Cheap Toronto Car Insurance Quotes

In Toronto, as with the rest of Canada, minivans and SUVs are generally cheaper to insure than smaller vehicles. Insurance companies look at repair costs, crash test ratings, and even the brightness of headlights when determining a vehicle’s insurance risk. Replacement cost is a factor too, so in this respect, older cars score quite well. However, the car you drive only comprises a portion of your insurance premium. Your driving history (number of tickets and at-fault accidents) have a much larger impact. A safe driver in a new sports car can still expect cheaper insurance than a dangerous driver in a modest SUV.

Every insurance company analyses driver risk slightly differently. The company willing to offer the lowest premium is different for everyone, and the cheapest company for you will change as your driver profile changes. This is why it pays to shop around. Compare quotes on InsuranceHotline.com to see multiple quotes side by side and find out if you could be getting a cheaper rate.

The average Toronto driver pays around $2,000 per year for car insurance, or $166.67 per month. This is 32.89% more expensive than the Ontario average of $1,505 per year, or $125.42 per month.

The exact amount you will have to pay depends on multiple factors, including where in Toronto you live. As indicated in a recent study, auto insurance premiums are highest in North York and Scarborough, while drivers who live in midtown and the downtown core enjoy more affordable rates.

The more likely you are to make a claim, the more an insurance company will charge for coverage. For Torontonians, the city is home to all kinds of factors that make claims more likely. Toronto contains some of the busiest roads in Canada (Highway 401 is the busiest in North America!), and with more cars on the road, your chances of being involved in a collision go up. On top of this, Toronto is a large city and the chance of your car being stolen, or broken in to, is higher than in less populated places. Finally, insurance fraud is a real problem in the GTA, with some unscrupulous drivers participating in staged auto collisions, or filing fraudulent claims to get unwarranted payouts. All of these factors combine to make Toronto one of the most expensive cities for car insurance in Ontario.

Car insurance is mandatory in Toronto and you must have valid insurance in order to operate a vehicle. If you get caught driving without insurance, the minimum punishment is a fine starting at $5,000. Many uninsured drivers immediately see their car impounded and licence suspended. Your future car insurance premiums will skyrocket too. To prevent this, always drive with car insurance.

There are optional endorsements and coverages you can add to your insurance policy, but every Toronto driver must have the following:

1. Third-party liability.
2. Direct Compensation Property Damage.
3. Statutory Accident Benefits.
4. Uninsured Automobile Coverage.

See our Ontario page for more information about mandatory auto insurance coverages in this province.

Every time you request a quote for car insurance, the insurer will ask a few questions to determine how much you should pay. Some of the factors that affect your rate in Toronto include:

• Your address. If you live in an area with lots of vandalism, theft or break-ins, you will have to pay more for coverage. Parking in a secure garage could help reduce this cost.
• Your age. Younger drivers, especially males under the age of 25, get in the most accidents and face the highest premiums. As you get older and develop experience, your rates decrease.
• Your annual mileage. More time on the road increases your chances of getting into a collision. If you can cycle or take the TTC to work instead of driving, you will save on auto insurance.
• Your driving history. If you have a long, clean driving record, insurance companies will want your business and offer the most competitive prices.
  
  

Toronto’s insurance rates are decided by private insurers, who adjust their rates in response to the number and manner of claims they have been receiving. If there have been more collisions in your neighbourhood, you can expect your premiums to increase. In Ontario, rate changes are regulated by an independent body called the Financial Services Regulatory Body (FSRA).