There is a controversy going on over how expensive average auto insurance premiums in Ontario are compared to other provinces. Consumer’s Association of Canada claims that premiums in Ontario average $2,384 per annum compared to $1,325 in British Columbia and $1,715 in Alberta. The Insurance Bureau of Canada, an industry association, on the other hand claims that average premiums are $1,279 in Ontario, $1,096 in B.C. and $1,076 in Alberta.
While it is true that auto insurance in Ontario has skyrocketed in recent years, the IBC numbers seem accurate as it is arrived by simply dividing the total premiums paid by the number of insured vehicles. The CAC numbers, on the other hand, are calculated as the average of all premium quotes for a variety of driver profiles. This method is specious because consumers get quotes from various insurers and select the cheapest among them and never pay the average of all the quotes.
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