Minimum coverage. Comprehensive coverage. Collision coverage. Car insurance lingo can get confusing pretty quickly. How much is required? How much do you really need? We tell you where to find the best car insurance quotes, break down what you need to know about car insurance, and give you some important tips on how to save on car insurance.
Where to Find Car Insurance Quotes
According to the Financial Services Commission of Ontario, there are three places you can buy car insurance: insurance brokers, an insurance agent or a direct writer.
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Insurance Brokers
An insurance broker sells insurance policies on behalf of insurance companies and may offer policies from dozens of companies. Comparison sites like My Insurance Broker offer quotes from multiple insurance companies, including the top 15 car insurance companies in Canada.
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Insurance Agents
Typically, an insurance agent will only offer insurance policies from one insurance company.
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Direct Writers
A direct writer is an insurance company that sells its own coverage to policyholders rather than working through a broker or agent.
Before you shop for car insurance, you should shop for the best provider. No matter which option you choose, you should look for a few key things when shopping for a car insurance writer, agent or broker.
Expertise
Car insurance is something most people buy just once every few years, and sometimes even once a decade or so. Laws and policies change, which is why you need to be able to rely on an expert to guide you through the requirements and options.
An Easy Way to Compare Prices
Shop for just about any product, and you probably compare prices. From produce in the grocery store to clothes on the rack, you want to see how the quality and price of one product compares to another. Shouldn’t you expect the same when you buy something as important as car insurance? This is why an insurance broker and comparison site like My Insurance Broker is a great option. By showing you prices across the top insurers in Canada, we give you the tools you need to make an informed decision about your policy.
Exceptional Customer Service
Whether it’s your first time buying car insurance, or you’re a seasoned pro when it comes to understanding the ins and outs of your policy, you deserve a dedicated customer service team with the knowledge to answer whatever questions you may have.
Savings
This is perhaps the top reason for using a car insurance comparison tool. When you work with an insurance agent, you generally see a quote from just one car insurance company. With an insurance broker, you see a full range of options and prices, so you can choose the policy that fits your needs and your budget.
Minimum Coverage, Comprehensive Coverage and Collision Coverage Explained
When people hear the term “comprehensive,” they often assume it means total and complete coverage. In the context of car insurance in Ontario, however, this is not the case. Likewise, to many people, “collision” insurance sounds like something you’re required to buy. However, this is inaccurate. While you’re required by law to purchase minimum insurance, comprehensive and collision coverage are extras that are often nice to have but not mandatory.
Comprehensive Coverage
Comprehensive car insurance coverage doesn’t mean total or complete. Rather, it refers to losses that are caused by things other than a collision with another vehicle.
Another way to think of comprehensive coverage is a policy that covers your vehicle against non-collision threats. This includes things like:
- Fire damage
- Damage caused by bad weather (like dents from hail)
- Theft and vandalism
- Broken windows
- Objects dropped from a height
- Trees that fall over
- Animal strikes, like hitting a bird or a deer
- Damage from debris on the highway
- Thrown stones that break your windshield or cause other damage
Comprehensive coverage isn’t required by law, but it’s something many motorists like to have. However, it’s important to note that comprehensive coverage won’t pay for any damage caused by a collision with another vehicle, nor will it cover your medical bills, lost income or damage to another driver’s car.
So should you pay for comprehensive coverage? The decision to purchase comprehensive coverage turns on several factors.
How Old Is Your Car?
If you drive a new or pricey vehicle, you may want to opt for comprehensive coverage to protect your investment. On the other hand, if your car is older or not quite as spiffy as it used to be, the cost of comprehensive coverage might not be worth the peace of mind it provides.
How Much Does the Coverage Cost?
Your budget should always be a factor when it comes to extra car insurance. While it’s usually a good idea to buy more than the minimum insurance, there might be other extras worth paying for rather than comprehensive insurance.
How Often Do You Drive?
No one can predict whether they’ll get caught in a hailstorm or have the bad fortune of parking under a tree that tips over during high winds. However, you can assess risk based on where you drive and how often you drive. For example, if you work within a few miles of home and your typical route takes you through suburban streets with low speed limits, you probably have a safer commute than someone who takes the highway every day.
Minimum Coverage
No matter where you live in Canada, you’re required to carry a minimum amount of car insurance. This minimum coverage is made up of four parts, which include third party liability coverage, accident benefits, direct compensation property damage and uninsured automobile coverage.
Third Party Liability Coverage
Third party liability coverage pays for personal injuries and property damage you cause in a car accident.
Accident Benefits
Accident benefits cover medical expenses you sustain in a car accident regardless of fault.
Direct Compensation Property Damage
Sometimes abbreviated DCPD, direct compensation property damage coverage pays for damage to your vehicle in an accident in which at least one of the drivers was not at fault. Generally, DCPD only applies when the accident occurred in Ontario, and the other driver was insured.
Uninsured Automobile Coverage
Unfortunately, not everyone complies with the minimum car insurance requirements. This is why Ontario drivers are required to purchase uninsured automobile coverage, which pays for property damage and bodily injury caused by uninsured motorists.
While you don’t have the option to forego minimum car insurance, you can control how much you pay for it. Insurance brokers like My Insurance Broker offer comparison pricing from the top 15 car insurance companies in Canada. Even better, you can get quotes online in just two minutes.
Collision Coverage
Collision coverage is another type of optional car insurance. Although you aren’t required by law to carry it, you might have to buy it as a condition of leasing a vehicle. You may also choose to carry it if you drive an expensive model, or you just like the peace of mind that comes with having additional insurance.
Like the name suggests, collision insurance covers damage to your vehicle caused by a car accident with another vehicle or object. If this sounds a lot like comprehensive coverage, it’s because there is a lot of overlap between the two types of policies.
Generally, a collision policy won’t cover damage caused by an object that strikes your vehicle — such as a falling tree limb or projectile on the highway. In that type of accident, you would most likely be covered by comprehensive insurance, assuming you had it. Furthermore, different insurers may offer slightly different coverage options, which is why it’s important to take a close look at what’s covered — and what’s not — when you compare policies and prices.
Tips for Getting the Best Car Insurance Quotes
You want to save on car insurance. At the same time, you want to make sure you get the best coverage for your dollar. Here are some helpful tips for getting the most affordable rates for the best car insurance coverage.
Shop Around
Don’t be afraid to comparison shop. Many people are surprised to learn that insurance rates vary from company to company — even for the same driver with the exact same demographics. The reason is that each insurer has its own metrics for assessing risk, and one company may place more weight or emphasis on a particular factor versus another.
If you don’t compare rates across multiple insurers, you won’t know whether you’re getting the most affordable coverage available. This is where My Insurance Broker can help. In just two minutes, we’ll do the legwork for you. Just put in your information and we’ll deliver car insurance quotes from the top 15 car insurance companies in the country.
Work with a Car Insurance Broker
Licensed insurance brokers have the expertise and knowledge to find policies that fit your budget and your needs. They can help you determine which kinds of coverage are must-haves versus what might be an unnecessary drain on your budget. They can also point you toward discounts and incentives that will save you money over time.
Choose the Right Ride
The car model you choose plays a big role in how much you’ll pay in car insurance. Insurers charge more to cover cars built for speed, and they also put a premium on cars known to be common targets for thieves. Furthermore, the list of top car theft models might surprise you, as it doesn’t always include flashy or expensive vehicles. In fact, it’s a good idea to check insurance prices before you sign the dotted line for a new vehicle purchase. The cheapest cars to insure in 2017 include the Subaru Forester, Honda CR-V, Buick Encore and Honda Odyssey.
It’s also worth paying attention to vehicle safety ratings, and this can score you significant savings on car insurance. Vehicles that are packed with safety features, such as automatic braking systems and advanced airbag options, pose less of a risk to insurance companies. The U.S. National Highway Traffic Safety Administration (NHTSA) lets you search safety ratings by a car’s year, make or model. You can also compare insurance premium rates for at least 1,500 different car models through the year 2015 at the website for the Insurance Bureau of Canada.
Adjust Your Deductible
If you prefer to pay less in car insurance premiums, you can often save by raising your deductible. Your insurance broker can help you calculate whether it’s a good idea to pay a higher deductible in exchange for a more affordable monthly premium.
Ask for Discounts
You might be surprised to learn just how many car insurance discounts are available. From good driver discounts to savings for retirees, there are a lot of ways to save on car insurance. You may even be eligible for discounts for members of certain occupations, such as teachers, firefighters or nurses. Discounts vary by insurer, so ask your insurance broker about which types of savings you can expect from different car insurance companies.
Get Your Free Car Insurance Quotes in Two Minutes
Ready to see how much you can save on car insurance? Use My Insurance Broker’s two-minute online quote tool to compare car insurance rates from the top 15 auto insurance companies in Canada, and learn how you can save up to 25% on a policy.