Londoners are feeling the pinch as home and auto insurance premiums continue to rise sharply, placing a growing strain on household budgets. According to online price-tracking platform Rates.ca, the city has seen the second-highest increase in insurance costs across Ontario, trailing only Oshawa.
Rising Premiums in Numbers
Data from Rates.ca highlights that in 2022, the average annual cost for combined home and auto insurance in London was $3,459. By last year, this figure had jumped to $4,673, marking a 35% increase over four years. Only Oshawa experienced a slightly higher rise of 37%, while Ottawa matched London’s 35% growth.
Toronto residents, though seeing a smaller increase of 17%, continue to pay the highest annual premiums, averaging $5,693.
Drivers Behind the Surge
David Mayer, director of insurance and underwriting at Rates.ca, attributes the rising premiums to multiple factors, most notably the increasing costs of vehicles and repairs.
“Newer vehicles today are equipped with sensors, cameras, and advanced safety systems, which significantly increase repair costs,” Mayer explained.
The COVID-19 pandemic also contributed. Regulatory requirements kept insurance rates stable during lockdowns, but as people returned to work and daily routines resumed, insurers began adjusting rates to reflect higher claims costs.
London’s Growth Fuels Insurance Hikes
London’s rapid population growth is another key factor. Between 2016 and 2021, the city was Ontario’s fastest-growing region, and growth has remained strong in recent years.
“Population growth leads to higher claims costs,” Mayer said. “More people and vehicles naturally result in more traffic incidents, thefts, and insurance claims.”
Indeed, auto thefts have surged in London, with more than 500 vehicles reported stolen in 2023 alone.
Climate Change Impacts Home Insurance
Homeowners are also facing higher premiums as climate-related events become more frequent. In 2024, London experienced a severe rainstorm that dropped up to 75 millimetres of rain in two hours, causing widespread flooding and hundreds of insurance claims.
“As climate change accelerates and extreme weather events become more common, home insurance costs are being driven up as well,” Mayer noted.
Looking Ahead
With ongoing population growth, increased vehicle complexity, and escalating climate risks, London residents should expect insurance premiums to remain elevated in 2026, making careful planning and comparison shopping essential.
