Understanding Car Insurance
Agent Vs broker
A car insurance agent is a good source of car insurance assistance if you want to deal with just one company. A licensed car insurance agent will be able to sell you car insurance from company X, the one they work for. Usually if you call company X, you will speak with a licensed insurance agent rather than a licensed broker.
A car insurance broker on the other hand will shop you around to a variety of different companies. The car insurance broker is a professional who deals with car insurance companies every day and may know more about a particular company than you - the consumer - who just sees their advertisements.
In selecting the best car insurance company for you, the car insurance broker will look at a variety of factors:
- Your budget
- Your driving record
- The level of customer service you require
- And more...
While some car insurance companies may be the cheapest, some people prefer to pay a little bit more to have individualized attention.
Types of auto insurance
Most drivers in Toronto, Ontario will have the following types of insurance to select from. Basic liability, comprehensive and collision.
Liability insurance is required for all drivers in Ontario as it will cover you in case you're involved in an accident where someone or someone's property is damaged. Even if you think you are a good driver, accidents happen; and when they do they can be costly.
Most car insurance companies will offer coverage of up to $2 million to protect you in the event of a claim against you. When considering having affordable auto insurance, it's important to remember that liability is one aspect of your policy that you can not remove.
In Ontario the minimum is $200,000.00 for liability, and failure to have this insurance can result in a fine anywhere between $5,000.00 - $25,000.00.
Comprehensive insurance is what covers you in the event that someone steals your car or it catches fire. Even if you're careful to lock your doors and park in only the best of neighbourhoods, it's still possible that your car may catch fire. As such it is well worth the small monthly fee to ensure that you have the peace of mind of knowing that your investment is protected. In order to keep your premium low however, you can look at your options regarding deductibles, and when it comes time to buy a car how much it costs to insure.
Collision insurance is what covers you if your car is involved in a collision and you need to fix your car. Collision insurance differs from liability as liability is for if you damage someone else's vehicle. Collision rates are determined not only by your driving record but also how expensive it could be to repair your car.
Even if you have a car that is expensive to insure, your car insurance broker can work with you to determine the most affordable options for you.