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July 25, 2014

The hunt for affordable Toronto car insurance

1 min read


So you live in Toronto and are now on the hunt for reasonable car insurance rates. Toronto, the largest city in Canada, the capital of Ontario, and the place over two million people call home, has lots to offer. But one thing Toronto does not have is low car insurance rates. 

For long term residents, the price of Toronto car insurance no longer comes as a shock but rather as part of the cost of living in such a big city. For those who move to Toronto from smaller areas, the rate is always quite astonishing. One of our current clients moved back home to her family in Whitby after she graduated from university. When she got offered a job in Toronto she thought it was the perfect opportunity to move to Toronto to be closer to work. When she called her insurance company to let them know her address had changed from Whitby to Toronto, she was floored when she heard her price had nearly doubled.  By the time she called Mitch Insurance Brokers, she was very overwhelmed by her monthly insurance payments. As an insurance broker, we were able to shop for her through various insurance companies to find her a much better rate. While the rate was still higher than what she was paying when she lived in Whitby, her monthly payments definitely decreased.

You know now what factors affect your car insurance premium, but let’s look further into why Toronto has much higher premiums. One of the main reasons is fraud. Over the last few years, the Greater Toronto Area has seen the greatest increase in injury claim payouts, yet a decrease in accidents. Insurance companies have been hit with huge bills, and as a result, those living in the GTA have been harder hit on their premiums. These bills include not only payouts for the cars themselves, but accident benefits claims as well, which unfortunately causes higher premiums for honest drivers. The biggest fraud hotspots are Markham, Mississauga, Brampton, Toronto and Scarborough, so chances are, if you are looking for car insurance in any of those areas, you are going to see higher premiums.

Your best bet for finding affordable Toronto car insurance is to contact an insurance brokerage since brokers represent many different insurance companies so they can quickly do the comparison shopping for you. Keep in mind that insurance companies are competitive in different cities, so the company you were with in another city may not be the best fit for you in Toronto.

Call or email Mitch Insurance Brokers and we’d be glad to find lower Toronto car insurance for you.

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