Insurance Rates are Too High in Ontario

by Hal
(Toronto, Ontario)

We recently moved back to Ontario after working overseas for a number of years, and were shocked by the rates in Ontario when compared to a few years ago, and also when comparad to other countries like the US. I would say that the rates here appear to be roughly seven times that of the US for a very basic minimum coverage and about twenty times higher than the UAE. Does anyone know why the rates so high in Ontario? I mean its the same liability coverage as the state of Illinois, what is happening to us here?


Ontario Insurance Rates Compared to USA and UAE


Hi Hal,

Thanks for your question. Welcome back. Too bad you received such a surprise.

Before I get into why rates are so high, I thought I should mention that maybe there is something you haven't done. When coming to Canada from the USA, it is important to bring your Abstract (from the State DMV) as well as a Letter of Experience (from your auto insurance company in the US). The Abstract will show if you had any tickets or not and that you were licensed. The Letter of Experience will show that you were insured and if you had any claims. Without these two documents, your insurer will rate you as if you are a new driver, not an experienced one.

Now, to answer your question, the key reason rates have gone through the roof in the past five years (or so) is Accident Benefit Claims. Even the basic Accident Benefit coverage in Ontario is generous, especially before the Ontario Auto Insurance reform in 2010. A minor accident where someone reports a stiff neck easily ends up costing an insurer 10's of thousands of dollars.

Your best defense is to shop around. Have you tried here?
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Note: Always speak with a licensed insurance professional about your specific situation. This insurance information is general in nature and the policy wordings always take precedence. It is possible that there are errors and omissions in this website and www.canada-insurance-source.com, or its authors, take no responsibility.

Keep in mind that insurance licensing, legislation, and policies often vary by province and most certainly by country. Canada Insurance Source is a free information source. So use this site to gain a general understanding of insurance with your own area and situation in mind.  Make sure you review the "please read" page. Always speak with a licensed insurance professional about your specific situation.

Always speak with a licensed insurance representative about your specific situation.

This site is general in nature and there may be errors or ommissions

Please Read

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