Cheap Cambridge Car Insurance Quotes

How does Cambridge auto insurance work

Cambridge is a picturesque city on the Grand River in Southern Ontario with a population of 138,000.

Most residents in Cambridge drive, because although there is public transit, it is not as comprehensive and frequent as larger cities in Ontario.

And of course, those drivers are required by law in Ontario to carry insurance for their vehicle. Some of it is mandatory, such as accident benefits, Direct Compensation Property Damage (DCPD), third party liability and uninsured motorist insurance.

But many insurers in Ontario also offer optional coverages, including all perils, comprehensive, collision and specified perils.

Below, we break down which coverages are considered mandatory for drivers in Ontario and which ones are optional. Take some time to familiarize yourself with them so you can find the right coverage for you.

Mandatory coverage

You will be required to have the following coverage for your vehicle in Ontario.

• Accident benefits/bodily injury: This will cover the cost of medical care, wage replacement, home care and even funeral costs if a Cambridge driver is injured in an accident.
  
• Direct Compensation Property Damage (DCPD): This will cover damage to your vehicle and damage to the vehicle’s contents if you’re insured and in a collision where you’re not at-fault. The benefit of DCPD is it allows the insured driver to be paid by their insurance company in a timely manner, rather than having to wait for legal negotiations with the other driver’s insurer to conclude.
• Third party liability: This will cover you if someone else is injured or killed and you’re at fault for the collision. It will cover the cost of a lawsuit that may stem from such an event, as well as covering the repair cost for vehicles and property involved in the collision. Also covered will be any medical costs.
  
  The minimum amount of liability coverage you need in Ontario is $200,000, though many drivers end up going with $1 million coverage, as it ensures you’re protected if you are sued for that much (which is not uncommon).
  
• Uninsured motorist: This will cover you if your vehicle is damaged or if you are injured and killed in a collision with an uninsured driver, or a driver who flees the scene.
  

Optional coverage

• All perils: Perils is a type of insurance referring to a specific item to be covered, such as damage from a fire. All perils covers many named perils.
  
• Collision: Covers the replacement or repair cost of a vehicle if it is insured and it is in an accident where the driver is at fault.
  
• Comprehensive: This expands your coverage to cover a variety of potential events that could damage your car, including hail, earthquakes, theft, vandalism and damage by debris.
  
• Specified perils: We mentioned all perils above, which covers a wide range of perils, but this is designed to specifically cover named perils, which can include things like fire, lightning strikes, attempted theft, riots or windstorms.
  

Ontario endorsements

“Endorsement” refers to an amendment in your insurance policy that either broadens, restricts or alters your terms. Often, they're added to your policy for increased coverage.

Familiarize yourself with the endorsements below to see if they make sense for you.

• OPCF 20 – Loss of use: This endorsement will cover you if your vehicle is damaged, needs to be replaced and/or you have to pay for alternative transportation while your vehicle is fixed. Other coverages such as all perils, comprehensive or specified perils offer this protection.
  
• OPCF 27 – Damage to non-owned vehicle: This endorsement means your coverage for any bodily injury, uninsured automobile damage, accident benefits and other property damage will be extended to a vehicle you don’t own.
  
  It also protects you if you’re driving a rental vehicle, meaning you won’t have to purchase property damage coverage (Loss Damage Waiver, or LDW).
  
• OPCF 35 – Emergency roadside: This endorsement will protect you if your car breaks down and cover the cost of any labour required, such as tire replacement, locksmith services, cost of a tow, battery replacement, gas, etc.
  
• OPCF 44R – Family protection: This endorsement helps cover the difference between your coverage and the liability of any third party who’s in an at-fault collision with you. If you’re under 18 and eligible for coverage, you’re better compensated in the event of a collision with an at-fault driver.
  
• OPCF 43 – Depreciation waiver: An endorsement that will get you full value coverage of your car in the event it’s in a collision and totaled. This is a good option for anyone with a brand new car, given new vehicles quicky depreciate quickly in the first few months.

Take stock of the above coverages and decide how much will give you peace of mind. But also remember that more coverage will increase the cost of your annual premium.

One way to save money is to compare the coverages you want among many difference insurance providers. You can use a site like Insurancehotline.com to do that quickly and for free.

How much does Cambridge car insurance cost?

The average car insurance premium in Cambridge in was $1,402, according to data from RATESDTOCA.

The average in Ontario, by comparison, is $1,555, meaning that insurance in Cambridge is about 10% less expensive than the provincial average.

Residents living in the Cambridge postal codes of N1R and N1S will find premiums ranging from $1,378 to $1,475.

The cheapest car insurance is in postal code N1S, at $1,378, while the most expensive insurance is in N3H, at $1,475.

Compare Cambridge car insurance premium against other Ontario regions

What factors affect your Cambridge car insurance premium?

Insurance companies take a wide range of factors into account to price insurance. It’s important to understand that different insurers calculate risk differently. That means while one insurer may rate your neighbourhood as higher risk to insure a vehicle in, another insurer will gauge it less risky based on their data. So be sure to always compare your quotes.

• Claims history: Drivers with clean records and no history of making insurance claims get the best insurance rates. The longer this history, the better. It signals to insurers that you are reliable and won’t cost them money. They’ll give you a lower rate as a result.
  
• Driving infractions: Drivers with speeding tickets or traffic infractions like running a red light pay higher insurance rates. The more of these infractions you have on your record, the more insurance companies will charge to insure you. So drive at the speed limit and follow the rules, and you’ll be rewarded with cheaper insurance!
  
• Location: Insurance companies use postal codes to price insurance based on your location. If you live somewhere with many car thefts, or a busy highway with a large number of accidents runs through your neighbourhood, you’re going to pay higher insurance rates. Doing something as simple as moving one street over sometimes can have a dramatic effect on your insurance prices.
  
• Vehicle type: Not all cars are created equal. Cars that are more expensive to repair, or vehicles that frequently show up on the most stolen list, are going to be more expensive to insure. Before you buy your vehicle, get an insurance quote to see if your make and model is more expensive to insure compared to other vehicles.

How to get the cheapest car insurance in Cambridge

While there are some factors that you don’t have as much control over when it comes to car insurance, there are still many things you can do to save money. Below, we list out some steps you can take to cut down on your annual costs.

• Bundle: If you have home insurance or tenant insurance, make sure it’s with the same provider as your car insurance, because many companies offer you a discount for bundling your insurance services together.
  
• Buy a cheap vehicle: If you drive a cheap car, chances are you can get cheap insurance with it. The less your car costs to repair or replace, the cheaper your insurance will be. (Just make sure it’s not a model that’s prone to getting stolen.)
• Comparison shop: Head online and use a website like Insurancehotline.com to compare prices from a variety of insurance companies. That is single-handedly one of the best things you can do to find cheap insurance rates.
  
• Customize your policy: Avoid paying for coverage you don’t need. Check every year that your policy only includes what makes sense. For instance, if after 10 years, your car is worth nearly zero, does it make since to pay for collision coverage? Does it make sense to have a low $500 deductible when the car is only worth $500? Do a policy check up annually to make sure you’re not overpaying for coverages you don’t need.
  
• Increase your deductible: Speaking of deductibles, one way you can save money is by increasing your deductible. Moving from $500 to 1,000 can lower your annual premium. A deductible is the amount you have to pay out of pocket before your coverage kicks in and pays for the rest.
  
• Install winter tires: Drivers in Cambridge can save money if they install winter tires. Many insurers offer discounts for drivers that do, and these discounts can range from 5% to a hefty 15%.
  
• Telematics: If you’re willing to let an insurance company monitor your driving, you could save up to 30% on your annual premium. Many companies now offer an app that tracks your driving, making telematics less cumbersome than the old school monitoring devices that would have to be installed in your vehicle.

*Represents the average saved by Cambridge shoppers who obtained an auto insurance quote on InsuranceHotline.com and transacted via our contact centre between January and December 2022. The average savings amount represents the difference between the shoppers’ average lowest quoted premium and the average of the second and third-lowest quoted premiums generated by InsuranceHotline.com.