Skip to main content

How Average Mileage Per Year In Canada Affects Car Insurance Premiums

According to the Office of Energy Resources and Natural Resources Canada, the average car mileage per year in Canada is about 15,200 km. However, the annual car mileage can greatly vary based on specific factors such as your job, where you live, etc. While drivers in Newfoundland and Labrador have the highest yearly mileage at 18,100 km, British Columbian drivers have the lowest mileage at 13,100 km per year. In the case of Ontario, the yearly mileage is in the middle, calculated at around an average of 16,000 km. Read on to find out how insurance companies determine your car insurance premiums based on your mileage in a given year. 

Mileage As A Factor In Determining Your Car Insurance Premium

As a general rule, insurance companies determine car insurance premiums based on the likelihood of risk associated with a driver getting into an accident while on the road. And so, factors such as your age, where you live, your driving history, your vehicle’s age and model, and how much you travel in a given year are all important factors that determine how much you pay for car insurance. 

It is safe to assume that if a driver travels more than the Canadian average of 15,200km per year, their car insurance premium will be higher as the likelihood of being involved in an accident is increased with more time spent on the road. In other words, with more mileage there is more risk. 

In Ontario, those driving 20,000 - 24,999 km per year pay an average of $2,529 for their car insurance. If the yearly mileage is lower, you can expect to pay less for your insurance. This is certainly the case for those drivers who put on less than 10,000 km per year and pay an average of $2,111 for their car insurance.   

Does Your Vehicle’s Age And Condition Affect Your Insurance Premiums?

It is no secret that with modern technology, vehicles can achieve a longer lifespan than ever before. Most cars these days can last an average of 11 years on the road. However, older vehicles with low yearly mileage can outlast a new car that is driven for longer distances regularly and this factor is critical in determining your car insurance premium.   

Consider the following statistics which make the point that brand new cars are simply more expensive to insure. In Ontario, for example, new cars cost an average $2,929 to insure per year. If you own a vehicle that is 5 years old, you can expect to pay a yearly average of $2,520 for your car insurance. If your vehicle is 10 years old, you can save nearly $800 per year compared to a brand new car as the average insurance premium cost for a 10 year old vehicle in Ontario is around  $2,121. 

With proper care and regular maintenance you can keep your car on the road for thousands of kilometers and many more years to come - and this is good news with regards to keeping your car insurance premium low.

If you have any questions regarding mileage per year and how it can affect your car insurance premiums, please contact us today so that we can help you meet your insurance needs.