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Car Insurance FAQ

  1. What types of coverage do I need?
  2. What will my broker need in order to get me the best rates for cheap car insurance?
  3. My teenage son has just started driving. How do I keep his insurance low?
  4. I have an old car do I need comprehensive and collision?
  5. Does the car I drive impact my insurance?
  6. Is it legal for an insurance company to raise my rates when I have an accident?
  7. I want a discount, how do I get one?

Q. What types of coverage do I need?

A: All drivers in Ontario must have by law a minimum of $200,000 in liability insurance. However, sometimes when you lease of finance you must carry enough collision and comprehensive coverage to cover your car in the event of an accident or theft. If you pay cash for your car the choice of having comprehensive and collision is entirely yours however.

Q: What will my broker need in order to get me the best rates for cheap car insurance?

A:
  • The people that will be on the insurance policy. Your broker will need your names, driving licence information and driving record. As well your broker will also need to know how the car will be used. Will it be used for personal occasional use, driving to work or for business purposes.
  • Your insurance record for the past 3-6 years. You insurance record is similar to how your credit record works. This will take into account any past claims, denials or other factors which can affect your premiums.
  • Your personal licence history often going back as far as 6 years. This will include any driving infractions such as speeding tickets, DWI or any other factors which can affect your rates.
  • The type of car your drive A bright red V8 sports car may have high insurance premiums than a beige family sedan. Talk to your broker as to how your car choice can affect your rates.
  • The type of insurance coverage you require. If you require the basic coverage mandated by law or if you want full coverage with low deductibles covering you vehicle for theft or fire you may have higher rates.

Q: My teenage son has just started driving. How do I keep his insurance low?

A: First make sure your teenager takes a qualified driving course. This will not only help in reducing the premiums with most insurance companies but also instill the proper driving skills to keep your child safe on the roads, reducing tickets, accidents and costly claims.

Q: I have an old car do I need comprehensive and collision?

A: If you car is worth less than your deductible the answer is simple, no as you will never surpass your deductible. However, if you are driving a brand new car you will probably want to pay a small monthly price to protect your investment. Talk to your insurance adviser about how deductibles can impact your premium.

Q: Does the car I drive impact my insurance?

A: Yes the type of car you drive can impact the price of your insurance premium. The insurance companies look at the cost of claims for the type of insurance and vehicle you have in deciding on how much to charge you. If you are looking at buying a new car talk to your insurance broker about how your choice of car will impact your auto insurance cost.

Q: Is it legal for an insurance company to raise my rates when I have an accident?

A: Yes, the insurance companies even if you are not 100%at fault may raise your rates if you had a car accident. Auto insurance companies look at a variety of factors in deciding your rates. Your driving history, claim record and also how long you have been driving. If you are even partially at fault in an accident, statistically you are more of a financial liability than someone who has a perfect driving record.

Q: I want a discount, how do I get one.

A: Most insurance companies offer discounts for having multiple policies for home, car and life insurance. Some also offer discounts for multi-vehicles insured with the same company and most importantly the best discount you can receive is by keeping your premium as low as possible by keeping your driving record clean.