Life is a journey, and it's easy to get caught up in our daily routines. Navigating the twists and turns is something we do every day, whether we're walking down the street or going for a drive. When you hop in your car, you could be embarking on a weekend adventure or running errands — regardless of what you're doing, driving is a part of everyday life. However, any experienced driver knows driving is a privilege, not a right, which is why car insurance is so important. This applies whether you’re purchasing a new policy or renewing your car insurance.
At BrokerLink, we understand that finding car insurance at an affordable price is like navigating the highway during rush hour. From mandatory coverages like third-party liability, uninsured motorist coverage, and accident benefits to optional coverages like accident forgiveness or collision, knowing what you need can be overwhelming. You also have to choose an insurance company. To help you with these important decisions, we have created this helpful guide to make informed decisions when it comes to your car insurance coverage.
Join as we explore ways to help you protect your vehicle and save you money at the same time. It doesn't matter whether you're an experienced driver or a new driver. There's always room for improvement when it comes to lowering your premiums. Understanding the factors that influence your insurance rates and finding out about hidden discounts can help and so can enlisting an experienced insurance broker such as BrokerLink.
How much does car insurance cost in Canada?
The first time you purchase auto insurance, you might be shocked by how much it costs. However, car insurance rates vary depending on several factors. This is why there isn’t a single number that defines how much car insurance is per month in Ontario. From where you live to your coverage limits, there's a lot to take into account. Below, we discuss aspects that directly impact your auto insurance costs:
Location
Canada has the second-largest landmass in the world and is divided into ten provinces and three territories. Each area has its own respective regulations and insurance market. Because of this, car insurance costs will differ depending on where you live. For example, car insurance in Ontario is priced differently than car insurance in Nova Scotia. Additionally, no matter which province or territory you live in, urban areas often have higher insurance premiums compared to rural areas. That's because urban areas are more prone to traffic congestion, which leads to an increased risk of car accidents. Theft and vandalism are also more frequent.
Type of coverage
The types of auto insurance coverage you opt into directly impact your car insurance costs. Having basic liability insurance covers damage you cause to other vehicles. It's often more affordable than having comprehensive coverage on your policy, which protects your own vehicle from theft and damage caused by inclement weather or vandalism. However, it's important to note that certain types of insurance coverage are mandatory in each province. Ask your insurance company the types of coverage you need in your area when crafting an auto insurance policy.
Vehicle make and model
The make and model of your vehicle has a huge impact on car insurance costs. High-end or luxury vehicles such as sports cars have higher premiums because they cost more to repair or replace. In contrast, safer vehicles with high safety ratings can reduce your car insurance rates.
Driving history
Your driving record makes a difference when it comes to car insurance. Drivers who have a clean driving record that's free of accidents, claims or traffic violations tend to pay less for car insurance because they are considered low-risk drivers. However, if you have a history of at-fault car accidents or tickets, your insurance company will charge you more car insurance. Having multiple at-fault accidents on your record can add up quickly.
Age and gender
Young drivers tend to pay more for car insurance — it's because they statistically have a higher likelihood of accidents. This is because even with minimum coverage, new drivers are more likely to get into a car accident than experienced drivers. Additionally, statistically, younger male drivers will often have higher auto insurance rates than young female drivers.
Annual mileage
Drivers with higher annual mileage will pay more for car insurance because they are on the road more often. In turn, this increases the probability of getting into an accident. Those who drive less can save on car insurance costs.
Deductible amount
In terms of car insurance, your deductible is the amount of money you are responsible for paying if you have to make an insurance claim. A higher deductible is a great way to save money on car insurance. However, by opting for a higher deductible, you take the risk that you have to pay more out of pocket if you make an insurance claim.
Additional coverage
Adding optional types of car insurance coverage such as collision, comprehensive, roadside assistance, rental car coverage, or accident forgiveness increases your premium. That's because they provide additional protection and convenience that isn't necessary for all drivers.
Save on car insurance today! Discover great rates and personalized coverage options with BrokerLink. Get a quote and start saving now!
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How do you find affordable car insurance rates?
The majority of vehicle owners have a love-hate relationship with car insurance. Yes, it offers peace of mind by financially protecting you if you have to make a claim. However, monthly premiums or an annual premium can quickly chip away at your budget. Don't worry, though. BrokerLink is here to teach you how to save on car insurance. Here's what you need to know:
Shop around with BrokerLink
You shouldn't settle for the quote you get from the first insurance company you speak with. Shopping around is the way to go, and this is where BrokerLInk shines. We're your local insurance brokerage with over three decades of experience. Our insurance brokers can help you find the coverage that suits your budget and needs.
At BrokerLink, our team of experienced brokers know how to save on car insurance. We take the time to understand your needs, driving habits and budget. From there, we find an insurance company in our massive network to match you with. We compare quotes and help you get the auto insurance savings you need to succeed. Our goal is to help you save money on car insurance for years to come.
Bundle your auto insurance policies
Bundling your insurance policies makes a difference. Whether you have multiple auto insurance policies, such as home insurance, auto insurance, or cottage insurance, consider bundling them with the same company. It can qualify you for insurance discounts you wouldn't otherwise have access to. Outside financial benefit, bundling offers convenience and allows you to have all your policies in one place, simplifying claims and policy management.
Increase your deductible
Your deductible affects your car insurance rates. By opting for a higher deductible, you will take the bulk of financial responsibility if you have to make a claim. Because of this, your car insurance company will reduce your rates. This is beneficial if you're a safe and cautious driver who doesn't anticipate frequent claims. Before you make a decision, assess your financial situation. Calculate the amount you can realistically cover from your own funds in the event of a car accident.
Become a better and safer driver
Safe driving has the dual purpose of personal safety and determining your insurance rates. Insurance providers offer lower rates for drivers with clean records, which includes those who avoid accidents, traffic violations and claims. Safe driving will keep your rates low, which is why you should ask your insurance broker if your provider offers a discount. Being a safe driver will also reduce our chances of getting into a collision, which can increase your auto insurance rates. Read our other blog post to learn about how accidents can affect car insurance rates.
Consider usage-based insurance
Usage-based insurance (UBI) is a modern approach to car insurance that rewards safe driving behaviour. This involves installing a device in your vehicle or using a mobile app to track your driving habits. This takes factors such as speed, braking patterns and the time of day you drive into account. If you're a responsible driver, UBI can save you money on your car insurance. Essentially, you only pay for the miles you drive and your personal driving behaviour.
Choose your vehicle carefully
Before you buy a new car, think about how its insurance rates will affect your bank account. Car insurance companies categorize cars based on safety features, theft rates, and repair costs. High-performance or luxury vehicles cost more to insure because repairs and replacement parts are expensive. Picking a vehicle with good safety ratings and lower repair costs will reduce your car insurance premiums.
Review and adjust your coverage regularly
Car insurance policies offer various coverage options, but not all of them are mandatory. Life circumstances change, and so do your insurance needs. The necessity of certain coverage options comes down to your vehicle type, driving habits, annual mileage, and your budget. Review your coverage regularly with your BrokerLink car insurance broker to ensure it aligns with your needs. For example, if you paid off your car loan, you likely don't need collision insurance or comprehensive coverage anymore. Reducing your amount of coverage leads to immediate auto insurance savings.
Ask your broker or insurance company about discounts
Many insurers offer discounts, and they are worth exploring. BrokerLink can help you identify and maximize these discounts. Ask your BrokerLink auto insurance broker to help you discover various opportunities for savings and much more.
Take a defensive driving course
Driving school is for everyone, and taking a defensive driving course makes a difference whether you just got your driver's licence or have had it for several years. Driver training can lead to insurance discounts with certain providers. They teach valuable defensive driving techniques that can reduce your risk of accidents. In turn, you can become a safe and more responsible driver in the eyes of your insurance company.
Think about recent changes to your driving habits
Driving habits can change, which may lead you to spend less time on the road. For example, you might not have a work commute anymore if you switched to working from home. If this is the case, let your BrokerLink broker know right away. You might end up with lower premiums or qualify for a low-mileage car insurance policy. Because of being on the road less, you will be considered a lower risk to your insurance company.
Find a safe parking location
Where you park your car can also influence your insurance premium. If possible, you should park your car in a secure garage or a well-lit area. Cars parked on the street or in high-crime areas are more vulnerable to theft and vandalism, which can increase your rates. Taking extra measures to protect your car from damage will help you save money.
Install anti-theft devices
There are many types of anti-theft devices, including car alarms, GPS tracking systems, steering wheel locks, and immobilizers. Installing these in your vehicle shows your insurance company that you're keeping your vehicle safe from theft and vandalism. Reducing these risks has perks. It keeps your insurance costs low and protects your vehicle at the same time.
Maintain good credit
Some Canadian provinces use your credit score when calculating your annual premiums. Insurers may use your credit score to assess your financial stability and likelihood of filing a claim. In order to potentially lower your premiums, you should maintain a credit score by paying bills on time, reducing outstanding debts, and managing your finances responsibly.
Common types of car insurance discounts
Besides the strategies mentioned above, you can also take advantage of discounts that insurers offer. These discounts can help you save money, and you can learn more about them by reaching out to your insurance company or broker directly. Let's review discounts that you may be eligible for:
Multi-vehicle discounts
A multi-vehicle discount, or multi-car discount is offered by the majority of insurance companies. It's a cost-saving benefit for policyholders who own more than one vehicle. Essentially, the discount is an incentive for households with more than one vehicle to be insured by the same company. It allows families and individuals to save money in the long run. This is also a more affordable alternative to having multiple auto insurance policies in most cases.
Student discounts
Student discounts on car insurance are available for student drivers who choose certain insurance companies. These discounts make car insurance more affordable for students who face higher premiums due to their lack of driving experience and age. A good student discount is one of the most common types of auto insurance discounts. It allows students who maintain a certain grade point average (GPA) to be rewarded for good academic performance. This is because these are viewed as more responsible and less likely to engage in risky driving behaviours.
Group discounts
Group discounts for car insurance offer cost-saving benefits to specific organizations, affiliations, or groups. These discounts help policyholders get reduced rates as a reward for being a part of a certain association or group. Alumni of certain schools and organizations can take advantage of this discount.
Good driver discounts
A good driver or safe driver discount is a great way for policyholders to save money. Essentially, insurance companies offer lower rates to policyholders who have demonstrated safe and responsible driving habits over a specific period of time. The main criteria for receiving this discount is a clean driving record free of at-fault accidents, traffic violations or insurance claims within a designated time frame.
Senior discounts
Senior discounts are a way for older drivers with a good driving record free of infractions to save money on insurance. This usually applies to those aged 50 and above. These discounts acknowledge the experience and often safer driving habits of older individuals. For example, several insurance companies offer mature driver discounts to policyholders who complete an approved defensive driving course or safe driving program to refresh their skills and stay up-to-date on the latest traffic laws.
Low mileage discount
A low-mileage discount is available for policyholders who drive their vehicles fewer miles annually than the average driver. It acknowledges that drivers who spend less time on the road have a lower risk of getting into an accident. Check out our other blog post to learn how to calculate your mileage.
Loyalty discount
You will receive a loyalty discount if you stay with the same insurer for a certain amount of time. This incentivizes long-term customers to maintain their policy with their current insurance company instead of looking around for the cheapest company. It recognizes customer loyalty and encourages policyholders to stay with their current insurance provider.
How can I purchase car insurance through BrokerLink?
BrokerLink makes purchasing car insurance a straightforward process, and our experienced brokers are here to help you every step of the way! Stay by gathering all the necessary documentation for your car insurance quote. Then, reach out to us. You can visit our website, use our online quote tool, or call or visit one of our 200+ insurance offices throughout Canada. From there, BrokerLink will gather insurance quotes from multiple companies to find the best coverage options and rates for your needs.
Based on your preferences and needs, you and your BrokerLink insurance broker can collaborate to customize a policy that meets your requirements. This includes choosing coverage levels, setting deductibles, and adding additional coverage options. After selecting a policy, your broker will help you complete the necessary paperwork and documentation.
Why partner with a BrokerLink insurance broker?
Partnering with a BrokerLink insurance broker offers several advantages, including simplifying your insurance experience and providing valuable benefits. Since 1991, BrokerLink has been dedicated to finding insurance policies that meet the needs and budgets of our customers. Our highly trained professionals are knowledgeable about the insurance industry and can provide expert advice. Whether you require home, auto, or business insurance, we are here to help.
BrokerLink is here to offer peace of mind and make shopping for insurance easy. Our brokers advocate for you, especially when you have to make a claim. Our brokers will walk you through the claims process and keep your best interests in mind. When you choose BrokerLink, you have someone to manage your insurance needs and help you find the coverage you need.
Contact BrokerLink to learn more about how to save on car insurance
You don't have to sacrifice essential coverage to save money on car insurance. With the help of BrokerLink, you can reduce your rates while staying safe on the road. Your insurance needs will change over time, which is why you can always reach out when you want to update your policy. Contact BrokerLink today to begin your journey toward more affordable and comprehensive car insurance today.
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How to save on car insurance FAQs
How much should I pay monthly for car insurance?
When it comes to car insurance rates, the answer you'll often hear is, "It depends!" Your monthly insurance premium is influenced by various factors, including your location, insurance history, driving record and age. These factors will greatly affect the amount you pay each month, which incentivizes you to become a better driver.
Does my driving experience affect my car insurance rates?
Yes, insurance companies set your rates based on your driving experience and driving history. If you have limited experience behind the wheel, your insurance premiums will be higher. In contrast, if you have a long history of accident-free driving, your rates will be lower. It’s always better to be safe rather than sorry.
Do newer cars have higher insurance premiums?
The answer to this question will vary. However, determining your insurance costs isn't straightforward because various factors come into play. Safety features in newer cars can help lower your insurance rates. However, your insurance history, age, location and other variables also play a pivotal role in determining the final amount you'll pay.
If you have any questions, contact one of our local branches.
