Car Insurance Guides

Information & Resource Guides While Shopping For Car Insurance

First Time Car Insurance

For those who have recently learned how to drive, or are buying their first car, there is the important matter of getting insurance. Getting insurance is a vital part of being eligible to drive in Canada, and no new drivers should ignore the importance of being insured. Not only does auto insurance provide a safety net for first time drivers, but it also ensures that other drivers are protected in the event of an accident.

Here are four important auto insurance factors that all first time drivers should be aware of:

1. The minimum liability requirements in your area.
2. Differences between basic types of insurance.
3. Choosing the right combination of deductible and monthly premiums.
4. How to find the lowest prices on car insurance.

Minimum Liability Requirements
Most areas in Canada have a minimum requirement of $200,000 in third party liability, $50,000 for medical payments, $6,000 for funeral costs, and $25,000 for spousal death benefits. Of course, it is possible for first time insurance owners to get more coverage from their policies, but this often comes with higher premium payments.

Different Discounts for Car Insurance:
There are several discounts that first time drivers can look for in car insurance policies. For example, several companies offer discounts to college/university students. In addition, drivers who have more than one car are often able to get a discount on both policies. Finally, individuals who combine their first auto insurance policy with another insurance policy, such as life insurance or homeowners insurance, may enjoy discounts on all of those policies.

Choosing the Right Car Insurance:
Most companies will offer incentives to first time drivers to sign up for Ontario vehicle insurance. However, a lot of these incentives are tied to their least inclusive policies. This is where an individual must be careful. It is great to get cheap quotes, but if that policy is inadequate then the monthly premium is a waste of money.

Sometimes it is better to pay slightly more for coverage that will protect you, and other drivers, in the wake of an accident. Drivers who only drive short distances every day are better candidates for minimum policies than those who regularly drive on highways.

Deductible vs. Premium Payments:
Deductibles are a great way to lower monthly payments, but there has to be a balance. An auto insurance deductible is the amount that you must pay out of pocket in the event of an accident. This may be in the $200 to $500 range, depending on your agreement. If you consider yourself a very safe driver, it may be a good idea to choose a higher deductible. However, drivers that are going to be spending a lot of time in their car, or fall into the reckless driving category, should opt for lower deductibles.

Find the Lowest Prices:
Shopping around for car insurance is the only way a first time driver will get a great rate/coverage combination. Look for quotes at five to ten different insurance companies using a quote comparison service before making any final decisions.
Get Car Insurance Quotes
Stay On Top of Your Finances
Sign up to subscribe to our newsletter, receive alerts when rates change or schedule a reminder prior to the renewal of your insurance policy and/or mortgage