A new list has shown that drivers living in Toronto are among the people that pay the highest auto insurance premiums in the province. According to the online auto insurance marketplace tool Kanetix.ca which was the surveyor in this case, Toronto is leading on the list of ‘most expensive cities for auto insurance’.
If you are wondering why exactly Toronto drivers are paying as much as $1,886 a year for auto insurance (which is a 30% higher than the average number), there are a few reasons why. Actually, Brampton is the most costly Ontario city for auto insurance, with an estimated premium of $2,392. However, it is all Ontario drivers that are being ripped off – and here is why.
In the words of Kanetix’s vice president Janine White, “there are a lot of variables that contribute to the price of auto insurance, but the most influential one is your living address.” As Janine continues, “drivers residing anywhere in the GTA have a greater chance of paying a lot more for auto insurance.”
The reason why the auto insurance in Ontario is sky high is mostly because of the high auto insurance fraud present in the location. But does this really explain the shockingly high auto insurance costs?
Obviously, there are more factors to blame. The major reason according to Ralph Palumbo, vice-president of the Ontario wing of the Insurance Bureau of Canada – is the speeding as the chief risk factor among the many.
Will this situation change is up to the regulatory bodies to decide. For now, we only know that Brampton is leading the list of cities with highest auto insurance with a 65% higher cost than average, followed by Vaughan ($2,018 and 39% higher), Mississauga ($1,930 and 33% higher), Toronto and Markham (both with $1,886 as a 30% higher cost).