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What is the Average Price of Toronto Car Insurance?

Car insurance premiums in Toronto can vary widely depending on your home address. Yes, the area you live in has a direct impact on what you can expect to pay to drive your vehicle.

With so many car insurers in Toronto and drivers alike, the average price varies widely. The range is usually between $1,100 and $2,000. If you live inside the city limits close to the downtown core, you may pay less compared to areas beyond downtown where you might pay more. These lower insurance costs for center of city drivers can be attributed to fewer car owners but ultimately it comes down to more than just where you live.

For research purposes we ran the numbers and the true average car insurance as of August 2017 was around $1.400. This example was calculated for a male driver, 30 years of age, buying only the required coverage. He also had a clean driving record for the past five years and he drove a five year old Honda Civic, an average of 5,000 km to 8,000 km to and from work.

It is interesting to note that this same driver was paying higher insurance roughly a year and a half earlier, in January of 2016, we calculated the rate to be $1,500.

Why Is Car Insurance in Toronto So Expensive?

Many people fail to realize that car insurance, and indeed all types of insurance, is a risk based business. Insurance companies take on your driving risk in exchange for a price paid for covering that risk. In Toronto, that risk is maximized.

In order to be profitable, these companies take into consideration certain factors for every person they insure. These factors determine the amount of risk for the insurance company and, in turn, what the company needs to charge any particular customer. Risk range helps insurance companies decide what to charge, or whether to insure drivers at all.

Generally, insurance companies apply the same life profile information for each insurance customer. This life profile usually includes: driver age, make and model of vehicle, miles traveled and driver’s address. Other factors may or may not affect insurance cost depending upon the particular driver and situation.

Insurance companies apply a simple formula: the higher the risk, the higher the premium. Premiums are also established in terms of the population profile of a particular area.

For instance, residents in highly populated areas, like Toronto, pay more. There are more vehicles on the streets, and that increases the potential for accidents. Consequently, you pay a higher premium for living in a higher risk area whether you personally have a high risk ranking or not. If you hit another car, or the car hits you, does not matter. The cost of the vehicle damage is the same.

*Actual Quoting Data. Based On A Clean Driving Record.

What are the Cheapest Suburbs for Toronto Auto Insurance?

As mentioned above some of the more cheaper areas for car insurance aren’t too far from downtown. So if you are considering relocation, here are some of the lower cost insurance zones or suburbs in the GTA.

Coming in with the cheapest average rate are drivers who reside in the M6G postal code region, effectively Christie Pits, the average insurance rate here is $1,479. Christie is the closest suburb to downtown that comes in this cheap, next on the list is Forest Hill (M5P) at $1,486 and Davisville (M4P) at $1,503 respectively. Drivers living in and around these areas can expect to pay some of the better rates in the city.

What is a Car Insurance Calculator?

A car insurance calculator is a cost estimating tool that gives you a solid idea of how much car insurance you need and a very close approximation of the cost. You, the driver has to include the necessary information to fill-in-the-blank fields, multiple selection fields or drop-down menus.

These calculators are simple to use, and can give you a rough estimation fairly quickly. As this is the same information that goes into determining your personal car insurance costs by the insurer, it’s quite important to input details as accurately as possible.

In high insurance cost areas like Toronto, this expense can dramatically impact personal expenses and budgets. Making sure you are getting the best needed coverage at the lowest cost goes a long way toward managing the insurance part of your budget.

How Can You Save Money Using a Car Insurance Calculator in Toronto?

First, calculate the total costs. Next, try adjusting certain features of the total costs, manipulate deductible ranges to lower total costs while keeping the essential parts of your plan.

As you are trying to limit costs, one of the first decisions you need to make is how much car insurance do you need? Using this calculator helps you do that. While basic liability coverage clears the legal requirement, is it sufficient? That old saying, ‘it is better to have it and not need it, than to need it and not have it’ comes to mind.

The best way to get an accurate estimate of your real car insurance needs is to use this cost tool. Get the figures, write them down, and you can get a clear summary of true, personal insurance needs to guide your decision.

These calculation tools reveal critical cost factors like the deductible best for you, and how the insurers rate your vehicle in terms of gas mileage and maintenance.

The deductible decision mentioned above is a key factor in determining what you will pay. Basically, this is the insurer asking you, the insured, how much of your personal risk are you willing to take.

If you are willing to take more of the risk, the insurance company is willing to charge you a lower rate since their risk is reduced by you.

Importance of Car Insurance Calculators for Toronto Residents

In Toronto, where car insurance rates are among the highest in Canada, a calculator like this is a great advantage. With so many insurers offering such a wide variety of plans at such a wide cost range, this tool helps narrow down so much information toward making a final decision.

Knowing that Toronto is a high insurance cost area, higher rates are a given. You need every advantage at your disposal to sift through the noise and customize your specific car insurance coverage needs. These calculators can help you save money and still get the coverage that fits your personal needs best.

By using the calculator you can easily see benefits of different coverage plans and the premiums for those plans. All your coverage options and the cost differences are in one place, and you won’t have to consume time hunting better prices and comparing different quotes elsewhere. Do yourself a favor; try our insurance calculator today!

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