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Residing in Toronto, Canada’s largest city, brings you many lifestyle perks. However, just like other automobile owners, you might be paying some of the highest car insurance premiums in the country. A city with more than 6.4 million residents is bound to remain congested with traffic and pedestrians.

No wonder why drivers remain more susceptible to accidents and file claims frequently. This explains why car owners repent shelling out higher premiums than most other provinces.

Toronto residents fork out a hefty annual car insurance premium of $2,071, while the provincial average stands at $1,634. So, what’s your strategy to prevent annual premiums from burning a hole in your pocket? Given that Toronto car insurance rates are pretty high, it pays to consult reputed brokers.

These experts recommend affordable policies to keep premiums manageable. You can find the best quotes here to get started.

Why are car insurance rates in Toronto so high?

The average car insurance rates for drivers in the city of Toronto are 138% of the standard premium in Ontario.

Automobile insurers calculate your premiums based on your risk profile. So, what makes you a high-risk client in Toronto? You would be shelling out higher premiums even if you maintain a decent driving record. These factors influence your risk profile to negatively affect your premiums.

1.   High traffic congestions

Being the largest city in Ontario, Toronto experiences high traffic volume on its roads. Besides, the 401, which happens to be one of the world’s busiest highways, runs through Toronto. Insurers consider drivers in Toronto to be at high risk since they navigate their cars amidst such a high traffic volume. With greater exposure to accidents, drivers are more likely to file insurance claims. Naturally, this drives their premiums further up.

2.   Frequent instances of car theft

The most discouraging statistic for car owners from the Insurance Bureau of Canada (IBC) reveals that a car gets stolen every six minutes in Canada. This risk is even higher in densely populated cities like Toronto. The crime rate in Toronto is high and the risk reflects in terms of high insurance premiums.

3.   Car insurance fraud

Instances of car insurance fraud are more frequent in large cities such as Toronto. This affects the insurance industry as a whole. Since artmobile insurers incur losses while processing these fraudulent claims, they fail to keep premiums low. Ultimately, their loss gets transferred to car owners in the form of high insurance rates.

However, there are strategies to beat the high car insurance rates. Consulting reputed brokers can help you make significant savings on your premiums.

Tips to get the lowest car insurance rates in Toronto

Here’s what car owners in Toronto can do to get the lowest quotes on their car insurance policies.

1.   Compare quotes for competitive Toronto car insurance rates

Comparing quotes from reputed insurers in Toronto turns out to be the most straightforward way of keeping premiums affordable. However, have you considered the hassles involved in the process?

Each time you talk to an insurer, you need to furnish the same details regarding your requirements. Also, each of them might have its terms and conditions documented in the fine print. In a nutshell, it would take you a Herculean effort to scrutinize the profiles of dozens of insurers.

A logical way to go about the challenge is to contact an insurance broker. Being a part of the industry, these professionals can recommend trusted insurers. Most importantly, brokers can compare quotes for customized policies from multiple insurers in a few minutes.

Doesn’t it make sense to loop the professionals in and save time?

2.   Review your policy

When was the last time you reviewed your car insurance policy? Your car has been growing old and may not need a few coverages or add-ons.

To get the best car insurance rates Toronto has to offer, you may consider overlooking depreciation coverage or accident forgiveness. Also, if your car is old enough, there’s no point continuing with the collision coverage. Experienced brokers can guide you in omitting benefits that are no longer relevant to you, thus curtailing your premiums.

3.   Bundle insurance policies

Have you insured your home and car with different insurance companies? That’s a bad idea.

Bundling your insurance policies can help you save up to 20% on both policies. Talk to your insurance broker and switch to a single insurer to cover both your assets. As a token of gratification, you can qualify for a discount on your car as well as your home. Now calculate how much you would be saving by bundling your policies.

4.   Undergo a defensive driving course

Insurance companies consider lowering premiums for drivers having a low risk profile. Have you undertaken a defensive driving course that can translate into more affordable insurance policies?

Make sure that the driving course is accredited by the Ministry of Transportation. This way, you would carry a lower risk profile and be more vigilant behind the wheel. The course may appear to be an investment, but you would save hundreds of dollars on premiums in the subsequent years.

5.   Keep your eyes open for discounts

Are you a student or a part of any non-profit association, union, or professional group? Different car insurance companies in Toronto roll out discounts and rebates for members of certain associations to beat the high Toronto car insurance rates.

However, how would you know when an insurer rolls out these privileges? Keep in touch with your insurance broker, who can recommend specific policies. This way, you can make the most of the rebates.


While car insurance rates around Toronto keep haunting drivers, being tactical with your approach to buying the policies can help you keep the premiums relatively low. Also, install car safety devices to project a lower risk profile to your insurer. Try to go for multi-car insurance policies if you own more than one vehicle in your family. Besides, consider paying your premium annually rather than monthly to save on the processing fee.

Working closely with a reputed insurance broker, it’s easy to save on your premiums. The professionals channel years of experience to help their clients with maximum coverage while curtailing insurance costs.