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.
Thanks to its location just outside the GTA, residents don’t have to pay expensive car insurance rates like the drivers in Toronto and other big cities. Guelph has generally safer roads with less congestion in comparison to places like Toronto.
Car owners in Guelph pay about $1,281 to $1,345 per year in premiums for car insurance. That’s around $110 per month. Although car insurance rates are relatively consistent throughout Guelph, your exact location and a number of other factors still come into play when determining your car insurance rates. Compared to the provincial average of car insurance rates, Guelph has less expensive car insurance premiums. The average cost of car insurance in Guelph is even lower than areas like London and just above rural areas like Kingston, Cobourg, and Port Hope.
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 dangerous intersections like Edinburgh Road and Wellington Street or Gordon Street and Wellington Street might pay higher car insurance premiums each year compared to residents that live in less congested and safer neighborhoods.
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. If you’re a student driver attending the universities nearby, you’ll also likely have higher car insurance premiums because of your lack of experience on the road.
Understanding Car Insurance Costs in Guelph
To understand why car insurance premiums in Guelph 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. The good news is that Guelph has relatively safe roads to drive on and the chances of accidents are a lot lower than other areas. However, Guelph is still subject to plenty of construction projects which can make the streets difficult to maneuver. The streets can also be harder to drive on during the harsh months of the Canadian winter because of the snow and ice.
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.
