Car insurance is a vital part of everyday life, with millions of people living at risk of financial collapse should they suffer from a serious auto collision and not have appropriate coverage. Despite the immense important of good car insurance, however, many young Canadians are finding it difficult to afford good coverage, which has been leading many young people to start driving without coverage.
This is a terrible mistake to make that can haunt you for the rest of your life, yet many people see no other option as coverage is expensive. Here are the 5 cheapest places to get car insurance in Canada, and why you should consider these options before hitting the open road without insurance.
1. Quebec enjoys famously low car insurance rates
The best place to get car insurance in Canada without finding it necessary to break the bank in order to make that happen is doubtlessly Quebec, which enjoys famously low rates that make other Canadian provinces seethe with envy. Compare Quebec’s awesome low rates with that of the more expensive Ontario, for instance, and you’ll see why so many people make the trek out there before buying coverage for the first time. Car insurance rates can be determined by many things, however, and there are a number of theories as to why Quebec’s rates are so low.
Some assert that the province has superior infrastructure that helps mitigate the likelihood of collisions, whereas others simply note that the combination of a public/private scheme and limits on liability help keep prices affordable for most people. Still, not everyone can get to Quebec, and there are other places in Canada that you can rely upon when it comes to attaining cheap car insurance.
2. Prince Edward Island
For those who are looking for a privatized car insurance system, Prince Edward Island has some of the best car insurance rates across Canada that are waiting for your review. The average annual premium hovers around $796, for instance, far lower than the steep costs paid elsewhere around the country. An intense spate of private industry competition ensures that these rates are unlikely to change anytime soon, either – any company that tries to charge more than the average annual rate is likely going to find itself quickly snuffed out by competitors who offer better rates to drivers.
3. New Brunswick saves plenty of after-tax income
For those looking for a car insurance regime that will ensure they pay as little of their after-tax income as possible when it comes to securing their vehicle, New Brunswick is famous for its low after-tax rates. The average annual premium in New Brunswick typically hovers around $728, with auto insurance reflecting about 2.8% of after-tax income in the region, one of the best of such figures in all of Canada. Knowing the difference between the after-tax income percentage you’ll be paying in various regions is an important part of getting a good deal when it comes to securing car insurance for the first time.
4. Nova Scotia sees fewer car accidents
A sparse population in Nova Scotia means that the region sees comparatively fewer car accidents than most other parts of Canada, such as densely populated Ontario, which has the handy consequences of reducing car insurance rates for everybody in the area. While you may have to look harder to find cheap car insurance companies in Toronto, that’s not the case in Nova Scotia. It can be hard to pin down an average annual figure, but it’s most likely that people in Nova Scotia are paying about $735 annual for protect their vehicles, an admirable figure that many in other parts of Canada would kill for a chance at.
5. Labrador is still cheap despite increases
Average annual payments across Labrador have actually being going up in recent years where car insurance is involved, yet the region still features some of the most affordable prices in Canada. Coming in at just below the national average, people in Labrador frequently pay an annual $749 fee to cover their vehicle, a figure that’s grown slightly over the past decade because of an increase in auto incidents.
Outside of knowing where to buy insurance, knowing which cars offer the best rates can also help you secure an affordable insurance regime. Before long, you’ll be securing excellent insurance coverage that makes your fellow Canadians jealous of your low rates.