With the all the unforeseen probabilities in life, it's a wise endeavour to take the appropriate measures to protect your family and your investments. This holds true when it comes to one of the most significant investments that you will make at any given point - the purchase of a vehicle. With such a significant investment it makes sense to purchase an insurance policy to cover the cost of your investment in the case of loss. Personal auto insurance also will protect you against liability in the case of an accident in which you may be held at fault.
Plus, it's mandatory for every registered car in Ontario to have car insurance.
Filling out an insurance application is a key step in obtaining auto insurance coverage. An insurance broker, agent or insurance company can do it on your behalf. It is important to understand what information is required for the application so you can be prepared to speak with a licenced insurance representative. You can also provide the information on RATESDOTCA and get access to several auto insurance quotes at once. Honesty is key when providing answers to the questions in the insurance application. Inaccurate information can result in an increase in rates or even make your policy void. The insurance representative will tend to verify the accuracy of the information you provide through a Motor Vehicle Record (MVR) to ensure there are no discrepancies. Most of the information for an insurance application can be broken down into two categories: vehicle information and driver information, including insurance history.
You are also asked for additional information to see if you quality for any discounts (i.e. retiree discount, multi-vehicle discount, multi-policy discount etc.). Finally, you have to choose your coverage type and deductibles, both of which have an effect on the insurance premium.
If you're looking to purchase auto insurance in Canada you'll be happy to know that you have options. Auto insurance can be purchased through:
Insurance brokers: individuals who sell insurance on behalf of several insurance companies
Insurance agents: individuals who sell insurance on behalf of one company
Direct writers: insurance companies that sell insurance directly to the consumer, usually online or through a call centre
Each one of the channels through which car insurance can be purchased has its benefits (summarized in the table below). What's important is that you shop around before you commit to a rate. This is the only way to ensure that you're getting the best possible price.
Absolutely! As with any type of personal insurance product, shopping around online for car insurance helps you to gather all your choices in one spot. Seeing your options together makes it easy to compare offers and identify the best deal. You’ll also get to compare your current rate with new offers and decide whether you want to stay with your current insurance provider or switch to a new one.
The short answer is yes. In Ontario, your insurance covers your car, not the driver. That means if someone borrows your car and gets into an accident, your insurance will cover it.
However, someone else driving your car comes with caveats. If the driver doesn’t have a license or the car is being used for an illegal activity, your policy will likely be voided in the case of an accident.
You should also know that if someone borrows your car and crashes it, your premium will likely increase, so be careful who you let borrow your car.
Yes, but the options vary by province. In Ontario, for example, mandatory insurance coverage includes:
Beyond what constitutes mandatory minimum coverage, you may choose to increase the liability of existing protections or purchase additional types of insurance.
For example, you could increase your third party liability coverage from $200,000 to $2 Million. Or, you could increase your benefits, which include any or all of the following:
This is just a brief overview of what’s available, so check with your provider to see which benefits you can add on.
An insurance premium is the monthly or annual sum you pay for an insurance policy.
When determining what your premium will be, companies consider numerous variables, such as:
For a more detailed description of how car insurance premiums are determined, check out our car insurance calculator.