When drivers in Ontario are paying for auto insurance for the first time, or when they are renewing a policy, they may wonder why the rates they are paying are so much higher than those paid by their counterparts in other parts of Canada. At the end of the day, insurance companies are going to do whatever it takes to make money, and that usually means charging different rates in different parts of the nation. But why are the prices different in Ontario as compared to other provinces? We decided to take a look at the facts.
If you are buying in Ontario, you may be interested to know why there are such higher prices for insurance in this part of Canada. One of the major reasons, according to insurance companies, is because they have to deal with a great deal of insurance fraud in the state. And even though it is not the fault of those who are paying for insurance and doing everything the right way, they end up bearing the brunt of those costs. The companies lose money because of insurance fraud, which means they pass it along to all their customers through higher insurance rates on an annual basis.
Another reason why the rates are higher in Ontario as opposed to some other parts of Canada is because you have a situation where more people are getting into car accidents in the province. For instance, statistics show us that the rates for accidents among men younger than 25 are particularly troubling, when compared to other parts of Canada. And for an insurance company, if their customers are getting into more accidents on average, it means they are going to have to pay out more for claims. And it results in them raising in the insurance price for anyone within that group of drivers who signs up for a new policy. So if you are 16 to 24 years old, and you are looking for insurance in Ontario, you should be prepared to pay a significant amount of money for the policy.
If you are in Ontario and paying for auto insurance, you should know that you are not being unfairly targeted or taken advantage of by the insurance companies. Every decision an insurance company makes about the prices they charge is done based on statistics and their previous experiences, for better or worse. If they feel as though a certain group of people is going to get into more accidents, they are going to charge those people more money when they go to get a policy. Drivers who are 16 to 24 years old in Ontario are only 13 percent of the driving population, but they cause close to a quarter of fatalities and injuries on the road. So it makes sense they would have to pay more money for insurance.
This is the right time to buy the auto insurance in Ontario because the government of Ontario has announced the latest auto insurance rates in the province and it is decreased slightly according to the statistics.