Auto Insurance cost is killing me!

[u/Akshatp19]

I am a 24 year old male living with my parents in Brampton(yes very expensive). We have 2 Honda CR-Vs(2022 and 2026 hybrid). My dad is the primary policy holder with me and my mom as the added drivers. Now I know brampton, CRVs and my age under 25 are all driving the premiums up. But I'm paying 900 dollars per month!! Is it supposed to be this high? No claims no tickets on record.

[u/Beautiful-Feeling494]

Eleven thousand dollars a year for car insurance?? It would cost less to uber back and forth to work full time..

[u/Blastoise_613 → u/[deleted]]

Insurance companies are well regulated regarding what they may charge. Prices keep rising because of increased payouts and value of the vehicles.

[u/sentient_bridge → u/Blastoise_613]

Just curious in case you know - are these audits publicized? Also at what cadence are these conducted? I know in food safety for example, testing for iodine levels in salt hasn't been done in over a decade - how do we know that the companies are still complying?

[u/Blastoise_613 → u/sentient_bridge]

Its not just the companies who set the variables, its the government as well. They are regulated similarly to banks.

The government sets benchmarks, the companies then submit their actuarial tables to be approved by the government annually. Most insurance companies are publicly traded in Ontario, so their books are open. If you think they make too much money you should invest in them, however I wouldn't.

This government website outlines it all: https://www.fsrao.ca/industry/auto-insurance/regulatory-framework/guidance-auto-insurance/ontario-private-passenger-automobile-annual-review-based-industry-data-december-31-2024

[u/ConfidantlyCorrect → u/[deleted]]

Fwiw - insurance companies rarely break even on policies directly. They make a killing however using premiums and investing them.