Is car insurance required in Brant?
Yes, auto insurance is a legal requirement in Brant, as well as everywhere else in Ontario. Car insurance is regulated provincially, which means each Canadian province and territory determines whether it is mandatory in their region. In Ontario, it is compulsory, which means to be able to register your vehicle with the province you must show proof of insurance.
Several elements make up car insurance in Ontario, including liability coverage. There is a minimum requirement for liability coverage in the province, so all Brant drivers are required to hold a valid, up-to-date car insurance policy featuring at least $200,000 in third party liability coverage.
The risks of driving without insurance
As car insurance is mandatory everywhere in Ontario, driving without insurance is illegal, and if caught, you could face severe fines.
For a first offense in Ontario, you can be fined the minimum of $5,000 up to the maximum of $25,000.
If you are caught driving without insurance a second time, you can be fined up to $50,000. There is also a 15% surcharge on any fines incurred.
Most people will agree that driving uninsured is simply not worth the risk, especially with fines as high as $50,000. So if you’re a Brant driver currently without car insurance, contact your local broker today to help you find a policy.
The benefits of Brant auto insurance
Why purchase car insurance? The answer is simple: for protection. Auto insurance offers financial protection in a range of situations, from injury to property damage to theft. It provides peace of mind to drivers knowing that no matter what happens on the road, they’re covered. For a full list of benefits Brant drivers may derive from auto insurance, keep reading.
You’re protected in case of accidental injury
If you are injured in a collision, your insurance can help. Most auto insurance plans feature accidental injury coverage, so if you require a trip to the hospital or doctor’s office because of an accident, you can seek compensation to cover these medical expenses.
You’re protected in the event of an accident
Accidents happen every day, even to the safest of Brant drivers. For this reason, it’s important to be prepared and that’s where auto insurance comes in. Car insurance typically includes coverage to help pay for repairs if your vehicle is damaged in a collision.
You’re protected in case of theft
If you choose a car insurance policy with comprehensive coverage, then chances are you will have protection against theft. This means that if your car is stolen, your insurance provider will help you cover the costs of replacing it, rather than having to pay for a new car entirely out-of-pocket.
You’re in compliance with the law
Last but not least, buying car insurance puts you in compliance with the law. Therefore, one benefit of doing so is that you aren’t at risk of being fined. As a reminder, uninsured motorists in Ontario can face fines of up to $25,000 for a first offense and up to $50,000 for a second offense.
4 elements of mandatory car insurance in Brant
Car insurance consists of several components. From third party liability coverage to accident benefits coverage, each type of coverage is designed to offer you protection while on the road. The four types of coverage that are compulsory in Ontario can be found below. They are required in all circumstances, no matter whether you own, lease, or finance your car.
Liability coverage
If you get into an accident that you are at fault (liable) for, you can use your liability coverage to help cover the costs. For example, if you cause an accident that results in injury or property damage, liability coverage can help you pay for medical expenses or vehicle repairs. It can also help cover court fees or legal counsel if it comes to that. In Ontario, auto insurance policies must include a minimum of $200,000 in third party liability coverage.
Accident benefits coverage
Accident benefits coverage helps cover the costs of medical fees after an accident. This type of coverage can be claimed to pay for the medical expenses of the driver, passenger, or any pedestrians involved in the accident, regardless of which party caused the collision.
Uninsured automobile coverage
If you and any passengers in your vehicle are involved in an accident with an at-fault driver who is uninsured or underinsured, uninsured automobile coverage can help cover the costs.
Direct compensation
If you get into a car accident that you are not at fault for, direct compensation coverage can help pay for any repairs or medical expenses. With direct compensation, you contact your insurance company directly to file your claim.
What factors determine the cost of Brant car insurance?
Insurers consider several factors when calculating insurance premiums. Believe it or not, your age, marital status, address, and the type of vehicle you drive can all influence how much car insurance costs. To better understand how car insurance is calculated, we’ve put together a list of the most common factors that determine how much Brant drivers will pay for insurance.
Driving History
There’s no denying that one of the most important factors in determining the cost of auto insurance is a person’s driving history. Driving history consists of a person’s driving experience, as well as their driving record.
A lack of driving experience gives insurers an excuse to raise your premiums because they believe that the less experience you have, the more likely you are to get into an accident. This is why young drivers typically pay the highest insurance premiums.
In contrast, having more driving experience may result in lower premiums, however, it must be paired with a clean driving record.
A clean record means a record free from tickets, accidents, and DUIs. The better your record, the lower your insurance premium will be. This is because a clean record signals to the insurance company that you are a safe and responsible driver who is less likely to get into an accident.
Alternatively, if your driving record is rife with demerit points, you are considered more of a risk and you will pay more for car insurance because of it.
Therefore, Brant drivers should always strive to have a stellar driving record, because if they do, they will likely be rewarded for it.
Age
From an insurer’s perspective, there is a direct correlation between age and driving skills. In their minds, the younger you are, the less driving experience you have, and the greater risk you pose to the road. This is why new drivers tend to pay the highest auto insurance premiums. Another age group affected is the elderly, with studies revealing that seniors tend to have slower reaction times than other age groups. As a result, elderly drivers in Brant, as well as other parts of Ontario, may be required to pay more for car insurance.
Location
Where you live and work will also determine your car insurance rate. Generally speaking, drivers who live in high-density urban areas, such as Toronto, are more likely to get into an accident since there are more vehicles on the road at any given time. In contrast, drivers who live and work in rural areas with less traffic are considered less likely to get into a collision and often have lower insurance premiums as a result.
Further, if you live or work in an area prone to climate related incidents, your car insurance may cost more.
Type of Car
The type of car you drive is another factor used to determine how much you pay for car insurance. The general rule of thumb is the newer and more expensive your vehicle, the higher your insurance premium. This is because newer, luxury vehicles are more likely to be stolen and will cost more for the insurance companies if they need to be replaced or repaired. That said, if your car is new but is equipped with certain safety features, the insurance company may take this into account and lower your rate.
The Number of Kilometres Your Drive
Lastly, the number of kilometres you drive is a factor that can influence your insurance premium. The more frequently you drive, the more your insurance will cost. For example, if you have a long daily commute during rush hour, or part of your job involves driving, then you will likely have a higher insurance premium.
However, if you rarely drive, such as only driving on the weekends or once a week to church, then an insurer may take this into account and lower your premium. If you’re an infrequent driver, be sure to speak to an insurance broker about your driving habits when shopping for auto insurance.
Marital Status
Marital status is another factor that can impact your insurance premium. Why? Data reveals that married people are more financially stable, which insurance companies believe translates to better driving skills. This is why, on average, married drivers tend to pay less for car insurance than single people.
How to get Brant car insurance on the cheap
Why spend more when you can spend less? No one should ever pay more than they have to for car insurance. Luckily, there are many ways Brant drivers can reduce how much they spend on auto insurance. From installing winter tires to investing in an electric vehicle, here is a list of ways to save money on car insurance:
Increase your deductible
We’re going to let you in on a little secret: the higher your deductible, the lower your premium. This goes for nearly all types of insurance. A deductible is the amount of money you are responsible for paying towards an insured loss. So basically, the more money you are willing to take on, the less your car insurance will cost. In Ontario, the average car insurance deductible is around $500, so to pay less for car insurance, you might wish to raise your deductible to $1,000 or more. Before doing so, we recommend speaking with your local broker to learn about the pros and cons of raising your car insurance deductible.
Opt for annual over monthly payments
When feasible, always strive to pay for car insurance annually rather than monthly. This is because insurance companies often tack on administrative fees for monthly payments, which will increase the overall cost of your car insurance.
Insure multiple cars together
If your household has more than one car (perhaps your spouse or adult child also has a car), insuring them together can save you money. Insurance companies offer discounts of up to 20% per policy when you insure multiple cars with them.
Bundle insurance policies
Bundling more than one insurance policy together is another way to get cheap car insurance. In general, the more insurance you buy from a company, the more likely they are to give you a discount. So if you’re also in the market for home insurance, travel insurance, business insurance, or insurance for leisure items like ATVs or boats, consider finding a provider that sells multiple types of insurance and buy them all from them. Bundling your insurance may save you up to 15% per policy.
Install winter tires
Drive safer while saving money on car insurance - it’s a win-win. Installing winter tires on your vehicle may make you eligible for a discount of up to 5% on car insurance. Ontario insurance providers recognize that winter tires have better capabilities on snow or ice-covered roads, making you less likely to get into an accident in the winter, and they will reward you accordingly.
Buy an eco-friendly vehicle
Saving the environment pays. Insurance companies across the province have begun offering car insurance discounts to drivers of eco-friendly vehicles, such as hybrid or electric cars. This means that buying an environmentally-responsible vehicle will not only save you money at the gas pump but also on auto insurance.
Attend driving lessons
Enrolling in driving school is a great way to get cheap car insurance for young drivers. Insurers believe that professional driving institutions produce safer, more responsible drivers who are less likely to get into accidents. Therefore, if you can prove you completed a driving course, you may be eligible for a discount.
Get in touch
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