UMVA has learned that Toronto residents living in certain suburban areas are more likely to have higher auto insurance premiums, according to a detailed analysis of tens of thousands of auto insurance quotes.
The analysis, which examined over 50,000 auto insurance quotes submitted last year to a Toronto-based insurance technology company, reveals significant differences in collision risk across the city when broken down by postal codes.
This revelation comes at a critical time, as Toronto Police's Traffic Unit has recorded a staggering 28% increase in fatal collisions — a five-year high — so far this year compared to the same period in 2025, highlighting the urgent need to understand where collision risk is concentrated.
Industry experts emphasize that while every crash has different causes, data shows that some neighbourhoods consistently experience higher accident rates than others, which is a key reason insurers closely examine postal codes when assessing risk.
The analysis identified the highest recorded collision rate in Etobicoke's Westmount neighbourhood, with the postal code M9P, where 16.7% of drivers reported an accident on their record, making it the area with the highest concentration of drivers with accidents.
Other high-risk areas include Scarborough's Upper Rouge postal code M1X, with a 13.5% collision rate, and Etobicoke's Richview and Kingsview areas, with a 12% collision rate, emphasizing the need for drivers in these areas to be extra cautious.
In contrast, the lowest accident rate in the city was found in the M5J postal code in Harbourfront and CityPlace, with only 3.8% of drivers reporting collisions, highlighting the significant disparities in collision risk within the same city.
The average accident rate across the city was calculated at 8.6%, with the company noting that postal code remains one of the most important factors affecting auto insurance premiums, as it directly impacts the likelihood of accidents and claims.
Toronto's average auto insurance rate stands at $2,348, with drivers in certain postal codes potentially lowering their premiums by maintaining a clean driving record, taking a defensive driving course, or installing a dashcam.
