What Is The Auto Insurance Premium In Ontario?

The Auto Insurance Premium is the amount of money that we pay to the insurance company to cover any future damages on our automobiles. The amount is established based on many factors. For example, it can depend on the type of vehicle or the kind of coverage you are getting.

When it comes to Ontario in particular, there are quite a few insurance companies at your service. You should definitely explore your options before selecting an insurance provider.

There are some websites such as this page, which can help you choose by offering you help with insurance quotes. They will provide you with as much information as possible. Make sure to check them out for more details.

Ontario Auto Insurance Rates

In the past, Ontario residents used to pay the highest insurance rates in Canada. However, this has changed over the years. In 2013 the rates were 0%, then +7% in 2015, and they went to -9% in 2015.

Furthermore, in 2016 they were -1%, but in 2017, they rose to +41%, and finally, in 2018, they went down to +7%. These statistics prove that the rates can vary significantly.

The only province in Canada with higher rates than Ontario is British Columbia. The rates in BC are $1,480 on average, whereas in Ontario, the rates are $1,445. The lowest average is in Quebec, with an average of $661.

Car Insurance Companies in Ontario

Getting proper insurance for your car is a very stressful process. Customers face many issues, such as insurance companies tricking them into paying more money than necessary. However, it is of the utmost importance to have your vehicle insured because it is at risk of getting damaged on a daily basis.

Compared to some other insurance companies in Ontario, Surex offers the lowest rates. You could also avail of attractive discounts. Visit this page for more information.

Types of Coverage

There are different ways in which one can damage a car. Hence, we need different types of coverage offered by insurance companies. Here are some of the popular types of insurance coverage.

  • Accident Forgiveness – If you are involved in a car accident where you are at fault, the insurance company lets you make one mistake, after which your rates would not increase.
  • Car Rental Coverage – Whenever you rent a car, your renter might require you to take insurance (if it is a long-term rent), apart from the mandatory third-party liability insurance.
  • Collision Coverage – This insurance would cover the cost of damages to your car if it is involved in a collision.
  • Comprehensive Charge – You will be compensated for accidents caused where the driver is not at fault such as natural calamities, fire accidents, etc.
  • Family Protection – Covers the death or injury of the driver or a family member, if the other side is under-insured or not insured at all.
  • Third-Party Liability Coverage – The name is pretty self-explanatory. You will be compensated if the third party causes the damage. This is mandatory in Canada.

Some other less popular types of coverage are Windshield Coverage and Depreciation Coverage.

Key Factors in Determining Auto Insurance Rates

After listing the types of coverage one can get, it is relevant to mention that your chosen type can play a huge role in determining your insurance rates. Apart from coverage, there are plenty of other factors that are considered.

  • The insurance company of your preference will ask for proof of your driving history. This includes all of your speeding and parking tickets, among some other car accidents you might have experienced. More violations in the past might lead to a higher premium.
  • Your credit history also plays a major role in determining the insurance premium. If you have defaulted in paying past debts, or regular defaults are reflected in your bank accounts and record maintenance, you might end up paying a higher premium.
  • The premium terms also depend on the place where you live. A place that is prone to accidents might require a higher premium as compared to other places.
  • Another important factor is the kind of car that you are getting insured for. If your car is newer, it might have more features than some other vehicles. Therefore, you have more to insure. It also might be more susceptible to theft and break-ins.
  • Furthermore, the company would also consider how much you use your car because the more you use it, the more likely it is to get damaged.

Are There Car Insurance Discounts?

Numerous insurance companies offer discounts to their customers. These are generally aimed at lowering your annual insurance rate. Some of the discounts are the following:

Good credit discount

This is based on your history as a driver and customer. The company will check if you paid your bills on time or if you ever caused any inconveniences or unprecedented delays. A clean record could earn you a higher credit discount.

Claims-free discount

You are eligible to get this discount if you show responsibility and avoid accidents where you are at fault.

Conviction-free discount

If you go for at least three years without traffic convictions, you can get an annual discount of up to 10%. This does not include radars and parking tickets.

Telematics Discount

Telematics is a technology, also known as usage-based insurance (UBI), which monitors your behaviour while driving. That is, it tracks your speed, distance, and some other factors that can be the cause of possible accidents. However, telematics can also go in your favour. If you show good driving habits, you can get better insurance deals.

Currently, Surex is one of the few companies that offer telematics programs in Ontario. The program can usually save you up to 10% at the beginning, but this number can go up over time.


Thus, it is safe to conclude that insurance premiums can vary depending on various parameters.

Overall, getting car insurance is very important, and it makes you feel much safer. You should always choose an insurer that meets all your needs. Visit this page to get the best quotes on car insurance in Ontario.

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