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We live in the era of never-ending college debt, a rising cost of living, a flourishing lifestyle of consumerism and, sadly, all-too-often stagnant pay. You need your macchiatos. You love your smoothie bowls. Saturday nights are meant for Hulu and Uber Eats. But you are also the ones bucking the trend, because you are hustlers. The super savers. You want to pay off those debts. You want to clear your student loans. You want to buy your home. You want to start a family. You also want to live the life you want to live (hello, retire early and rich?). You want to stop us right here and ask, “But what has insurance got to do with that?”
Whether you want to save up for that trip to France or to buy a one bed-plus-den condo in the city, you need to save money. It doesn’t mean you have to pinch pennies (RIP) and let go of the things that you have enjoyed doing. You can continue to do all of that and more while being smart about your finances. Just as you might shop around online to find the best deal before making a purchase, you can benefit from doing the same with your car insurance. When you compare car insurance quotes online, it can save you thousands of dollars every year. Live in the moment and save for your future.
Does this sound familiar? You needed car insurance, so you asked your mom where to buy it. She referred you to her insurance company, and perhaps without much thought you took the plunge and signed on the dotted line. Now that you’re older (and wiser), it’s time to consider breaking up with your mama’s car insurance and finding the one that’s right for you and your bank account.
According to a census data by StatsCan, driving is by far Canada’s favourite way to get to work with four out of five Canadians driving to work. Based on data from Rates.ca, Canadian millennials average a 13.7 km daily work commute, with driving being a standard way of commuting to work.
If you don’t drive to work, taking public transit, riding your bike, or taking another form of transportation could save you money on your car insurance. Most insurance providers reward drivers who keep their mileage low. The less you drive, the less likely you are to have an accident. Imagine saving not just on parking and gas in the city, but also on your auto insurance!
Purchasing car insurance might be mandatory in Ontario, but overpaying for car insurance coverage you won’t use certainly isn’t! Whether you have recently purchased a new ride, or are a newly licensed driver, whether your insurance is soon up for renewal, you’ve switched up your commute, or your existing policy simply doesn’t spark joy anymore, it’s time to compare car insurance rates.
According to quotes obtained by Rates.ca, the most popular vehicle makes for millennials (identified as those born between 1981 and 1996), are:
* Based on auto insurance quotes completed on Rates.ca through January to April, 2019
You are required to purchase a Standard Auto Insurance Policy if you own a vehicle in Ontario. But not all insurance policies are the same. Coverage options vary from policy to policy. The minimum requirement comes with the following auto insurance coverages:
This protects you in the event you cause the death of someone else, injure someone or damage someone else’s property with your car and they make a claim against you. This pays the costs of settling the claims. Mandatory coverage requires you carry a minimum of $200,000 in third-party liability, though many drivers opt to increase this.
This covers rehabilitation, supplementary medical and caregiver expenses, and provides you with an income replacement benefit if you are injured in an accident, regardless of whose fault it was. Each province or territory has its rules on this coverage.
This provides coverage for your vehicle, and its contents if you were not at fault for the accident. This applies if the accident took place in Ontario, there was at least another vehicle involved, and if at least one of the other vehicles is insured by a licensed insurance company in Ontario.
This protects you and your family in the event of a hit-and-run, or in an unfortunate damage/death caused by an accident due to the fault of an uninsured motorist.
There are additional benefits* and protection based on your needs that you can add on to your mandatory coverage. The most commonly added optional coverage preferences are collision coverage and comprehensive coverage.
Collision or Upset – Collision coverage pays for the cost of repairing or replacing a vehicle following a collision with another vehicle or an object like a tree, a guardrail, or a property, or in an event of your vehicle rolling over. This is an optional coverage in all the provinces except Manitoba and Saskatchewan.
Comprehensive – Comprehensive coverage pays for any repairs or replacement on a vehicle for the damage caused by something other than a collision; like a theft, fire, windstorms, or vandalism. This coverage is also optional.
All Perils – All Perils coverage combines both Collision/Upset and Comprehensive coverages. Additionally, it also covers the theft of the vehicle by a household member or an employee.
Specified Perils – Specified Perils coverage is for losses caused by risks or perils specified in your policy such as: theft/attempted theft, fire, hail, windstorms, earthquakes, explosions, riot/civil disturbances, falling of an aircraft or its parts, damages during transport on land or water, etc. What Specified Perils doesn’t cover: Vandalism, breakage of glass, hitting an animal, etc.
No-fault insurance
Every province offers some degree of no-fault insurance. In a no-fault car insurance system, if a person is injured or if their car is damaged in a collision, the person deals directly with his or her own insurance company regardless of who is at fault.
*A deductible may apply to these additional coverages.
Saving doesn’t have to mean giving up on your bucket list dreams. Like many things in life, it’s a process that starts with the first step. When you compare car insurance quotes through Rates.ca, you get a plethora of options tailored to your unique lifestyle. Window-shopping for a new policy at least every year to compare plans and coverage is a great way to grab a good deal.
Here are just some of the other ways you can save on your car insurance premiums:
To help you understand what you're buying, here are your answers to some of the most frequently asked car insurance questions.
Hold your horses! In Canada, there is no way you can drive your car, or even obtain a licence plate, without getting car insurance. It’s the law! It is mandatory, and if you drive without insurance you will incur hefty fines (for the first conviction it is a minimum of $5000 in Ontario and can go up to $50,000). Drivers without active insurance coverage could face charges including having your license suspended and your vehicle impounded. Instead of taking on the risks of going uninsured, shop around and compare insurance quotes, and ask for discounts that could save you money and a whole lot of legal trouble.
Yes, we cannot stress this enough. The proof of insurance card, which is the liability insurance card, called the pink slip, will be provided to you by your insurance provider when you take out your insurance policy. You need the pink slip to register your vehicle and obtain your licence plates. You need to have the pink slip to produce to police when asked anytime that you are on the road.
There are a number of factors that determine your auto insurance premiums. Some of them are:
You can bring your premiums down by ensuring that you drive safe and remain collision free. Even an accredited driver training program can help get you discounts on your car insurance.
Insurance providers regularly change their prices, and the only way to know if you can find a more competitive rate is to compare car insurance quotes online. Shopping around once a year upon renewal is ideal to find cheaper auto insurance, and to make sure you are not missing out on substantial savings. Having an eye on your policy will certainly help you in knowing whether you are newly eligible for discounts. You could be missing out on huge annual savings by not comparing insurance prices online to calculate your potential premiums.
A deductible is the base amount that you agree to pay upfront in the event of a claim, before the insurance provider’s coverage kicks in. When you purchase a policy, you agree on paying an amount out of your pocket. A higher deductible generally would mean a lower insurance premium, so if you want to save on your car insurance, choosing a higher deductible is the way to do that.
A car insurance policy is connected to the car, not the driver. If you own multiple cars, you need a policy for each of them. Any licensed drivers in your household should be declared on your insurance application. Anyone who drives your car with your consent will remain covered by your vehicle’s insurance policy. In the case of an at-fault accident while driving your car, remember that your premium could be affected. If there is someone who drives your car frequently, you should add them into your policy.
Congrats on your new ride. If your question is about getting insurance, Canadian law states that anyone who drives a car must carry a basic car insurance with minimum coverage. The type of car you choose will affect your premiums, and it’s worth checking how insurance companies rate a car before your make that purchase. Most providers use CLEAR (Canadian Loss Experience Automobile Rating) system to identify and rate vehicles according to their safety features, cost of repair/replacement and likelihood of theft.
Firstly, the colour of your car is not a determining factor in calculating your insurance quotes. So, while it doesn’t matter if your car is ruby-red, the fact that you drive a Honda Civic Coupe could be one of the factors. It is one of the most expensive cars to insure. There are many ways you can bring your premiums down, including choosing a policy with a higher deductible. You should ask about other discounts that are offered to policyholders and see if you qualify for any.
Let’s put it to the test! Go through these questions and think of your answers. Then click on the sign on the right to see the correct answer.
Yes, speeding tickets will increase your auto insurance premium. A speeding ticket will cause a dent in your driving history and will hurt your chances of getting cheap car insurance in Ontario. If you incur multiple speeding tickets, you are likely to be considered a high-risk driver by your insurance company.
Unfortunately, no! Any personal belongings (your phone, laptop, wallet, GPS devices) and other items stolen from your car are not covered by your auto insurance policy. However, they are likely protected under your home or tenant insurance policy. Take precautionary measures such as keeping your vehicle locked at all times and installing an anti-theft device.
True. Insurance companies do take into account the make and model of a car. If a particular make of car has statistically been proven less likely to be stolen, has better safety features, or is not costly to repair, the premiums will be less.
Not really. As long as you pay them on time and not add getting a parking ticket will not impact your insurance policy. They are not used to determine your rates.
Yes. Where you park your car at night can have an impact on your insurance rates. If your vehicle is parked in a safe place like a garage, there is less risk of your vehicle being broken into or stolen, so this might be reflected in lower car insurance rates. Some insurance companies do offer private parking discounts for overnight parking, and that is exactly why you should shop around and compare car insurance quotes online!
FUN FACT: Did you know that 47.78 per cent of Rates.ca customers between 23 and 38 park their vehicle in a private garage, and about 24.29 per cent park in a private driveway? *
*As claimed by drivers who completed quotes on our site from Jan-April 2019.
Keep these tips in mind before you pin down your car insurance quote:
1) Educate yourself – Understanding your policy, and what it covers will come in handy. Perhaps you no longer need a particular coverage, and so opting to remove it from your policy will surely bring down your rates.
2) Know what determines your premium – There are a lot of factors ranging from where you live, what model of car you drive, what you use your vehicle for, how clean your driving record is, to the coverage you choose.
3) Know what could reduce your premium – Opting for a higher deductible, reducing kilometers driven, taking high-risk drivers off your policy, installing anti-theft devices in your vehicle, buying a car that has a low CLEAR rating, are some of the many ways to lower your insurance premiums.
4) Review your insurance provider’s track records – Rates.ca has an array of leading insurance providers we work with and trust, so you can rest assured that you are in safe hands. We provide you quotes from over 30 of the top insurance providers to make it easy while shopping around for the cheapest insurance quotes.
5) Ask questions – Especially about discounts and benefits; most insurance companies offer discounts based on a number of factors and we recommend that you ask your insurance provider about what you may qualify for.
6) Bundle your policies to save – When you bring both your home insurance and car insurance together with the same provider, you are sure to save big on your policy.
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