Do you pay too much on your car insurance? Find out where has the cheapest auto insurance in Canada.
Ever wonder the average auto insurance in your province? I always thought my car insurance is a good deal and pretty close to the average. I guess not! I’ve been paying too much. Time to change insurance company!!
My car insurance is gonna expired soon this year. So, I guess have to shop around and get quotes from various insurance companies.
Anybody has suggestion as to which insurance company offers the best rate?
Average auto insurance premiums by province
|Newfoundland and Labrador||$749|
|Prince Edward Island||$695|
Ontarians pay highest auto insurance premiums in Canada, Quebec drivers pay the least: study
Canadians looking to save money on auto insurance should head to Quebec.
A new study finds that residents of la Belle Province pay the lowest premiums in the country, at an average of only $642 a year. While Ontarians, right on the other side of the Ottawa River, pay the highest premiums at $1,282 a year.
Co-author and Fraser Institute director Neil Mohindra says this is because of rampant fraud in Ontario.
“(It) comes as a result of higher claims costs per vehicle stemming from high levels of insurance fraud, and relatively severe regulations in rate-setting as well as mandatory minimum liability and accident benefit laws,” he says in a statement.
The study conducted by the Fraser Institute, a right-leaning think tank, goes on to say that fraud investigators consider Toronto to be the centre of organized crime rings. Ontario announced reforms in November of 2009, but the study uses the most recent price information, also from 2009. The province’s reforms are expected to lower premiums.
The study explains that Quebec consistently has the lowest premiums because it has a government-run provider that has a monopoly over selling basic coverage. They also have a no-fault system that prevents injured people from suing drivers at fault for pain and suffering.
However, the public provider in Quebec ran a deficit in 2009 of $2.6 billion and in some provinces taxpayers, including those who don’t drive, subsidize government auto insurers to keep premiums lower. Government intervention is not always the answer, however, as seen by high premiums in B.C., Saskatchewan and Manitoba, according to the report. These three provinces rank second through fourth on the list.
“These results are consistent with previous reports that suggest government-run auto insurance monopolies are less efficient than auto insurance provided by a regulated, competitive market,” says Mohindr a in a statement. “Drivers in B.C., Saskatchewan, and Manitoba should be asking why their governments have eliminated consumer choice and are forcing them to purchase auto insurance at rates higher than necessary.”