Where you live in Toronto can cost you $947 more in car insurance
Scarborough drivers pay the highest rates in Toronto

InsideToronto.com
Oct. 18, 2017
Justin Skinner

Toronto has been ranked the fifth-most expensive city in Ontario when it comes to car insurance, but residents in parts of Scarborough feel the sting more than most.

According to Kanetix.ca, residents in some neighbourhoods pay upwards of $2,300 per year for insurance — nearly $950 more per year than residents in some downtown Toronto neighbourhoods.

Overall, Torontonians pay an average of $1,743 in premiums, behind only Brampton ($2,268), Vaughan ($1,825), Mississauga ($1,788), and Markham ($1,785). All five rank well above the provincial average of $1,316.

Residents in the Agincourt North (M1S postal codes), Milliken (M1V) and L’Amoreaux (M1W) pay an average of $2,384 according to Kanetix, with the Malvern (M1B) and Rouge (M1X) neighbourhoods trailing only slightly at $2,313.

Eglinton East and Kennedy Park in Scarborough, Mount Olive-Silverstone-Jamestown and West Humber-Clairville in Etobicoke, Glenfield-Jane Heights, Humbermede, Westminster-Branson, Bathurst Manor, Humber Summit and York University Heights in North York, and Oakwood Village, Brookhaven-Amesbury, and Weston in the former City of York also all pay an average of more than $2,100 per year.

“It usually comes down to statistics — places where there are a higher than average number of claims and a higher than average cost of claims,” said Kanetix vice president Janine White regarding the reason for high premiums in some neighbourhoods. “The question you have to ask is ‘why are there more accidents in some neighbourhoods?’”

White speculated that the lack of transit options in outlying areas of the city means those who live there are more reliant on their cars. Rather than being able to hop on the subway for a quick trek or catch a bus to nearby amenities, those in Toronto’s suburbs often need to drive to get groceries or visit friends of family.

The numbers seem to bear that out. The City of Toronto’s Vision Zero Road Safety Plan suggests that 70 per cent of residents in Etobicoke/York use their vehicle to get around. That number is 65 per cent in North York and Scarborough, but only 32 per cent in downtown Toronto and East York.

As a result, car insurance premiums are far lower in downtown Toronto despite the roads constantly being congested.

In the Casa Loma, Annex, University, Kensington-Chinatown, Trinity-Bellwoods and other downtown neighbourhoods, premiums are $1,491. In neighbourhoods such as Rosedale-Moore Park, the Church-Yonge Corridor, the Bay Street Corridor and Leaside-Bennington, they are $1,437.

“One of the biggest factors that goes into premiums overall is how much you drive,” White said. “There can also be an impact if road infrastructure doesn’t keep up with the pace of growth in an area.”

The good news, White noted, is that Ontario auto insurance prices have remained stable in recent years, and actually decreased a few years back before starting to creep back up more recently.

Safe drivers can take a few steps to reduce their premiums: increasing their deductible, ensuring they have winter tires in winter and installing a telematics device that will monitor their driving habits.

“And if they’re still not satisfied, they should shop around,” White said. “Every company will offer a different rate.”