“Driving me crazy: Understanding auto insurance and how can I save”
In Ontario, there are four mandatory types of car insurance coverage:
- Third-Party Liability Coverage: This pays for damages to the other party when you cause an accident.
- Accident Benefits: Also known as statutory accident benefits, this coverage pays for your health treatment and recovery expenses. All of these benefits can be increased at an additional (usually minimal) cost. We highly recommend speaking to an insurance professional to see what your options are.
- Uninsured Automobile Coverage: Protects you if you’re involved in an accident with an uninsured driver.
- Direct Compensation Property Damage: Repairs your vehicle and its contents when you’re not at fault. You can no opt out of this coverage, however, we do not recommend it as it would lead to you NOT having any insurance coverage when not at fault.
Additionally, there are four optional coverages:
- Collision & upset Coverage: Covers damage to your vehicle in a collision (regardless of fault).
- Comprehensive Coverage: Protects against non-collision events (e.g., theft, vandalism, natural disasters).
- Specified Perils Coverage: Covers specific risks (e.g., fire, lightning, explosion).
- All perils: covers collision/upset and comprehensive
Remember, each policy has a deductible, which is the amount you pay out of pocket when making a claim. It is illegal to drive without mandatory coverage in Ontario, so make sure you are covered!.
Now, saving on auto insurance is a smart move. Here are some effective ways to cut costs:
- Compare Quotes: Don’t settle for the first quote you receive. Let us compare rates from different insurers to find the best deal. We strongly advise you look at what is included in addition to the bottom line price.
- Seek Expert Advice: Consult and insurance broker who can help navigate and find the best solution and price for you.
- Bundle policies: Combine your primary home and autos for immediate savings. Up to 20% for autos and 50% for your home).
- Usage-based insurance: Give the telematics program a try that reward good driving habits (Heck, some carriers even allow you to earn points which can be put towards gift cards). You can also save up to 30% on your renewal premium.
Remember, small changes can add up to significant savings!