Categorized | Society

Poor neighbourhoods pay more for car insurance : Study

Posted on 24 November 2016 by admin

If you live in one of Toronto’s priority neighbourhoods, you probably pay more for auto insurance.

At least, that’s what the list of 10 most expensive and cheapest areas for car insurance in Toronto looks like at first blush.

Seven of the 10 neighbourhoods are Neighourbood Improvement Areas.

Meanwhile, more wealthy neighbourhoods like Casa Loma, Rosedale and Bridle Path have some of the cheapest premiums in town.

The list, which was published on Nov. 15 by Kanetix Ltd., found that, “if you live in the north end of the city, whether it’s the east end or west end, chances are you’re paying more for your insurance then those living in the city’s centre and midtown.”

It’s the second annual list that’s been published, based on data from the company’s online InsuraMap tool, which compares premiums by postal code.

Malvern, Rouge and Glenfeld-Jane Heights snagged the top three most-expensive spots on the list ($2,595), while Palmerson-Little Italy, Dovercourt-Wallace Emerson-Junction and Forest Hill North, have the least expensive premiums ($1,640).

White also confirmed that, on average, the top five most expensive neighbourhoods have rates that increased by $110 since last year.

The data also found that Toronto insurance rates as a whole are about 30 per cent higher than the provincial average ($1,448), with Toronto drivers paying approximately $448 more for their premiums.

If those postal codes are reporting more claims, and the claims are more expensive than average, the payout will be higher, he said.

Generally, insurers measure claims per 100 vehicles, Karageorgos said. The provincial average is 9.3 claims for 100 vehicles, but “a couple of those postal codes had 12 or 13 claims per 100 vehicles,” said Karageorgos.

“And you have to look not just at frequency but also severity: how expensive are the claims people are having? The provincial average is $11,500, while the city average is $14,000. So claims in the City of Toronto are more expensive.”

Kanetix noted that two of Toronto’s most expensive neighbourhoods for car insurance “happen to contain intersections with some of the highest collision rates in the city.”

The number of incidents on Islington Ave. at Albion Road, and Sheppard Ave. at Morningside Road “may contribute to higher insurance rates in these specific neighbourhoods.”

But is it problematic that so many of Toronto’s Neighbourhood Improvement Areas are getting dinged by higher insurance rates?

Kanetix also recommended a few other ways to try and save: Bundling auto insurance with home insurance, checking with your employer for discounts, or paying for premiums annually in one lump sum to avoid administration costs each month.

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