To drive lawfully in Canada, you must have insurance, both for your safety and the safety of other drivers and passengers. This security comes at a high cost for Canadians, which varies widely by province and other circumstances such as age, driving record, car model, etc.
The rising cost of auto insurance has made maintaining adequate coverage difficult, if not impossible, for many people. Let’s look at how much Canada’s average auto insurance premiums vary in a few states and determine whether or not this upward trend can be stopped.
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Ontario
The second most costly state for auto insurance premiums in Canada is Ontario. The average cost of car insurance in Ontario is more than $1,500 per year, making trips up and down the 401 prohibitively expensive for the majority of drivers. The average premium in 2015 was $1,281, the most in the country, but the $247 increase compared to the next least costly province, British Columbia, doesn’t seem so awful.
The widespread prevalence of fraud is cited by specialists as the primary explanation for the dramatic rise in premiums. Laws that provide generous compensation in the event of an accident have also had a role.
Auto insurance is mandatory in Ontario, but you may shop around for the cheapest rate with several private insurers. If you want the best quotations, all you have to do is run a simple Google search. If you happen to live in Oakville, an online search for “Oakville car insurance” will return results for every insurance provider serving your region. Find a broker that offers a fair cost for the coverage you need by shopping around.
Ontario’s government promised “transformative” changes in April 2022, but they haven’t resulted in lower gas prices for drivers. Estimates place the average premium increase at 1.56%, or $53, with the increase taking effect in February and raising the price from $1,505 to $1,528.
There have been reports of premium hikes of up to 11% among some insurance providers.
British Columbia
Across all of Canada, drivers in the westernmost province spend slightly more than $1,800 a year on auto insurance, the highest premium of any province. That’s a rise of more than $700 since 2015; a huge 63% in less than five years. When it comes to insurance, British Columbians have just one option: ICBC, a public company that is responsible for the whole province’s insurance system.
However, in February 2020, the BC government declared the implementation of a no-fault insurance system. With no-fault insurance, collision victims can’t claim unless the accident was caused by street racing, carelessness, drunk driving, or defective/poorly fixed automobiles. People who are impacted will instead get assistance and reimbursement from ICBC. Therefore, as of May 2021, drivers will see a 20% fall in both their base and upgrade rates. In the meanwhile, ICBC will hold off on raising rates.
Alberta
Alberta, a region known for its vast landscapes, now has some of the highest car insurance rates in Canada. Average annual premiums for auto insurance in Alberta have risen to $1,316, making it the third most costly province in Canada. When compared to the national average in 2015 ($1,004), Alberta now ranks third, a $300 increase since then. What happened to Alberta’s supposed competitive edge?
Alberta’s UCP administration, to the delight of the insurance industry, has repealed the previous provincial government’s 2019 restriction of 5% annually on rate increases for private vehicle insurers. As a result, it appears doubtful that rates will decrease soon.
Quebec
This is one of the unusual cases when the last place on a list is the greatest place to be. Less than half of what drivers in British Columbia and Ontario pay on average, “la belle province” drivers enjoy the lowest rates in the nation. Unlike in some other provinces, the rates in Quebec are not increasing as rapidly. Compared to their 2015 average payment of $642, Quebecers now pay an extra $75 each month.
In that case, why is Quebec’s rate of crime so low? Some people claim that Quebec’s insurance rules are less strict than those of other provinces. The province’s restrictions on personal injury claims help keep prices down for motorists. Also, they employ both public and private insurers, giving you more options for finding the cheapest price.
Final Thoughts
You can see just how variable the auto insurance conditions are throughout Canada. Given that prices change from province to province and certain jurisdictions mandate that vehicle owners get particular insurance packages that are composed of obligatory coverage. For that reason, it’s essential to know the requirements for your location as well as what you can do to decrease your expenditures.
