Why is my car insurance so expensive in Toronto?


Toronto is one of the most popular cities for newcomers to Canada. But when you live there for a while, you will find that the cost of living in Toronto is more expensive than other cities. According to statistics website Numbeo,  a family of four already spends as much as $4,657 a month in Toronto. As a part of living expenses, car expenses cannot be ignored. When you are just starting to buy car insurance, you may find that your car insurance is more expensive than others. What is the root cause?

No local car insurance record

Since the insurance company does not have your local record, it is difficult to estimate your insurance experience. So the price of most people buying car insurance for the first time is more expensive than other drivers who already have some local driving experience. But as long as you keep driving and have a good driving record, the price of your car insurance will keep going down. So develop good driving habits, practice safe driving, and avoid the chance of increasing your car insurance costs.

Live in an area where car theft is common

Auto theft is a regular occurrence in Canada. In the 2021 Toronto Police Service report,  a number of common cars are listed. When thefts are common in an area where you live, and there are a lot of insurance claims for stolen vehicles or damages by thieves, insurance companies make up for those insurance claims by increasing the fees they charge to customers in the area. For this reason, your car insurance may cost more than it would be in other parts of Canada.

Larger cities have higher rates of traffic accidents

As a big city, Toronto means that there are more vehicles on the road than other cities, and the chance of traffic accidents will increase. When traffic accidents occur frequently, the insurance company will pass the cost of the accident to the drivers, which is one of the cost of higher insurance premiums compared to other cities. 

Premiums vary for selected car models

Insurance companies have different car insurance prices for different car models with different accident rates and crash rates. Because of the frequent snowfalls in Canada, sports utility vehicles (SUV) and four-wheel-drive vehicles are generally cheaper to insure than regular motorhomes. If a novice driver wants to buy a new car, he or she can inquire with our insurance professional consultants to assist in choosing a car model with a lower premium.

Looking for cheap car insurance? Let our professional insurance advisors help. Private message us now to get a free quote!