The four types of mandatory auto insurance coverage in Kawartha Lakes
The following four types of auto insurance coverage are legally required in Ontario. Put another way, if you want to drive in the province, you will need to contact an insurance broker and purchase a policy that features these four coverages:
- Third party liability coverage (no less than $200,000 of it)
- Accident benefits coverage
- Direct compensation - property damage coverage
- Uninsured motorist coverage
Ontario compulsory car insurance coverage explained
Of all the different types of auto insurance available to Kawartha Lakes drivers, four are compulsory. Below, we break down how these four coverage types protect you on the road:
Third party liability coverage
Liability car insurance compensates drivers for the costs associated with an at-fault accident. These can range from medical expenses that arise if someone is injured in the accident to vehicle repair bills, legal fees, and more. In Ontario, all drivers must carry at least $200,000 in third party liability coverage.
Accident benefits coverage
Accident benefits coverage covers the cost of medical attention if you are involved in an accident and someone suffers bodily harm. For example, if you get into a crash with another driver and they have a concussion, accident benefits coverage can pay for medical expenses, like prescription medication or physical therapy. Accident benefits may also cover injury-related expenses like loss of income, or funeral costs if someone dies in the accident.
Direct compensation - property damage coverage
Direct compensation - property damage coverage comes into play if you get into an accident that you were not at fault for, and that accident caused damage to your car. If this situation applies to you, you might be able to claim direct compensation - property damage coverage, resulting in compensation to pay for the cost of repairing your car.
Uninsured motorist coverage
Uninsured motorist coverage covers drivers if they find themselves in an accident with someone who is either uninsured or underinsured. Accidents with anonymous drivers who flee the scene may also be covered.
Extra protection for Kawartha Lakes drivers
Kawartha Lakes drivers can never be too careful. That is why so many opt to add extra protection to their car insurance plans. But with so many types of optional auto insurance out there, it can be hard to know which ones make sense for you. That's where BrokerLink comes in. With help from one of our licensed auto insurance specialists, we can recommend coverage types that align with your needs, budget, and the type of car you drive. Below, we outline a few of the most popular forms of extra protection for Kawartha Lakes drivers, from loss of use coverage to accident forgiveness coverage.
Collision coverage
Collision car coverage protects drivers from the harsh reality of major car accidents. One of the most common outcomes of major car accidents is significant damage to the driver’s vehicle. Replacing or repairing a vehicle that suffers major damage can be expensive. That is where collision car coverage comes in. It will help pay for the cost of repairs, less your deductible and up to the coverage limit. Collision coverage is optional for most Kawartha Lakes drivers, except those who lease or finance their vehicles. For them, it might be mandatory according to the lease agreement.
Comprehensive coverage
Comprehensive car coverage is for Kawartha Lakes drivers who want financial protection in the event that their car is damaged while parked. However, comprehensive coverage only offers financial security against specific types of damage. These types of damage may include theft, vandalism, fire, falling objects, water, and wind. Choose your perils carefully as you want to ensure that you are protected against the biggest risks you and your vehicle face. You can also select all perils coverage for the broadest possible coverage. Lastly, if you lease or finance your vehicle, check your leasing agreement to ensure that comprehensive coverage is not mandatory, as it might be.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Kawartha Lakes 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 varies by province.
Loss of use coverage
Loss of use coverage applies when your car is damaged in an accident and needs to be repaired. As we all know, vehicle repairs and parts shipments often take time. Depending on how busy your local auto body shop is, you could be looking at several days or even a week without your vehicle. Thankfully, if your Kawartha Lakes auto insurance plan includes loss of use coverage, you can receive compensation to cover the cost of taking alternate modes of transportation during this time. For example, loss of use coverage can reimburse policyholders for public transit passes, the cost of renting a car, or even the cost of hiring taxis or ride shares until their vehicle is repaired.
Commercial auto insurance
Commercial auto insurance is a type of car insurance that is designed for drivers who use their vehicles for business purposes. Whether you own a single car or multiple cars, commercial auto insurance may be necessary, especially since most personal auto insurance plans in Ontario exclusively cover personal use. Ultimately, if you use your car to transport materials, deliver products to customers, or visit clients’ homes, contact BrokerLink about adding commercial auto insurance coverage to your Kawartha Lakes car insurance plan.
How car insurance rates in Kawartha Lakes are determined
A lot goes into calculating car insurance rates in Kawartha Lakes. Insurance companies don’t just consider one factor and call it a day. Rather, they consider a wide range of factors, like a driver’s age, driving record, claims history, gender, and more. To help you understand the complex risk formulas that insurance companies use, we have put together the following list of factors that an insurance agent is likely to consider when calculating your Kawartha Lakes car insurance premium:
- Where you live (and where you regularly commute)
- Age
- Model, make, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
- Gender
Ultimately, since car insurance companies take into account such a variety of factors, it can be difficult to guess how much you will have to pay when it comes time to buy a policy. That is why we recommend contacting BrokerLink for a free quote. A BrokerLink insurance advisor can provide you with a complimentary estimate so you have a better idea of how much car insurance coverage will cost you. However, we can help you save money on insurance and choose the best policy for your needs.
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Find affordable Kawartha Lakes car insurance that doesn’t break the bank
Affordability is not a word that you hear alongside car insurance very often, but BrokerLink is looking to change that. We are a full-service auto insurance brokerage that knows how to help customers find inexpensive insurance. Since we’ve been in the insurance industry for over 30 years, we have acquired all kinds of tips for saving money on car insurance, and we are eager to share them with our Kawartha Lakes customers. A few of our top tips can be found below:
- Choose a Kawartha Lakes car insurance plan with an annual payment schedule instead of a monthly one to avoid extra fees.
- Purchase the coverage that makes sense for you and your car.
- Select the highest policy deductibles you can reasonably afford to pay in the event of an accident.
- Learn safe driving tips from a professional by enrolling in and completing a recognized driver’s ed program or defensive driving program in Ontario.
- Drive less and choose to walk, cycle, carpool, or take public transit instead, and you could become eligible for an occasional driver discount.
- Increase traction on snowy and icy surfaces by installing winter tires on your car, which can also allow you to qualify for a snow tire car insurance discount.
- Prioritize driving safely at all times, which means driving the speed limit and abiding by all Ontario traffic laws.
- Add an anti-theft device to your vehicle to make it less likely to be stolen.
- Buy a new car that prioritizes the environment, like a hybrid or electric car.
- Buy a new car that has a high-safety rating. By choosing one with high safety and reliability ratings, you can save on your annual premium.
- Speak with a licensed BrokerLink car insurance specialist about the different types of car insurance discounts that exist in Ontario, ranging from occasional driver and telematics discounts to winter tire and education and employment-based discounts.
- Purchase multiple auto insurance policies to insure more than one car at the same time or look into bundling insurance policies, which involves buying a home insurance plan and a car insurance plan together, and you could save big.
- Take the time to weigh your options by contacting multiple insurance providers and obtaining quotes from each before buying a policy.
- Contact your local BrokerLink branch in Kawartha Lakes to speak with an insurance advisor who can give you even more helpful tips for saving money on car insurance.
Get a free Kawartha Lakes car insurance quote from BrokerLink
One of the most popular services that BrokerLink offers is our free quotes. We are pleased to offer free quotes on almost any type of insurance, including car insurance. So if you are looking to find out how much car insurance coverage will cost you in Kawartha Lakes, Ontario, get in touch with BrokerLink today. We offer free quotes over the phone, in person, or online. Give us a call to request a free quote over the phone, or visit one of our 200+ branches across Canada to request one in person. If you prefer to obtain a quote from the comfort of your own home, you can also use the online quote tool on our website. You will be required to answer a few questions about yourself, your vehicle, and the type of coverage you’re looking for, and from there, you will receive a complimentary quote in a matter of minutes.
We’re in your community
BrokerLink has worked hard to become the go-to insurance brokerage in Kawartha Lakes. We have won the trust of local residents not only due to our superior insurance services but also due to our commitment to the community. You can always find us helping out and giving back. Corporate social responsibility is one of BrokerLink’s top priorities. Find out more by getting in touch today.
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If you’re a member of a group or association, you may be eligible for more discounts.
Contact us
At Kawartha Lakes 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.
You can reach us by phone, email, or in person at any one of our locations throughout Ontario. No matter how you choose to get in touch, 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 auto insurance in Kawartha Lakes, Ontario
Is my Kawartha Lakes car insurance plan worth renewing?
Renewing car insurance in Kawartha Lakes typically happens before the end of your policy term. Since most terms last roughly twelve months, you will need to renew your policy before twelve months are up from the date you purchased it. In most cases, you will be able to renew your car insurance plan. The only exception to this is if your insurance provider cancels your policy or if you decide to move to another province or country where the insurance company does not offer coverage. When deciding whether to renew your car insurance plan, you should think about your experience with the insurance company over the past year, as well as the cost of the policy if you decide to renew. Contact your insurance provider to ask them what your premium will be next year in case there are any changes. From there, ask around and obtain quotes from other insurance companies in case a different one is offering a better deal. An insurance broker can also help you do this. Ideally, do not let your car insurance plan expire before deciding whether to renew, as the expired car insurance renewal process is usually more difficult and can even lead to raised premiums.
How long do auto collisions remain on driving records in Kawartha Lakes?
Auto collisions tend to remain on driving records in Kawartha Lakes for approximately six years. This is the case for any driver in Ontario, assuming the accident was the fault of the policyholder. If you did not cause the accident, it may not go on your record, which means your insurance rates may not be affected at all. However, if you get into an at-fault accident and you do not have accident forgiveness coverage or the accident is not eligible for that type of coverage, you should be prepared to pay higher car insurance rates for six years until it is removed from your record.
Do I need an Ontario driver’s licence to buy car insurance in Kawartha Lakes?
Yes. An insurance agent will ask for a copy of your Ontario driver’s licence when you purchase car insurance. The licence must be valid in order for the purchase to be approved. If you do not have an Ontario driver's licence, wait until you have obtained it before contacting your local insurance company.
Can I still use my Kawartha Lakes car insurance plan if I move to another province?
You may be able to use your Kawartha Lakes car insurance plan immediately upon moving to another province. However, it is probably only allowed temporarily. Most Canadian provinces require drivers to switch their driver’s licences over within a month or two of moving, and you will need to do the same with your car insurance. Otherwise, you run the risk of your policy being invalidated. As soon as you decide to move provinces, we recommend contacting your insurance provider to let them know of your intention to move and to find out if they offer coverage in the province you are moving to. If they do, you might be able to stick with them as your provider, though you will still need to update your address, which could impact your rates.
What penalties come from driving without insurance in Kawartha Lakes, Ontario?
A few of the possible penalties that may be levied against you if you are caught driving without car insurance in Kawartha Lakes include:
- Maximum fines of between $25,000 for a first offence and $50,000 for a second offence
- A 25% surcharge on any fines incurred
- The impoundment of your vehicle
- The suspension of your driver’s licence for a period of 30 to 365 days
Thus, purchasing car insurance is the wisest choice you can make. Not only is it the law but the cost of being caught driving without insurance is well above the cost of purchasing a policy.
How much does it cost to buy Kawartha Lakes car insurance?
Many Kawartha Lakes drivers want to know, “How much is car insurance per month in Ontario?” The truth is that Ontario car insurance costs an average of $175 to $450 per month. This might seem like a lot, but remember that premiums vary between drivers, and there are several discounts and strategies you can employ to keep costs down. To find out how much Kawartha Lakes car insurance will cost you, reach out to a local insurance agent or broker that offers free quotes.
Is third party liability coverage necessary if I want to drive in Kawartha Lakes?
Yes. Third party liability coverage is one of four necessary types of coverage in Ontario. Why? It is required by law. So before getting behind the wheel in Kawartha Lakes, make sure you purchase a policy that complies with local laws in Ontario, which means that it must contain at least $200,000 in third party liability coverage. Driving without can lead to an uninsured motorist charge, which may involve fines, the suspension of your licence, and more.
If you have any questions, contact one of our local branches.
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