Driving a vehicle in Ontario is expensive, but there are ways that you can bring down how much you pay to drive your vehicle on one of Canada’s most expensive provinces. Here are five things that insurance providers in Ontario factor in to your car insurance rates.
- Look Outside Your Broker
Your insurance broker is limited to providing you quotes from their own insurance company. This means that even if they are presenting you with the best price they have to offer, it may not be the best price overall. With dozens of companies readily available to provide you Ontario car insurance, the best way to get the best price is to shop around on your own.
- Consider Accident Forgiveness Coverage
Accident forgiveness coverage will increase your insurance rate in the short-term, but if you’re involved in an at-fault collision, this kind of coverage ensures your rates don’t go up, which will save you money in the long-term.
- The Make And Model Matters
When it comes to the cost of your insurance, the most important factor is your driving record, but the second most important factor is the make and model of your vehicle. New vehicles often cost more to insure than previously owned ones, and luxury cars cost more than economy models. The most important things that insurance companies look for when decided what a premium should be for each given make and model are prevalence of theft and cost of repairs. If you purchase a used luxury vehicle, it may cost you less in the short term, but the cost of repairs would be higher than that of a brand new economy car. When you’re decided what kind of vehicle to purchase, check to make sure that you can afford the carrying costs of the insurance policy it requires.
- Ask To Receive
You won’t get a discount on your vehicle unless you ask your insurance broker for them. If you have a certain insurance company that you want to use, present them with other policies that are available to you, and ask if they have any discounts for things like winter tires or a pristine driving record.
- Evaluate What You Really Need Coverage For
Basic insurance policies cover the most obvious factors (collisions, injuries), and the price of the policy is indicative of how comprehensive your coverage is. However, just because an insurance policy is higher in price, doesn’t necessarily mean that the coverage will work for you in the way that you want it to. When you’re shopping for car insurance in Ontario, it’s important to factor in what kind of coverage you will need based on the type of driving you do.
Drivers who rack up a lot of kilometers may want more maintenance coverage, while city drivers may need more coverage for small collisions and theft. It’s crucial to investigate just what you’re getting before you sign for your vehicle insurance or you may end up paying for coverage you don’t need or worse, needing coverage that you don’t have. To ascertain what your policy should look like, compare rates on a site like Insurance Hotline. The site allows you to compare policies from top providers in Ontario so you don’t have to do the leg work to figure out which policy is best for you.
I set this blog up a couple of years ago now as a way to share my experience that I’ve gained through my school education and my real life education. It sounds geeky, but the economy is something that I’m really passionate about and it’s something that I am actually pretty talented in, so it’s great for me to share these experiences with those that may be struggling a little bit with finance and figuring out how to navigate the economy.