Car Insurance Premiums Vary So Much Across Canada & Some Drivers Pay Almost $2K More

Look out, drivers! The average cost of car insurance in Canada varies from province to province, but drivers in some regions are forking out a whole lot more.

A new report from HelloSafe has looked at car insurance in Canada, and how premium levels compare across different parts of the country.

Using data from EY's 2022 study – Canadian Private Passenger Vehicle Insurance Rate Comparisons – the report has concluded that residents of some provinces are paying almost $2,000 more per year than those living in other areas.

According to the research, it's Albertans who are likely paying the most for their car insurance, with the median premium in the province costing a whopping $3,151 per year.

This is an eye-watering $1,902 more each year than drivers in Saskatchewan – where drivers are paying the lowest median annual premiums in Canada ($1,249).

Among the provinces where drivers are paying the most are Nova Scotia ($2,491) and Ontario ($2,299), as well as New Brunswick ($2,187) and Newfoundland ($2,162).

With car insurance premiums costing over $2,000 in all of these regions, you can't blame drivers for feeling a little envious of some of their neighbours.

Elsewhere in Canada, annual car insurance costs appear comparatively affordable.

In Manitoba, for instance, the median premium is just $1,373 – just under $1,000 cheaper each year than in Ontario, New Brunswick and Newfoundland.

P.E.I. drivers are also paying less than some of their counterparts, forking out around $1,703 on average for their car insurance.

What's more, if you expected car insurance premiums to be consistent across cities in the same province, think again!

HelloSafe's report has found that there are significant differences in the cost of premiums from city to city, with those in the most expensive areas paying upwards of $3,180 every year.

Specifically, it's Calgary and Edmonton where drivers are paying the most on average, forking out $3,182 and $3,150 respectively.

On the other hand, at the bottom of the list, drivers in Vancouver ($1,841), Winnipeg ($1,381) and Saskatoon ($1,249) pay considerably less.

The research concludes that cities located in provinces where the car insurance system is public appear to enjoy lower premiums than those where the car insurance system is private.

And, it's not just where you live that makes a difference. Exactly who you are is most likely affecting your premium, too.

The report found that personal factors – including age, gender, employment status and driving experience, among others – impact how much you pay, and the difference can be colossal.

For example, it found that a 51-year-old, employed, female driver who is living in Manitoba and who has been driving for 35 years was paying just $383 per year.

On the other hand, an 18-year-old male student, living in St. John's, who is a stage 2 learner driver was found to be paying $6,828 – the highest annual car insurance premium in Canada.

That's a difference of $6,445. Ouch.

HelloSafenotes, "When a Canadian stage 2 learner driver is likely to pay on average $3,662 per year, 35 years-licensed drivers will 'only' pay $768 for the same coverage." That's almost 4.7 times less!

What's more, male drivers were found to be paying 4.1% more in premiums than female drivers, with women paying $1,859 on average compared to men paying $1,935.

To compile its report, HelloSafe used available data on car insurance premiums for a total of 33 Canadian cities located in 9 different provinces.

The data also considered 27 different driver profiles – mixing criteria like gender, age, marital and employment status, history of claims, annual kilometres and more.

This article's cover image was used for illustrative purposes only.