While car insurance premiums for many Ontario cities decreased last year, in Durham rates actually increased noticeably in Oshawa and many rural areas, and slightly in Whitby, according to RATESDOTCA.

“We’re across eastern Ontario, and we do see higher rates in Durham Region … Someone will call from Oshawa and say ‘why are my rates so much higher than somewhere else?’” said Kelly McKinney, manager at McDougall Insurance.

RATESDOTCA maps out premiums by postal code and found the average Ontario premium in 2021 went down 3.8 per cent from 2020.

In Oshawa, car insurance premiums went up 12.1 per cent from 2020 to 2021. In rural Durham, residents of Cannington, Sunderland, Orono and Port Perry had a 9.5 per cent increase. For Whitby, car insurance rates were up 0.9 per cent.

The rest of Durham did see a decrease. Ajax residents, which have the highest car insurance premiums in Durham (and the second highest in all Ontario), saw a 1.7 per cent decrease. Pickering’s rates (the second highest in Durham and sixth highest in Ontario) went down 0.1 per cent.

Most Clarington residents saw significant savings with a 10.9 per cent decrease in premiums in Courtice, Bowmanville and Newcastle. Kendal residents had a 7.6 decrease in rates in 2021.

Across the province, the decrease in auto insurance premiums was caused by several factors, mostly:

•Professionals using their cars less while working from home.

•Insurance providers offering relief measures through lowered rates and rebates.

•Fewer new drivers behind the wheel because of backlogged testing.

Overall, Durham residents in rural areas and smaller municipalities still pay less for car insurance premiums than people living in the larger urban areas. The average rates range from $1,175 in Kendal to $2,104 in Pickering.

“I always want to tie in traffic congestion with insurance. We tend to find that when you get into areas for Durham that are busier, 5 o’clock on Taunton Road in Whitby is brutal,” said Rorie McIntosh, president of McCam Insurance. “Areas that have population growth and a lot more congestion, there’s a lot more hit and runs, small fender benders, a lot of more of that happens … As Durham grows and we get more people in our area, unfortunately it changes the dynamic of driving.”

McKinney agreed it makes sense when the cheapest rates of insurance are those areas that have less traffic and less cars on the road, which means fewer accidents. Other times, the variation in premiums doesn’t make sense, he adds, like when someone moves two blocks away and finds their insurance costs go up because they have a new postal code.

“Some call it postal code discrimination. The insurance companies do have 50 years of data they use,” said McKinney

The local insurance experts have advice for drivers who want to get the best rate:

• When shopping for insurance find a broker who works with a lot of insurance companies.

“Every insurance company does definitely have a different demographic; they have the ideal customer. Fortunately not every insurance company has the exact same picture of the ideal customer. Which then means that you have choice,” said McIntosh. “Make sure you’re with a company that really wants you.”

• When your life changes (if you move from an urban area to a rural one, or upgrade your vehicle) check with your broker to make sure your current insurance company is still the best fit.

• Consider a new type of policy.

— Usage based insurance tracks how far you drive and charges based on kilometres. Most traditional plans assume the driver is travelling 15,000 to 20,000 kilometres a year. For people who now work remotely from home, it may be worth asking your broker about usage based insurance.

— Telematic based insurance is more about setting the best rates for good drivers. A cellphone app can track how hard a driver brakes, how fast they drive, and how fast they turn corners.

Both of these policies are new and not every insurance company offers them yet, but it’s a change that could be coming to the industry.

• Most importantly, keep your driving record clean.

“Driving is more stressful, I think, now than ever on our roads and stress leads to lake of patience, it leads to people cutting people off. The politeness isn’t there as much as it used to be. I think that’s part of what’s going on with the rates,” said McIntosh.

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