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You know that feeling when you find out you’re getting a really good deal? Maybe it’s bold for us to say, but, we think you’ll be feeling it in about five to 10 minutes. How can we be so sure?
Well, on average, InsuranceHotline.com shoppers saved $427 after comparing car insurance quotes on our site in 2018 from Jan-Nov 2018 . The average savings amount represents the difference between the consumers' recorded current premium and the lowest premium generated by InsuranceHotline.com.
Yes, car insurance is mandatory in Canada. No matter which province or territory you reside in, drivers are legally required to carry car insurance on any vehicle they take out on the road. The minimum requirements vary by province.
You must also show proof of auto insurance if you are pulled over. If you’re caught driving without insurance, the penalties are steep. In Ontario, for example, fines start at $5,000 and go up to $25,000 on a first conviction. For a second conviction, fines start at $10,000 and go up to $50,000. On all convictions, a 25% victim surcharge fee is also applied to the fine. On top of this, your license can be suspended for one year and your vehicle impounded for up to three months. Plus, of course, you would not have any protection for liability or coverage in the event of an accident.
For more information, read about car insurance coverage by province.
No one company offers the cheapest rate overall, which is why it’s important to shop around and compare car insurance quotes. In Ontario, for example, car insurance operates under a public model, which means insurance companies compete for your business. Different companies charge different rates for the same coverage and to the same driver for a number of reasons. If you’re looking for the cheapest car insurance, comparing quotes is the easiest way to save.
It’s true, some makes and models are cheaper to insure than others. We looked at all car insurance quotes completed on InsuranceHotline.com and found some of the cheapest vehicles to insure include:
You’ll notice a lot of truck and vans are mentioned in this list. This may be because these are often family vehicles. Drivers of family vehicles are considered to be more mature and safer drivers on the road, choosing vehicles with higher safety ratings. The make and model of the vehicle you drive definitely plays a role in your car insurance premiums, but the most important factor is your personal driving record and insurance history.
It depends. Older vehicles, even models that are just a few years old, can be cheaper to insure because they cost less to repair and replace. New vehicles tend to be built with modern features that are expensive to replace. However, the tradeoff is newer vehicles are often safer, which can reduce rates. If you’re looking to save money, it helps to purchase an older or used vehicle as the insurance is often cheaper on these vehicles as well. Before purchasing a vehicle, try running a few different quotes with a few different vehicle options to determine which one would cost the least to insure.
It is cheaper to pay for insurance annually. Paying in one lump sum versus month-to-month shaves off the monthly administrative costs that are baked into your monthly premium.
Most drivers can expect to see their car insurance rates decrease for the first time when they reach the age of 25. Up until this point, young drivers, especially young male drivers, are considered high-risk due to the increased likelihood of getting into an accident and/or having to file a claim. As you build your driving record and insurance history, your experience is reflected in your car insurance premiums.
After that, car insurance typically gets cheaper again when you’re in your 50s. By this age, you have an established driving record and insurance history and are considered lower-risk. Other life milestones such as getting married and purchasing a home can also impact your rates, as they place you in a lower-risk bracket.
The cost of your insurance largely depends on your personal insurance history. If you maintain a clean driving record, your car insurance rates could get cheaper at any time. However, this also depends on a number of other variables, including the type of vehicle you drive, how often you drive, and where you live.
In Canada, the majority of auto insurance operates under a no-fault insurance model, which means that regardless of who is at fault, you deal directly with your own insurance provider in the event of a claim. The exception to this rule is Saskatchewan, which defaults to a no-fault system but allows drivers the option to switch to a tort system. In a tort system, drivers can sue an at-fault driver for losses not fully covered under the accidents benefits coverage.
Depending on where you live, car insurance is offered under a private or public insurance model, or in the case of Quebec, a combination of both.
Auto insurance in your province or territory may be offered on a public system (available through your provincial government), private system (available through private insurers that compete for your business), or a combination of both.
The Quebec auto insurance model is a bit different than the rest. Some components of a Quebec driver’s coverage are rolled into their driver’s licence and vehicle registration fees.
Other components, however, must be purchased from a private insurer. These components include: the civil liability coverage (which is mandatory) and optional coverages (like collision and comprehensive).
Car insurance operates differently in each province, but insurers consider the same things when determining an individual’s car insurance premiums. This includes:
A lot can happen over the course of a year that could have a direct impact on your rates come renewal time. Here are some major milestones that may cause your car insurance premiums to increase or decrease:
If you’ve made any big changes in your life or reached any of the above milestones, you may be eligible for better rates on car insurance. Don’t wait until it’s time to renew to see if you could be saving money today. Shop around and compare rates anytime you have to call your insurer to update your policy. If there’s a chance your rates might change, there’s a chance you can save money with a different insurer.
Third-party liability insurance is a mandatory component of car insurance policies across Canada. It protects drivers in the event a claim is filed against them for injuries or death caused to another person involved in a collision, or damages to a vehicle obtained in an accident, up to the amount of the coverage, including settlement claims.
The minimum mandatory amounts vary by province, but most insurers recommend that drivers increase their liability insurance if they can. Most insurers provide coverage up to $2 million.
Despite its name, no-fault insurance does not mean no one is at fault. Instead, it means that each driver goes through their own insurance provider regardless of who is at fault. Ontario is an example of a province that operates under a no-fault insurance system.
It’s interesting to note that the police investigations and insurance companies have different methods for determining fault in an accident and are unrelated to each other. Insurance companies may find you partially at fault in an accident, for example, even in the event the police determine another driver is to blame. This is because multiple things are taken into consideration when determining fault at an insurance level. It is a common misconception that if you are not given a ticket by the police, then you are not at fault for the accident. Your insurer may find otherwise, and you can be found at-fault, partially at-fault, or not at-fault for a collision.
Police will investigate collisions and charge drivers under their provincial highway acts as well as the Criminal Code of Canada. If found guilty, this can have a significant impact on your insurance rates and depending on the severity of the crime, could result in the cancellation of your policy altogether.
All car insurance might seem the same, but it operates differently in each province and territory. Depending on where you live, insurance may be purchased by private, public, or a combination of both providers.
Public insurance is government-run at a provincial level. Private insurance is sold by financial institutions, insurance companies, and insurance brokers, and offers a more competitive landscape. Both types of car insurance are regulated by a provincially governing body.
All provinces and territories require drivers to have auto insurance, which includes mandatory third-party liability coverage across the country. Most provinces require $200,000 minimum in coverage, though Quebec drivers need just $50,000 and Nova Scotia drivers need $500,000.
There are three other types of coverage that are mandatory in some provinces, but not all. This includes accident benefits, direct compensation-property damage (DC-PD), and uninsured automobile coverage. This table shows where each type of insurance is mandatory across the country.
|Province or Territory||Type of Car Insurance||Mandatory Third-Party Liability||Accident Benefits||Direct Compensation-Property Damage||Uninsured Automobile Insurance|
|Newfoundland & Labrador||Private||$200,000||Yes||No||Yes|
|Prince Edward Island||Private||$200,000||Yes||Yes||Yes|
|Quebec||Private and Public||$50,000||Yes||Yes||Yes|
The following data is taken from the Insurance Bureau of Canada (IBC), the General Insurance Statistical Agency (GISA) and the Groupement des assureurs automobiles (GAA) provincial comparison report.
|Newfoundland and Labrador||$1,063.00||$1,088.00||$1,114.00||$1,132.00||$1,168.00|
|Prince Edward Island||$759.00||$754.00||$773.00||$796.00||$816.00|
Historical data not available for British Columbia, Manitoba and Saskatchewan.
No matter where you live in Canada, car insurance is mandatory. However, each province is different when it comes to which types of insurance are required and the minimum coverage required. There are also optional types of coverage that vary by province. Here are the most common types of auto insurance in Canada, including which ones are mandatory and where.
In addition to the minimum mandatory auto insurance coverage required by provincial governments, there are also various optional coverages that are available across Canada. These are the most common four optional auto insurance coverages that are available in all provinces and territories in Canada.
Saving on car insurance is easier than you think. These 10 tips help ensure you’re getting the cheapest car insurance rate:
Rates often change. In Ontario for example, changes to car insurance rates are approved every three months. Depending on the quarter, just a few insurers might increase or decrease their rates. Sometimes dozens do!
Most car insurance policies default to a $500 deductible, which is the amount you pay in the event of a claim. Increase yours to $1,000 and you're looking at saving five to 10 percent on your car insurance.
Paying your premiums all at once instead of once a month can avoid those pesky administrative fees that typically accompany monthly payments.
Bundle your home insurance and car insurance policies together under one insurance provider to save five to 15 percent.
More cars under the same policy equals more savings on each policy. If you have more than one set of wheels, save up to 10 to 20 percent by insuring them on the same policy.
If you install winter tires, you may qualify for a discount of up to five percent.
Double check your coverages every year. If you no longer need certain protection, removing it from your policy is one way to reduce costs.
Install a telematics device in your vehicle to save money with good driving habits. Ask your insurer for more information.
Ask and you shall receive. Ask your provider about discounts they offer and what you may qualify for.
Are you a young or new driver, or are you adding one to your policy? Encourage them to enroll in an accredited driver's training school. The money you'll save on insurance typically offsets the cost of the training within in the first year.