Find Cheap Car Insurance in Milton

Car insurance in Milton

Milton follows Ontario's auto insurance system, which can be described as a limited no-fault system. When drivers who live in a no-fault province get into an accident, it doesn't mean no one will be held responsible for the collision. It means that drivers are reimbursed by their insurance company for their legal and medical expenses — which their insurance policy entitles them to — regardless of whether they caused an accident.

Before 1990, when no-fault was introduced to Ontario, drivers had to sue the other party's insurance company for compensation. The result? It took a long time for people to access the money they needed. It was a protracted and costly process due to the involvement of the courts.

Today, insurance companies work together on their policyholders' behalf to determine fault, which has reduced the courts' involvement in claims settlements.

The trade-off of the no-fault system is that the province limits your ability to sue for damages that aren't covered by your insurance plan. For example, pain and suffering and economic loss. In a pure no-fault system, like the one in Quebec, you can't sue for these things, period. In Ontario, you do have the ability to sue for damages. However, you have to be able to demonstrate that your case passes a provincially-set threshold.

Another hallmark of a no-fault system is direct compensation property damage (DCPD). This coverage, which is available in Ontario, ensures that if you're found to have not caused an accident, your insurance company will pay to replace or repair your vehicle, and your premium won't be impacted.

Since it's possible to be somewhat responsible for an accident (for example, you can be found 25% or 50% at fault), you can still access your DCPD benefit if you're partially at fault. Your insurer will give you an amount proportionate to the amount you're not at fault for.

The Ontario Insurance Act includes a section covering fault-determination rules, including many collision scenarios.

Car insurance is mandatory in Ontario and across Canada, which is why it's a heavily regulated industry. Because insurance is so important, some provinces have even opted to take the industry public. Drivers purchase insurance from a Crown corporation in B.C., Manitoba, and Saskatchewan. It's done at the same time as you register your vehicle.

Ontario has a private market, meaning drivers have choices when it comes to their insurance provider.

Still, to ensure that premiums are affordable for drivers (since all drivers need coverage), a provincial body oversees the regulation of prices. The body overseeing the car insurance industry is the Financial Services Regulatory Authority of Ontario (FSRA). Insurance companies must submit requests to change their rates to FSRA along with a justification for the increase or decrease.

How does Milton’s average car insurance rate compare to other Ontario cities?

Of all the 190 Ontario cities surveyed for the 2021 Auto Insuramap ranking of auto insurance premiums, Milton ranked 20th and was in the 80th percentile for car insurance prices.

While Milton is not the cheapest place in the province to insure your car, it's still one of the more affordable places in the Greater Toronto Area.

For example, it's still 24% cheaper than nearby Brampton and Mississauga.

However, car insurance in Milton is still $98 more expensive per year than in Oakville.

These averages are based on a 35-year-old male driver with a clear driving record.

The results from the Insuramap survey suggest that the areas where premiums are higher than Milton's average may receive more claims from people in this demographic. The reverse is true for areas where premiums are lower, like Oakville.

Your mileage may vary if you don't belong to the demographic the survey was based on. For example, women tend to pay lower premiums than men.

The best way to find out what the best rate you can get is to compare rates from multiple insurance companies.

There is wide variation in price between insurance companies. Just like people, their tolerance for risk varies.

Which companies offer car insurance quotes in Milton?

Tips on getting cheap car insurance in Milton

1) Compare quotes

Both the Ontario and Canadian governments recommend comparison shopping before you decide on an insurance company. RATESDOTCA makes shopping around easy by aggregating quotes from 50+ Canadian insurance providers.

2) Increase your deductible

For some insurance coverages, you need to pay a certain amount before your insurance company will release the rest of your benefit and settle the claim.

When you offer to pay a higher deductible, you save the insurance company money. They will often reduce your premium in return.

3) Get the appropriate amount of coverage

Working with an insurance professional will ensure you're enhancing your car insurance coverage in the right areas.

For example, purchasing more liability insurance and accident benefits is a good idea than only carrying the provincially mandated minimum.

But if your car is over five years old (and not leased or financed), you may not need collision or comprehensive coverage.

Check with an insurance professional once a year to see that you're not overspending on coverage.

4) Drive less

If you're one of the millions of Ontarians who have transitioned to remote work, then definitely let your insurance company know.

Cutting down on driving will reduce your premiums.

That's because the statistical likelihood of you needing to file drops when you spend less time on the road.

5) Bundle home and auto insurance

Bundling home and auto coverage with the same insurance company can reduce your annual insurance costs by up to 15%.

6) Try telematics

Several Ontario insurance providers now offer telematics programs.

Telematics is a technology that allows insurers to monitor your driving habits.

A device is installed into your car's onboard diagnostic port and can detect things like how hard you brake, average speed, and the number of kilometres you drive.

If you're able to demonstrate you're a safe driver, your insurance company will reward you with a reduced premium at renewal.

The reductions can be steep – up to 25% in some cases.

However, Ontario insurance companies now have the right to penalize you based on data collected through telematics.

So, unless you know you're a good driver — or if you have a secondary driver listed on your policy that you're iffy about — enrolling in telematics could backfire.

7) Pay for the year upfront

To say ‘thanks’ to customers, insurance companies offer discounts for paying your entire insurance bill at renewal.

8) Apply for discounts

Companies offer discounts to drivers based on their alumnus status, profession, and even membership in a union.

Some even offer discounts to post-secondary students for maintaining a certain grade point average.

9) Avoid additional drivers

Adding a second driver to your insurance policy will increase your premium.

Suppose a household member uses your car semi-regularly. In that case, it's a good idea for them to be listed as a driver.

You may consider asking them to chip in on insurance, though.

10) Buy an endorsement

Endorsements are optional car insurance coverages that alter the terms of your insurance policy.

Unlike other optional forms of insurance that enhance your coverage, like collision or comprehensive insurance, endorsements can be used to reduce your coverage in one area.

For example, you can waive coverage for glass repair in exchange for a lower premium.

Talk to an insurance professional about whether this tactic makes sense for you.

*Shoppers in Milton who obtained a quote on RATESDOTCA from January to December 2023 saved an average of $606 per year. The average savings represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by RATESDOTCA.