Basic auto insurance is mandatory throughout Canada. When shopping for auto insurance, you have two options – either buy insurance online (car insurance companies Alberta) or visit your local insurance agent in person.
Although each of the options has its pros and cons, buying insurance online has proved to be the most efficient and economical option. So, if you are looking for cheap car insurance make use of the Internet.
The Top 5 Reasons to Get an Online Insurance Quote – as opposed to physically visiting an insurance broker/agent.
You save time
When you get an insurance quote online, you save time. Within minutes – at the comfort of your living room – the application is filled and submitted.
From the comfort of your living room, you can get a quote, compare different quotes, buy cheap car insurance and print out your proof.
It is convenient
With online quotes, you can purchase an auto insurance policy on the go – you get your policy at any time from anywhere. You don’t have to be in Ontario (physically) to buy a cover from car insurance companies Ontario. You can converse with a sales rep via email or simply fill out and submit an online application form from anywhere.
Since you won’t have to drive to the local agent/broker’s office, you save money and valuable time.
You can easily compare rates
With Internet quotes, you are able to compare insurance rates charged by different car insurance companies in Ontario or Alberta.
With the Internet, you can compare rates from hundreds of insurance providers within a very short time.
You’ll get the absolute best rate
With online insurance quotes, you can get the absolute best rates in the industry – since the comparison of rates is easier. With the Internet, you have access to all the information need and can review and analyze it during your free time.
Instead of relying on the usual biased insurance sales rep, you conduct your own research. Also, there is no pressure from salespersons – you make your own independent buying decisions.
You get custom coverage fast
With online insurance quotes, you can get custom auto coverage – fast and conveniently. With online car insurance companies in Alberta, you can easily choose an auto insurance policy that perfectly fits your needs.
To make the process of getting a custom coverage fast, have all your vehicle details ready ahead of time
How To Save On Car Insurance
We all know how very pricey it can be to ensure our vehicles. Convenience comes at a cost, right? But rest assured, there’s something that you the consumer can do to cut down the cost. Believe or not, there are a good number of simple and effective tips on how to save on car insurance in Canada.
First off, the best practice is to compare car insurance quotes online when shopping for auto insurance. With a simple online search, you’ll find that many websites offer fast and easy ways to compare and purchase auto insurance online. Gather a few quotes and compare the coverage offered to find the best car insurance company for you.
If you plan to insure more than one vehicle, be sure to look into multi-vehicle savings discounts. Many insurance companies will offer their customers a discount for insuring multiple vehicles with the same provider. In addition to this, don’t hesitate to consider compounding your insurance. Auto insurance companies often apply an additional 5-10% discount off of your total cost if you decide to purchase both home and auto insurance through them.
On top of all the other tips previously mentioned, there are still a few more you can start on as soon as today. First and foremost, as intuitive as it may sound driving better can save you money in the long term. Insurance premiums are heavily correlated to your driving record, so the cleaner you keep it the more you save. Driver’s Ed classes are also nothing to be overlooked, especially if you’re a new driver. Although classes will cost a bit at first, you’ll consequently save on your premium yearly, and have new-found knowledge which makes this a wise investment.
Moreover, be sure to take the specs and safety features (insurance premiums are also affected by these factors) of a car into consideration when looking to purchase a vehicle you plan to insure. Installing an anti-theft device is a simple yet beneficial way to provide an additional level of security for your car as well as reduce your rate.
In direct regards to your insurance policy, going for higher deductibles will ensure that you’re getting the lowest insurance premium. As long as you can afford any out of pocket costs that may come into play in the event of an accident, consider going for that $1000 deductible as opposed to the $500. You can also cancel collision coverage if you’re driving an older car with a value that is equal to or less than your deductible. Collision coverage is a good portion of the average premium cost and is also one of the most effective ways to cut down on the total cost of your auto insurance.
Lower Your Car Insurance Premiums
Lowering your car insurance premium isn’t nearly as complicated as you may think. Whether you’re looking for the best car insurance rates in Canada or just some simple cheap car insurance, there are always ways to save.
Although it may seem like the most obvious option at first, it is often overlooked by a great majority of drivers even today. Simply being a good driver will save you loads on your premium in the long run. Taking extra care to avoid any unnecessary violations, and being mindful of speed limits and other drivers around you will entitle you to what is known as a “good driver” discount. Almost every insurance company offers this discount to their policyholders as long as they maintain a clean driving record and avoid getting into any accidents.
In addition to this there is also a discount known as the “good student” discount which works in a somewhat similar way. Drivers who are currently enrolled in an institution of education can qualify for this discount. The insurance provider will usually have a specific grade point average (around a B average in most cases) the insured will have to maintain academically (with proof) to continuously have the discount applied.
Aside from discounts, there are also a few things you can do with your premium itself to rake in some great savings.
Deductibles are one of the biggest factors in determining the overall cost of your premium. Usually, the lower your deductible the higher your insurance policy will be, and vice versa. Now deductibles are something that should be adjusted with a few factors in mind. First off, consider the value of the vehicle you are driving. If your vehicle isn’t worth more than a few grand than it might make sense to go for higher deductibles, but if you’re driving a pricey brand new car then it’s much wiser to keep your deductibles as low as possible since the car itself is much more valuable. Moreover, you should also consider your personal driving ability as well; if you consider yourself to be a safe and proficient driver then you may want to try going for a mix of high and low deductibles in respect to the value of your car of course.
The last little tip for lowering your insurance premium is to remove the collision coverage from your policy. Wait, what will happen if there’s damage to my car? Glad you asked. The significance of collision coverage can be explained most simply in the following way. If you’re driving an older car that’s practically worth peanuts then collision coverage is essentially an unnecessary expense since it’ll cost more than the actual value of your car, but if you’re driving a fancy new Mercedes well then collision coverage is certainly in your favor.
When determining the premiums you are going to pay for your insurance policy, the insurance providers factor in your age and the number of years you have been driving.
During their first years of driving, new drivers and student drivers are considered a high-risk class of drivers. Generally, these drivers struggle to find affordable auto insurance and in most cases can only qualify for high-risk car insurance — which comes with relatively higher premiums.
Why is car insurance so expensive for students and young drivers?
Most auto insurance companies base the price of premiums on the following: your personal information, the car you’re insuring, the type of cover you want, and the level of excess you want.
The information above is not always sufficient to base a quote on. For this reason, providers of auto insurance in Alberta also use statistical information from years to determine the level of risk. Consequently, young and new drivers can only get high-risk car insurance quotes.
The statistics from the past years show that new drivers and student/young drivers have higher accident levels. When behind the wheel, new drivers and student drivers are likely to take risks and less likely to spot potential hazards.
Young and new drivers are considered a high risk group of drivers. For this reason, they only qualify for high-risk car insurance — whose cost is considerably high.
How a young/student driver can reduce the cost of insurance?
Earn a no-claims discount
One of the easiest ways a young or student driver can reduce the cost of insurance is by taking advantage of insurance discounts available. A popular discount you can make use of is the no-claims discount. To earn this all-important discount, you need to drive safely by observing all the traffic rules. By driving carefully, you decrease the chances of being involved in accidents thus improving your chances of earning the no-claims discount.
Go for a car in a low insurance group
Different types and makes of cars have different rates of premium. The different rates of premium are based on how much it would cost an insurer per claim. So, to save on the cost of insurance, consider investing in a car that is likely to cost less per claim – this way you will pay less in premiums. To establish what type of car will cost you less insurance, search for the best and worst cars to insure in Canada before buying that car.
Take advantage of the good student discount
Instead of waiting for years to build up your no-claims bonus so that you can save on auto insurance Alberta, consider taking advantage of other discounts like the good student discount. With the good student discount, a young/student driver can save up to 25 percent if he/she attains good grades in college. This discount applies to full-time college and high school students who maintain an average grade of B and above.
Usually, this auto insurance discount lasts even after graduation. It stops being operational when the young driver attains 25 years of age.
What are some of the requirements you need to know before filling out an automobile insurance application?
Prior to submitting an application, the applicant is required to provide some vital information related to The vehicle information
- The driver’s information
- Information related to previous collisions, claims and driver’s conviction
- The type of coverage you’ve applied for
What is the importance of prompt payment of premiums?
Policyholders view cheap car insurance Canada as the best option to take as it gives them a chance to save. Even with that said; it’s important to pay your premiums on time. A premium is due immediately after you receive a bill from your insurance representative. Late payment may render your account ”delinquent.”
What do I need to know about the lapse in auto insurance coverage?
This will not be held against you unless:
- You operate a vehicle with no insurance coverage during the lapse in coverage
- You receive a policy cancellation for non-payment of premium
- Your drivers have a license conviction related suspension
- Failure to inform the insurer about a conviction or a collision
Car insurance providers in Ontario receive thousands of auto insurance-related questions from customers who are ever eager to learn. The complexity of automotive insurance can explain why consumers are always asking questions about the policy. One problem for most consumers is that only a handful of them bother to read and understand a policy before applying for one. They tend to trust and rely more on the information available to them by insurance agents or brokers. In as much as this is good, it’s not the best way of tackling the issue.
Instead of overlying on the agents, you need to be proactive when shopping for auto insurance. Make it your own initiative to examine carefully the policies offered and compare car insurance quotes in Ontario. That way, you can be sure of picking the right coverage. You can also take comfort from the fact that in an event of an accident; everything will be taken care of by your insurer.
Car insurance questions in Ontario cannot be exhausted as attested by the Ontario Consumer Information Center. Annually, the center receives thousands of inquiries related to auto insurance. Here is a taste of some of the frequently asked questions about car insurance in Ontario:
What is collision coverage?
Collision coverage is also provided for car insurance in Ontario. With this coverage, the insured vehicle is protected against accidental losses incurred when repairing the vehicle in case they are involved in an at-fault accident. Collision coverage usually demands a minimum deductible of about $500.
What is third party liability coverage?
In Ontario, third party liability coverage is identified as the mandatory minimum coverage one is required to hold. Whenever you cause an accident that ends up causing injuries to another person or damages property, liability coverage will come into effect. The cover requires a minimum of $200,000.
What is comprehensive coverage?
The coverage takes care of any kinds of accidents or losses caused by hazards such as theft, vandalism, fire, windstorm, lightning, earthquakes and flying objects.
What is an at-fault accident?
The Insurance Act clearly stipulates the ”Fault Determination Rules” which need to be followed when assigning the percentage of fault. It is the mandate of insurance companies to determine responsibility whenever an accident occurs.
Can you share fault in an auto collision?
Yes. An analysis of the circumstances can reveal that both the drivers were at fault. In such a case, the fault will be allocated based on the collision scenario as highlighted in the Fault Determination Rules.
Is my Car Insurance still valid if I drive in the United States?
Yes, but if you’re planning a long trip, it is advisable that you contact your Car Insurance Broker, Agent or Insurance Company as some insurance companies have underwriting rules limiting the length of time that you will be covered outside of Canada. Contact them so they can assess your situation.
If my car is stolen or damaged, is the contents of the car covered by my Car Insurance policy?
Typically no, your automobile insurance covers the driver, the passengers and, depending on your policy, the car itself. It does not cover the contents in your car. Check your home or renters insurance as they may be covered under those policies.
What can I do to lower my Car Insurance rates?
- Increase your deductible
- Drop the collision coverage on an older car
- Use the same insurance company for all your insurance needs to take advantage of package deals.
- Installing an approved theft deterrent system in your vehicle;
- Some cars are more expensive to insure, so you may want to find out the different cars’ ratings in the IBC publication How Cars Measure Up.
- Follow the rules of the road and try your best not to don’t incur traffic tickets.
- If you drive your vehicle to work, cut down on kilometres and take transit whenever possible.
Can I be refused Car Insurance in Canada?
You can be refused by an insurance company if you are considered “high-risk”, but you can’t be refused by the insurance industry as a whole or refused by them to sell you basic insurance. See more information on Facility Insurance.
I found a better insurance rate, can I switch Insurance Companies?
You can switch insurance companies before your insurance policy expires, but be aware you may incur a penalty. Check with your insurance company if there is a penalty and weigh that against the savings from the other insurance company.
What information is allowed to be used by an Insurance Company to determine rates?
- Age – Younger driver rates are higher
- Gender – Males typically pay more
- A number of years you’ve been licensed – the longer you have been a licensed driver, the better the rates.
- Marital Status – married drivers are considered safer
- Your City and Postal Code –insurers have the number of claims by postal code, so if you are in one postal code, you might pay more depending on the amount of claims for that insurance company.
- Driving Record – At-fault accident can impact your rates for as long as 6 years and tickets can impart rates for 3 years.
- Payment History – missed payments, NSF’s and lapsed policies due to non-payment can increase your rates.
- The type of car – insurers carry statistics on each type of car for their safety record and overall claims history
- Who will be driving or lives with you in your home? The insurance company can ask for information for other drivers driving your vehicle or other drivers in your home.
What information is not allowed to be used by an Insurance Company to determine rates?
- Credit history or if you own a credit card
- If your vehicle is owned or leased
- Employment status
- Length of time you have lived in your current home;
- Accidents where you are less than 25 percent at-fault where the accident occurred on or after September 1, 2010;
- Not-at-fault accidents;
- If there was a period of time you had no automobile insurance coverage.
What are the factors that influence my car insurance premiums?
There are a number of factors that will determine whether you will be provided with a cheap car insurance service or be considered high risk by the car insurance providers’ establishments. These factors are the history of your driving, the type of car that you drive, where you live in, the number of regular drivers of your vehicle, the type of car insurance coverage you choose, and the factors which are related to the industry such as regulations, taxes, inflation, and the market. All these are among the factors that will be considered when determining the premium rates that you will have to pay.
Can someone else borrow my vehicle?
Generally, as long as you have issued permission, anyone is duly licensed to drive your vehicle as long as it has proper insurance from the car insurance service providers. But what you need to know is that in the event of an accident after your friend has borrowed your car, your car insurance policies are likely to be significantly affected. It is often not recommended to lend your car to someone if they have not been listed as drivers of your vehicles because the car insurance provider service may not be liable.
How can I reduce car insurance premium rates?
In order to lower the car insurance premium rates, you can use the section of insurance quotes and make a thorough comparison of all the rates. The main advantage of this apart from having the chance of finding a cheap car insurance service provider is that there is no cost that is associated with checking out of the car insurance quotes. There are many available networks of licensed and professional insurance databases that can help you find your cheapest means.
High-Risk Auto Insurance Tips
A high-risk driver is an individual who, as a result of a combination of specific factors, has a very high probability of having an accident which is actually his fault. The car insurance company will therefore have to pay for it.
Usually, for a driver to be regarded as a high risk, there are a number of factors that might have led to this particular level. Some of them might be because you are still a very new driver or having a history of numerous tickets or even accidents. Usually, high-risk drivers pay heightened rates of insurance to the car insurance companies and they might even be non-renewable in the event of an additional risk factor. If you are a high-risk driver in Canada, a few guidelines can be of help in the acquisition of your insurance.
- Careful driving – One of the important factors to deal with your high-risk insurance cover is by being a more careful driver so as to minimize any kind of infraction or accident as it may end up leading to loss of your driving license.
- Insurance quotes – High-risk car insurance Ontario services tend to be the most expensive car insurance services available in Canada. If you reside in this particular Province, you can save on the amount of insurance you pay for by getting as many car insurance quotes as possible. In fact, there are even selections of options that are available. You can compare the options of the high-risk car insurance Ontario companies and choose the most competitive option available. Remember that high-risk insurance companies exist in order to provide assistance to those drivers that do not exactly qualify for the conventional rates and as a result of competition, there has to be one that has an edge over another.
- Stay up to speed with your rates – Some provinces, for instance, Alberta car insurance companies, have very accommodating rates. As a high-risk car insurance Alberta culprit, you should make sure that all the accidents and tickets that cannot be chargeable any longer are dropped at a suitable time. Whenever there is any revision of your status, make effort to receive some quotes to make a comparison and find out if there is any way you can save. This might give you an advantage especially if you are a member of a high-risk car insurance Alberta company.
Sooner or later, the rates from the conventional car insurance companies will start being at par with those of the high risk and then even become lower.
How Auto Insurance Rates are Set
Car insurance companies in Canada determine their premium rates on the basis of risk, just like any other conventional insurance company. Meaning, the charges are calculated with regards to the likelihood of a customer or a group of clienteles to make their claims and the amount of money the claims are going to cost them. The following are among the main factors that are used to set insurance rates:
- Location of Residence and Driving – Car insurance Ontario services issue the highest premium charges as a result of escalated fraud rates in the region. Ordinarily, if you happen to be a resident of a bustling province, there is a rather higher probability of accidents happening and stealing of your vehicle; this will mean a higher charge on the premium rates.
- Driving History – The state of the record of your driving has a very significant impact on the amount of premium rates that are going to be charged to you. Car insurance Alberta service providers are very strict when it comes to the history of a specific driver. If you have an impeccable driving record, you will pay the lowest possible insurance charges. On the other hand, if you are prone to accidents especially those that are your fault, you will suffer high costs of insurance payments, especially with the Car Insurance Ontario services.
- The Type of Car that you Drive – It matters the type of car you insure as to what your insurance rate will be. It has to come into play when your payments are being rated. Even though it does not exactly have a significant effect on the basic coverage of your car’s insurance, the kind of vehicle you drive will have an effect on both the comprehensive and the collision insurance premium coverage rates. It is somewhat obvious that if your vehicle is a very expensive and luxurious model, you will have to pay equal amounts of charges that can be able to fully compensate for the vehicle in terms of repair and the extreme cases of theft.
The mathematical probabilities and statistics professionals are the individuals that hold the responsibility of foreseeing the amount of money it will cost the insurance companies service providers to settle the compensations, the overhead of the establishment, the cost of selling, and the funds that should be set aside to handle the calamities.
Types of Auto Insurance Coverage
Purchasing car insurance coverage in Canada, just like any other country, can be confusing for most consumers. The fact that there are a number of options available to the consumer makes it hard on their side. The different car insurance rates provided by insurance companies do not help anyhow when it comes to helping consumers decide on certain auto insurance coverage to take. It is very important to take some time to understand what each coverage offers and the related costs. By doing so, you not only get peace of mind but also end up saving a lot of money.
These are some of the auto insurance covers you are likely to come across in Canada:
In Canada, the only mandatory insurance coverage you are likely to get for your vehicle is liability insurance. The coverage is specifically designed to protect others from damages that might be caused by a driver using your car. The liability insurance coverage takes care of both property damage and personal liabilities including physical injury and death. The coverage also protects drivers against any sort of financial losses that an individual might suffer in relation to their medical expenses. As an accident benefits portion of insurance coverage, the insured can actually claim protection even in the case of an at-fault accident.
This particular coverage offers protection in terms of financial compensation to a vehicle damaged as a result of collision or accident. In this case, collision is defined as any accident involving another vehicle or a stationary object for that matter. Collision cover is usually expensive and has a tendency of depending on the vehicle or the driver.
What’s Covered in a Standard Car Insurance Policy?
The standard insurance policies vary from one car insurance company to another in Canada. The insurance policies will help you understand how the insurance company offers its service and how much coverage they are willing to provide to you in the event of an accident whether fatal or just a minor accident. There are three main policies that you should at least purchase according to the law of Canada:
- The liability coverage of a third party – This is the section of your specific vehicle insurance that gives you adequate protection in case an individual is injured or even killed. This also has the means of giving you protection in case of property damage. The insurance will cover for claims and allegations that will rise due to lawsuits up to a certain limit. When you compare car insurance quotes of any insurance company, this is among the most important standard insurance policies to be checked out.
- Legislative accident benefits coverage – In this section of your standard insurance policies, the insurance policy will provide you with the necessary benefits if you are exposed to injury if you end up in a car accident irrespective of putting into consideration the individual that led to the specific accident. This coverage often includes attendant care, supplementary medication, rehabilitation, caregiving, and even non-earning and income auxiliary benefits. During the undertaking to compare car insurance quotes, this should be checked out to enable the wisest selection of a car insurance company.
- Direct compensation – This is also referred to as coverage of property damage. This is the section of the insurance of your vehicle that gives you the service of covering for both your vehicle’s damage and its content, even if the fault of the accident was of the other individual involved in the accident. It is known as compensation since it covers for the damage of property without discrimination even if someone else led to the accident. This benefit is collected directly from the company that is your insurance provider. As long as the accident occurred within the specified jurisdiction, all your damage will be taken care of. Sometimes, there might be variations in the conditions of this – therefore as you compare car insurance quotes, this policy should be given complete attention.
This is why you need to compare car insurance quotes Canada service establishments are giving. You will have the advantage of paying the lowest premium rates possible upon a thorough comparison of as many quotes as possible.
This coverage seeks to protect drivers against any form of losses caused from other events that are not necessarily related to the driver’s action or the operation of the vehicle. Some of the risk factors covered under comprehensive insurance include vandalism and theft. Environmental perils such as floods hail and windstorms are also taken care of under this cover. The cover is reasonably priced as it offers one peace of mind amidst all the unfortunate occurrences. Since the rates for comprehensive insurance tend to vary drastically depending on the insurer, it is always important to conduct a search on auto insurance quotes online in order to get a clear picture of what suites you best.
Things to Consider Before Cancelling Your Auto Policy
Many of us have our own reasons as to why we might be cancelling a policy. You might be swayed by an interesting ad to switch or you’re just unhappy with the services of your current insurer. Whatever the reason, always make sure you’ve exercised due diligence.
Today, there is a vast number of car insurance companies. In most cases, each one of these companies offers what seems to be a lucrative offer to the other. In such a scenario, cancelling your current policy is easy but requires caution. In Ontario for example, you are likely to find insurance ads on the best car insurance quotes in Canada; which in turn triggers the urge to switch.
Whenever you have intentions of cancelling auto insurance, there are things you need to consider. Some of those factors include:
Early cancellation of an insurance policy always comes with related costs. When you sign up to a certain auto insurance policy, you subscribe to certain terms and conditions as stipulated by the policy. Therefore, at the point of cancellation, insurance companies handle the issue based on the terms provided.
Companies offering car insurance in Canada have their own policies regarding coverage cancellation. What is common though is that, every cancellation come administrative costs and premium losses. Insurance companies use two methods to process refunds: short-rating or pro-rating.
Fees and down payments for starting a new auto policy
Whenever you start a new policy, one incurs administrative charges and is also required to remit a certain amount inform of down payments. These fees together with the cancellation charges initially incurred can prove too much at times. Therefore, it is very important to carefully consider this option before requesting for auto policy cancellation. Take sometimes to research and find out exactly how much the switch will cost you in order to avoid any kinds of surprises.
Most ideal time to shop for car insurance
It’s always prudent to shop around for new car insurance once you start approaching your renewal point. That way, you can be sure of avoiding any sort of cancellation penalties. In a nutshell, cancelling on renewal will give you a smooth transition to a new policy.
What if you are really unhappy and you’re not even close to your renewal? The best thing to do in such a situation is to compare car insurance rates offered. It will help you know whether indeed you are overpaying. Add up all the costs related to cancelling, the cost of a new policy and compare them to premium saving. If it results to saving, then cancelling early is the right choice