Car Insurance costs in Ontario vs. Alberta
The cost of living varies depending on where you reside in our great Canadian landscape and it may even be a deciding factor in where you choose to live. The cost of living per province (and even by city) influences a number of factors such as the price of goods and services as well as employer salaries, the cost to buy a home and the cost of commodities such as oil. Your insurance rates are likely to be impacted as well, especially when you buy a car.
Sometimes a common transaction like buying a car can be very affordable in one province, but completely out of your price range if you decide to relocate. This variation also applies to the cost of financial products such as insurance. It's especially true when comparing the insurance costs in Ontario versus insurance in Alberta.
If you're planning to move from the prairies to Ontario or vice versa, here are few things you need to know about Canadian car insurance rates:
Why do Canadian car insurance rates vary?
The cost of insurance is determined based on a number of factors, such as whether the service is offered publicly or via private companies as well as the risk involved in each province. More accidents on the roads mean insurance companies are taking higher risks. They're passing that risk off to drivers in the form of higher car insurance premiums.
Both Ontario and Alberta offer car insurance through the private insurance sector and the costs are determined based on - among other things - the local market demand and competition.
How much does insurance cost between provinces?
According to Driving.ca the average annual cost of insurance in Alberta is $1,476 and $1,878 in Ontario. "Though Alberta residents never have to deal with emissions tests and don’t have to put front licence plates on their cars, Alberta winds up as the second-most expensive province in Canada to insure and fuel a car in."
Alberta has the second highest car insurance costs in Canada. Can you guess which province is the first? If you said Ontario, you're right. Driving.ca explains, "Driving a car in Ontario costs $623 more than the second most expensive province. Top that all off with mandatory front plates and the annoying, questionably effective Drive Clean emissions test program and you easily have the most expensive province to own a car."
Car insurance costs in Ontario are due, in part, to the more rigorous requirements than what is seen in Alberta. But that’s not the only reason insurance is more expensive. Don’t forget that Ontario includes larger population centres, so statistically speaking, you are more likely to get in an accident, and that means high costs for Ontario than what you see for car insurance in Alberta.
How to get the best deal on Canadian car insurance rates
It's safe to say that insurance is a valuable product because it protects your assets such as your car and home as well as extremely valuable assets such as your health and life. However, that doesn't mean you need to overpay for your insurance coverage, especially when it comes to car insurance.
Shop around to find the best deal. There are plenty of online insurance quote tools to help get several different home and car insurance quotes in just a few minutes. It helps save both time and money, whether you are getting insurance in Ontario or Alberta – or any other province.