TORONTO, Oct. 26, 2016 /CNW/ - Ontario car insurance rates continue to be a hot topic as Ontario drivers pay some of the highest rates in the country. The goals set out by the provincial government in 2013 to cut auto insurance premiums by 15 per cent continue to fall short.
LowestRates.ca, a comparison site for car insurance rates, investigated what factors are truly impacting car insurance rates in Ontario. The company's data revealed, over the past year, a significant 9 per cent drop in the average insurance rate with an average premium of $2,353/year dropping to $2,154/year when Ontarians shopped around for a rate. To gain a better understanding of what affects drivers' insurance rates, the company looked at numerous factors that play a role in rising or lowering individual rates.
According to LowestRates.ca data, here's what impacts Ontario drivers' insurance rates:
Your daily commute
For drivers commuting less than 9KM each way per day, your average rate is $2,296 per year. For people who commute 30-39KM each way every day, the average rate is significantly more at $2,806 per year.
You're a millennial
Millennials are paying the most for car insurance. Those aged 16-33 years old pay an average yearly premium of $2,899.30 compared to Gen X (34-51 years old) who pay $2,289.00 and Boomers (52-70 years old) who only pay $1,999.08.
The age of your car
Thinking about buying a new car? If you're looking to lower your rates, you may want to think again. A 2016 car will cost you a yearly average of $2,929 vs. a 5-year old car at $2,520.
Buying a 10-year old car will almost cost you $800 less per year than a brand new car at an average rate of $2,121. However, you may not be able to make that money back with car repairs and maintenance that come with an older car, so make sure you consider all expenses.
The family road trips
Similar to your commute, the mileage you put on your car per year can have an impact on how much you're paying for insurance. So whether you're commuting a long way to the office every day or taking family road trips across Canada, if you're driving 20,000-24,999 KMs per year, you'll pay an average of $2,529 compared to a driver who puts on less than 10,000 KMs per year who will only pay $2,111.50.
Your urban roots
Living in the big city is costly. On average, people who live in the GTA pay $2,584/year in car insurance, compared to those who live in London at $2,185 and Ottawa at $1,803.
"We think it's important to inform Ontarians about what's really impacting their car insurance rate," said Justin Thouin, CEO of LowestRates.ca. "By looking at our data, we can help demystify what often seems like complicated premium calculations. In order to find the best policy, drivers need to pay attention to what influences premiums and compare rates annually."
Comparison shopping is one factor that can have massive impact on car insurance rates. LowestRates.ca can compare up to 20 rates at once and can help Canadians find the best car insurance premium.
To view the full report 'What Really Affects Car Insurance Rates in Ontario?' visit: http://www.lowestrates.ca/reports/ontario-car-insurance-report-2016.pdf
About LowestRates.ca Data
The car insurance rate data was pulled from the LowestRates.ca client database, which generates over 100K+ quotes each year. It includes a sample of 5,402 Ontario drivers between July 2015 to July 2016.
Based in Toronto, ON, and founded in 2012, LowestRates.ca provides a free, independent service that helps consumers save time and money by comparing personal financial products from Canada's leading financial institutions.
Image with caption: "What’s Truly Impacting Ontario’s Car Insurance Rates? (CNW Group/LowestRates)". Image available at: http://photos.newswire.ca/images/download/20161026_C2625_PHOTO_EN_804297.jpg
Image with caption: "LowestRates.ca (CNW Group/LowestRates)". Image available at: http://photos.newswire.ca/images/download/20161026_C2625_PHOTO_EN_804295.jpg
For further information: Linda North (for LowestRates.ca), 416-708-8012, [email protected]