A report published by auto insurance comparison site LowestRates.ca lists the major factors that are affecting Ontario’s auto insurance rates.
LowestRates.ca’s data found that the following factors greatly affect insurance rates:
Distance of the commute – Drivers who commute less than 9 km to and back from work pay average rates of $2,296 per year. Those who commute 30-39 km to and back from work end up paying $2,806 per year.
Millennial drivers – Millennials pay the most for auto insurance, the report found. Those aged 16-33 years old pay an average yearly premium of $2,899.30, compared to Gen X drivers (aged 34-51 years old), who pay $2,289.00, and Boomers (aged 52-70 years old), who pay $1,999.08.
Vehicle age – The report suggests that newer models cost more to insure. A 2016 car will cost a motorist a yearly average of $2,929 compared to a 5-year old car at $2,520. Purchasing a 10-year old car will nearly cost you $800 less per year than a brand new car at an average rate of $2,121, the report also noted.
Mileage – Those driving 20,000-24,999 km per year will pay an average of $2,529, versus those who put on less than 10,000 km per year who only pay $2,111.50.
Proximity to urban centers – People who live in the GTA pay $2,584 a year in auto insurance. In comparison, those who live in London pay $2,185 and those in Ottawa $1,803.
"We think it's important to inform Ontarians about what's really impacting their car insurance rate," commented LowestRates.ca CEO Justin Thouin. "By looking at our data, we can help demystify what often seems like complicated premium calculations. In order to find the best policy, drivers need to pay attention to what influences premiums and compare rates annually."