Depending on which province you live in, you might find that you're paying more for car insurance. According to a new report from the Insurance Bureau of Canada (IBC), British Columbia drivers pay $1,832 on average for their insurance coverage annually. But, Quebec residents only pay an average of $717 – a $1,115 price difference.
The province coming in second place for the highest insurance premium is Ontario. Ontario drivers pay on average about $1,505 annually. In Alberta, the average driver will pay about $1,316 for annual premiums.
To get an average figure, the IBC took the total amount for premiums based on the province and divided it by the total number of vehicles owned by residential drivers in that province.
Here’s how it works:
Source: ICBC 2019 Service Plan
Average Car Insurance Rates by Province
Sources: Based on IBC BAC data for 2018 and 2017.
The IBC used its report to once again press for British Columbia to break up the public Insurance Corporation of British Columbia (ICBC) and open the province up to private insurers.
“Under ICBC’s monopoly, British Columbians will again pay the highest auto insurance prices in Canada, with premiums now averaging $1,832 annually," said Vice President of IBC, Aaron Sutherland. "While many important changes are underway in B.C., none are expected to begin to reduce the price most drivers are paying. Today’s numbers are yet further evidence of the need to open ICBC to competition and give British Columbians the ability to shop around for their auto insurance needs,”.
B.C. will have new fee structures that start this September. This will help drivers who maintain good driving records. They will have lower premiums while drivers with bad driving records will likely see a rate increase and can expect to pay higher premiums.
David Eby, B.C.'s Attorney General, says the move will improve insurance for drivers in that province. “We want to modernize ICBC so that British Columbians pay according to their crash history, driving records and level of risk, and take responsibility for their driving habits. It’s only fair. Right now, the system is broken. A driver with no crashes could be paying the same premium as a driver with three at-fault crashes in a year,” he said.
For drivers concerned about the high costs of auto insurance, they can find discounts that might lower their premiums. These can include:
As well as the tips above, seniors and retirees can:
While insurance rates are higher in some provinces, you don't have to accept high prices. In Ontario and Alberta, drivers can shop online at Rates.ca to find the cheapest car insurance.
With RATESDOTCA drivers save an average of $427 by comparing auto insurance rates from over 30 of Canada's leading insurance providers.