How Much is it to Insure a Car in Ontario?

There is no set cost. Auto insurance is not like a going to the store to purchase a loaf of bread. If it was then the grocery store would charge different prices to old people, young people, tall people and short people etc. The reason auto insurance rates are different for each person is based on demographics information about different drivers. Here are a few examples.

1 ) Some demographics of drivers cause more accidents, which means they are going to be more expensive to insure.
2) Some demographics have good driving records so they typically pay less for insurance.
3) Some geographical areas have more vehicles stolen each year. If you live in one of these areas of Ontario then you will pay more.

These are just a few factors that will help determine how much you pay for car insurance in Ontario.

Types of Insurance in Ontario

There are some forms of insurance that are mandatory and others that are recommended. The laws that govern the amount of mandatory insurance do vary from province to province although it is usually quite similar. Liability coverage for property damage and bodily injury is a mandatory coverage. However, collision and comprehensive are optional coverages that you don’t need to buy. An insurance salesman will typically suggest them to you because it is safer to have this extra protection (and because they make more money when they sell more coverage).

Car insurance protects for a variety of things including medical payments for the insured, physical damage on their car, property and bodily injury to third parties and fire & theft. Each policy will outline in more detail what each of these policies cover against. When you’re buying your insurance you can sit down with an agent and go through all the details so that you’re confident with the protection you get. They can usually explain the process to you and make it easier to understand.

Basis of Your Premium Charges in Ontario

To recap, your insurance premiums will based on a number of factors including your gender, your driving history, your age, your marital status, your insurance company, your vehicle, your discounts, and your distance driven each day or year. Other things will play into your premium costs but these are the major factors involved. Some things on that list can be changed to lower your costs but other things, such as your age, aren’t so easy to change. To learn more about the different types of auto insurance coverage in Ontario click here.

Keeping a clean driving record tends to be the best way to keep your insurance premiums low. Safe driving will save you money and it will help lessen the chance that you, or the people you love, are involved in an automobile accident. Think about that next time you get in your car.