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5 Factors That Affect Car Insurance Premiums in Ontario

Posted Aug 16th, 2021 in Auto Insurance, Did You Know?, General, In the News, Insurance Tips, Media

In Ontario, several factors are taken into consideration when car insurance premiums are calculated. Find out what influences your car insurance rates by reading below.


5 Factors That Affect Car Insurance Premiums in Ontario, Youngs Insurance, Ontario

If you have ever compared your car insurance rate with a friend, there is a very high probability that you pay different amounts. Even if that friend lived down the street and has the same car, chances are your insurance premiums are not the same. That’s because there are several factors that determine car insurance rates in Ontario, and we’ve compiled that for you.

How Car Insurance Premiums are Calculated in Ontario

#1 Location |

Where you live within Ontario can impact the cost of your car insurance premium.

Typically, more accidents and auto thefts occur in bigger cities, so if you happen to reside in a larger city, you will likely pay more for car insurance.

#2 Car |

In Ontario, insurance companies use CLEAR (Canadian Loss Experience Automobile Rating) to assess historical data for every year, make, and model of vehicle. They use this information to “predict” which vehicles are more likely to be involved in a claim (accident, theft, etc.), as well as how high a potential payout may be.

#3 Age & Gender |

If you are under 25 you are likely to have higher insurance premiums as in-experienced drivers are more likely to be involved in an accident. Furthermore, your gender can also influence the cost of your car insurance; often males tend to have higher premiums than females.

#4 Driving Record |

Your driving history is a big factor that affects your car insurance rates in Ontario. The following can impact your insurance cost:

  • Number of years you’ve been driving
  • Number of years you have had continuous insurance
  • How safe you’ve been while driving
  • If you’ve taken a driver’s training course in the last 3 years

If you have any traffic violations, convictions, or are considered a high-risk driver this could increase your car insurance premiums, too.

#5 Car Usage |

If you drive often, there are more chances to be involved in an accident. The number of kilometers you drive daily to work and annually is a crucial factor. If this is something that has changed since the pandemic, make sure you speak with your Youngs Insurance broker today.

We’ve shared some of the most important factors that insurance companies in Ontario consider when determining auto insurance premiums. You’ll be happy to know that there are potential ways to save money on car insurance, read this, We’re Revealing Secrets on How to Save on Car Insurance.


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