What factors affect my auto insurance rates?

Insurance in Canada can be expensive. Why is your car insurance so high in Ontario?

Understanding how rates are set is one of the ways you can save money month over month.

The following is a list of what impacts your insurance rate:

Male vs Female

Men pay higher premiums. Men are considered riskier to insure, with over twice as many deadly collisions than women, according to Statistics Canada.

What Kind of Car

Kind of a no brainer here, Canadian insurers use factors like the year, make, model, engine, price, and age to set the premium you are paying.

Generally speaking, more expensive, less safe, and commonly stolen will drive the cost of your insurance up. And no, colour is not a factor.


Believe it or not, people that live in cities will generally pay more than those in rural areas. Plus, if you live near roads and intersections with higher traffic volumes you will also tend to pay more, as rates can be based on accidents and crime per geographic location.

Therefore, if the area you live in has a dense population, expect to pay more.

Your driving history

Any crash or conviction where you are deemed at fault will drive up your premiums. Good news is that convictions are only valid for 3-years.

Serious convictions, like a DUI, will drive up your premiums much faster than a single speeding tickets. Multiple infractions will also drive it up quicker, and risk your policy being cancelled.

How much you drive

The further you drive per year, the more you pay (generally). Cut your mileage by carpooling or using another form of transportation to pay less on gas, save the environment, and save on insurance. Win win win!


Married? Discount. Military? Discount. CAA? Discount. Winter-tires, good grades, more than one policy? Discount!

Insurance companies have tons of discounts they offer, and navigating which company will provide the most discounts for you is much simpler with a quick chat with your insurance broker (fill out this form to get started).

Type of coverage

Coverage comes in all shapes and sizes, and options really can change the price you are going to pay.


The bottom-line here is pretty straight-forward: insurance is a numbers game. Premium prices are set based on data, including age, sex, time spent driving, vehicle, accident history, and driving behaviours.

Although you can only control some of the factors realistically, talking to an insurance broker can help match you with the best discounts and premiums.