The roads in Ontario are one of the busiest in the whole of Canada and this is not surprising considering the number of cars and drivers in the province. With a great landscape and lovely cites to see, Ontario is definitely a place to be and this also explains the large population in the province.
One somewhat bad side to Ontario is the cost of insurance especially car insurance. Rated as the area with the highest car insurance rate in Canada, the need to cheap auto insurance is usually a major concern for car owners. It is even more important to look for affordable car insurance as it is compulsory to have insurance if one is to drive in this province. The task of getting cheap auto insurance is however not as difficult as many people assume.
Before starting the search for cheap auto insurance, it is important to have a bit of understanding of the modalities of auto insurance in Ontario and the ways and techniques of getting the best insurance policy.
The best tool to use in getting the best auto insurance quotes is the internet. It is not just handy, but very easy to get these quotes using the internet. You, however, need to have all your driver information within reach to ensure that you supply the required information once you are prompted to enter them. These insurance quotes sites help in getting you the quote you desire based on your specification and in the case it would be for the quotes with the lowest rates. The search process can be completed within minutes and you can proceed to compare carefully the deals and make an informed decision as regards your auto insurance in Ontario.
Average Car Insurance Rates in Ontario
It should be noted that the auto insurance rates in Ontario are set by individual insurance providers and subsequently reviewed by The Superintendent of Financial Services and the Financial Services Commission of Ontario. The average rate of car insurance in Ontario presently stands at $1,281, being the highest among all the provinces in Canada.
This means that as a resident of Ontario, you should expect to have your insurance premium payment bite deep into your budget. This, however, does not have to be the case as there are some tips that could help in reducing your cost of auto insurance if followed.
The first has been mentioned earlier, which is to compare different insurance quotes.
It is also important to maintain a good driving history as it is one of the factors considered by insurance companies is determining the most appropriate rate for a particular driver.
Other tips would include the prompt payment of premiums, choosing the right coverage, and insuring all your cars with a particular company.
The Different Types of Car Insurance in Ontario
No one wants to crash their vehicle and hurt themselves or others deliberately. But in the event that an accident occurs, the resulting expenses are likely to be more than the financial capabilities of the individual. As a result of this possibility the Canadian government requires that drivers in every territory and province carry a minimum amount of auto insurance. Apart from this mandatory insurance, there are other insurance options available to drivers based on different province and territories.
The government in each province decides the parameters that will be included in the mandatory insurance. For instance, in each province, there is a minimum third-party liability and medical payments as well as additional expenses both for death benefits and the resulting funeral expenses. The mandatory insurance providers also vary from one province to another with differences in their policies.
In addition to the mandatory minimum insurance, collision insurance is an added option opened to drivers in Canada. Collision insurance insures your car in cases of collision with another car or an object. Some factors that may influence the rate of collision insurance include the following:
- Your age
- Driving record
- Type of car
Collision insurance will pay for the damages and repairs of your car if a collision occurs, so the more expensive the repair or parts is the more you will have to pay for the insurance. Also if your driving record shows that you have repeated accidents, then you will be considered a high-risk driver with higher quotes.
Comprehensive insurance in Canada covers a wide range of possible outcomes in cases of accidents. Basically comprehensive insurance as the name implies combines insurance that is often sold separately including theft, fire and even covers cases of natural disasters like floods and earthquakes. In essence, your car is totally insured against losses that may result from theft, fire, vandalism etc. Comprehensive insurance may provide special services like road rescue, tow trucks, rental cars etc. Like collision insurance, the price also depends on the type of car and driving record of the driver.
In cases of an accident that is direct as a result of your actions, liability insurance covers you. The cost of repairs and medical bills as a result of injury are covered by the liability insurance. It is recommended that your liability insurance should be higher than the minimum allowed so that in cases of accidents directly as a result of your actions you will not risk paying a huge sum because of having exceeded your policy limits.
- Personal Injury Protection
When accidents occur, the resulting costs can rapidly add up, this is where personal Injury protection(PIP) comes in as it covers the costs of your medical bills as well as those of your passengers.
Car Insurance Money Saving Tips
There are many people who feel like getting car insurance is like throwing their money into the trash, but the truth is that even if you are a careful driver, you never know what might happen on the road. The fact that this is completely out of your control validates the requirement of insurance. What follows are some useful tips to help you save money on your car insurance.
Do Your Homework
By this, we mean you need to conduct proper research online to find as many options in your area as possible. Even if you find a company that isn’t nearby, it might be worth checking out their rates to see if they are lower than the ones in your area. You never know when you might find a much better deal if you just have enough patience and perform a good search. Don’t underestimate the value of doing some basic research first.
Drive Less, Pay Less
This is a great way to get a lower cost on your insurance. If you rarely drive, most insurance companies will offer discounts to people who drive fewer kilometers than what the average person each year. You could consider carpooling or using a bicycle if you plan to go to a location that is just a few kilometers away.
Consider the Car You Plan to Buy
There are many vehicles known for being targeted by thieves while others are not very safe on the road; these can increase the insurance rates significantly. The best way to deal with this problem is to make sure that if you are purchasing a new vehicle, you choose one that is “insurance friendly” to obtain a substantially lower insurance rate.
Maintain a Good Credit Score
You might be wondering why this would even matter, but insurance companies consider your credit score when they calculate your rates for vehicle insurance. This is one of the main reasons you want to keep your credit score as good as possible if you are searching for vehicle insurance.
The lower the number of tickets and accidents on your personal record, the better your rates will be when you decide to get your vehicle insured. This is a very important thing to keep in mind and the best thing to keep you safer when you are driving.
Request Extra Safety Features on Your Vehicle
When you purchase a vehicle, you might want to ask your dealership for extra safety features that can help you get an even lower rate on your insurance. These include the use of automatic seat belts, alarm systems, antilock brakes, and any other equipment to prevent theft or injury. Most vehicles can be enhanced in ways that will be extremely in lowering your insurance rates.
Getting the lowest possible car insurance is going to be extremely important to you. If you follow all of these tips, it could mean a substantial difference in the kind of rates that you end up paying to these companies.