Auto Insurance Rates in Brampton Skyrocket, Exceeding 40% Surge in Ontario: Report

According to a recent report by Ratesdotca, the cost of driving a car in Ontario has become more expensive, with rates in at least one city rising by nearly 40% since 2021. The increase in auto insurance premiums can be attributed to several factors, including rising inflation, a shortage of vehicles and parts, and an increase in car thefts. Additionally, more drivers are hitting the road as the COVID-19 pandemic recedes.

In December 2021, the average estimated auto insurance premium in Ontario was $1,555 for a 35-year-old male driver with a clean driving record and a four-door sedan. However, the current average premium is now estimated to be $1,744, reflecting a 12% increase in the last two years.

Among the cities in Ontario, Brampton tops the list as the most expensive for auto insurance, where driving will cost an estimated $2,707. In 2021, rates in Brampton were $1,976. Toronto follows closely with rates of approximately $2,325 in 2023, marking a 19% jump from $1,953. Mississauga holds the third spot at $2,311, representing a 17% increase from $1,971.

Ratesdotca’s insurance expert, Daniel Ivans, predicts that rates will continue to rise as car insurance companies attempt to compensate for their losses in recent years due to inflation. Although insurers have been granted permission to increase rates, it may not be sufficient to cover their losses entirely.

The Financial Services Regulatory Authority (FSRA) has approved 22 rate increase requests from insurers since the beginning of the year, with an average change of 6.5% per insurer.

It is important to note that these figures and trends are based on the information available up until the report’s publication and may not reflect the current situation.