The Ten Most Costly Cities for Car Insurance in Canada

by Legal Author on July 14, 2012

Canada is known for having some of the most expensive rates of auto insurance anywhere in the world, with policies that can be up to 50 percent more expensive than in any other Western country, especially the United States. This is due to a number of factors, not the least of which is the different regulation applied to the Canadian insurance industry itself. That said, even with these higher rates on average, there are some cities with consumers are bound to pay well more than the national average for their car insurance coverage. Whether it’s because of crime, the likelihood of an accident, or other factors, these ten cities have the highest premiums in the entire country.

10. Winnipeg, Manitoba
It’s no secret that Winnipeg has some of the highest crime rates per capita in Canada, and that has resulted in the kind of risk assessment that forces city residents to pay up to 20 percent more per year on car insurance coverage. The cost is mitigated somewhat in the city’s surrounding areas, but even those areas pay up to 15 percent more on average for their vehicle liability policies.

9. Victoria, British Columbia
This city, which is often considered an offshoot of Seattle, Washington, in the United States, has a pretty high rate of car theft. Combined with the large number of commuters who head into Washington for work or recreation, this city i subject to car insurance premiums which are between 18 and 22 percent higher than the overall national average.

8. Brantford, Ontario
A high number of car insurance fraud cases near this Ontario city have given it the distinction of car insurance premiums that are more than 28 percent higher than the national average. This, combined with a slightly higher crime rate than surrounding Ontario communities, has drivers paying more for their car insurance coverage each year for the past five years consecutively.

7. Calgary, Alberta
This prairie city has a crime rate that would ward off most any visitor, believe it or not, and insurance companies have decided to penalize such a rate by levying insurance charges that are 32 percent higher than the Canadian national average. And, if drivers think that’s bad, they should look at the rates in neighboring Edmonton.

6. Kelowna, British Columbia
This medium-sized city lies in a metropolitan area of less than 200,000 people, but still manages to enjoy a premium that is up to 35 percent higher than the national average. That’s largely because residents of this small city drive more miles than the national average and are thus more exposed to the potential of a major accident.

5. Regina, Saskatchewan
A high vehicle theft rate in this major prairie city has caused insurance companies to think twice when assessing the cost of a policy for the average drive in the metropolitan area. It’s not uncommon for city residents to pay rats that are 35 percent higher than the national average, and up to 40 percent higher than the average of Saskatchewan policies specifically.

4. Edmonton, Alberta
The city of Edmonton has the distinction of having the most car thefts in the entire country. With a rate that is more than 200 percent higher than the national average, it’s pretty easy to see why insurance companies charge 44 percent more here than anywhere else on average. Combined with more miles driven per year on average, it doesn’t paint a very pretty financial picture for motorists.

3. Montreal, Quebec
There are many refined things about this cultural capital of Quebec, but its attitude toward car insurance and crime is not one of them. Even though fewer city residents own a car here than most anywhere else, per capita, the city’s crime rate and high incidence of accidents gives it the distinction of a 45 percent higher premium than the average in Canada. Ouch.

2. Ottawa, Ontario
Ontario has the highest insurance rates of any province, and its major cities are exceptionally more expensive than the national average. In Ottawa, drivers tend to pay between 47 and 51 percent more than drivers anywhere else in the country. That’s a significant price difference, and it’s certainly painful for consumer budgets.

1. Toronto, Ontario
Canada’s largest city and biggest attraction is also its most expensive for car insurance. Drivers in this sprawling urban center pay, on average, 55 percent more than drivers anywhere else in the country. This is due to a number of factors, including a high rate of insurance fraud, higher-than-average vehicle thefts, and an overall much higher cost of living.

To Reduce the Financial Pain, Choose a Suburban Community
Suburban residents in the areas that surround these major cities all enjoy rates that are lower than those charged within city limits. Those rates might still be a bit higher than the national average, but they are surely a good deal lower than what urban dwellers are paying to stay covered while they traverse the highways.

Drivers in Toronto, Ontario pay the most in auto insurance. Visit Kanetix Ltd. today to do an online quote comparison to save time and money on your auto insurance. By comparing quotes, you could find out which insurance company can offer you the cheapest auto insurance quote in Ontario in just a matter of minutes. Apply online today to see how much you could save.

Legal Author

Legal Author

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