This is why it's a poor comparison to say insurance was quoted as costing more than your car. The price of your insurance is only minimally factoring in replacing your car. You should be looking at is expenses revolving around driving, the car being one of those expenses and insurance another, not expenses around the car. The reason they look at your car, even of it's not worth much, is because the type of car and the engine size etc. factor in to the risk group they assign you. Someone ...
Why is car insurance so expensive in Ontario?
Ontario has some of the highest insurance rates in North America. He's used to paying $20 / month to drive his beater, not realizing that insurance rates here depend on so much more than just the car you drive. Also, older cars tend to be more expensive for liability because the injury rate is higher.
Why do insurance companies look at cars that are not worth anything?
The reason they look at your car, even of it's not worth much, is because the type of car and the engine size etc. factor in to the risk group they assign you.
Is car insurance in Ontario a god damn thing?
Not a god damn thing. Car insurance in Ontario is a lot higher and the price points are probably unjustified. I'm not disputing that.