Car insurance rates have been on a steady decline on the whole in the province of Ontario but they are on the rise in Toronto and vary dependent on which area residents live in. Toronto is one the most iconic cities in Canada, it's metropolitan area boasts as the most populous city in the country at 5.6 million residents. A recent study conducted by Kanetix.ca shows the average rates for a single 35 year old with a clean driving record in a 2013 Honda Civic is up $88 from last year to $1886. The rates then vary almost as much as a thousand dollars a year dependent on which neighborhood the resident resides in or at least that is what the list of the ten most expensive and cheapest areas for auto insurance in Toronto looks like.
Seven out of the ten most expensive car insurance neighborhoods are Neighborhood Improvement Areas. These are areas that in March 2014, the City designated as neighborhoods falling below the Neighborhood Equity Score and required special attention and action from the city to help these failing neighborhoods. They averaged $2959 which is $173 more expensive than the $2370 that they paid in the same areas last year. The most wealthy neighborhoods like Cas Loma, Rosedale and Bridle Path have some of the cheapest premiums in the city. They have rates of $1640 a year which is $161 more expensive than the $1479 from last year. Kanetix Ltd, found that "if you live in the north end of the city, whether it's the east end or west end, chances are you're paying more for your insurance than those living in the city's center and midtown." This is the second annual list that has been published from this company based on data from the company's online tool which compares premiums by postal code.
Janice White, vice president of Kanetix.ca quoted "at the end of the day, everything is based on statistics. Higher density areas have a higher rate of accidents and claims." She goes on to explain that the wealthier neighborhoods have better proximity to public transit, fewer drivers and fewer cars which leads to fewer accidents and claims. The fact that some people may be forced to park their cars in an intersection that has a higher rate of accidents, will increase their premiums. The study also found that the insurance rates in Toronto as a whole are about thirty percent higher than the provincial average of $1448. Torontonian drivers pay an additional $448 compared to the provincial average. Once again, this is a statistics orientated cost. The provincial average is 9.3 claims for 100 vehicles while a few of the neighborhoods in Toronto skyrocket to 12 or 13 claims per 100 vehicles. Not only the frequency of accidents affect the cost, but also how expensive the claims are. While the provincial average of a claim is $11,500, the city of Toronto suffers as an average of $14,000 per claim. Analysts claim this doesn't paint the whole picture. Some say people in these areas are being forced into these high premiums because transit is undermined deliberately so there is no choice but to drive on high risk roads to get to work and get dinged by the insurance.