Automotive

Locked: Auto insurance costs more than all other auto expenses combined.

  • Last Updated:
  • Feb 1st, 2017 8:42 pm
[OP]
Banned
Nov 21, 2016
105 posts
38 upvotes

Auto insurance costs more than all other auto expenses combined.

My insurance costs $1,000 per year.

My car is worth <$1000.

I've been driving for 12 years with no accidents or claims.

I've wasted $10,000 on insurance over the last 10 years.

That is more than the initial cost of my car + all maintenance + all gasoline (~$9,000). Insurance is by far the largest single expense.

What am I paying for? $780 for 1 million third party liability, $120 for accident benefits (apparently mandatory in Alberta), and spare change for some undecipherable crap.

Am I getting scammed? Is there cheaper alternative? Is it the damn-them-to-hell government crooks to blame for these outrageous costs?

At this point I basically want to know who to yell at and what kind of alternatives I can possibly leverage.
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19 replies
Deal Expert
Aug 22, 2011
34041 posts
19914 upvotes
Ottawa
Come to ON, well in parts of Toronto anyways and you'll likely pay 2x that amount.
Deal Addict
Sep 20, 2014
1276 posts
414 upvotes
Toronto, ON, CA
vkizzle wrote: Come to ON, well in parts of Toronto anyways and you'll likely pay 2x that amount.
$2500/yr - 27M. Clean record. Atleast it's through credit card, so I get 2% back via Capital One World Travel card.
Member
Sep 4, 2015
261 posts
201 upvotes
Kitchener, ON
2009M5 wrote: $2500/yr - 27M. Clean record. Atleast it's through credit card, so I get 2% back via Capital One World Travel card.
Wow, that's a lot. I pay $2400 for two cars in Kitchener.

The best way to get a good quote is to ask friends that found a decent agent. That got me low rates in both Alberta (Calgary) and Ontario (Kitchener).
Deal Addict
Sep 21, 2011
1714 posts
453 upvotes
I pay 561 a year for 2001 eclipse spider and 481 a year for 2003 Dodge Ram, they both have no collision and I'm 36 been driving since 16 no accidents no tickets (have had tickets but none now ) and live in bowmanville. I'm with intact.

I pay 647 a year for a 2001 Yamaha v star lol and can't drive it all year, so if you think car insurance is bad. Motorcycle is worse. When I had my Kawasaki ninja I was at 118 a month lol.
Deal Fanatic
Nov 22, 2015
5673 posts
5069 upvotes
blargy33 wrote: My insurance costs $1,000 per year.

My car is worth <$1000.

I've been driving for 12 years with no accidents or claims.

I've wasted $10,000 on insurance over the last 10 years.

That is more than the initial cost of my car + all maintenance + all gasoline (~$9,000). Insurance is by far the largest single expense.

What am I paying for? $780 for 1 million third party liability, $120 for accident benefits (apparently mandatory in Alberta), and spare change for some undecipherable crap.

Am I getting scammed? Is there cheaper alternative? Is it the damn-them-to-hell government crooks to blame for these outrageous costs?

At this point I basically want to know who to yell at and what kind of alternatives I can possibly leverage.
$1000 is already a very good rate.

No one to yell at unfortunately. You should have spent more money on the car if you feel that the insurance premiums exceed the value of the car.

The cheapest alternative is to get rid of the car and get a bus pass.
[OP]
Banned
Nov 21, 2016
105 posts
38 upvotes
superfresh89 wrote: No one to yell at unfortunately.
Someone is to blame. You can get much lower rates in the US and Canada isn't inherently more accident prone.

My guess that it's probably the government crooks. They force us to buy insurance and they keep the cost sky high. As usual, they rob us blind.
Deal Fanatic
Nov 22, 2015
5673 posts
5069 upvotes
blargy33 wrote: Someone is to blame. You can get much lower rates in the US and Canada isn't inherently more accident prone.

My guess that it's probably the government crooks. They force us to buy insurance and they keep the cost sky high. As usual, they rob us blind.
Driving isn't a right. If you don't want to get "robbed", then don't drive. Lots of people walk or bike to get places.
Deal Fanatic
Dec 24, 2005
5541 posts
1176 upvotes
vkizzle wrote: Come to ON, well in parts of Toronto anyways and you'll likely pay 2x that amount.
Toronto here. Proper M postal code. 3 cars in our home. 2 are 2015's.

We pay less than 1000 per car.
Deal Addict
Jul 7, 2007
1082 posts
616 upvotes
Ottawa.
27 years old
2016 and 2011.
$1400 total for both cars for both for myself and my wife
Temp. Banned
Jun 18, 2008
5095 posts
4629 upvotes
Montreal
[..]

Your $1000 car can cause the same amount of damage as a $50,000 car. Furthermore, your $1k car can cause a write off of a Bentley, Porsche or another car worth 200 times your car. You also have tort in AB, rest assured if you do cause a collision with an expensive German car, the other person's insurance will be knocking on your company's door for reimbursment. You also pay 15-20 cents/liter less for your gas and you have no sales tax on anything you purchase. Not so for the rest of the country. Something to keep in mind.
Deal Addict
User avatar
Apr 18, 2009
3523 posts
717 upvotes
Toronto
if you at into an accident and they (or even yourself) get injured, the medical costs will be much more than your $1000 car

or if you crash into a light pole/railguard on the road/highway or smash into a property, the costs of repairing those will also likely be more than your $1000 car

that's why most of your premium is going towards liability

i find it hard to believe that for someone with 10 years of car ownership such as OP to not understand this
Sr. Member
User avatar
Nov 30, 2007
544 posts
78 upvotes
blargy33 wrote: Someone is to blame. You can get much lower rates in the US and Canada isn't inherently more accident prone.

My guess that it's probably the government crooks. They force us to buy insurance and they keep the cost sky high. As usual, they rob us blind.
The insurance industry is to blame. It runs totally on statistics that they manipulate to benefit themselves. They say auto insurance is no profit but they scam everywhere. I have a CLOSE relative that works in the aftermarket auto body repair sector. They pay themselves obscene salaries and benefits. Anything done officially, is 4x times actual cost. They write off incredible expenses as legit business deductions. The inside info I get makes me sick because I have to support their grand lifestyle.
Member
User avatar
Apr 17, 2015
494 posts
210 upvotes
Toronto, ON
$10,000 in the grand scheme of things is really nothing when there is hundred thousands dollars worth of risk that your insurance company is taking on.

Your $1000 car can cause as much damage as a $100, 000 one.


My dad did the math a few months back and he calculated roughly that he has paid a little over $45000 over his lifetime for auto insurance ( no inflation) and has never had an accident.
Member
Mar 27, 2012
311 posts
144 upvotes
Live in Toronto with an M postal code as well, 2 cars in the driveway, we have our 22 year old son on our policy. We pay $3600, never got into an accident. Without our 22 year old, our insurance was still ~$3000.

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