What compulsory car insurance looks like in North York, Ontario
No-fault insurance is mandatory in Ontario. This means that if you want to get behind the wheel, you must purchase car insurance coverage that complies with local laws. In Ontario, local laws dictate that all drivers must purchase policies with the following four types of auto insurance coverage:
Failure to purchase a car insurance policy in Ontario and deciding to drive anyway is illegal. That is why it is so important that you purchase no less than a basic car insurance plan. A BrokerLink insurance advisor can help you do this. We know the ins and outs of auto insurance in Ontario and will ensure that your policy meets the province’s minimum coverage requirements. We can also help you renew car insurance and avoid a gap in coverage.
Driving without car insurance in North York
Driving without car insurance in North York is a bad idea. In fact, it’s illegal. Thus, if you choose to do so, you will put yourself at risk of major penalties. A few of the penalties that uninsured drivers in North York could face if caught include fines worth tens of thousands of dollars, up to $25,000 for a first offence and up to $50,000 for a second offence, to be exact.
On top of this, you will be required to pay a 25% surcharge on the fine levied. You could also have your car impounded and your driver’s licence suspended for up to a year. So, while you won’t receive demerit points, you will face other severe consequences. For this reason, the smarter choice is always going to be to purchase car insurance before getting behind the wheel.
Please note that driving with an expired car insurance policy is just the same as driving without any kind of policy. You can face severe penalties for both, which is why you should always take care to renew your policy before it expires.
Each type of mandatory car insurance coverage explained
For a complete breakdown of how each type of mandatory car insurance coverage in North York protects you, keep reading:
Third party liability coverage
Third party liability coverage is a staple of any North York car insurance policy. It will safeguard you against the high cost of at-fault accidents. For example, if you rear-end another driver at an intersection and damage their car, you can file a liability claim to help cover the cost of these repairs. Other expenses that third party liability coverage may help pay for are medical fees and legal fees, including defence and settlement fees.
Accident benefits coverage
Accident benefits coverage is another type of mandatory coverage for North York drivers. It is designed to cover medical care if you or someone else involved in the accident are harmed. This type of coverage can pay for medical expenses that aren’t covered by health insurance, like prescription medication, lost income due to a person’s temporary inability to work or funeral fees if someone dies due to an accident.
Direct compensation coverage
With direct compensation coverage, you can file a claim that helps cover the cost of vehicle repairs if your car is damaged in an accident. The only catch is that you cannot have been at fault for the accident in question.
Uninsured automobile coverage
Uninsured automobile coverage, also referred to as uninsured motorist coverage, can be claimed if you are involved in an accident with a motorist who does not have any car insurance, i.e. they are driving illegally. It also comes into play if the accident you are involved in is with a driver who doesn’t have enough coverage to pay for the cost of the damage or if the driver is anonymous because they illegally fled the scene of the accident.
Optional car insurance coverage in North York explained
Mandatory car insurance is the most basic form of coverage available to North York drivers. Many prefer to purchase coverage that gives them additional coverage. How can you do this? By adding extra optional coverage to your policy. A few of the most popular and common types of optional coverage are listed below:
Collision coverage
Collision car coverage protects policyholders against the cost of serious repairs. Thus, this type of coverage is a form of property damage coverage as it will help pay to repair or replace your car if it is damaged or totalled in an accident. You can file a collision coverage claim with your insurer whether the accident was with another driver, an animal, or an object. For more information on what to do if you’re in a car accident, contact BrokerLink.
Comprehensive coverage
Comprehensive car coverage can provide North York drivers with peace of mind as it will protect them against non-collision-related risks. The reality is that you face many risks as a vehicle owner, even when you’re not on the road. Your car could be stolen or damaged while parked, and that’s exactly what comprehensive insurance protects against. Specific types of risks that comprehensive insurance can cover you for include theft, vandalism, falling and flying objects, explosions and riots, fire, and weather-related events.
It is important to note that both collision and comprehensive coverage are usually optional in North York - except if you lease or finance your vehicle. If you lease or finance your car, check the terms of your leasing contract as you may be obligated to purchase these types of coverage until your finance contract is complete.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in North York 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
North York drivers can add a waiver of depreciation to their car insurance policies if they want extra financial security in the event that their car is totalled. If your car is deemed a write-off by the insurance company, you can receive a significant payout if you have a waiver of depreciation. Thus, many drivers with new cars choose to add this type of endorsement or rider to their policy. This coverage is only offered to brand-new vehicles within one model year of age, as these vehicles depreciate quickly and, therefore, require extended coverage for replacement.
Loss of use coverage
Loss of use coverage is another type of extra protection that may interest North York drivers. If you get into a car accident and your car is damaged, it will likely need to go into the shop to be repaired. But when your car is in the shop, you won’t be able to use it to get around. Thankfully, loss-of-use coverage will pay for you to get around while your car is getting fixed. Specifically, it can cover the cost of renting a car, taking public transit, or hiring taxis or ride shares. Just remember not to exceed your coverage limit.
How much does auto insurance cost for North York motorists?
Understanding how much auto insurance is going to cost you is important. After all, you never want your coverage to break the bank, and BrokerLink doesn’t want that for you, either. To help you understand how insurance premiums are calculated in North York, Ontario, we have put together the following list of factors that will be taken into account when an insurance company determines your 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)
Now that you know just how many factors are used to calculate North York car insurance premiums, you can probably understand why rates vary so much between policyholders. For this reason, it’s crucial that you obtain car insurance quotes if you want to know how much your policy will cost you. You must also shop around and compare quotes, as different insurance companies calculate rates differently. Even if they use the same factors, their risk-calculation formulas may weigh these factors differently. To request a free quote or ask for help shopping around and comparing rates, contact BrokerLink today.
How to get cheaper car insurance in North York, Ontario
Do you want to know the secret to saving money on car insurance in North York? All you have to do is ask the BrokerLink team! For tips on how to get cheaper car insurance, read through the list of tips below:
Choose annual policy payments
Choosing annual policy payments is a simple way to pay less for car insurance. The truth is that some insurance companies charge extra for monthly insurance payments, which makes paying upfront the cheaper option. If you are interested in paying monthly, just make sure to ask your insurance provider if doing so comes with any additional charges or financing fees.
Select a higher car insurance deductible
Selecting a higher car insurance deductible is another relatively simple way to make your North York policy cheaper. Higher deductibles generally result in lower premiums, even if you only raise your deductible by $500 or $1,000. Keep in mind that even if you choose a low deductible at first, you can raise your deductible later on or when your policy renews to lower your rates in the future.
Insure multiple cars at the same time
When a policyholder buys multiple auto insurance policies, they will usually qualify for a discount that makes their policies much cheaper. The only catch is that this tip only makes sense for those with two or more cars, which not everyone has. But if your household has more than one car, e.g. you and your partner each have a car, then consider insuring them together as it could save you a lot of money.
Try bundling your North York home and car insurance policies
Bundling your car insurance policy with another type of policy can also result in major savings. Different insurance companies have varying rules about bundles, but many will let you bundle home and auto policies or auto and recreational vehicle policies. For instance, if you wanted to insure your boat and car together or purchase homeowner’s insurance or tenant insurance at the same time as you purchase auto insurance, you would likely qualify for a bundle that would mean major discounts.
Get winter tires for your car
Installing winter tires on your North York car can also make your policy cheaper. This is because insurance companies in Ontario are now required to offer discounts to drivers who install snow tires on their cars so long as they meet the insurer’s requirements. This is because when a car has snow tires, it has better traction, which reduces the odds of a collision. Since your risk of getting into an accident will be less, an insurer will reward you with a cheaper premium.
Remove coverage that no longer makes sense
It is good practice to review your insurance coverage at least once a year to make sure that it still works for your needs. The reality is that the coverage you purchased when you first got your new car may not serve you anymore, especially if your car is now older. For example, collision or comprehensive coverage may end up costing you more if you have an old car. Ask a BrokerLink insurance advisor to review your policy if you want a professional opinion on which coverages are worthwhile for you, your vehicle, and your driving habits.
Sign up for an approved driving course in Ontario
When you sign up for an approved driving course in Ontario, not only will you learn the rules of the road, but you will also qualify for an insurance discount. This is because the insurer believes that these courses shape students into better drivers, which, in turn, will make them less likely to get into a collision.
Develop your safe driving habits
If you can work on developing your safe driving habits, you may be able to keep your driving record clean, which, in turn, would result in a cheaper policy. This is because clean driving records make a driver less of a risk, and the less risky a driver is, the lower their premium is likely to be. Check out this list of safe driving tips or contact BrokerLink to learn more about safe driver discounts and how driving records influence premiums.
We’re in your community
BrokerLink is proud to serve the North York community. We constantly strive to uphold our core values of generosity, excellence, community, and respect. Learn more about our community efforts and customer-driven insurance approach by contacting us today.
Contact us
At North York 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 by visiting any of our locations across 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 to provide a competitive quote in minutes.
Get an auto insurance quote [phone]
FAQs about car insurance North York
If I get into a car accident in North York, will my premium go up?
It depends on who was at fault for the accident. If you were at fault, then your rates would likely go up unless you had accident forgiveness coverage, and this was your first at-fault accident. If you were not at fault for the accident, then your rates may not be impacted whatsoever. You will only find out how your rates have been affected following an accident when your policy renews.
What types of auto insurance can I buy through a North York insurance broker?
A North York insurance broker can help customers buy various insurance coverage. In terms of car insurance, a broker will first ensure that you have the four mandatory car insurance coverages in North York: liability coverage, accident benefits coverage, uninsured motorist coverage, and direct compensation coverage. From there, they can also assist you in adding extra coverage to your policy, such as collision, comprehensive, waiver of depreciation, loss of use, roadside assistance, and accident forgiveness coverage.
Where can I get a free car insurance quote in North York?
If you want a free car insurance quote in North York, all you have to do is contact an insurance company or insurance broker near you. Most insurance professionals now offer complimentary estimates to prospective customers with no strings attached. Just be prepared to answer a few questions about the type of insurance you're looking for, the car you drive, and your driving habits. Insurance quotes can be obtained online, over the phone, or in person at an insurance office in North York.
If you have any questions, contact one of our local branches.
More Ways to find a great car insurance rate in Ontario
