Car insurance rates can vary greatly by postal code in Canada. There are many factors that insurance companies consider when determining rates, including the frequency and severity of claims in the area, the population density, the number of drivers and vehicles on the road, and the overall crime rate.
Postal codes located in urban areas typically have higher insurance rates compared to those in rural areas due to a higher frequency of accidents, theft, and other claims. Additionally, areas with a higher population density may also experience more traffic congestion, leading to a higher likelihood of accidents and claims.
Insurance companies may also consider the average age and income level of residents in a particular postal code, as these factors can also impact the likelihood of claims being made.
It’s important to remember that while postal code can play a role in determining insurance rates, other factors such as your driving history, the type of vehicle you drive, and your coverage levels will also impact your rates. So, it’s always a good idea to shop around for insurance quotes from multiple companies to find the best coverage at the most affordable price.
Which Are the Most Expensive Postal Codes in Ontario for Car Insurance?
The most expensive postal codes for car insurance in Ontario can vary depending on a number of factors, including the number of claims made in the area, the level of crime, and the cost of repairs. Some areas that are known for having higher insurance rates include Toronto, Brampton, and certain suburbs of these cities. Insurance companies use this information, along with information about the driver and the vehicle, to determine insurance rates. It’s important to keep in mind that while postal codes may give an indication of car insurance costs, other factors such as driving record, vehicle type and usage, and personal information can also significantly affect the cost of insurance.
Toronto: M5G 1P5, M6R 2L2, M5G 1P5
Toronto is the fourth most populated city in North America. It has a population of around 2.6 million. The cost of insurance here is $2,342 annually. This is 27% higher than the average cost in the province.
Brampton: L6R 2S5
In Brampton, the cost of car insurance is not cheap. You may expect to pay at least $2,217 per year for car insurance. This price is 44% higher than the average cost of insurance in Ontario. The city has a population of half a million. It currently stands the ninth place in the most crowded cities in Canada.
Vaughan: L6A 1P4
The annual average insurance cost here is $2,008. This is 41% higher than Ontario average. Vaughan is the 17th largest city in Canada. It has a population of around 288,000. It is one of the fastest-growing cities in the country. It had a 20% increase in population size within five years.
Mississauga: L5B 2G6, L5B 3C1, L5B 3C9
This is the sixth-largest city and the sixth most populated city in Canada. The cost of insurance is typical $1,998 annually.
Hamilton: L8N 1V6
This is a highly industrialized city with a population of about half a million. The average annual insurance cost is $1,987. If you include the metropolitan area, the population may be around 700,000.
Thornhill: L4J 7Z4
Thornhill is not as densely populated as the other cities. Due to its proximity to the other big cities like Vaughan and Markham, the community flourished a lot. The population grew from 40,000 to 100,000 within ten years. This also added a risk factor to the area. Now the average annual insurance cost here is $1,884.
Markham: L3R 8G5, L3R 9W3
Markham’s population increased from 310,000 in 2011 to 342,000 in 2015. This sharp rise in the population is what makes it a high insurance city. The car insurance averages at $1,829 annually. This is a 17% increase from the average of Ontario.
Richmond Hill: L4C 3C4, L4C 3C7
Richmond Hill is the third most populated in the southern section of the York Region. The population rise in recent years caused the insurance to average at $1,755 per year. Many people here are employed in the business sector and drive to work. Hence insurance companies may deem it a high-risk area.
Ajax: L1S 2H9
Ajax has 33 communities and a population of 109,000. Ajax used to be an agricultural area. However, there have been major changes over the last three decades. With time, this city has turned into a hub for the working-class people. Now the average annual insurance rate is $1,718.
Which Postal Codes Have the Cheapest Car Insurance in Ontario
Ontario has the highest car insurance rates in the country. So, it does not come as a surprise that there are few cities where car insurance rates are cheap. There are small villages and towns in Ontario that have low insurance rates. The average insurance ranges from $1,486 to $1,530 per year. This price is not too far from the average provincial rate of $1,544.
Though negligible, it is still worth knowing which areas have the cheapest car insurance rates:
- Forest Hill North: M6C 2J9
- Davisville North: M4S 1Z1
- Davisville: M4S 2M9
- Trinity: M5A 3T1, M5A 1G3
- Summerhill: M4W 2C6, M4W 2E4
- Moore Park: M4T 2C3, M4T 1R3
- Summerhill East: K4M 1B2
- Leaside: M4G 2C6, M4G 2A8
- Bayview Village: M2K 1X8
- Don Mills North: M3B 1K3
- York Mills: M2L 2W2
There are cities that are less populated and the insurance rates can save you up to 33% from Ontario’s average.
Below are the cities where you can get cheap insurance rates at around $1,044
Kingston: K7L 5G2
Kingston is a densely populated city and also called Limestone City. However, the primary industry in the city is public service. The absence of massive corporates and commercial entities makes Kingston a low-risk city for insurance.
Cobourg: K9A 2M2
Cobourg is a small place that houses only 18,000 people. The primary form of transportation is the Cobourg Transit. This services the entire town with buses. The buses operate only till 7:00 PM as this place is very remote and hardly any busy traffic.
Napanee: K7R 3K8
This town is smaller than Cobourg. The population is a mere 15,000. It has few historical sites, but it is not a busy town.
Belleville: K8N 2Y8
Belleville’s population is only 49,000. The city is close to a river and the main industry here is manufacturing. Fewer people have cars compared to the major cities. This area has mostly transportation service through buses and trains.
About the Author: Ashley Miller
