Archive for the ‘Auto Insurance’ Category

What it Means to Have Canadian Car Insurance

Thursday, July 8th, 2010

As with all insurance car insurance is a necessity and you should try to get as much as you can afford. Canadian car insurance varies from one province to another but whatever the cost one should never drive without insurance. That may be a very costly mistake.

Canadian law requires all drivers purchase automobile insurance. The insurance companies assess each application against many variables. The various rates are based on these assessments.

There is a minimum amount of insurance coverage required by Canadian law. Except in Quebec, the coverage is up to $200,000 for injury and personal damage to others. Should the claim be higher then you will have to be liable for the balance except for $10,000 in property damage. Quebec has a requirement of one quarter of that amount because the government covers injuries to individuals.

A strategy you may want to consider in buying your coverage is to buy the minimum. Afterward you evaluate assets and needs in order to buy additional insurance. This, as any other insurance, is a protection against some unforeseen disaster in the future.

Your insurance company will want to know the details about your car, how old you are, the number of times that you have had an accident or received tickets for road infractions, your gender, and where you live. They will assess your risk factor with this information. From this assessment they will set the rate you pay.

Typically in Canada the basic policy will protect you if you are liable and there is damage to another person. This is referred to as third party liability. The insurance will protect you if you are injured in an accident. If a driver is not insured or you are a victim of a hit and run there is coverage provided should you be injured or die.

Also available as optional is coverage including all perils, comprehensive and specified perils, and collision. All of these options or a combination are available for protection should you lose or damage your car due to fire, collision, theft and other risks. You evaluate your options and then find out the cost. You may feel that some are more important to you than others.

There is also coverage for your classic car. This has many stipulations and the cost is rather high. However, after the amount you have paid or the work you have put into this vehicle you may think it is very wise to have the special classic automobile insurance.

Generally you buy insurance through licensed brokers who are really intermediaries between you and the actual insurance company. They usually deal with different companies and try to find the best coverage for you. They are independent, offer advice and support, and are very respectful of your needs. You may want to deal directly with one specific insurance company who will assess your requirements and offer you the service. Today, you can also buy automobile insurance online.

Protect yourself and your family. Try to purchase the best insurance that you can possibly afford. In spending it now you may save yourself some outstanding costs later.

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Canadian Car Insurance FAQ:

Question: Why is canadian car insurance so expensive for newly arrived immigrants?
I was paying 250 quid in the uk and now they want $3000 odd! Talk about havin me pants down! Any ideas on the best insurance company to use?

Answer: Because your driving history didn’t follow you. Some things you can try:

1) Get the UK to supply you with a certified printout of your driving history (driver’s abstract)
2) See if your UK Insurance provider has a Canadian Subsidiary
3) Visit insurance hotline as they will instantly compare rates filed with the the insurance regulators and you can see who is best for you. Rates can vary by thousands for the same driving history and same vehicle

Question: Is there a website where I can get a canadian car insurance quote?
I know there are some, but I’m looking for one that doesn’t require your personal information. And if possible one that can let you enter in vehicles older than 1995.

Answer: I would start by calling up the company that your parents are insured with and ask them for a quote. Be sure to point out that your family has been insured with them for x years. Sometimes, you can get the best deal of all just by staying with that company.

Also, you can ask at your banking institution. They are often allied with insurance companies — like TD Canada Trust, which also has TD insurance. That way, they already know most of your information and only need to ask a few more questions.

Another possibility is an insurance broker. This is not the same thing as an insurance agent. A broker deals with several insurance companies and looks at your unique situation and can recommend the best (for you) of the companies he (or she) deals with. To find one near you, look up insurance brokers in your yellow pages. They are, of course, listed after the insurance agents — just don’t confuse them, because the agents are the representatives of only one company.

Question: Does your canadian car insurance rate go down if you have a child?
We are expecting a baby and people keep telling us this, but not sure if its true.

Answer: With children it usually goes up.

Question: What Canadian car insurance company will give me the lowest rate if I’m just buying my first car at 18?

Answer: I don’t know about the lowest rate BUT I will advise you to google any company for their payment of claims. Cheap insurance is one thing but if they don’t pay the claims, what good are they.

Question: If I am traveling to Canada do I need canadian car insurance?

Answer: To drive your vehicle legally you are required to have proof of insurance. The necessary document can be obtained from your insurer in the US and will be required if you are stopped for any reason and asked for proof of insurance. While you do not require specific “Canadian” insurance your are required to have proper insurance on your vehicle.

Question: Can I borrow my friend’s car under his insurance for a day under the canadian car insurance law?
I need to borrow my friend’s car to go to niagara falls for one day? Can I do that? I currently live in toronto and I have no idea for the insurance rules here?

Answer: You can with his permission. You aren’t planning on crossing the border, are you? If you do I don’t know how that would work. I suppose a notarized “He has permission to use my car on this date” would help if you are.

Question: Are credit scores used in Canadian car insurance rates?

Answer: It depends on what province you live in. In provinces where it is all private (Ontario, Alberta, Maritimes, Territories) it is becoming more and more common, however not all companies use it. Government run insurers do not use credit as a basis for determining rates.

Question: Why are car insurance rates in Canada almost 3 times of US cities?
Canadian Car Insurance rates are off the roof. It doesn’t make sense to me.

Answer: Depends on where in the US you are comparing rates to. Plus you do realize the minimum liability limit you have to carry in every province/territory in Canada (except Quebec where you can’t sue for bodily injury and only need to carry property damage liability) is $200,000/accident (there are no per person limit) where in the States it can be as low as $20,000 per accident (Louisiana and Oklahoma).

Explaining the Difference Between Automobile Insurance Rates in Canada

Monday, May 31st, 2010

Drivers can save a decent amount of money by comparing automobile insurance rates in Canada. Finding out what factors affect your insurance and how to shop for coverage is the first step to significant savings.

Research insurance rates over the internet or on the phone. Use search engines to find comparison websites or check out the yellow pages for companies that serve your area. One phone call and less than 20 minutes of your time to answer questions and make a few choices can put you on the path to saving money. Get a firm quotation to really get a handle on how much.

Auto insurance rates change based on you, your car and your location. In a few provinces mandatory insurance is issued through the government, such as in Manitoba. Across the country it is the law that all drivers have adequate coverage for property and liability damage. That coverage must be valid at all times. Insurance companies also sell policies that cover drivers well beyond that minimum amount.

If an Alberta driver who is 49 years old drives a 2004 Toyota Sienna, they can expect to pay as low as $1400 and as high as $1700 for insurance. If that driver moved to Ontario and drove a 1999 vehicle, they would save anywhere from $200 to $300 per year.

Your past driving record and the use of your vehicle will also have an effect on the automobile insurance rates in Canada. Using a car or truck for business will result in more distance driven and a higher insurance policy. Also a bad driving record will drive the cost of insurance up and may cause a provider to cancel your policy or refuse further coverage.

Any time you are refused coverage it will have to be reported on subsequent insurance applications. Also any accidents in the last ten years where you were deemed at fault and any claims will need to be disclosed on future applications. Remember to be up front with your record to obtain the most accurate quotation and the best coverage.

Gender is another factor which may increase your auto insurance rates. Whether male or female, if you have taken a driver training course and can provide proof of it, your rates should decrease.

It would seem that Ontario has the highest automobile insurance rates in Canada. An Ontario driver who’s 23 years old and owns a 2006 Chrysler should pay around $1600 annually, while a Quebec driver who’s 19 years old and owns a 2005 Mazda will pay less than $1100 through the same national insurance company. Although other aspects may have affected that comparison, where you live is an important factor in how high your insurance is.

Setting a higher deductible will decrease your annual policy. Also be sure that you are not carrying any excessive or unnecessary coverage. Go over your policy in detail and choose the highest deductible that you are comfortable with. Remember that the annual savings stay in your pocket every year and the higher cost of the deductible is only relevant when a claim is made.

When shopping wisely for automobile insurance rates in Canada, be honest about your record and understand the coverage offered. That will help you to choose the best policy and obtain the lowest rate.

This reliable car insurance in Ontario dealership offers competitive rates along with exceptional customer service, thus providing the best valued car insurance. You are guaranteed a safe driving experience by entrusting us with your auto insurance in Ontario needs.

Auto Insurance FAQ:

Question: How much for basic auto insurance in Canada?
I am driving my car from BC to Waterloo, ON. back for school. I was wondering, in this case, which province’s auto insurance I am supposed to get. Can I drive around in Ontario for more than four months with ICBC insurance? Or Do I have to get the new Ontario insurance? In BC I am still N, which is equivalent of G2, and I currently drove for closely three years. Another thing was, how much would the basic insurance cost a month? Is there any big difference between BC and Ontario?

Answer: The best answer you’re going to get to all your questions is from your own insurance people. Call them and ask them. Anyone other than them who gives you a price is guessing.

Question: Can I buy US auto insurance to cover my Canada vehicle?
I just moved to Canada this month. I have had Geico auto insurance in US more than 4 years. However, there is no Geico insurance service in Canada. Can I continue to use my US Geico insurance and register my car in Canada?

Answer: Not if you live in Canada. Plus, some provinces have their own auto insurance that you must buy.

Question: Which american auto insurance company covers you if you travel to canada?
I frequently travel to canada on weekends. Which auto insurance company covers you for that travel?

Answer: Unlike Mexico which requires you to buy their insurance, Canada will recognize your current policy as a tourist in their country. If you MOVE to Canada, they give you a grace period which varies by company. Now, call your agent & get a Nonresident Interprovince Canadian ID card. This will be in English & French & will be required if you are ever in an accident or get a ticket.

Question: What is the point in adding an occasional driver on my auto insurance (Ontario, Canada)?
Is there a legal obligation? Is there any impact on the auto rate if that person is young or have been involved in accidents? If the occasional driver gets involved in an accident, will it also be on my record? But what is the difference if the occasional driver gets into an accident if she’s on the policy or not?

Answer: Is there a law that says you have to? No, there isn’t. However every insurer requires that you disclose all licensed drivers in the household as well as regular operators of the vehicle. If you fail to do so, and that person has an accident, then the insurer has grounds to deny any claim filed. This means you (as owner of the vehicle) and/or the driver of the vehicle could be financially responsible for everyone’s damages/injuries, which means you could be in debt for the rest of your life. There is an additional premium charged for an occasional driver who is under 25, however an occasional driver over 25 can change your rating as well depending on how long they’ve been licensed, however the additional premium won’t be as much as having an occasional driver under 25.

To answer your second question: regardless of whether or not the person driving is a listed driver on your policy, if that person has an accident which is their fault (even partially), then it will affect your rating. The difference between having them listed and not having them listed is by not having them listed you’re running the risk of not having the claim paid.

Question: When is Geico going to offer auto insurance in Canada so I can switch?

Answer: Why would they? There are several hundred insurance companies in Canada already. Have you any idea how much it would cost them to set up and be licenced in Canada, in each province they wanted to deal in?

Question: Cheap Auto Insurance Ontario Canada!?
I am a 20 year old Female driver. I have never been insured before and looking to buy my first car. Are there any sites where I can get quotes? I am from Hamilton Ontario Canada. I have been in two at fault accidents in the past 4 years.

Answer: With two at-fault accidents you only qualify for three companies: Perth Insurance, Jevco Insurance and the Facility Association. The Facility Association is the insurer of last resort in Ontario, and they’ll insure someone when no one else will. None of these companies will quote you online, you have to call an insurance broker in Hamilton to get a quote with these companies (yes this means actually having to talk to a real human being). I work with all three companies and I quickly ran some numbers through my rating software. Unfortunately I don’t know: the exact date of the accidents; how many years you’ve been licensed; the vehicle you have or where your exact location in Hamilton is; however if one of the accidents occurred within the last year and you had a 1990 Chevrolet Cavalier, Jevco turns out to be the cheapest of $6,100 for minimum coverages. This is not an exact figure, but it will give you an idea. Contact a local insurance broker for more exact figures.

Question: Teen having major trouble getting auto insurance in Toronto, Canada?
It was about 3 years ago today that I started to save up for the car of my dreams. I saved up, with MY money earned from working, not given to me by my parents, and I’m not some rich kid either. I call the insurance company and they quote me for $550.00 WTF?! What are my options? This is disgusting to be honest.

Answer: Your options are: to pay for the insurance; shop around (you might be able to find an insurer who will insure for a few bucks per month less); not drive. You should have factored in ALL the costs associated with vehicle ownership before buying a vehicle, not just the obvious one. Insurance for 18 year olds, especially males, is expensive. If you’re paying cash for the vehicle you can always decide not to take collision and comprehensive coverage, however depending on the vehicle this will not make a huge difference (maybe $50-$75/month less).

Question: What do Americans pay for auto insurance?
From 19 years old; with a bad driving record; to 40 year old with good driving records. What kind of numbers are out there? In Canada, I pay $100 a month for my older truck. I have a good driving record. That can go up to $200 for a new car and an average driving record.

Answer: When I was 18 I bought a z28 Camaro and I had one speeding ticket. My insurance, on my own policy, was $225/mo and that was more than anyone I’ve run across since then. Now that I’m 30, my wife and I insure two cars for only $100/mo.