As we talked about earlier this year (in this post from the spring of 2022), there are a lot of pressures on car insurance in Ontario working together to drive up rates. From the uptick in inflation to soaring costs of materials to repair cars; supply chain issues to labour shortages; there are many factors pushing up the costs to insure a car in our province.

And the latest findings from the auditor general of Ontario confirm that despite the fact that in our province we have one of the lowest rates of car accident injuries, we have the highest car insurance premiums in Canada (source: Canadian Underwriter).

We will see if Ontario takes any steps to give consumers cheaper rates, similar to what has happened in other provinces. One example is the government taking the step to require certification or licensing of car repair businesses to address issues of fraud (to learn more about auto repair fraud click here).

So, let’s take a look at which cities have the most expensive car insurance in our province…

10 cities with the most expensive car insurance in Ontario

1- Brampton

2- North York

3- Scarborough

4- Etobicoke

5- Vaughan

6- Mississauga

7- Toronto

8- Gormley

9- Richmond Hill

10- York

Source: Canadian Underwriter

What can explain the elevated insurance costs in these cities?

While there are many factors that come into play when setting insurance rates, there are a few explanations for what we see in the list above.

~ Generally speaking, those who live in suburbs rely on cars for transportation so they tend to drive more than drivers who live closer to the city centre. Which is why we see in the list above so many cities in the GTA.

~ Did you know that insurers see driving on highways as a higher risk than driving on city streets? The higher speeds are seen as riskier than city speed limits.

~ Many of the cities cited above are also home to more new Canadians than other parts of our province. Insurers see newcomers as high risk drivers due to their lack of experience with driving on Canadian roads. So their rates go up.

Take the steps to get cheaper car insurance

With costs rising, it is becoming more important than ever to do your research and comparison shop to get the best car insurance prices possible. Be sure to take advantage of all possible discounts that an insurer might offer. There are many different steps you can take to get cheaper rates. Check out some of these posts for more ideas on how to get the best rates possible, no matter where you live in Ontario:

~ 10 Ways You Can Get Cheaper Car Insurance Rates

~ 8 Tips to Save on Your Home and Auto Insurance

Reach out to someone from our team if you’d like to learn more how we can help you get cheaper insurance, or head over here to get a car insurance quote online.

Resource referenced for this post: Ontario’s most expensive cities for car insurance – Canadian Underwriter