With almost 400,000 inhabitants, London, Ontario is a thriving metropolis. People from all over the world are attracted to this charming, southern Ontario city, for its diverse culture and highly acclaimed schools, including Western University. Driving in London is one of the more popular modes of transportation, so having a car insurance policy that offers you all the coverage you need is important.

In today’s day and age, with the never-ending expansion of technology, the novelty of picking up the phone to speak to another person is wearing thin. People want things simpler, faster and ready-to-go. This is why the commodity of being able to purchase a car insurance policy online has become increasingly more popular.

What You Need to Know About Car Insurance in London

You are likely in the process of buying a new car, recently bought a new car, or looking at getting a different car insurance policy in London. Car insurance is mandatory for all vehicles in Ontario. We have some of Canada’s strictest insurance regulations and most expensive insurance premiums compared to other provinces.

By law, all vehicles registered in London, Ontario must carry at a minimum mandatory car insurance coverage of:

• Third-party liability coverage of a minimum of $200,000.
• Accident benefits to recover from collision injuries.
• Uninsured motorist coverage of minimum $200,000 for accidents by an uninsured driver.
• Direct compensation coverage for damages if someone else is at fault.

Drivers purchasing car insurance in London can also choose among the optional insurance coverage available, which includes:

• Collision insurance coverage.
• Comprehensive car insurance coverage.
• All perils.
• Specified perils.

Best Car Insurance Rates in London Ontario

Finding the best car insurance rate for your specific needs is important. After all, owning a car and purchasing car insurance is a long-term and pricey commitment. When searching for the best car insurance rates in London, Ontario, it’s important to look at a balance between your budget and coverage needs. You don’t want to break the bank and pay more than you can afford, but you also don’t want to cheap out on coverage.

Insurance rates and regulations are monitored by the Financial Services Regulatory Authority of Ontario (FSRAO), but there are tons of tools you can use to find the best car insurance rate that fits your driving needs and budget.

Some of the factors that can affect your car insurance rate include:

• Vehicle make, model, and year.
• Your age and whether you are a new driver.
• The claims and accident history.
• Your driving and insurance history.
• How much mileage you drive each year.
• The purpose of your vehicle – i.e., pleasure or business.
• Coverage amount.
• Type of car insurance you buy – i.e., collectors car insurance, high risk car insurance, commercial car insurance, etc.

When insurance companies review your personal details, they evaluate whether or not you are an acceptable risk to them; meaning would they want to cover you as a driver based on your driving and payment history. They determine this by reviewing your driver’s abstract — a report that lists all of your insurance history and any claims you’ve been associated with, as well as the reason your past policies cancelled, and motor vehicle report — a report that lists all of your traffic convictions (tickets that you’ve paid for) and/or license suspensions for several years. 

An example of a clean risk would be:

• many years of driving history
• no convictions or suspensions
• no claims
• great payment history

An example of a high risk would be:

• less than 5 years of driving experience
• multiple convictions 
• multiple claims
• previous policies that have cancelled for non-payment

Using a tool like Insurance Hero can help you compare different car insurance rates available in the London, Ontario area. We will help you shop for the best car insurance rates from over 12 insurance companies. All you have to do is enter your information, and we will find the best insurance rates and policies for you to choose from, so you can make an informed and confident decision. You can also adjust different variables on our platform to understand how they impact your car insurance rates to find a suitable insurance policy that you’re comfortable with.

Choosing the Right Car Insurance Policy for You in London Ontario

The right car insurance policy should be a balance between affordability and protection. Especially since car insurance policies are usually in six-month or one-year terms, you really want to make sure you have the right one for you the first time. Otherwise, if you cancel your car insurance before the policy needs to be renewed, you can face penalty fees.

Before choosing your car insurance policy, you should always do thorough research into what type of car insurance you need and how much coverage is required to protect yourself. Insurance companies will offer varying terms and conditions and policy rates, so you should discuss with them what you are looking for and understand exactly what you’re buying.

Look at your specific driving needs and the type of car insurance you are buying. If you have a collector’s car or are a high risk driver, you might have to purchase a different car insurance policy to ensure you get the right coverage for your vehicle. If you drive a lot throughout the year and use your car as a commuting vehicle, you might also want to have higher insurance coverage compared to someone who doesn’t use as much mileage.

It’s also important to set the right deductible and look for ways to get car insurance discounts. A higher deductible will reduce your premium, but you will have to pay more out of pocket in the event of an accident. If you have a clean driving record and haven’t had any accidents, you may want to consider opting for a higher deductible to reduce the money spent on your insurance premium each month.

Insurance companies will often offer discounts for bundling several insurance policies, insuring multiple vehicles, being a safe driver, being a senior driver, taking defensive driving lessons, and more. They may also offer special discounts for long-time customers. Research the different discounts available to see how you can save money and get more value from your car insurance. This way, you’ll get more value out of each dollar invested in car insurance without compromising the amount of coverage you have.

Car Insurance Designed with You in Mind

When you pick apart your car insurance policy, it covers a wide range of protection, for both yourself as a driver, but also for your family. Some of these coverages are mandatory in Ontario. They are:

• Third-party liability
• Accident benefits
• Direct compensation – property damage
• Uninsured automobile 

Third-party liability has a minimum coverage limit of $200,000 to be able to operate your vehicle in London, but you also have the option to increase this limit to either $1,000,000 (most common) or $2,000,000 (recommended). Most of the coverages that fall under accident benefits also have minimum limits, as well as the option to increase them. 

In addition, there are a variety of optional coverages to choose from, which can help tailor a car insurance policy to exactly what you need. They include, but aren’t limited to:

• Collision coverage
• Comprehensive coverage
• All perils coverage
• Rental vehicle coverage

These also have some flexibility with deductibles and limits.

Commonly Asked Questions About Car Insurance

How much is car insurance in London?

The average cost of car insurance in London, Ontario is approximately $1,400 per year. Most drivers in London pay between $1,300 and $1,600 each year to insure their vehicle. While driving in London has its challenges, such as minimal access to highways, railroad tracks running through the middle of downtown, and busy intersections, accidents and rush hour congestion is pretty common.

Is car insurance cheap in London?

Compared to the average car insurance premium that someone in Ontario might pay, London has relatively cheap car insurance rates. Car insurance in London, Ontario is more affordable than many other cities in the province. Drivers living in Brampton pay almost 124% more for their car insurance than Ontario’s average and Toronto drivers pay almost 37% more.

Is it more expensive to insure a car in London?

Insuring a car in London, Ontario is a lot more affordable than insuring a car in other cities. Drivers in Ontario pay an average of $2,201 for a standard car insurance policy. That’s almost $1,000 more than what a car owner in London will have to pay. However, insurance rates also depend largely on your driving circumstances.