Car Insurance in Canada
An auto insurance policy is a complex policy. When you buy a policy for your car, you are buying financial protection and peace of mind...and complying with the law. It is a way of sharing risk.
If you are a newcomer to Canada, or plan to buy a car in Canada to use while you are travelling here, be sure to bring with you written evidence, translated into English or French from your own agent or company of your driving experience during the past five years. This may help to reduce your premiums.
Private companies are highly competitive in the price and service they provide. They rate vehicles according to their safety record and cost to repair or replace them. When purchasing a new car, it is advisable to investigate the cost of insurance in advance. You will find that the cost varies according to the type of vehicle, and this may have a bearing on your purchase decision.
In Canada, every licensed driver has access to insurance. If he or she is considered to be a high-risk driver, the cost may be considerably more than for an average driver, but it is available... at least to the extent of minimum required limits.
In Alberta, Yukon, Northwest Territories, Nunavut, Ontario, Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island, all car insurance is provided by private non-government companies who compete for your business.In British Columbia, Saskatchewan and Manitoba, a government-owned insurer provides the basic compulsory coverages. In Quebec, some is provided by the government, some by private companies.
Factors affecting your car insurance costs
* Make and style of car.
This does not affect the premium you pay for third-party liability. It does, however, affect the cost of coverage for damage to your car. Some vehicles may be more susceptible to theft than others; some may be better designed and less easily damaged; some are less expensive to repair; and some protect their occupants better than others.
* Make and style of car.
This does not affect the premium you pay for third-party liability. It does, however, affect the cost of coverage for damage to your car. Some vehicles may be more susceptible to theft than others; some may be better designed and less easily damaged; some are less expensive to repair; and some protect their occupants better than others.
* Driving records
Your record of moving traffic violations could be an indication of how responsible you are as a driver and therefore how likely you are to be involved in a collision.
* If other people will be driving your car, their records may also be considered when your premium is calculated.
* Do you use your car for pleasure or business
* In what geographical area you drive, climate and traffic congestion in your area.
* How far you drive.
* Your insurance claims record
* Other drivers in your household who use your vehicle.
If you are a new resident in Ontario and have a valid driver's licence from another province, state or country, you can use it for up to 60 days after you move to Ontario. If you want to keep driving in Ontario, you must get an Ontario driver's licence. You must use your Ontario licence when you are issued one.
New Ontario residents have 30 days before they have to register their vehicles and get Ontario licence plates and vehicle permit.
Ontario has a Demerit Point System for traffic violations. The points stay on your driving record for a certain amount of time, and they do affect your car insurance.
My Experience
The Insurance Company checks your driving record and rate you according to traffic violations. I found that out the first year I was in Canada. I received two speeding tickets at the same place during the same day. My next bill was several hundreds of dollars higher.
When our teenagers got their drivers license, we put them on our policy. It gave them time to build up their driving experience without having to pay anything themselves.
Taking a certified driver education course and having a record of good student behavior reduced the additional premium. In order for drivers under 24 years of age to get a “Good Student Discount”, you need a form filled out by the principal or counselor of the school they are attending. It is valid for one year.
When our oldest was ready for his own car, we gave him our Chevrolet Impala and we bought a new car. The company mistakenly insured our new car on a completely new policy and kept the old policy that we had for more than 20 years on the Impala.
The old policy had lots of discounts and they were transferred to Junior, who now has the best rate in the family.
