If you just got your driver’s license or purchased a new car it’s an exciting time! You’re probably ready to get out on the open road, but before you do, make sure you don’t forget to purchase car insurance. Some drivers may simply need to be added to an existing policy, but for others, they will need to shop around for a brand-new car insurance policy. In Ontario, having valid car insurance is required by law if you want to own and operate a vehicle.
Car insurance can financially protect the driver of the vehicle, passengers, and other drivers involved in the event of an injury sustained by collision. It can also pay to repair your vehicle after an accident depending on what coverage you choose. A vehicle will be one of the largest expenses in your life, so you should make sure you protect it.
In Ontario there are a few types of car insurance that are mandatory:
Liability Coverage – If you injure someone while you’re driving or damage property, payments are made on your behalf.
Direct Compensation – Damages to your car are covered if you’re not at fault.
Uninsured Automobile Coverage – Medical costs and damage are covered if an uninsured driver is at fault.
Accident Benefit Coverage – Regardless of who is at fault, medical and other expenses you are entitled to receive are covered.
Optional Coverages –
- Collision – Vehicle impact with a car, other object and the road.
- Comprehensive – Fire, theft, windshield, hail and windstorm.
Shop Around for Car Insurance
To find the best car insurance rates, you will need to shop around. There are three main insurance providers to approach when shopping for car insurance:
- Banks/credit unions
- Insurance companies through agents
- Independent insurance brokerages
Insurance rates and coverage can vary dramatically from company to company, so you’ll want to take your time finding the right option. If you would like an expert to guide you through the process, get in touch with a licensed insurance broker. They will shop around for insurance rates on your behalf to find you the best deal.
Understand how Car Insurance Premiums are Calculated
To find the right car insurance option for you, it often helps to first understand how insurance providers calculate premiums. Here are the factors they use to determine how high your premiums should be:
Insurance providers will want to know how long you’ve been driving in Canada. The more experienced you are driving here, the better a driver you will be.
If your driving history shows that you have been in car accidents or you have acquired speeding tickets, then insurance providers could consider you high-risk and factor that into your premiums.
Younger drivers are considered a higher risk to insurance providers since they are inexperienced. In general, the older you are, the more experienced a driver you are and the lower your car insurance rates are. Although, if you are a senior you may also be considered a high-risk driver since your motor functions and eyesight may not be as effective.
Insurance providers usually offer women lower insurance rates than men because men are more likely to get in accidents, get tickets, and get arrested for DUIs.
Where you live is an important factor that insurance providers will use to determine your rates. For instance, if you live in the city then your premiums may be higher because there is typically more traffic and as a result more collisions. There are more accidents in crowded cities like Toronto than in smaller towns.
The type of vehicle you have also plays a role in your car insurance premiums. More expensive cars will cost more to repair or replace, so they usually cost more to insure. While cars that are cheaper and have higher safety ratings are less expensive to insure.
If you drive often and far distances, your insurance provider will consider you a higher risk since more driving will increase your chances of getting into a car accident.
In Ontario, drivers can get an insurance discount for using winter tires , during the winter season.
Compare Car Insurance Quotes Carefully
Once your insurance provider uses the information provided to give you quotes, the next step is deciding which car insurance policy is right for you. Don’t simply choose the insurance with the lowest rates. Although paying less may seem like a good thing, this could be a result of the coverage not being as comprehensive. Ensure that your coverage is reasonable so that in the event of a collision you and your vehicle are financially protected.
Find the Right Insurance Broker
Almost everybody who owns and operates a vehicle or is planning to, can benefit from working with an insurance broker. They are experts that can help you find the best coverage for your car insurance needs.
Choose a reliable and professional insurance broker who is working in your best interest. Car insurance is an important decision since it will financially protect you and your passengers if a collision does occur.
Our team is highly knowledgeable and experienced to find insurance options that will fit your lifestyle seamlessly. Get in touch and we’ll help you explore the best car insurance solutions for your needs.