Finding the best car insurance in Canada is not just about complying with the law. It’s also about making sure you’re protected against loss of your property.
Auto insurance in Canada is a policy that vehicle owners in Canada purchase in order to mitigate costs that are associated with getting into an automotive accident. Instead of paying for it from their own pockets, drivers pay premiums annually to a company that offers auto insurance in Canada. This company then takes care of either all or most of the charges that are associated with the automotive accident or any other vehicle damage.
Of course, protection comes with a price. But that doesn’t mean paying whatever the insurance company asks. There are ways to make sure you only pay the best rates possible and still get the right policy for you. Today, we’ll help you get exactly that.
What to Look for in the Best Car Insurance Rates
What should you check the moment you start shopping around for an insurance service?
Everybody hunting for a car insurance has a working budget. This budget, however, is not a figure you produce out of thin air. Do some research on what the standard rates are. Find out what family and friends paid when they got their own insurance. Base your own budget on that. Then look for the provider that will offer rates that come closest to it. We have detailed comparisons on our website, so you can actually compare and get a quote for insurance online.
Just to be clear – going for the lowest rate is not always the best option. You may save a few dollars on insurance now. But will these few dollars save money on loss of property later on? The most expensive policy is not always the best, either. It may offer a few perks here and there, but you probably won’t really most of those inclusions. This is why you also have to look at what your insurance offers to make sure what you’re paying for is worth it.
How seamless are your transactions with the insurance provider? The key here is not just speed, but overall efficiency. A certain insurance company may have speedy processes. But if this comes with a number of mistakes along the way, start thinking twice.
How easily can you contact the company’s customer service hotline? Was the representative able to answer your questions? How quickly do they respond to inquiries? All these things will matter, especially when it’s time to file a claim. You wouldn’t want to get caught in the middle of an emergency without anybody from the company answering your calls.
These are the most important factors you should think about when choosing auto insurance. You can create side-by-side comparisons to help you how specific companies compare. This should give you a good picture of who does what best.
Tips for Getting the Best Car Insurance Rates
Shopping for auto insurance is not exactly as easy as 1, 2, 3, but these tips could help you come up with the best possible decision that would eventually save you from unnecessary costs, burdens and headaches.
Don’t just settle for the first insurance provider you find online. Get quotes and rates from all the insurers you find. As we mentioned before, you can get a quote online, so that part has gotten easier. See what everyone has to offer. You can ask questions before getting car insurance. Once you have all the info you need, start eliminating. This is a much better approach than going for the most popular or cheapest policy right away. Comparison shopping will keep you from ending up not having the kind of car insurance that you really need or paying too much for something you don’t need at all.
Be a better driver.
Yes, the way you drive can greatly affect your car insurance rates. The more accidents you get into, the riskier you are to insure. Traffic tickets have a great impact on insurance rates. This means that the rates will also go up for you. If you keep your driving record clean and fix your bad driving habits, the risks of ensuring you are lower. Therefore, car insurance providers will also be able to give you amazing rates.
Pay on time.
Who doesn’t love great customers? If car insurers see that you pay on time, they will most likely trust you more. Insurers give better rates to those who pay reliably. Be sure to include car insurance payments in your budget so you’re sure to have the money ready.
Take note of your coverage needs.
Some people think that the smallest possible coverage is best for them mostly because it’s cheaper. Some go for the most comprehensive coverage possible because it makes them feel safer. However, these far ends of the pole do not necessarily meet your needs.
Use what is required by the law as a base. Although the minimum for most car insurances in Canada is $200,000, this does not mean you should stick to this. Some areas also have lower minimums, such as Quebec (where the minimum is $50,000). It is often advisable to get coverage higher than the minimum to be safe. Another factor to consider is the age of your car. If it’s fairly new, you might want to add coverage for damages to your own vehicle.
Note that just because a friend of yours got a specific coverage does not mean the same will work for you, too. You may have different vehicles, different driving styles, different driving behaviours, etc.
Add safety features to your vehicle.
Car insurance providers love it when you’re obviously taking all necessary precautions. Make sure you have a decent alarm system installed. Winter tires would also help when the season for them comes along. These are clear signs that you’re not the type who would invite accidents to occur. It shows that you are careful and are least likely be involved in huge accidents.
Consider bundling policies
Your car insurance may not be the only type of insurance you need. What if you also need insurance for your home? Your motorcycle? Your other properties? A lot of insurance providers offer bundled packages to clients who need more than one kind of coverage. The best thing about this is that you won’t have to talk to different people from different insurance companies. It’s always easier to deal with a single person for a number of needs.
Remember that the key here is a proper balance. It’s all about matching the right price to the right coverage. It’s about looking at your specific needs and matching a company that will give you solutions at a competitive price.
Different Types of Coverage
Of course, one of the most important steps to getting car insurance is knowing what kind of coverage you need. In Canada, these are your options:
This is the most basic coverage required by law. It covers:
- Damage to the other person or vehicle
- Medical bills
- Legal fees
- Other similar expenses
Emergency Road Service
ERS ensures you have proper road assistance in case something happens to your vehicle while you’re driving. It covers:
- Oil or gas delivery
- Light mechanical labour
- Tire change
- Locksmith services
- Towing services
- Other similar services
This takes care of other types of incidents. It covers damages from:
- Extreme weather
- Other similar mishaps or incidents
This covers damages to your own vehicle in case of a collision. It can also cover the costs of replacing your car if it is totaled.
Uninsured Motorist Coverage
This type of insurance takes care of expenses resulting in your own injury or death if the other driver is unidentified. If the other driver is identified but uninsured, then this takes care of damages to your vehicle.
Direct Compensation Property Damage
This covers losses and damages that you are not fully responsible for. This is only available in specific provinces.
All Perils Insurance
This covers everything unless otherwise stated by your policy.
Accidents Benefit Coverage
This covers your medical care if you sustain injuries from a car accident. It also covers income replacement.
This covers your benefits and medical bills regardless of who’s at fault.
This covers nothing more than what is stated or specified in your policy.
Review each of these coverages and look at what you need the most. Your car insurance provider will most likely have recommendations on what fits you best.