In case you're still in doubt about the mystery and majesty of auto insurance rates and the critical importance of getting competitive quotes, consider some sample findings from the rate guide recently published by the Ontario government.
Put aside for a moment the endless variety of rates the insurance companies in Ontario charge different drivers and the reasons for that (driving record, age, vehicle, location, etc) and maybe even the fact that they're now earning billions of dollars a year in profits, and think about the different rates they can charge the same person for driving the same vehicle.
For the purposes of this discussion all of these people live in downtown Toronto, but the same kind of insurance premium imbalance can be found anywhere in Ontario or, for that matter, much of the country.
One of the examples involves a 23-year-old woman with one chargeable accident and one ticket in six years of driving who is trying to ensure a 2003 Chevrolet Cavalier four-door sedan for eight km to work every day and an annual mileage of less than 16,000 km.
Fifty-five companies supplied quotes for one year of this business, and the range went from $2,051 to $17,468, a spread of $15,417.
The average quote for this woman was $6,673, but the scale was pretty much scattered across the field. There were five quotes above $10,000, but the second highest was only $11,676, which was $5,792 less than the most expensive quote. There were five quotes under $3,500, but the second lowest was $2,807, which was $756 more than the least expensive quote.
That example was by far the most vivid, but the others would certainly bring you up short if they reflected your own particular situation.
To ensure a 2000 Ford Focus LX four-door sedan, a 70-year-old man with no accidents or tickets for the last 10 years would be quoted $970 to $2,576 a year.
To ensure a 2001 Dodge Ram 1500 Club Cab 4WD and a 2002 Dodge Neon four-door sedan, a married couple (he's 40 and she's 39) with no accidents or tickets in the last six years would be quoted $1,763 to $6,992.
To ensure a 2001 Honda Civic DX two-door coupe, a 19-year-old single male with no tickets or accidents in a year of driving would be quoted $5,750 to $15,551.
There were some patterns that showed that some companies were generally more or less expensive than others, but nothing constant enough to suggest Company X to everyone or warn everyone away from Company Z.
This government study makes it absolutely clear that looking for new automobile insurance coverage is a smart thing to do if you're not happy with your current premium, and thanks to the magic of the internet it's surprisingly easy. For example, you can go to www.InsuranceHotline.com for an unbiased, free and personalized rate comparison.
Put aside for a moment the endless variety of rates the insurance companies in Ontario charge different drivers and the reasons for that (driving record, age, vehicle, location, etc) and maybe even the fact that they're now earning billions of dollars a year in profits, and think about the different rates they can charge the same person for driving the same vehicle.
For the purposes of this discussion all of these people live in downtown Toronto, but the same kind of insurance premium imbalance can be found anywhere in Ontario or, for that matter, much of the country.
One of the examples involves a 23-year-old woman with one chargeable accident and one ticket in six years of driving who is trying to ensure a 2003 Chevrolet Cavalier four-door sedan for eight km to work every day and an annual mileage of less than 16,000 km.
Fifty-five companies supplied quotes for one year of this business, and the range went from $2,051 to $17,468, a spread of $15,417.
The average quote for this woman was $6,673, but the scale was pretty much scattered across the field. There were five quotes above $10,000, but the second highest was only $11,676, which was $5,792 less than the most expensive quote. There were five quotes under $3,500, but the second lowest was $2,807, which was $756 more than the least expensive quote.
That example was by far the most vivid, but the others would certainly bring you up short if they reflected your own particular situation.
To ensure a 2000 Ford Focus LX four-door sedan, a 70-year-old man with no accidents or tickets for the last 10 years would be quoted $970 to $2,576 a year.
To ensure a 2001 Dodge Ram 1500 Club Cab 4WD and a 2002 Dodge Neon four-door sedan, a married couple (he's 40 and she's 39) with no accidents or tickets in the last six years would be quoted $1,763 to $6,992.
To ensure a 2001 Honda Civic DX two-door coupe, a 19-year-old single male with no tickets or accidents in a year of driving would be quoted $5,750 to $15,551.
There were some patterns that showed that some companies were generally more or less expensive than others, but nothing constant enough to suggest Company X to everyone or warn everyone away from Company Z.
This government study makes it absolutely clear that looking for new automobile insurance coverage is a smart thing to do if you're not happy with your current premium, and thanks to the magic of the internet it's surprisingly easy. For example, you can go to www.InsuranceHotline.com for an unbiased, free and personalized rate comparison.