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.
In equally busy areas of Ontario, where residents are more reliant on driving to get around the city, insurance can be just as expensive, or even more. The average car insurance premium for Mississauga residents is $2,086. That’s a lot higher than the provincial average and slightly more expensive than what residents in Toronto pay for car insurance.
Car insurance rates can also vary slightly based on the specific area in Mississauga 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 in the heart of Mississauga or in areas where there are more people and congested roads will likely pay a higher premium for car insurance than residents that live on the outskirts of Mississauga where it’s less congested.
If you also use your car as a commute vehicle, such as if you’re driving into Toronto every work day, your car insurance premium will likely be higher than someone who lives and works in the Mississauga area. That’s because commuters are more likely to face traffic and accidents during rush hour. It’s also because people who commute will likely be using more mileage than non-commuters. As a result, commuters will have higher car insurance premiums than those non-commuters.
Why is Car Insurance so Expensive in Mississauga?
To understand why car insurance premiums in Mississauga are so expensive, you must first understand the factors that impact your car insurance rate.
Your geographical location is one of the biggest and most direct impacts in determining your car insurance premium. If you live in a busier area in Mississauga where there is a higher population, congested roads, and a greater chance of car accidents, drivers will be faced with more expensive car insurance premiums. On the other hand, if you live in a more rural area like Oshawa or Kingston, you’ll find much cheaper car insurance rates.
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.
Driving in Mississauga can be hectic. Mississauga is by Pearson Airport, bringing in travelling people from all over the province. Mississauga is also home to Square One Mall, the second largest shopping center in Ontario and the third largest in the country. With its dense traffic on major highways, busy intersections, and the already large population of residents, anything can happen on the roads.
