4 Factors to Consider When Buying Car Insurance In Canada

After dreaming for weeks, months, or even years cruising down the open Canadian roads in your own vehicle, you have finally gathered the means to buy your first car.

However, despite the excitement that comes with making such a purchase, you should know as a car owner you have many responsibilities. Probably the biggest one is getting your vehicle insured, so you can protect both yourself and others from any damages or injuries that might occur while you are driving.

Unfortunately, setting up car insurance for the first time can be a daunting task. There are many things to consider, all of which can help you get the best coverage for your vehicle.

To get you started, here are four factors to keep in mind when buying auto insurance for the first time in Canada.

Types of car insurance coverage

In general, there are several types of mandatory and optional car insurance coverage you can consider obtaining in Canada. The required coverages every driver must include as part of their policy include third-party liability, accident benefits, uninsured motorist coverage, as well as direct compensation for property damage coverage.

While a basic car insurance policy will get you started, it might not be enough for you as a first-time driver. Your insurance company may advise you to obtain optional car insurance coverages such as collision and comprehensive insurance to customize a policy that meets all your needs.

Because there are many types of car insurance available in Canada, it is wise to consult with an insurance broker in your area to help you purchase the right plan for you.

For example, if you live in Ontario, Canada, look for the best auto insurance Ontario has to offer so you can get the most suitable insurance policy for you.

Eligibility for car insurance

To obtain an auto insurance policy in Canada, you need to have a valid driver’s license and be a Canadian resident. Besides this, your eligibility is based on things like prior accident records and past convictions, which can also affect the overall cost of the policy.

Other restrictions that may prevent you from getting car insurance include:

• Use and type of vehicle. For personal use only.
• Customizations or modifications to your vehicle. If you decide to enhance your car’s performance or appearance.
• Legal issues. If you have been convicted of auto insurance fraud in the last ten years or were involved in other fraud that could affect the likelihood of your obtaining insurance.

The cost of car insurance

When it comes to calculating the cost of car insurance in Canada, there are several factors that are taken into consideration. You need to consider your car’s make, model, and production year. Also, your driving records, as well as the records of anyone who might drive the vehicle.

Other things you need to think about include where you live, your vehicle usage, as well as your age, gender, and/or marital status. Some even consider the chosen coverage and deductibles, accident history, and criminal convictions, as important factors when calculating the cost of car insurance.  

For example, while it may sound strange, your age and gender can have a significant impact on your auto insurance rates. According to statistics, men are more likely to get into a collision which is why they tend to pay more for insurance than women.

Tips for getting affordable car insurance

Although car insurance may be a costly and mandatory expense you need to make in Canada, it doesn’t mean that you cannot knock some money off your premium. The Insurance Bureau of Canada offers several recommendations on how to lower your rates including:

• Go shopping for different insurance companies to compare prices and find the most affordable for you;
• Bundling up your home and car insurance together from the same insurance company;
• Increasing your deductible because the higher it is, the more your premium goes down;
• Driving less to avoid getting into accidents and to ensure you are keeping your driving record clean as much as possible;
• Doing research on rates for particular car makes, models, and production years;
• Installation of anti-theft devices.

Final thoughts

If you are a first-time driver in Canada, obtaining car insurance is mandatory by law. You need to have the right coverage that will provide you with protection and financial compensation in case you get involved in an accident and your vehicle suffers damages or you sustain injuries.

Because this can be an overwhelming task, it is important that you know what factors you need to consider to find the best policy a