Mandatory car insurance coverage in Georgetown, Ontario
It is important for all Georgetown drivers to be aware of the fact that car insurance is not optional in Ontario. Instead, it’s required. In other words, you cannot drive without a valid car insurance policy. What constitutes a valid policy in Georgetown is one that contains the following four types of coverage:
Your policy must include all four coverages listed above if you want to drive. In addition, certain types of coverage have mandatory minimum limits. For example, all Ontario motorists must carry at least $200,000 in third party liability coverage at all times. Failure to purchase car insurance and continuing to drive will put you in breach of the law. Don’t fall into this trap and the risks that come with it. Contact a BrokerLink insurance advisor to learn more about what mandatory coverage entails.
The penalties for uninsured driving in Georgetown
Driving without car insurance is one of the most reckless things that a person can do. Why? If you get into an accident and don’t have car insurance, you will be on the hook for paying for the damage on your own. This can add up to thousands or even tens of thousands of dollars. Most people are not in a position to pay this much money out of pocket.
In addition, driving without insurance is illegal, which puts you at risk of additional penalties and financial burdens. Although you won’t receive any demerit points for uninsured driving, there are other very serious consequences.
In Ontario, drivers can be fined up to $25,000 as a first offender and up to $50,000 as a second offender. You must also pay a 25% surcharge on whatever fine you incur. Your vehicle could be impounded for up to 90 days, and your driver’s licence could be suspended for up to a year.
This means that if you drive without insurance, you could lose your licence and cannot drive for a long time. Plus, when you eventually decide to purchase car insurance later, you will likely have a more challenging time finding a policy. When you do find one, it will probably come with a higher premium.
For this reason, purchasing a valid car insurance plan and renewing your car insurance before it expires is of the utmost importance. If your policy recently expired and you need help renewing it, contact a BrokerLink insurance advisor who can help you with the expired car insurance renewal process.
What does Georgetown car insurance cover?
Keep reading if you’re wondering how Georgetown car insurance will protect you. Below, the BrokerLink team outlines how each type of mandatory car insurance coverage works, from third party liability coverage to direct compensation coverage:
Third party liability coverage
If you get into an at-fault accident, you will file a third party liability claim. This is the type of coverage that comes into play if you cause property damage or bodily harm to another via a collision. Georgetown drivers must have $200,000 in liability coverage, though many choose to purchase more than this. Liability coverage can pay for a wide range of collision-related expenses, like medical fees, repair bills, and legal fees.
Accident benefits coverage
Accident benefits coverage can be claimed if someone is injured in an accident that you were involved with. No matter the injury, if medical expenses are not covered by health insurance, you can file an accident benefits claim to cover the rest. Examples of fees that accident benefits may cover include physical therapy, prescription medication, lost income, and funeral fees.
Direct compensation coverage
With direct compensation coverage, you can file a claim after getting into an accident that damages your car. In turn, you will receive a payout to help pay for the cost of repairing your vehicle. The only catch is that policyholders are only eligible for direct compensation coverage if they are not at fault for the accident.
Uninsured automobile coverage
Uninsured automobile coverage comes into play if you are involved in an accident with a certain type of motorist - namely uninsured, underinsured, and unidentified motorists. Thus, this type of mandatory coverage protects drivers against hit-and-runs and accidents, as well as at-fault drivers who are illegally driving without insurance or those who do not have enough coverage to pay for the accident.
Adding extra protection to your Georgetown auto insurance plan
If you want to add extra protection to your car insurance plan, there are several ways that you can do so. Increasing the coverage limits on your mandatory coverage can be effective. However, many drivers also choose to add optional coverages to their policies, such as collision coverage or comprehensive coverage. We outline a few of the most popular types below to give you an idea of how optional coverage works for car insurance:
Collision coverage
Collision car coverage will help you if you get into an accident that results in significant damage to your car. A form of property damage coverage, collision coverage can be claimed whether you are found to be liable for the accident or not. It can also be claimed whether the damage to your car was caused by colliding with another vehicle, an animal, or an object on the road, such as a median or lamppost.
Keep in mind that for some Georgetown drivers, collision coverage might actually be obligatory. It ultimately depends on whether you lease, finance or vehicle, and if so, whether the terms of your contract stipulate that you must purchase this type of coverage.
Comprehensive coverage
Comprehensive car coverage will pay for the cost of repairing or replacing your car if it is damaged while parked. Unlike most other car insurance coverages that provide protection related to collisions, comprehensive coverage is for different types of risks.
Specifically, this type of coverage may protect your vehicle against damage caused by theft, vandalism, fire, explosions and riots, falling and flying objects, and weather-related events.
Carefully review the terms of your policy for a complete list of covered perils. Lastly, as with collision coverage, comprehensive coverage may be required if you lease or finance your car.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Georgetown is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement to protect your driving record and to help prevent your insurance premium from increasing if you have an at-fault accident claim. Note: coverage and eligibility vary by province.
Waiver of depreciation
The reality is that cars depreciate every year. This makes your car less valuable after a few years than it was when you originally bought it. The problem is that if your vehicle is totalled and your insurer has to issue you a payout, it will be far less because it accounts for this depreciation.
Thankfully, if you add a waiver of depreciation or replacement car insurance to your policy, this will not be the case. Instead, your payout will be closer to the equal value of your car.
Loss of use coverage
Loss of use coverage is another type of extra protection that might be worthwhile for your needs. When you add this type of coverage to your Georgetown car insurance plan, your insurer will reimburse you for the cost of taking alternate modes of transit while your car is being repaired.
For example, if your car is damaged in a collision and will be in the shop for a week, you may need to rent a car or take taxis during this time. Loss of use coverage will compensate you, up to your coverage limit, for the cost of transportation you incur during this period.
How do insurance companies calculate Georgetown car insurance rates?
Insurance companies across Ontario use various formulas to calculate car insurance rates for drivers. Even though factors vary, as well as how insurers weigh these factors, most use the following details when determining car insurance rates:
- Where you live
- Age
- Gender
- Vehicle type
- How you use your vehicle
- Driving record
- Driving experience
- Past claims
- Prior insurance coverage
- Number of kilometers you drive
- Type of coverage on your policy
- Your deductible(s)
It is worth noting that the list above isn’t exhaustive. For example, car insurance can also be affected by your credit score and other factors. Given how many different details come into play, if you want to find out how much a policy will cost you, the best way to do so is by contacting an insurance broker at BrokerLink and requesting a free insurance quote. All BrokerLink insurance quotes are reliable and accurate and do not come with any obligation to purchase a policy.
How to get cheaper car insurance in Georgetown, Ontario
Many Georgetown drivers are on a budget. Even if you don’t have a tight budget, no one wants to pay more for car insurance than they have to. The BrokerLink team always ensures that our customers receive competitive policy rates. We do this by shopping around and unlocking discounts on your behalf. We also provide our customers with all kinds of tips and advice on how to get cheaper car insurance, like the following:
Bundle Georgetown homeowner’s insurance and car insurance
Bundling your homeowner’s and car insurance policies is a surefire way to save money on Georgetown auto coverage. Many insurance companies offer bundles that allow customers to combine different types of policies, like home and auto policies, into one. From there, they will receive a discount on each policy. You will also only have one renewal date to keep track of, making bundling both cost-effective and convenient.
Install an anti-theft device in your vehicle
Adding an anti-theft device to your vehicle is another way to qualify for a car insurance discount and find a cheaper policy. Insurers believe that anti-theft devices make your car less likely to be the victim of theft. For taking this extra precaution, they may issue you a discount.
Sign up for an approved driving program in Ontario
Enrolling in an approved driving program in Ontario can also reduce your car insurance rates. Driving programs teach students the rules of the road in both a classroom and in a car setting. They also teach students defensive driving skills, which can help them avoid accidents. As a reward for completing a driving course, your insurer may agree to issue you a car insurance discount.
Drive safely and follow all traffic laws
Driving safely and following traffic laws at all times can also help you qualify for a cheaper car insurance premium in Georgetown. How? The safer you drive, the less likely you will get into an accident. If you can minimize the number of tickets you get and the number of accidents you are involved in, your record will be clean.
Insurers like to see clean driving records, as this makes a driver look less risky. As a result, they might lower your rates if you drive safely. If you can maintain a clean record for years on end, you could even qualify for a safe driver discount. Learn more safe driving tips by contacting BrokerLink.
We’re in your community
BrokerLink is honoured to be a member of the Georgetown community. We provide Georgetown residents with top-notch insurance services while taking the time to get involved with local events and initiatives. Find out more about our corporate social responsibility and the other values we uphold by contacting us below.
Contact us
At Georgetown BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible. We can also help you adjust or renew your policy down the road.
You can reach us by phone, email, or in person at any one of our locations across Ontario. No matter how you contact us, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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FAQs about Georgetown auto insurance
Will my Georgetown auto insurance policy be cheaper if I drive a used car?
Not necessarily. If your used car is cheaper than the average car or your last car, then your rates may go down. Although other factors come into play, more affordable cars generally result in lower rates than expensive cars.
However, more expensive cars may have additional safety features that cheap or used cars lack, which could also reduce their premiums. If you plan on buying a used car, be sure to test drive your used car first and have it inspected by a professional. You can check out this vehicle inspection checklist for more information.
If I get into an at-fault collision in Georgetown, will my premium be affected?
Your premium will likely be affected unless you have accident forgiveness coverage. With accident forgiveness coverage, your insurer is not allowed to raise your rates after your first at-fault accident so long as the necessary conditions are met. However, if you do not have this type of coverage in your Georgetown policy, then you should expect your insurance premium to go up the next time that your policy is renewed. In Ontario, at-fault accidents stay on driving records for up to six years, which means that you may face a higher premium for up to six years. The good news is that if you get into an accident that you did not cause, your rates may not be affected at all.
Where can I get a free car insurance quote in Georgetown?
Nowadays, most insurance brokers and insurance agents offer free car insurance quotes to customers. You can likely obtain a free quote online, over the phone, or in person. All you have to do is ask and then answer a few questions about your driving history and the type of policy you are looking for.
Do I need a driver’s licence if I want to buy Georgetown car insurance?
Yes. A driver’s licence is mandatory if you want to purchase a car insurance plan or if you want to register your car with the transportation authority in your province.
How can I save money on auto insurance in Georgetown?
There are a number of ways that customers can save money on Georgetown car insurance. Namely, they can try bundling multiple insurance products into one, picking higher car insurance deductibles, paying for their policy annually instead of monthly, installing winter tires on their car, equipping their car with an anti-theft device, driving a hybrid or electric car, or by completing a driver’s education program.
If you have any questions, contact one of our local branches.
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