Car insurance cost in Canada varies based on several factors, including how each province provides driver coverage. The country has both public and private insurance programs, with Saskatchewan, Manitoba and British Columbia relying on state-run insurance and the rest of the country with several independent insurers. Depends on private insurance.
In general, private insurance has proven to be the most cost-effective option as competition in the market drives prices down. This is not necessarily the case in all federal states, but it is certainly the most effective way of providing insurance coverage overall.
To give you an idea of the insurance rates across Canada, here's a breakdown of the cheapest to highest car insurance rates in Canada, premiums in the country, and some facts about the car insurance situation in each province.
Let's begin with the negative information. With an annual average of little over $1,800, drivers in Canada's westernmost province pay the highest insurance premiums. That's increased by almost $700 since 2015, or a staggering 63% in less than five years! In contrast to other provinces, British Columbia's insurance is managed by a crown company (ICBC), so if you don't like those conditions, you're out of luck—this is the only option available.
Young drivers are the ones who are most affected by ICBC's premiums, which have recently become a hot topic in BC. The province maintains that a spike in expenditures for the insurer, such as injury claims, lawsuits, and car repair obligations, is the cause of the sharp increase in prices. That is a little consolation for BC drivers, who are watching their rates rise.
There has been an effort to increase the number of private insurers in the province, providing more options and competition to reduce rates. Still, BC doesn't appear interested in giving up its monopoly on auto insurance.
There's also good news, though!
The BC government announced the adoption of the no-fault system in February 2020. No-fault insurance prevents accident victims from suing for damages unless the accident resulted from reckless driving, street racing, negligence, intoxicated driving, or defective or improperly fixed automobiles. Instead, ICBC will give benefits and compensation directly to those harmed. After May 1st, 2021, drivers in British Columbia will benefit from a 20% reduction in basic and optional rates. ICBC won't raise its rates before that time.
Ontario's province, with the highest population, has the second-highest cost of auto insurance. Auto insurance in Ontario costs more than $1,500 a year if you frequently use the 401. With average premiums of $1,281 in 2015, Ontario had the highest cost, but its $247 increase doesn't look so awful compared to BC. Experts claim that widespread fraud is the primary cause of the rising rates. Generous accident benefits legislation has also been taken into account.
You must have car insurance in Ontario, but unlike in British Columbia, you can shop for the best offer with private insurers. Spend time comparing brokers to find a reasonable price for your required coverage.
Last April, the Ontario government announced "transformative" measures, but it doesn't seem that they are saving drivers money. According to our calculations, the average premium increased by 1.56% in February 2020, from $1,505 to $1,528. Some insurance providers raised their premiums to 11%.
In Alberta, car insurance cost is $1,316
If In Alberta, known for its expansive sky, you want to drive your new F150 along Calgary Trail. With an average yearly premium of $1,316, Alberta's auto insurance prices are currently the third most costly in Canada. Since 2015 ($1,004), when Alberta ranked sixth nationwide, that figure has increased by $300. The "Alberta Advantage": what happened to it?
The previous provincial government had capped private vehicle insurers' rate increases at 5% annually, but Alberta's UCP administration eliminated that cap in 2019, much to the delight of insurance providers. It appears doubtful that interest rates will decrease any time soon.
Saskatchewan has recently increased its insurance premiums for drivers, another province with open prairie between destinations. Drivers in Saskatchewan paid an average annual rate of $1,049 in 2015. It now costs an average of $186 extra.
Saskatchewan, like BC, has a provincially administered auto insurance company (Saskatchewan Government Insurance). Therefore you must regrettably pay whatever they demand. All motorists in the province must maintain third-party liability coverage for $200,000, but a report published in May warns that many are "underinsured." No comparison shopping.
Insurance cost in Quebec - $717
Here is one of the few occasions where the last place on a list is the most acceptable. Less than half of what drivers in BC and Ontario pay on average, La Belle Province offers its drivers the most economical rates in the nation. Even better, the tariffs are staying the same and increasing at the same rate as other provinces. Quebec paid an average of $642 in 2015; their average payment has increased by only $75 since then.
So why are rates in Quebec so low? Some claim that Quebec's insurance laws are less stringent than those in other provinces. Additionally, the province limits bodily injury claims, lowering drivers' premiums. They also use a combo of public and private insurers so that you can shop around for the best deal.
You can see how diverse the auto insurance environments continue to be in Canada because premiums fluctuate across the country. Certain jurisdictions mandate that owners of motor vehicles purchase specific insurance packages that include mandated coverage. In the end, you'll need to understand your area's requirements and what you can do to lower your expenses.
There are several things you can do to reduce the price of your auto insurance even though you can't change the average annual rate in the province where you reside:
1. To reduce your premiums, raise your claims deductible. It is a little hazardous because you must pay extra out of pocket when filing a claim.
2. If you drive an older vehicle, consider removing collision insurance coverage. If you total your automobile, you'll probably receive less money than you'll save on coverage.
3. Multiple items are eligible for discounts from many insurance providers.
4. Look into usage-based insurance, which bases premiums on how you drive.
5. Enroll in a driving school. If you have a driving certificate, you may be eligible for an insurance discount in some jurisdictions, including Alberta.
6. Keep your driving record spotless; several provinces base their rates on it and even give reductions for each year you go without filing a claim.
7. Before buying a car, take insurance costs into account. Insurance costs vary depending on the vehicle.
8. Several insurance providers will lower your insurance premiums if you install a vehicle anti-theft system.
9. Reduce your mileage to be eligible for low-mileage discounts.
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