Feb 22, 2022 in News Auto Insurance

Auto Insurance: Why Are Insurance Premiums So High in the GTA?

At Neinstein Personal Injury Lawyers, car accidents are a big part of our job. Our team of car accident lawyers help victims of automobile collisions secure the accident benefits they’re entitled to from their insurers. Ontarians pay some of Canada’s highest insurance premiums, and even though rates have generally fallen since the onset of COVID-19, it can still be hard to get your money’s worth when you’ve been involved in an accident.

But what causes Ontario’s rates to be so high? And what causes certain areas of the province, especially the GTA, to be home to such a concentration of the highest rates? Global News recently spoke to industry experts to better understand the answers to these questions.

Where are Premiums Highest and Lowest in Ontario?

The simple answer to this question is: the Greater Toronto Area. Six of the seven cities with the province’s highest insurance premiums are in the GTA, including Vaughan at number one ($2,179 per year), Toronto itself at number seven, and Ajax, Richmond Hill, Mississauga, and Brampton rounding out the top five.

The most affordable annual insurance premiums can be found in smaller cities and towns like Cornwall, Kingston, Gananoque and Brockville.

Why are Premiums Higher in the GTA?

There are countless factors that go into calculating any policy-holder’s insurance premiums, including factors that are unrelated to the insured’s individual driving history. For example, changing driving habits during the pandemic have caused premiums in general, to fall. 

“Over the past two years, many Ontarians have been driving much less than they used to, due to pandemic-induced lifestyle changes such as remote work,” said Tanisha Kishan of Ratesdotca to Global News. “There has been a corresponding drop in accidents and claims, which means fewer losses to be absorbed. This could contribute to the continued decrease in premiums we are seeing now. But it won’t last forever.”

On the more negative side are factors like collision rates; if your city is known as a high-collision region, your premiums will go up.

“If you’re living in Vaughan and everyone is driving to downtown Toronto, their exposure is a lot greater than in Kitchener, where we drive 4 km to work. That’s a long haul for us,” said Wilfrid Laurier University finance and insurance professor Mary Kelly.

Other factors include your neighbourhoods average income – more affluent people tend to drive bigger and safer vehicles, which drives down premiums – and the types of houses in your area – cities where people keep their cars in garages tend to have lower costs, as well.

Where do Car Accident Lawyers Come In?

If you’re involved in a motor vehicle accident, it is in your best interest to contact an experienced personal injury lawyer to ensure you receive the full accident benefits to which you are entitled. Our car accident lawyers understand how to secure these benefits from insurance providers; if GTA residents are paying the province’s highest premiums, they should also have the best possible representation to ensure they get their money’s worth.

Contact Neinstein Personal Injury Lawyers today to schedule a free, no-obligation consultation with our team of experienced car accident lawyers.

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