Why is Auto Insurance so Expensive in Toronto?

When I leased a $17,000 Honda Civic in 2003, my insurance bill came to just over $2,000 for the year. My home address at the time was near Yorkdale Mall in the north of Toronto. I told the insurer that I would not be driving to work, as I lived a 5 minute walk from my office desk.

I subsequently moved to a little place called Alliston, Ontario. Coincidentally, Honda builds cars there. I reported my address change and told my insurer that I would be driving about 40 km one way to meet up with a GO bus, which would take me another 35 km to my work location. My new bill? Under $1,500 per year.

WHAT? You mean to say that by driving to work (increasing my chances of being in an accident) I am going to save about $500 a year in insurance? Amazing. Insurance costs are based on where you live, not on where you plan on doing all your driving.

You may be interested in an article in The Star that discusses why it costs so much to get auto insurance in Toronto. Read it here.

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