Table of contents:

• Car insurance in Waterloo
• Mandatory and optional car insurance in Waterloo
• We can help you compare Waterloo auto insurance quotes to save money
• How much does Waterloo car insurance cost?
• Factors that affect your Waterloo car insurance rate
• Tips on getting cheap car insurance in Waterloo
• Frequently asked questions about Waterloo car insurance

Car insurance in Waterloo

All drivers in Waterloo must have auto insurance if they want to get behind the wheel. There are both mandatory coverage and optional coverage in Canada.

Mandatory auto insurance coverage

Third-party liability insurance: By provincial law, you must carry at least $200,000 in liability insurance. Third-party liability "pays for claims resulting from lawsuits against you (up to the coverage limit) and pays the costs of settling the claims." It's recommended to have at least $1 million in liability coverage.

Accident benefits: This ensures you receive compensation for medical care not covered by OHIP. You're entitled to these benefits even if you caused the accident. The accident benefits portion of your policy covers medical, rehabilitative, attendant care, and income replacement for caregivers and non-earners.

Direct compensation property damage (DCPD): This provides compensation if your vehicle and its contents are damaged by an accident you're not at fault for causing. You collect directly from your own insurer. It only applies if the accident occurred in Ontario, at least one other vehicle was involved, and the other vehicle(s) are insured by a company licensed in Ontario.

Uninsured automobile: Provides coverage if you're injured or killed by a hit-and-run or an uninsured driver. It also covers damage to your car if you're able to identify the uninsured driver that hit you.

Optional car insurance 

You can enhance a standard Ontario auto insurance policy with these coverages:

Collision: This coverage ensures that your car will be repaired or replaced if your car is damaged in a collision you caused. However, making a claim under your comprehensive coverage often increases your premium at renewal. To prevent that from happening, you can buy accident forgiveness. This is an endorsement that ensures your premium won't be affected by your first at-fault accident.

Comprehensive: Covers you from instances where your car is damaged by something other than a collision. Examples include falling objects, fire, extreme weather, theft, and even vandalism.

All perils: Merges collision and comprehensive coverage.

Specified perils: Coverage for specific events. Fire, hail, lightning, and theft are common options, but vandalism, falling objects, or animal damage are usually excluded (if you want protection against any of those, you may need comprehensive insurance instead).

Available auto insurance endorsements

Endorsements, or insurance riders, are another type of optional insurance coverage. More than just something you add to your policy, endorsements alter the original policy. The terms of the endorsement supersede the terms of the original contract. Also, some endorsements can reduce your coverage in an area, lowering your premium as a result. Here's a list of some of the endorsements available to Newmarket drivers.

OPCF 20: Coverage for Transportation Replacement: This covers the cost of your transportation replacement and rental car insurance if you get into a car accident or your vehicle is stolen.

OPCF 27: Liability for Damage to Non-Owned Automobile(s): Covers if you damage a borrowed or rental vehicle. The coverage limit is usually around $25,000 to $50,000.

OPCF 39: Accident Waiver/Forgiveness: Protect your premium from rising when you have your first at-fault accident.

OPCF 43: Waiver of Depreciation: Protects you by removing your insurer's right to deduct depreciation from the value of your vehicle when settling a claim. This coverage is for new vehicles with fewer than 5,000 kilometres.

OPCF 44R: Family Protection Coverage: Protects you if you or a family member is injured, regardless of whether you or your family members are in the car when the accident occurs

No-fault auto insurance system

Waterloo car insurance operates Ontario's auto insurance system, which is referred to as a no-fault system.

A no-fault insurance system means that drivers in Waterloo involved in a collision must each file claims to their own auto insurance provider.[3] Their provider will then offer coverage when it comes to paying for damages and injuries resulting from the accident. By law, insurance companies must give a percentage of blame to each driver involved. Either both drivers can be at fault to a degree, or one driver can be completely at fault and the other without fault.

Private insurance system

Waterloo auto insurance operates under a private insurance model.

Waterloo auto insurance operates under a private insurance model overseen by the Financial Services Regulatory of Ontario (FSRA). FSRA is responsible for approving or rejecting premium increases that private auto insurance companies propose. As a result, there's a lot of competition in this market, which can be good for you as a consumer. It means you have options when looking for cheap Waterloo car insurance.

Factors that affect your Waterloo car insurance rate

Insurance companies calculate Waterloo car insurance quotes based on multiple factors, and each company might weigh those factors differently.

Here are some of the main factors that will influence Waterloo car insurance:

Age: Youth is not a boon when it comes to car insurance. Statistically, younger drivers are at greater risk of collisions on the road, so their auto insurance tends to be higher. Insurance rates go down as drivers age to reflect the experience they have behind the wheel.

Gender: Gender can also influence insurance rates. Historically, men are in more car accidents than women, so their auto insurance can be higher.

Location: Drivers that live in dense areas can pay higher insurance premiums. That's because major cities usually have higher instances of accidents, vandalism and theft.

Vehicle type: Insurance companies consider the year, make, model and engine size of your vehicle before setting a rate. Cars that have parts that are expensive to replace or cars that are more likely to be stolen may have higher insurance premiums. Insurance companies base their decisions on how much it would cost them to replace or repair your car if you filed a claim.

Driving record: Insurance companies tend to reward good behaviour and penalize bad driving behaviour. If you're found to be at fault in an accident, it can increase your insurance rates for up to 10 years. The more infractions you have, such as speeding tickets, the higher your costs will go up. You can lose your license if you're convicted of a crime.

Time on the road: Insurance companies might look at your mileage when determining a rate. The more you drive, the higher your insurance costs might be. If you're looking to lower your premium, try walking, biking, taking public transit or carpooling more often.

Type of insurance coverage: The kind of insurance coverage you have also makes a difference. Choosing optional coverages like collision and comprehensive will likely raise your premiums. On the flip side, they might also save you a lot of money if you are in an accident.

Applicable discounts: Look for insurance discounts when possible. That could be bundling home and auto insurance, taking advantage of group benefits, or installing winter tires.

*Represents the average saved by Waterloo, Ontario, 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.