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Does Commuting Increase the Cost of Car Insurance in Ontario

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Expert Insights from your Auto Insurance Brokers in Barrie

Purchasing auto insurance is a mandatory aspect of owning your own vehicle in Ontario. Whether you drive to work every day or use the car only for the occasional pleasure commute, your auto insurance premiums may make up a significant amount of your monthly expenses. It is useful to understand whether the type of commute or your car usage patterns impact your insurance.

Read on for some expert insights on Ontario car insurance from your trusted auto insurance brokers at Orr & Associates.

Car Insurance for Commuting to Work

While your location, age, driving experience, or make and model of the vehicle are the common factors that impact your car insurance rates, the duration of your daily commute or the distance traveled may also influence the price of your premiums. For the insurance provider, it is all about how often is your vehicle in use, and therefore what is the perceived risk of accidents or likelihood of future claims. Moreover, the primary usage type may also impact your auto insurance rates.

  • Commute Use: Anything you do regularly, such as driving back and forth between work, your educational institution, or even the trips made to drop off and pick up your kids from school, sports practice, or other extracurricular activities.
  • Pleasure Use: Anything that does not require a daily back and forth. For example, running errands or doing groceries, or weekend road trips.

However, every insurance provider may look at this aspect differently. While some may not distinguish between commute versus pleasure for arriving at premiums, others may have look at commute based on the daily and annual mileage, and some others may define specific situations that represent commute or pleasure.

What Car Insurance is Appropriate for Commuters?

Choosing the appropriate type of car insurance is an important aspect of driving legally in Ontario. In addition to differentiating between pleasure driving and commuting for work, insurance providers will also distinguish between personal and business commute. For example, do you drive daily between your home and place of work or do you use your vehicle for the daily commute, as well as to conduct business?

Whether it is your own business or the one you work for, if your drive entails conducting business affairs, then your vehicle is more than a commuter car, and requires a commercial auto insurance policy. For example, sales persons using the car to meet with clients, realtors driving to and from showings, or driving back and forth for delivering business related packages or consignments, and so on.

Average Annual Insurance Premium by Vehicle Use

It is a known fact that Ontario has one of the highest rates of auto insurance in Canada. According to the Insurance Bureau of Canada, the average auto insurance cost in Ontario is $1,634 per year, with most drivers paying $1,300 to $1,800 annually. This range not only accounts for personal versus commuter use, but other factors, such as age, location, claims history, driving record and experience, vehicle type, coverage type, and your chosen plan and deductibles.

Is insurance cheaper for pleasure drivers or commuters? There is no clear or definitive answer to this question as every insurance company uses different criteria to weigh risks and calculate premiums, while also offering varying discounts for similar situations and insurance types. However, all things considered, it is about the time on the road. The more often your car is on the road, the greater the risk of an accident or wear and tear, which means increased likelihood of repairs related insurance claims. Hence, the cost of auto insurance for a pleasure use vehicle may be less than a commuter vehicle.

Does your commute affect insurance? That depends. At times, the mileage you add on an annual basis may impact your auto insurance premium in Ontario more than the actual nature of the commute (i.e., for work or pleasure).

How to Find Cheap Commuter Car Insurance in Ontario

No matter what your primary car usage, here are some tips for saving on car insurance rates in Ontario:

  • Consider a higher deductible.
  • Bundle your policies.
  • Choose from makes and models that attract low insurance rates.
  • Go for annual premium payment instead of monthly billing.
  • Maintain a clean driving record.
  • Shop around for policies and compare rates and terms with the help of a car insurance broker near you.

Consult an Experienced King Insurance Agency Broker for Your Auto Insurance Needs

At Orr & Associates, we specialize in managing the auto insurance needs of clients across Ontario. Our partnerships with all the top insurance companies in Canada help us to find the best possible match for your auto insurance coverage and benefits requirements. You can count on our experienced and knowledgeable car insurance brokers in Barrie, ON, King City, ON, and various other Ontario locations to guide and support you throughout the process of purchasing or renewing your auto insurance.

Call 1 (866) 521 5926 toll-free or complete our online form to get a free quote for your auto insurance needs in Ontario, as well as other types of personal or commercial insurance requirements.