How to Know You’re Paying Too Much for Car Insurance in Ontario

Finding the lowest price for Ontario car insurance can be a challenge if you are a beginner to online quoting. But relax because there is an easy way to compare rates.

Good Decisions Result in Lower Rates

It’s important that you understand some of the elements that come into play when calculating the price you pay for car insurance. Understanding what determines base rates allows you to make educated decisions that will entitle you to lower car insurance prices.

  • Adjust deductibles and save – Coverage for physical damage, commonly called comprehensive (or other-than-collision) and collision coverage, protects your car from damage. Some instances where coverage would apply are colliding with a building, collision with an animal, or theft. The deductibles are the amount of money you are required to spend if you file a covered claim. The more you are required to pay out-of-pocket, the bigger discount you will receive.
  • Don’t cancel a policy without a new one in place – Not having insurance can get your license suspended and you will pay a penalty because you let your insurance lapse. Not only will rates go up, failure to provide proof of insurance will get you a hefty fine and possibly a revoked license.You may have to provide proof of insurance in the form of an SR-22 filing with the California motor vehicle department to get your license reinstated.
  • Don’t skimp on liability – Your policy’s liability coverage is the protection if ever you are found liable for damages caused by your negligence. Liability provides for a legal defense which can cost thousands of dollars. This coverage is very inexpensive as compared to coverage for physical damage, so drivers should carry high limits.
  • Equipment add-ons that lower car insurance rates – Purchasing a vehicle with an alarm system can help bring down rates. Anti-theft features such as LoJack tracking devices, vehicle tamper alarm systems or GM’s OnStar system all aid in stopping your vehicle from being stolen.
  • Rates may be higher depending on your occupation – Did you know your occupation can influence how much you pay for car insurance? Jobs such as real estate brokers, business owners and accountants have higher rates than average due to stressful work requirements and lengthy work days. On the flip side, occupations like farmers, athletes and homemakers get better rates.

Are you getting all your discounts?

Car insurance companies don’t list every discount in a way that’s easy to find, so we took the time to find some of the more common and the more hidden savings tricks you should be using. If you aren’t receiving every discount possible, you are throwing money away.

  • Club Memberships – Affiliation with a qualifying organization could trigger savings when shopping for car insurance.
  • Sign Early and Save – Select companies give a discount for buying a policy before your current expiration date. It can save you around 10%.
  • Lower Rates for Military – Having a deployed family member can result in better rates.
  • Multiple Vehicles – Buying insurance for multiple vehicles on one policy could earn a price break for each car.
  • Government Employees – Active or retired federal employment could cut as much as 10% off with a few car insurance companies.
  • Safety Course Discount – Taking a course in driver safety can save you 5% or more if you qualify.
  • Accident Forgiveness – A handful of insurance companies permit an accident before hitting you with a surcharge if your claims history is clear prior to the accident.

A little note about advertised discounts, most credits do not apply to the overall cost of the policy. Most only apply to individual premiums such as collision or personal injury protection. So when the math indicates having all the discounts means you get insurance for free, companies wouldn’t make money that way.

For a list of providers who offer car insurance discounts in Ontario, click here to view.

To learn more about car insurance in California

Additional detailed information can be found at the California Department of Insurance website. California drivers can read consumer alerts, read enforcement actions against agents and companies, and find a variety of consumer forms.

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Final thoughts

You just read a lot of techniques to compare car insurance prices online. It’s most important to understand that the more companies you get rates for, the better your comparison will be. Drivers may discover the lowest rates come from an unexpected company.

lower rates in Ontario

Consumers leave their current company for a number of reasons such as poor customer service, delays in responding to claim requests, unfair underwriting practices or an unsatisfactory settlement offer. Whatever your reason, finding a new car insurance company is pretty simple and you could end up saving a buck or two.

As you go through the steps to switch your coverage, it’s very important that you do not buy lower coverage limits just to save a few bucks. In many instances, consumers will sacrifice physical damage coverage and learned later they didn’t have enough coverage. The aim is to find the BEST coverage at a price you can afford while still protecting your assets.