Here’s where Mississauga ranks on list of cities with the most expensive car insurance

If you live in Mississauga, you know that car insurance can be costly–but just how costly is it in comparison to other Ontario cities? 

“It’s no secret that Ontario is one of the most expensive provinces in Canada for insurance rates, and unfortunately, those costs continue to rise. What’s more, drivers who live in the Greater Toronto Area (GTA), including the City of Toronto, pay more for car insurance than drivers elsewhere in the province,” Liam Lahey, media spokesperson for RATESDOTCA, wrote in a recent report. 

According to a recent RATESDOTCA report that ranks insurance rates in Ontario, the average Ontario auto insurance premium was estimated to be $1,473 per year in 2018. In 2020, RATESDOTCA’s Insuramap found that the average premium was approximately $1,616 annually, a 9.7 per cent increase from two years ago.

According to the report, Mississauga boasts the second-highest insurance premium on the list of 10 Ontario cities, with drivers paying about $2,372 a year (estimates are based on a 35-year-old Honda Civic driver with a clean record). 

The city with the most expensive premiums is Brampton, coming in at $2,698 a year on average. 

After Mississauga, the cities with the highest premiums are Vaughan ($2,334), Richmond Hill ($2,286) and Markham ($2,222). Toronto, Ajax, Pickering, Whitby and Hamilton round out the rest of the top 10. 

Lahey says that the Financial Services Regulatory Authority (FSRA), Ontario’s insurance regulator, allowed insurers in the province to offer rebates and premium discounts totalling an estimated $1 billion in savings for drivers to help soften the economic impact of the COVID-19 pandemic in 2020. However, FSRA did allow some insurers to increase their rates during the year.

As for why some drivers in certain cities pay more than others, Lahey says that insurance fraud, an increase in claims in a particular region, the escalating cost of repairing modern vehicles and collisions caused by distracted driving all contribute to higher premiums for all.

According to the Insurance Bureau of Canada, more than half of every dollar insurance companies receive is used to settle claims. 

“As claims cost increases, so too do insurance rates,” Lahey says. 

RATESDOTCA says that the towns or cities with populations greater than 15,000 people that had the cheapest car insurance rates in 2020 include:

• Grimsby and Waterdown have an average rate of $1,192 per year.
• Sudbury has an average rate of $1,165 per year.
• Sarnia has an average rate of $1,159 per year.
• St. Thomas has an average rate of $1,124 per year.
• Cornwall, Petawawa, and Russell have an average rate of $1,107 per year.
• Kingston, Napanee, Port Hope, Cobourg and Brockville all have an average rate of $1,103 per year.
• Other smaller urban centres such as Collingwood, Owen Sound, and Stratford ($1,211 per year each) also all fall below the provincial average.

Lahey says that in the future, your place of residence may no longer factor into your insurance premium, adding that the provincial government said it would explore a variety of ways to lower rates, including eliminating geography-based pricing.

As for how to keep your premium as low as possible, Lahey says maintaining a clean driving record is key. He also says it’s helpful to bundle your car and home insurance, invest in winter tires and sign-up for usage-based insurance.