Average car Insurance Toronto
Mon., Nov. 2, 2015
Tony Sottile knew insuring a car for his son would be expensive.
But when his existing insurer wanted $6, 000 more to add the 19 year old as a principal driver on an 11-year-old car, he thought he wasn’t hearing properly.
The story illustrates the huge penalty for being a young, male driver in Canada’s most expensive car-insurance market. It doesn’t matter how well you drive, accident and claims statistics are against you until you’re about 25.
It also illustrates the importance of shopping around, because in the end, the Sottiles found a better rate because they did just that.
The Sottiles live in Scarborough, and Cameron is a community college student with a G2 licence. He has been driving for two years, has a clean record and is taking a test to get his G licence in February.
Cameron landed a minimum-wage, part-time job eight kilometres from their home. He works three days a week in a building centre and enjoys the job.
Getting there by public transportation is difficult. Cameron would have to start on the TTC and then transfer to Markham Transit. “Even then, he would be late every day, ” his father says.
Cameron’s parents can’t help with the trip. Tony commutes 39 kilometres each way to work in Mississauga. His wife needs her car. Given the unpredictability of GTA traffic, neither could guarantee to be home in time to give Cameron a vehicle.
The family has two other teens who are involved in competitive sports. They all go in different directions after school and on weekends. When Tony upgraded his car, it made sense to give Cameron his Toyota Camry with 270, 000 kilometres on the odometer.
Cameron could look for a job that’s closer to home, but he landed this one through a family friend and feels obliged to stick it out.
Tony was shocked by the $6, 000 jump quoted by Coseco Insurance, which is part of the Co-operators Group. So he went shopping.
He contacted 40 insurance companies and brokers. He also used web sites that compare insurance rates. He provided them all with the same details and offered to bundle his home insurance with the cars.
What responses he got back were all over the map.
“I got a high of $32, 000 and a low of $6, 100 per year, ” Tony says of the over-all offers he got back. “I don’t know where these brokers are getting their prices. Some are using the same companies, but there are vast differences in prices for the same criteria. Are they pulling these numbers out of the air?”
Pete Karageorgos, with industry group the Insurance Bureau of Canada, says quotes may differ for the same criteria because each company has a different claims experience in the same geographic area. A rate of $32, 000 tells you the insurer doesn’t want the business.
“Companies may purposely set rates for markets they want or don’t want, ” Karageorgos says.
Brokers may quote different rates for the same company, Karageorgos says, because one broker may use different deductibles or apply different discounts.
Tony’s best overall rate they got back was $6, 172 a year with Economical Select Insurance, with each car being insured at a cost of $1, 783. While still high, that’s pretty much the $1, 600 GTA average per car, according to the insurance bureau.
Tony is going with Economical and will go over the policy line by line to hunt for more discounts.
“He’s doing the right thing by shopping around, ” says Karageorgos.
Here are some lessons from the Sottiles’ experience:
- There’s no way around the high cost of insuring a young, male driver with his own vehicle.
“Some kids are paying more for insurance than their car, ” says Joe Daly, a spokesman for Desjardins Insurance. Young men have very high accidents rates and the accidents are generally serious. The leading cause of death among 16- to 24-year-old males is car accidents, Daly says.
- Every year you keep a clean record, your rates drop.
- The three most important factors determining insurance are years licensed, years claim-free and years conviction-free.
- Many parents believe insuring a young driver on their own car gives a track record and a faster route to cheaper insurance. As mentioned above, insurers are looking at years licensed, years claim-free and years conviction-free.
- Usage-based insurance (UBI) is worth exploring. A wireless device can be installed in the car that will measure distance driven, time of day the car was used and speed of braking and acceleration.
UBI can save between 10 and 25 per cent of the cost of a policy. It has been successful in Quebec, keeping insurance rates manageable for young drivers. In Ontario, UBI devices cannot increase the cost of your insurance. The discount is not immediate. It comes on renewal a year after a policy is started.
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What is the average premium of auto insurance in Toronto? - Quora
By using this website, you can have an overview, but for new drivers with less than 3 years of experience it is usually more that 250$, in Toronto city or downtown area of other cities in GTA.