Do You Even Need Full Coverage?

Useful tips for getting affordable car insurance coverage in Ontario

Car insurance in Canada is a big household expense. In fact, car insurance in Canada is more expensive than in many other countries. Ontario's auto insurance rates are the highest in Canada - drivers pay, on average, more than $170 per month in premiums.

Complicating the issue is the fact that Ontario car insurance rules are not very straightforward. Ontario uses a hybrid combination of tort insurance (one party can sue the other) and no-fault insurance.

With high rates and seemingly arbitrary rules, what little-known facts about car insurance in Ontario might be useful for you? Read on to find out!

Do not take too much insurance (in some cases)

Robust coverage is good, but it comes at a cost. Think about your risks and insure accordingly. By law, your insurance policy has $200,000 in 3rd party liability, but it is recommended that you carry more than that. Aim for $1,000,000 at least; $2,000,000 is better. If somebody decides to sue you, costs can add up very quickly.

At the same time, however, it is not always necessary to get comprehensive coverage. For example, if you have an older car, you might decide not to get this coverage. Skipping comprehensive coverage on an older car could reduce your monthly insurance premiums.

On a new or leased vehicle, comprehensive coverage is usually a requirement.

Old car coverage can go UP! Classic car insurance rates in Ontario

The older your car, the less value it has, right? In most cases, but not always. There are two scenarios when older cars will have higher rates than new vehicles.

First, some older models of vehicles will be more expensive to insure because some models have a terrible insurance history. For example, they are prone to theft, so insuring them is risky.

Second, at some age (typically 20+ years) cars can be considered classic or antique vehicles, resulting in a special type of insurance coverage, such as classic car insurance or antique auto insurance. Only a few companies offer these types of car insurance in Ontario and, depending on your car and your driving habits (year-long vs. summer months only) car protection rates can be more expensive than mainstream vehicles.

Car insurance and rental cars

Many people are confused about rental vehicle insurance. You may think the insurance attached to your credit card is enough, but it's not. It doesn't cover 3rd party liability or damages to other people's property. You also have to watch out for the rental agency's collision damage waiver, which may not cover all the costs associated with an accident.

The best approach is to make sure that you have your own car insurance (if you have your own car), and to ensure that it also extends to rental cars - many insurers do that. If you don't have this extension on your insurance, you can, for approximately $20 per year, buy a rider for your policy that covers rental cars. It is worth the cost since you'll pay between $15-$20 per day for the same coverage from the rental agency.


We hope that you will consider these insights when you get auto insurance in Ontario. These tips have been provided by Alexey Saltykov from InsurEye, the largest Canadian platform for insurance reviews, and your portal for access to cheap car insurance in Ontario and other provinces.

Share:

Read More

Understanding and Saving on Alberta Car Insurance.

Finding car insurance can be a difficult and stressful process, especially for those who don't have much experience when it comes to average rates and coverage. Luckily, the knowledgeable team at InsurEye knows exactly how to find the best auto insurance in Alberta, and for the best price! With a solid team of professionals on your side, there is no need to worry about finding cheap auto insurance that fits your needs.

The Many Ways to Save on Auto Insurance in Alberta

There are many factors that affect car insurance rates in Alberta, from the condition of your vehicle to where you drive and park, or even your educational and driving history! The following are just a few of the ways that you may be able to save on your auto insurance rates.

By starting with an online comparison, you will be able to check average auto insurance rates in Alberta. If you've been with the same insurer for a long time, it may be difficult to beat their rates (especially if you haven't had any recent claims), but it's always worth looking. If you don't have a good driving record, keep in mind that this will only affect you for approximately three years. At that time, previously incurred tickets will be removed from your history, and your premiums may be reduced.

If you haven't done so already, you can complete a driving course in an attempt to reduce your insurance premiums with some insurance companies. If the car you're currently driving isn't worth very much, consider only getting the minimal coverage required by law, without collision damage. This will likely mean that you'll have liability insurance, and will still be protected if you damage someone's vehicle, but the damages on your own vehicle will not be covered.

If you're a more experienced driver, you may be able to save by increasing your car insurance deductibles, and thus incurring higher payments for damages in case of an accident.

Something as simple as where you park your vehicle can also affect your insurance rates. By parking in a safe location, like a private or secure garage, you will likely receive lower premiums. If you need multiple kinds of insurance coverage (like auto, home, and life insurance), many companies will give you the option to bundle them together for a discounted rate.

Graduates of certain Canadian universities may be eligible for a discounted rate from some insurance providers. Some insurance providers will offer a discount to members of certain professional organizations, such as Certified Management Accountants of Canada, or The Air Canada Pilots Association.

As a senior citizen, you will also be able to save, since most companies offer discounts to seniors.

To discover more ways to save, contact InsurEye today. By filling out our online insurance quote form, you can connect with an experienced insurance professional who will help you find the perfect plan.

Understanding Auto Insurance in Alberta

When choosing auto insurance, it's important to understand the kinds of insurance available to you. This will ensure that you choose a plan that works best for you, and that you don't end up paying for things you don't need.

Although auto insurance is required by law in Alberta, the government only regulates the minimal amount of third-party liability insurance on your automobile, which is $200,000. In contrast, we recommend having at least $1,000,000 to $2,000,000 in liability coverage, to protect yourself and your finances, should an accident happen.

Alberta uses an "at-fault" insurance approach for bodily injury and vehicle damage liability. In contrast, the province uses a "no-fault" approach to accident benefits coverage, meaning that each insurer pays the claim of its policyholder. Car insurance rates in Alberta are at an average of $110 per month, which are not the highest in Canada. Still, it is important that you understand what is offered, in order to properly search for the best price.

The Types of Automobile Insurance Offered

Starting with basic coverage, all drivers within the province of Alberta need personal liability and property damage (PLPD) insurance, which is also referred to as third-party liability insurance. This is legally mandatory in order to drive within the province, as it covers damages caused by your vehicle to another person or their property.

Although the minimum is currently $200,000, it is wise to seek a higher coverage amount, as stated above. Alberta also requires drivers to have accident benefits coverage, as this covers the passengers of a vehicle, in the event of injury or death. Regardless of who may be at fault, this kind of insurance will cover medical and rehabilitation costs, funeral expenses, death benefits, and income replacement, depending on the situation. Accident benefits will also give you uninsured motorist coverage, in the event that you are involved in an accident with an uninsured driver.

Although third-party liability and accident benefits insurance are the minimum requirements necessary to drive in Alberta, there are other types of coverage that may interest you. Collision coverage, for example, will cover any repairs to your vehicle that have been caused by an accident with another vehicle or an object. Best of all, the repair or replacement of your vehicle is covered, regardless of whether or not you are at fault for the damages.

Comprehensive insurance goes a step further, by covering damages to your vehicle that were not the result of an accident or collision of any kind. This insurance protects your vehicle from threats including fire, theft, vandalism, and environmental or weather-related damages. This is the greatest degree of coverage available through an auto insurance policy.

If you don't need such extensive insurance coverage, specified perils insurance offers a happy medium. Specified perils insurance offers more protection than collision insurance, but is not quite as extensive as comprehensive insurance. This type of insurance covers damages caused by the perils that you specifically name within your policy, which are not the result of a collision. This way, you can choose what you're insured for, and whatever perils are not named specifically will not be covered.

Trust the Team of Experts at InsurEye

Auto insurance does not have to be a scary or difficult process. At InsurEye, we are passionate about helping our clients find the best possible insurance prices, for policies that suit their specific needs. Whether this is your first time shopping for insurance, or you've done it multiple times in the past, it is our hope that we can find you a better price, without sacrificing coverage. See how much you can save on auto insurance in Alberta with the help of InsurEye!

Share:

Read More

Car Insurance Costs Are Cut, But It's Not Good News for Everyone.

The seemingly never-ending rise in car insurance prices could be coming to a screeching stop thanks to proposed government changes.

New proposals will see a huge U-turn on the rate at which payouts for victims of serious accidents is calculated which is known as the Ogden rate.

The Ogden rate is set to be changed as soon as next year in a bid to provide a "fairer" system.

How does the Ogden rate work?
Set by the government, the Ogden rate is the amount awarded to victims with life-changing injuries after an accident.

The rate had been set at 2.5% which meant that for every £1,000 awarded to a victim in a claim, the insurer would pay out £975 - with the other 2.5% or the Ogden rate expected to be earned by the claimant through investment interest. This would then give them the full pay out they were due.

In March 2017, the rate was cut to -0.75% or in a monetary sense, insurers would now have to pay victims £1,007.50 per £1,000 payment.

It was this increase in pay outs that helped cause car insurance prices to hit record highs* in the last 12 months.

What's the latest Ogden rate change?
While a specific date hasn't been announced, the Ministry of Justice have confirmed that they are revising the rules and it's expected that the Ogden rate will be put at 1% from next year.

The changes have been welcomed by insurers as it will reduce the amount they are forced to pay.

Huw Evans of the Association of British Insurers commented on the proposed changes:
"This is a welcome reform proposal to deliver a personal injury discount rate that is fairer for claimants, customers and taxpayers alike."

"If implemented it will help relieve some of the cost pressures on motor and liability insurance in a way that can only benefit customers."

What do these changes mean for drivers?
The last time rates changed it meant an increase in car insurance premiums as insurers passed on the extra costs to drivers.

Now with pay-outs to victims expect to drop, it only makes sense that the savings will be passed on to drivers by reducing the overall cost of their cover.

Changes are not expected to come into effect until next year so it may be some time before these savings can actually be seen on the price of annual insurance.

How will it affect accident victims?
While it's potentially good news drivers, victims of serious accidents who are left with life changing injuries could be short changed.

Instead of receiving the full amount of the awarded pay-out, victims will now once again be expected to invest their money for profit.

While the assumption is that these people will be able to make up the difference comfortably, many have commentated on the unfairness of the new rate.

Speaking to The Mirror, President of the Association of Personal Injury Lawyers, Brett Dixon said:

"Someone with a life-long, life-changing injury such as brain damage or a spinal injury cannot afford to take any risks with how his compensation is invested,"

"The last thing people with devastating injuries think about when they are lying in a hospital is their insurance premiums. They think about how they are going to manage. Insurers say an increased discount rate will benefit customers through their premiums. It is of no benefit if they are severely injured and forced to take risks with the compensation they so desperately need."

4 ways to reduce the cost of your car insurance
While you wait for rate changes to bring the cost of you cover down, there are a number of ways you can save yourself money right now.

Reduce your risk
While there are some details you can't change, there are a few things you can do to reduce the risk you pose. Something as simple as changing your job title from an office manager to an office administrator could save you money.

You also need to consider the vehicle you're driving. When choosing a car, you should try and get one that's safer, slower and less eye-catching.

Increase your excess
Increasing the amount you're willing to pay if you have an accident will reduce the price of your premium. This is a great way to reduce the overall cost but remember you should never agree to an excess that you can't afford to pay.

Make sure your car is secure
Whether it's adding an immobiliser to your car or locking it away in a garage overnight, increasing your vehicles security will make it less attractive to thieves and cut the cost of your cover.

Make sure you let your insurer know about your improved security as some providers will offer discounts even before you renew.

Only pay for the cover you need
If you're only borrowing a car or just need to drive for a few days, an annual insurance policy could be a huge waste of money.

A temporary policy offers the same level of cover and financial protection as yearly insurance at a fraction of the price.

You get the cover you want without having to pay for insurance you don't need. You can get a range of quotes in minutes and compare prices to save time and money.

Share:

Read More