It is required by law that all vehicles registered in Ontario must have car insurance. Car insurance rates can vary significantly based on a variety of factors. One of the biggest effects is the location you live in. Big cities, with higher volumes of traffic and more likelihood of accident claims, will have more expensive car insurance premiums. For example, in a city like Toronto, the average annual car insurance rate is estimated to be $2,071. That’s higher than the estimated Ontario average annual premium of $1,634.
Located in the 401 corridor east of Toronto, Ajax is a community close to the Greater Toronto Area and consists mostly of detached single-family homes. Bordering Pickering, Whitby, and Lake Ontario, Ajax residents are dependent on cars for mobility around and outside of the town. Although Go services and public transit are available, cars are still preferred for people running errands and driving on the highways.
The average cost of car insurance in Ajax is $1,595 because of its population, busy roads, and number of commuters. That’s just a bit under the provincial average for car insurance. However, while location does play a large role in car insurance rates, the individual’s history also has an impact on car insurance premiums.
Car insurance rates can also vary slightly based on the specific area in Guelph that you live in. Yes, your home address and the area you live in have a very large and direct impact on your annual car insurance premiums. For example, residents who live near more dangerous intersections and near the busy highway ramps like Westney Road and Salem Road might find higher car insurance rates than people who live in other areas.
If you also use your car as a commuter vehicle, your car insurance premium will be higher because you’ll likely face high volumes of cars during rush hours and use more mileage than non-commuters.
Understanding Car Insurance Costs in Ajax
To understand why car insurance premiums in Ajax are priced the way they are, you must first understand the factors that impact your car insurance rate.
Your geographical location is one of the biggest and most direct factors for determining car insurance premiums. Areas with more people, more cars on the road, and greater chances of accidents will have higher car insurance rates. While the town of Ajax has a small population, there are tons of major highways nearby like Highway 407, Highway 401, and Highway 412. Ajax is also subject to afternoon rush hour traffic eastbound and congestion from traffic going to Kingston, Ottawa, and Montreal.
There are other factors that impact car insurance as well and insurance companies generally apply the same types of information when determining the profile of a driver and the amount of risk they pose as potential customers. Common information insurance companies will look for include: age, gender, make and model of vehicle, and miles travelled. Other factors insurance companies may consider include: accident claims history, length of license, car insurance history, whether they are a new driver, and the type of car insurance needed. These factors determine how likely the customer will get into a car accident, how much the insurance company should charge, and whether they want to insure the driver at all.