Parts of your auto insurance policy may have deductibles. A deductible is the portion of an insurance claim you agree to pay. Your car insurance provider covers the remaining cost. Your deductibles play a part in how your rates are calculated. Depending on how much financial responsibility you take on in the event of a claim, your auto insurance rates will reflect your commitment. Take on more responsibility (i.e. increase your deductibles) and your rates will lower, take on less responsibility (i.e. decrease your deductibles) and your auto insurance premiums will increase.
Accident Benefits: With the exception of Newfoundland and Labrador, Accident Benefits are mandatory across the country. Accident Benefits will pay for things like medical treatments, income replacement and funeral expenses if you are injured or killed in a car accident. Additionally, some areas of the country require that your auto insurance policy include Direct Compensation Property Damage (DCPD) and/or Uninsured Automobile coverage. DCPD covers damage to your vehicle or its contents when someone else causes a collision you’re involved in. Uninsured Automobile coverage also offers protection to you if you’re involved in a collision where the other driver, who is at fault for the accident, does not have auto insurance.
Many Ontario drivers have additional third party insurance coverage. This is a wise move since the provincial requirement is only for $200,000. Settlements from serious accidents often exceed this amount. Any amount in excess of insurance coverage remains the responsibility of the driver. To guard against serious financial strain, it’s common to add liability coverage to $500,000 and beyond.
Preferred Vendor Program: Preferred Vendors offer the highest-quality workmanship. When you choose a Preferred Vendor for your repairs, the quality of workmanship is monitored and the bill is settled directly with the repair shop, giving you a hassle-free claims experience. Plus, collision repairs made by a Preferred Vendor are guaranteed for life.1
Perhaps the worst kept secret or simply the best advice to finding cheap car insurance in Toronto is something you’ve heard over and over again: shop around and compare. Comparing car insurance quotes from multiple companies is one of the the best options available to save money and a simple, convenient way to accomplish this is by going online to do your research. In fact, some car insurance companies in Toronto will give you a 5 to 10 percent discount just by filling out your information and signing up for a policy online because you are saving them from using costlier resources. We’ll insert a shameless plug here and inform you that Rates.ca simplifies the online research process with a proven customized comparison tool that helps you obtain among the lowest car insurance policies on the market.
The more time you spend on the road, the higher your chances of being in a collision or getting a ticket. If you can, start carpooling with colleagues to work, taking public transit, biking or walking because if you can find ways to spend less time commuting, not only could you benefit from a lower premium, but you’ll also decrease your chances of getting a ticket or being in a collision. There are also health benefits too if you bike or walk to work instead of taking the car.
Among the things insurance companies don’t take into account are: employment history, bankruptcy, your housing situation and history, or your net worth. In Ontario and Newfoundland and Labrador, insurers also cannot take your credit score into account when assessing your premiums – but in Nova Scotia they can; in Alberta, they need your permission. Car colour also doesn’t affect rates – it is a widely-believed myth that owners of red cars pay more – they don’t.
Other insurance conditions may arise depending on the type of vehicle, its use, and any customizations or modifications made to the vehicle. For example, if you have altered your vehicle to enhance its performance or appearance, most insurance companies would need to assess the vehicle to determine if they could insure it. If you plan on modifying your vehicle, call us first! We will let you know if the changes you plan on making could have an impact on your policy.