premiums is raising deductible rates on collision and comprehensive coverage. By taking on responsibility for more of the repair costs in the event of an incident, the motorist pays less each month for coverage.
How to Make the Smallest Monthly Insurance Payments
Given all the variables that contribute to monthly insurance rates, comparison shopping on at least an annual basis is a good idea for most consumers. The leg work involved could be time consuming, unless you let RateLab do the heavy searching for you.
Start by entering your postal code in RateLab’s car insurance calculator on this page. Continue with your personal information and driving history, facts about your car and how you drive it and choose the coverage you want for your vehicle. RateLab’s search engines take your car insurance needs and cycle through dozens of providers to uncover the most affordable car insurance estimates for your information. These estimates will show you how little you could be paying each month, and with which insurance company. It’s your best bet to beat the averages.