Insurance rates and Toronto neighbourhoods

When calculating car insurance rates in Toronto insurance companies take into consideration all of the normal criteria such as your age and gender demographics, your driving history, the make, age and colour of your vehicle as well as where you routinely park your car. However, in Toronto, one other factor comes into play – your postal code. There are several neighbourhoods that rank much higher when it comes to insurance premiums than others – and this cost should be taken into account when looking for a home as it will impact your bottom line.
 
According to a survey taken by the provincial government in 2016 the neighbourhoods with the highest insurance premiums are as follows:
 
1- Brampton
$2,392 estimated premium
65% higher compared to provincial average
 
2- Vaughan
$2,018 estimated premium
39% higher compared to provincial average
 
3- Mississauga
$1,930 estimated premium
33% higher compared to provincial average
 
4-a -Toronto
$1,886 estimated premium
30% higher compared to provincial average
 
4b – Markham
$1,886 estimated premium
30% higher compared to provincial average
 
5 – Richmond Hill
$1,783 estimated premium
23% higher compared to provincial average
 
6 – Hamilton
$1,683 estimated premium
16% higher compared to provincial average
 
7 – Pickering
$1,593 estimated premium
10% higher compared to provincial average
 
8 – Ajax
$1,556 estimated premium
7.5% higher compared to provincial average
 
9-a – Bradford
$1,484 estimated premium
2.5% higher compared to provincial average
 
9-b – Stouffville
$1,484 estimated premium
2.5% higher compared to provincial average
 
Even though Ontario already has the second-highest car insurance premiums in Canada (after British Columbia), within that distinction certain areas of the city rank even higher. The cost of insuring a car accounts for 4.5% of disposable income – a significant number that does make some people hesitate about owning a car.
 
The reason for this huge gap in premiums is largely based on the following:
High frequency of claims, lawsuits, and injuries
High level of fraud and organized crime affecting private insurance companies
So, if you are looking at buying a home in a new neighbourhood and your car insurance rates are already at the limit in your budget, then it is best to find out what the rates in the new neighbourhoods you are looking at are before making any offers – it just might influence your decision.