Insurance Bureau of Canada (IBC), the national industry association representing Canada’s private home, auto and business insurers has released a province wise comparison of annual premiums paid by Canadians
Calculation of the average premium was done by comparing the total premiums collected from passenger vehicles in each province, and dividing it by the number of those vehicles. This is the method used by provincial regulators. Though some organizations argue that average premiums can’t or shouldn’t be compared, IBC say that this provides the best possible comparison of the price drivers are paying in each province.
Average Auto insurance premiums across Canada
- British Columbia – $1,832 per annum
- Ontario – $1,505 per annum
- Alberta – $1,316 per annum
- Saskatchewan – $1,235 per annum
- Newfoundland and Labrador – $1,168 per annum
- Manitoba – $1,080 per annum
- Nova Scotia – $891 per annum
- New Brunswick – $867 per annum
- Prince Edward Island – $861 per annum
- Quebec – $717 per annum
According to IBC, the reason why British Columbians pay for auto insurance than other drivers across the country is because of lack of competition.
“Under ICBC’s monopoly, British Columbians will again pay the highest auto insurance prices in Canada, with premiums now averaging $1,832 annually. While many important changes are underway in BC, none are expected to begin to reduce the price most drivers are paying,” said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada (IBC). “With ICBC stating that it will need price increases to raise over $1 billion in the years ahead, now, more than ever, the market must be opened to competition and choice to improve the affordability of auto insurance for drivers.”