Before talking about the Ontario cities with the highest car insurance rates, we have good news from the Ontario car insurance industry. In 2021, car insurance rates dropped in Ontario by almost 4%.
Compared to 2020, the average insurance rate in the province was 3.8% lower in 2021. That’s a pretty significant rate decrease, and it’s related to the reduction in driving (mainly commuting) due to more people working from home during the second year of the pandemic.
Last year also saw an interesting change to the city in Ontario with the highest car insurance rates.
So, which city in Ontario has the highest auto insurance rates?
Until recently, Brampton was the home of the highest insurance rates in Ontario. However, in 2021, Brampton saw an average premium decrease of nearly 27%, making it the Ontario city with the fourth-highest average car insurance rate.
The unfortunate city with the most expensive auto insurance rates in Ontario is Vaughan. However, Vaughn residents did enjoy a 6.7% reduction in their car insurance premiums in 2021. While Ajax, the Ontario city with the second most expensive average auto insurance rates, only saw a 1.7% reduction from 2020.
How much more do Vaughan drivers pay for insurance than the average Ontario resident?
In 2021, the average Ontarian paid $1,555 for their car insurance, while the average Vaughan resident paid an estimated $2,197. That’s a substantial $642 difference.
Vaughan drivers pay 29.2% more to insure their vehicles than the average person living in Ontario. Still, the average Vaughan resident only pays $203 more than the average Bramptonian. GTA residents generally pay more for car insurance because driving on congested streets and major highways increases the number of insurance claims drivers make each year.
What are the 10 Ontario cities with the highest auto insurance rates?
Car insurance in Ontario is generally more expensive than in other Canadian provinces, except British Columbia. Ontario residents typically pay more for car insurance than other Canadians despite statistically safe roads with low accident rates due to several factors, including severe weather and insurance fraud. But which Ontario cities have the most expensive premiums in the province with the second-most expensive rates?
In January of 2022, Canadian Underwriter compiled a list of the top 10 most expensive places to insure your car in Ontario based on data from RatesDotCa:
The 10 Ontario cities with the highest car insurance rates
- Vaughn ($2,179)
- Ajax ($2,104)
- Richmond Hill ($2,025)
- Brampton ($1,976)
- Mississauga ($1,971)
- Pickering ($1,959)
- Toronto ($1,953)
- Oshawa ($1,833)
- Whitby ($1,792)
- 10th place is a tie between Nobleton, Schomberg, Orangeville and King City at $1,766.
Brampton motorists saw the largest reduction in their car insurance rates. In contrast, Whitby, Oshawa and King Township drivers paid more for insurance in 2021 than the previous year. The apparent explanation is that these Durham Region and King residents filed more insurance claims in 2021 than 2020. As drivers get back on the road for work and leisure, insurance premiums will likely climb back to their pre-2020 prices.
Price changes from 2020-2021 of the 10 Ontario cities with the highest car insurance rates
- Brampton (26.8% rate reduction)
- Mississauga (16.9% rate reduction)
- Richmond Hill (11.4% rate reduction)
- Toronto (11.3% rate reduction)
- Vaughan (6.7% rate reduction)
- Ajax (1.7% rate reduction)
- Pickering 0.1% rate reduction)
- Whitby (0.9% rate increase)
- Oshawa (12.1% rate increase)
- Nobleton, Schomberg, Orangeville & King City (14.2% rate increase)
While Toronto residents received a break from high insurance premiums, those living in the suburbs of Whitby and Oshawa did not. In addition, the four rural municipalities north of the GTA with the tenth most expensive auto insurance in Ontario saw the steepest rate increase.
Living in rural or suburban areas can offer reduced car insurance prices if you stick to driving close to home. However, those who log more annual KMs and frequent commutes downtown pay more for insurance, bringing up their postal codes’ average annual policy price.
I live in one of the cities with the highest rates in Ontario. How can I lower my auto insurance premiums?
The numbers above show that the answer to does Your address Affect Your Car Insurance is yes. The good news is that these numbers only reflect average premium prices; car insurance rates vary significantly from neighbourhood to neighbourhood and person to person in every city.
We understand that moving isn’t the most convenient way to lower what you pay for car insurance in Ontario, and it’s often not the most effective strategy either. There are ways to save money on auto insurance without buying a new house.
Check out our advice for how to lower car insurance in Ontario.
Which city in Ontario has the lowest auto insurance rates?
That’s a good question! We’ve saved the juiciest answers for another article: “Which City Has the Cheapest Car Insurance In Ontario?” Hint, you could be in luck if you live in smalltown Ontario, Cornwall or Kingston.
CTV News reports that the top ten cities with the lowest car insurance rates in Ontario range from $284-$423 less expensive than the Ontario average.
Final Thoughts
Just because you live in an Ontario city with the highest car insurance rates doesn’t necessarily mean you’ll pay the same for coverage as your neighbours. Auto insurance rates are determined by many factors, such as your driving record, how much you drive, and the type of vehicle you have.
The simplest way to lower what you pay for car insurance is to shop around to find out if you can pay a lower price for the coverage you need. As a brokerage, our aha-mazing aha insurance professionals can help you find the best insurance company for you based on your circumstances. You can get a 3-minute quote anytime to find out if you can save money with one of our partners.
