The Toronto metropolitan area is known for high insurance premiums, but some areas are less expensive than others. Which neighborhood fares best?
A new report from Kanetix may help to educate brokers on this matter, however, by providing key insights that allow them to assist current and future Ontario policyholders.
The study took into account the typical quote that would be assigned to a 35 year-old married driver of the popular Honda Civic, and examined how that figure varied among 102 Forward Sortation Areas (FSAs), or neighborhoods containing the same first three characters of a postal code.
The analysis not only found that average automobile premiums in Toronto amount to $1,798 annually, but the most expensive area, North York (Downsview), charges 48% more than the cheapest area, Downtown Toronto (Christie).
Broken down further, the most expensive premiums include:
| Rank |
FSA |
Average annual rate |
Neighborhood |
| 1 |
M3N |
$2,422 |
North York (Downsview) |
| 2 |
M9V |
$2,418 |
Etobicoke (Albion) |
| 3 |
M1X |
$2,373 |
Scarborough (Upper Rouge) |
| 4 |
M1B |
$2,370 |
Scarborough (Malvern) |
| 5 |
M9L |
$2,343 |
North York (Humber Summit) |
| 6 |
M9M |
$2,314 |
North York (Humberlea) |
| 7 |
M9W |
$2,253 |
Etobicoke (Rexdale) |
| 8 |
M6M |
$2,241 |
York (Mount Dennis) |
| 9 |
M3J |
$2,203 |
North York (York University) |
| 10 |
M3M |
$2,157 |
North York (Downsview/Rexdale) |
The cheapest car insurance rates, on the other hand, were found to be:
| Rank |
FSA |
Average annual rate |
Neighborhood |
| 1 |
M6G |
$1,479 |
Downtown Toronto (Christie) |
| 2 |
M5P |
$1,486 |
Central Toronto (Forest Hill North) |
| 3 |
M4P |
$1,503 |
Central Toronto (Davisville North) |
| 4 |
M4S |
$1,505 |
Central Toronto (Davisville) |
| 5 |
M6J |
$1,511 |
West Toronto (Trinity) |
| 6 |
M4V |
$1,513 |
Central Toronto (Summerhill/Forest Hill) |
| 7-A |
M4T |
$1,515 |
Central Toronto (Moore Park/Summerhill East) |
| 7-B |
M4G |
$1,515 |
East York (Leaside) |
| 8 |
M2K |
$1,529 |
North York (Bayview Village) |
| 9-A |
M3B |
$1,530 |
North York (Don Mills North) |
| 9-B |
M2P |
$1,530 |
North York (York Mills) |
| 9-C |
M2L |
$1,530 |
North York (York Mills) |
| 10 |
M4R |
$1,532 |
Central Toronto (North Toronto West) |
The authors of the study believe that price differences persist because of some neighborhoods’ higher likelihood of theft, as well as the presence of collision-heavy intersections.
Still, the organization reiterates that the biggest impact on auto insurance rates remains within drivers’ control.
"Where you live can have a direct impact on your auto insurance rates, but it's not the only factor at play," Janine White, VP of Marketplaces at Kanetix, said in a statement. "Your personal driving record has the largest influence on your premiums. It's up to each driver to stay focused, avoid distractions, and obey the rules of the road. Tickets, collisions and claims can increase your insurance rates dramatically."
