In Ontario, your vehicle must be insured in order to operate it. Operating an uninsured vehicle in the Province of Ontario, could result in a fine of up to $50,000. With this in mind, every car owner in the Province must secure appropriate car insurance coverage, and it’s important to know how your car insurance rates may be impacted. A combination of risk characteristics determines your car insurance premium. Several factors can affect the cost of your car insurance, and you should be mindful of this shopping around for the right insurance. Let’s explore car insurance rates and things that affect car insurance rates in Ontario.


What Affects Car Insurance Rates:


1. Driving record

Your driving record will play a big role in determining how much your car insurance will cost. If you have a clean driving record with limited traffic violations and car accidents, then you may be able to secure lower car insurance rates. In contrast, your rates will likely be higher if you’re considered a high-risk driver. The number of years you’ve had your driver’s license and experience driving can also impact your car insurance. Drivers training will help “new” drivers obtain a better rate.


2. Age

Your age is a factor that will also be considered to determine your car insurance rates. If you’re under 25, your insurance rates may be higher. This is due to car insurance providers considering your fewer years of driving experience. Generally, older drivers generally get into fewer accidents than younger drivers.


3. Location

Drivers in Ontario should be mindful that the location of their place of residence can affect their car insurance rates. Since there is a higher risk of car accidents and property-related crime in cities, if your residence or garaging address is in a major city, it can also cause your car insurance rates to be higher. For instance, car thefts can be more prevalent in cities, making it more likely that your insurance company may have to cover your claim. If you live in a suburban or rural area, you may be able to secure car insurance at a lower rate.


4. Driving frequency

Being on the road frequently can increase your chance of getting involved in a car accident. That’s why car insurance providers will ask about your driving frequency. If you drive long distances for your daily work commute, then this may increase your car insurance rates. The less you drive your vehicle; the lower your premiums may be. They factor in daily commutes and annual distances.


5. Type of vehicle

A car insurance provider will also consider your vehicle’s make and model. If you have an older vehicle, it may affect your car insurance rates. Different vehicles have different safety ratings. Each vehicle is assigned four separate rate groups. Once each for the following coverages:


• Accident Benefits (injuries)
• Collision
• Direct compensation property damage (not at fault accidents)
• Comprehensive (fire and theft)


Whatever vehicles cost the insurance company more, the company will pass the cost onto the insured driver. The higher the rate groups, the more expensive the insurance. This is why the type of vehicle you drive will be factored into the car insurance rates that a company may offer you. If you want to potentially benefit from lower car insurance rates, you’ll want to consider the kind of vehicle you purchase.

While these are factors that can impact your car insurance, there are things you can do to help secure more affordable coverage. Working with an insurance broker is one way you can leverage an insurance professional’s expertise to navigate car insurance policies, providers and overall options.


How to Purchase Car Insurance


As a driver in Ontario, you may need help figuring out where to start when purchasing a car insurance policy. If you need some help and guidance, an insurance broker will act in your best interests and can find appropriate coverage options to help you choose the right car insurance for your needs. The Keller & Associates Insurance Brokers team has the experience and expertise to assist you in finding affordable car insurance options that can protect you financially. Get in touch, and we’ll help you find the right protection.