We Provide Car Insurance To All of Oshawa
Car Insurance is one of the most important expenses for almost every individual who owns a vehicle in Ontario and Oshawa as well. Residents of Ontario pay on average the second highest auto insurance rates in Canada after British Columbia as per Insurance Bureau of Canada. There are several factors contributing to the high auto insurance premiums in Ontario.
What Factors Affect Car Insurance in Oshawa and Ontario?
To begin with let us put forward the 4 factors that determine your Auto Insurance Rates in Ontario:
1) The Vehicle You Drive (Year, make and Model):
The insurance companies gather their claims data from the past few years and forecast the losses for the specific vehicle.
Let us take example:
40 Year Married Male, Living in Oshawa, 10 years Licensed and Insured with No claims, No tickets, Insured with current insurance company for 5 consecutive years, Drives to Work.
(many discounts are integrated in the quotes but not listed)
1) The Vehicle You Drive (Year, make and Model):
The insurance companies gather their claims data from the past few years and forecast the losses for the specific vehicle.
Let us take example:
40 Year Married Male, Living in Oshawa, 10 years Licensed and Insured with No claims, No tickets, Insured with current insurance company for 5 consecutive years, Drives to Work.
(many discounts are integrated in the quotes but not listed)
Vehicle & Annual Premium
2018 Toyota Corolla SE - $2696
2018 V W Passat 2.0 T - $1829
2018 Honda Accord Sport - $2242
2018 Mercedes-Benz CLA250 - $2513
2018 F150 King Ranch 4x4 - $2130
2018 GMC Sierra - $2170
2018 Honda CRV AWD - $2114
2018 Hyundai Santa Fe AW - $2194
2018 Toyota Corolla SE - $2696
2018 V W Passat 2.0 T - $1829
2018 Honda Accord Sport - $2242
2018 Mercedes-Benz CLA250 - $2513
2018 F150 King Ranch 4x4 - $2130
2018 GMC Sierra - $2170
2018 Honda CRV AWD - $2114
2018 Hyundai Santa Fe AW - $2194
These are real quotes from a company in Ontario. They show there is no rule of thumb which tells you which vehicle is cheapest. One can conclude that trucks are cheaper than SUVs and sedan are more expensive.
2) The Area You Live (Postal Code):
When we live in Oshawa we have 6 character postal code ‘X1X 1X1’. The first half gives us a general area where we live and the second half points to an approximate location. Over the period of time Insurance companies collect data regarding the claims from each post code and forecast premiums. If you live in a postcode with more claims you pay higher premiums. It seems unfair to you but think about it the other way. If the insurance company distributed the claims to the entire province evenly then the people in post codes with highest number of claims will be paying the same premiums with as the people living in post codes with no claims at all.
3) Your Driving Record:
years licensed, at fault accidents, moving violations, non payment cancellations, license suspensions, years continuously insured, cancellation of the policy due to misrepresentation/non disclosure. This is self explanatory. The worse the record the higher is the premium.
4) The Use of Your Vehicle:
commute, pleasure, business or commercial. The frequency of use, the type of use determines how much the vehicle is on the road. If the vehicle is on the road the chance of having an accident is higher than if it is parked in a driveway. Hence insurance premiums differ based on the use. If someone gives incorrect information about use and the insurance company figures it out at the time of the claim, the policy can be cancelled for misrepresentation and the claim can be denied.
There are other factors like discounts, marital status, gender, other drivers etc that also play a role in determining insurance premium but the effect is not very significant.
2) The Area You Live (Postal Code):
When we live in Oshawa we have 6 character postal code ‘X1X 1X1’. The first half gives us a general area where we live and the second half points to an approximate location. Over the period of time Insurance companies collect data regarding the claims from each post code and forecast premiums. If you live in a postcode with more claims you pay higher premiums. It seems unfair to you but think about it the other way. If the insurance company distributed the claims to the entire province evenly then the people in post codes with highest number of claims will be paying the same premiums with as the people living in post codes with no claims at all.
3) Your Driving Record:
years licensed, at fault accidents, moving violations, non payment cancellations, license suspensions, years continuously insured, cancellation of the policy due to misrepresentation/non disclosure. This is self explanatory. The worse the record the higher is the premium.
4) The Use of Your Vehicle:
commute, pleasure, business or commercial. The frequency of use, the type of use determines how much the vehicle is on the road. If the vehicle is on the road the chance of having an accident is higher than if it is parked in a driveway. Hence insurance premiums differ based on the use. If someone gives incorrect information about use and the insurance company figures it out at the time of the claim, the policy can be cancelled for misrepresentation and the claim can be denied.
There are other factors like discounts, marital status, gender, other drivers etc that also play a role in determining insurance premium but the effect is not very significant.
Why Is My Auto Insurance Premium So High?
Now we know the factors that affect your rate. Let us answer the question – Why is my auto insurance premium in Ontario so high?
To answer this question let breakdown some real life scenarios:
You have been with the same insurance company and the rate went up – The reason could be a change in driving record, amount of claims pay out in your post code increased for your insurance company or the rate for your vehicle increased. Your insurance broker can answer the question with the specifics of your situation.
You are shopping as a new driver:
Rates for new drivers in Ontario are not the most competitive as you don’t have any insurance history. You should shop around and find out if you are a member of a group that gives special discounts. Such groups could be your employer, your union or your professional association. Some insurance companies give special rates for alumni of certain colleges/universities. If you have tickets, accidents or license suspension even as a new driver, it does not help.
You moved or changed the vehicle:
Both can affect your rates as your car is more expensive to insure or your new post code has too many claims in general or for your particular insurance company. If your rates increase substantially shop around. Cancelling current Insurance Policy during the term can lead to a short rate cancellation penalty. It is wise to see overall annual saving as compared to the monthly rate. You do not want to cancel for a few dollars in saving but end up paying short rate cancellation. One suggestion – Only cancel during the term if you are saving at least two months worth of premiums.
It is always good to talk to the insurance company or broker to find out the real reason. If you need a second opinion please call us at 289 274 4807. We will be happy to provide a free review, quote and advise. Our advice is free and honest. Aaxel Insurance Brokers in Oshawa is here to help the residents of Oshawa and provide the best advice, help and service.
To answer this question let breakdown some real life scenarios:
You have been with the same insurance company and the rate went up – The reason could be a change in driving record, amount of claims pay out in your post code increased for your insurance company or the rate for your vehicle increased. Your insurance broker can answer the question with the specifics of your situation.
You are shopping as a new driver:
Rates for new drivers in Ontario are not the most competitive as you don’t have any insurance history. You should shop around and find out if you are a member of a group that gives special discounts. Such groups could be your employer, your union or your professional association. Some insurance companies give special rates for alumni of certain colleges/universities. If you have tickets, accidents or license suspension even as a new driver, it does not help.
You moved or changed the vehicle:
Both can affect your rates as your car is more expensive to insure or your new post code has too many claims in general or for your particular insurance company. If your rates increase substantially shop around. Cancelling current Insurance Policy during the term can lead to a short rate cancellation penalty. It is wise to see overall annual saving as compared to the monthly rate. You do not want to cancel for a few dollars in saving but end up paying short rate cancellation. One suggestion – Only cancel during the term if you are saving at least two months worth of premiums.
It is always good to talk to the insurance company or broker to find out the real reason. If you need a second opinion please call us at 289 274 4807. We will be happy to provide a free review, quote and advise. Our advice is free and honest. Aaxel Insurance Brokers in Oshawa is here to help the residents of Oshawa and provide the best advice, help and service.