Three Things You Didn't Know About Car Insurance in Ontario

Useful tips for getting affordable car insurance in Ontario

Canadian car insurance is a big household expense. In fact, Canadian car insurance is more expensive than many other countries. Ontario's auto insurance premium is the highest in Canada, with drivers paying an average premium of more than $ 170 per month.

To complicate matters, the fact that Ontario's auto insurance rules are not so simple. Ontario uses a hybrid of tort insurance [one party can sue the other] and no-fault insurance.

If there are high fees and seemingly arbitrary rules, will the lesser-known facts about Ontario auto insurance help you? Read and find out!

Do not overinsure [in some cases]

Robust coverage is good but expensive. Think about your risks and get insurance accordingly. By law, your insurance policy is $ 200,000 at third party responsibility, but we recommend that you carry more. Aim for at least $ 1,000,000. $ 2,000,000 is better. If someone decides to sue you, the cost will be added immediately.

However, it is not always necessary to get comprehensive coverage. For example, if you have an old car, you can decide not to get this coverage. Skipping comprehensive coverage for old cars can reduce your monthly premium.

New or leased vehicles usually require comprehensive compensation.

Old car coverage may go up! Ontario Classic Car Insurance Fee

The older the car, the lower the value? In most cases, not always. If the old car has a higher rate than the new car, there are two scenarios.

First, some older models are more expensive because some models have a bad insurance history. For example, it is dangerous to guarantee them because they are prone to theft.

Second, at some ages [usually over 20], the car may be considered a classic or antique car, and a special type of insurance, such as classic car insurance or antique car insurance, will apply. Only a few companies in Ontario offer these types of car insurance. Also, depending on the car and driving habits [1 year and summer only], the car protection rate may be higher than the mainstream car.

Car insurance and car rental

Many people are confused about car rental insurance. You may think that the insurance attached to your credit card is sufficient, but that is not the case. Third party liability and damage to other people's property are not covered. You should also be aware of the waiver of damage caused by rental agent collisions, which may not cover all costs associated with the accident.

The best approach is to make sure you own your own car insurance [if you own your own car] and make sure it applies to your rental car as well. If you don't have this extension in your insurance, you can purchase riders with insurance contracts that cover your rental car for about $ 20 a year. You pay between $ 15 and $ 20 per day for the same compensation from the rental agent, so it's worth the cost.