Auto insurance rates vary from person to person and vehicle to vehicle. Your rate is determined using a combination of factors or risk characteristics outlined below.

Understand your needs and options

You also have many additional coverage options not required by law.

Your insurance company creates your personal insurance profile based on:

The amount of coverage you purchase

Your rates will be higher if you buy additional coverage or protection. If you drive an older vehicle, and decide not to purchase collision and comprehensive coverage, your rates will be lower. Extra coverage that may increase your rates includes:

  • collision or upset
  • comprehensive coverage to protect against theft, vandalism, hail or explosion
  • increasing your third-party liability protection
  • increasing your standard accident benefits coverage
  • policy endorsements or Ontario Policy Change Forms (OPCF)

Always discuss your options with your auto insurance agent or broker.

The deductible you choose

Your deductible is the portion you will be required to pay if you make a claim. Your insurance company may offer separate deductibles for:

  • Collision or upset
  • Comprehensive
  • All perils
  • Specified perils
  • Direct compensation – Property damage (DC-PD) coverages

As a general rule of thumb, the lower your deductible, the higher your premiums.

The insurance company you choose

Auto insurance premiums can differ from one insurance company to another. In general, insurance works according to a “pooling” concept. Insurers group similar risk characteristics, with similar risk groups. Some risk group members may never make a claim, while others may make many claims.

Actuaries analyze the financial costs of risk and uncertainty. They assess risk and estimate future claims your risk group may make to develop individual premiums.

If your risk group was responsible for multiple claims with a particular insurance company, that company’s premiums may be higher than one with a different experience.