Do I need car insurance in Parry Sound?
Yes. Car insurance is a legal requirement everywhere in Ontario. That means that Parry Sound motorists must purchase car insurance if they want to get behind the wheel. However, not all types of auto insurance are mandatory. There are just four types of coverage that all drivers must have, and they are:
As mentioned above, you will need all four coverages if you want to legally drive in Parry Sound. You must have at least $200,000 worth of liability car insurance. Remember that driving without car insurance is illegal. Below, we outline a few of the penalties that come with uninsured driving in Ontario.
The penalties for uninsured driving in Parry Sound, Ontario
Deciding to drive without car insurance in Parry Sound is a huge mistake. Not only does it put you at risk of having to pay for an accident out of pocket, but it puts you in breach of the law. Since uninsured driving is illegal in Ontario, you can face serious penalties if caught. These penalties include up to a fine of $25,000 for a first offence and up to a fine of $50,000 for a second offence, a 25% surcharge on top of the fine incurred, the impoundment of your vehicle for up to 90 days, and the suspension of your driver’s licence for up to a year. All of this would make it more difficult and expensive for you to legally drive and obtain coverage in Parry Sound at a later date.
While you will not receive any demerit points for uninsured driving in Ontario, the consequences are still very severe. In fact, Ontario has some of the harshest punishments for uninsured drivers in all of Canada.
Can I drive with expired auto insurance in Parry Sound?
No. Getting behind the wheel with an expired car insurance policy is just as bad as driving with no car insurance policy at all. As such, you can be subject to the same penalties, like fines worth tens of thousands of dollars, the impoundment of your car, and the suspension of your licence. This makes it extremely important to renew your car insurance policy before it expires. A BrokerLink insurance advisor can help you renew your policy and even help you update your coverage if you decide that you want to modify your coverage types, deductibles, or limits.
What coverage must Parry Sound drivers add to their policies?
All Parry Sound drivers must add the following coverages to their Ontario insurance policies:
Third party liability coverage
Third party liability coverage can be claimed if you get into an at-fault car accident and someone else is injured or suffers property damage. Liability coverage can pay for medical fees, legal fees, and repair bills.
Accident benefits coverage
Accident benefits coverage will pay for the cost of medical care if someone is injured in an accident that you are involved in. Specifically, it can pay for medical expenses like prescription medications, lost income, and funeral fees.
Direct compensation coverage
With direct compensation coverage, you can file a claim to receive a payout that helps you cover the cost of repairing your car if it is damaged. The only thing is that you cannot have been found liable for the accident.
Uninsured automobile coverage
Uninsured automobile coverage will pay for medical fees and repair bills, as well as other costs incurred due to a collision if you are involved in an accident with an at-fault driver who is uninsured, underinsured, or anonymous.
What other coverage can Parry Sound drivers add to their policies?
The following is a list of extra coverages that Parry Sound drivers can choose to add to their car insurance plans if they wish. The following are all optional but do provide additional protection.
Collision coverage
Collision car coverage will pay for you to repair and replace your car if you get into a major accident that damages your vehicle. Even if your vehicle is totalled, you can file a collision claim to receive a payout. This type of coverage will come into play no matter if you are at fault for the accident or not, as well as no matter if you collided with another car, an animal, or an object on the road. Make sure that you choose a coverage limit that reflects the value of your vehicle.
Comprehensive coverage
Comprehensive car coverage, or parked car coverage, will pay to repair or replace your car if it is damaged while parked. However, it will only cover you against specific types of damage. These will be outlined in your policy but typically include theft, vandalism, falling and flying objects, fire, explosions and riots, and weather-related events. Please note that comprehensive coverage will not cover personal items stolen from your car; it will cover only permanent items, such as the steering wheel.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Parry Sound 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.
Loss of use coverage
Loss of use coverage can pay for you to rent a car (contact BrokerLink for more information on rental car insurance ), take public transit, or hire taxis while your car is in the shop due to an accident. In other words, you can be reimbursed for taking other modes of transit while your car is in the shop for repair.
A few factors that influence Parry Sound car insurance rates
Insurance rates in Parry Sound are dependent on a number of factors, including but not limited to a driver’s age, home address, and the type of vehicle they drive. The reality is that there are many details that an insurance agent will consider when assessing your risk level and assigning your premium. The following is a list of some of the most commonly considered factors:
- 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
If you still have questions about how insurance companies calculate Parry Sound car insurance rates, contact BrokerLink today. We can provide more insight into the factors above, such as how accidents affect car insurance rates, and offer up a few additional factors that some insurance companies consider, such as credit scores. For example, we can explain how car insurance affects credit scores and why an insurer may use your credit score to assess your risk.
In addition, if you want to get an idea of how much a Parry Sound car insurance plan will cost you, we recommend reaching out to BrokerLink for a free insurance quote. We offer free car insurance quotes to all Parry Sound customers, no matter your age or what type of coverage you’re looking for.
We’re in your community
BrokerLink works hard to be a key member of the Parry Sound community. We like getting involved and giving back to every city in which we operate. You can find us at local events and visit us in person at our Parry Sound branch. We’d love to meet you and help you find the right insurance for your needs!
Contact us
At Parry Sound 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 by visiting our location in Parry Sound. 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 on Parry Sound car insurance
Do snow tires result in a car insurance discount in Parry Sound?
They can. In fact, installing snow tires on your car is one of the best ways to qualify for a cheaper policy. This is because, for several years now, insurance companies in Ontario have been legally required to offer car insurance discounts to those who install snow tires on their cars. This is due to the added safety they provide. So if you want to make winter driving safer while also saving money on your Parry Sound car insurance plan, ask your insurer about the winter tire discount.
How do car insurance deductibles work in Parry Sound?
Whether you’re purchasing car insurance or home insurance, deductibles work similarly. A deductible is the amount of money the policyholder must pay toward a loss if they file an approved insurance claim. For instance, if you get into a car accident and need to file a collision claim, you will be required to pay your deductible before your insurer will issue a payout to help cover the rest. Policyholders get to choose what deductible they want for their policies, and deductibles can even vary between coverages. You can also change your deductible down the loan if you decide that you want to raise or lower it. It is worth noting that lower deductibles generally come with higher premiums, and higher deductibles come with lower premiums.
I got into a car accident that was my fault. Will my Parry Sound auto insurance premium go up?
Yes, unless you have accident forgiveness coverage, and this was your first at-fault accident. With accident forgiveness coverage, your rates will not increase after your first at-fault accident if it qualifies. However, this only pertains to your first accident. Any subsequent at-fault collisions will result in premium raises. In addition, if you do not have accident forgiveness coverage on your Parry Sound car insurance plan, then you should expect your rates to go up the next time that your policy is renewed. You might have to pay a higher rate for car insurance until the at-fault collision is no longer on your record, which usually takes six years in Ontario.
Will my Parry Sound car insurance plan cover a phone stolen from my car?
No. Most car insurance plans do not cover policyholders for personal items stolen from their cars, such as phones. However, if you choose to add comprehensive coverage to your plan, then you will be protected in the event that a thief steals your car. You can receive a payout to cover the cost of damage to your car if a thief smashes a window or breaks a door handle in the process of stealing an item from your car. It is worth noting that certain items in your car could be covered, but only if they are permanent fixtures, like the steering wheel, a built-in stereo, or a catalytic converter.
When will my Parry Sound car insurance premium go down?
When does car insurance go down ? If you are a young driver, you can expect your car insurance rates to go down after the age of 25, though this isn’t a guarantee. You must also have a clean driving record if you want your rate to lower. Furthermore, it may take six years if you got into an at-fault accident and want to know when your rates will go down. This is because at-fault collisions tend to stay on Ontario driving records for a period of six years. Ultimately, driving safely and responsibly and avoiding accidents is the best way to enjoy cheaper rates.
How do I find the best Parry Sound car insurance policy for me?
The best car insurance policy for you is the one that has the right amount of coverage and that costs an amount you are comfortable paying. Shop around to ensure you receive a competitive rate on your policy and make sure to choose coverage types that accurately reflect your risk level, as well as your driving habits and the type of car you drive.
How can I save money on Parry Sound car insurance?
Insurance bundles are a great way to save money on Parry Sound car insurance. With this type of package, you can receive a discount on multiple types of insurance in one. A few of the most common insurance products that people bundle together are car insurance, home insurance, and recreational vehicle insurance. Other money-saving tips include paying for your policy upfront instead of monthly, picking high deductibles, installing winter tires on your car, installing an anti-theft or telematics device in your car, driving a car with a high safety rating or an electric vehicle, and maintaining a clean record.
Do I need an Ontario driver’s licence to buy Parry Sound car insurance?
Yes. You cannot buy car insurance coverage in Parry Sound without a valid driver’s licence. You also won’t be able to register your car with the Ministry of Transportation in Ontario without a licence.
Do I need to buy a new car insurance policy if I leave Ontario for another province?
Possibly. It depends on whether your current insurance provider offers coverage in your new province. It also depends on whether you are permanently moving to this new province or just travelling there temporarily. A temporary visit will not necessitate a new policy. Your existing policy will cover you. However, if you plan to relocate to another province or territory in Canada permanently, you may need to purchase new coverage. At the very least, you will need to update your home address with your insurance provider and ensure you have coverage that complies with the minimum coverage limits in your new province.
What happens if I drive without car insurance in Parry Sound?
You will be driving illegally, which means that if you are caught, you could face major consequences. These vary from fines of up to $50,000 to the impoundment of your vehicle or the suspension of your driver’s licence.
How do I get a free quote from a Parry Sound insurance broker?
You can get a free car insurance quote, business insurance quote, farm insurance quote, cottage insurance quote, or home insurance quote simply by asking. Reach out to an insurance broker or an insurance company near you and request a free quote. Many offer complimentary quotes with no obligations to prospective customers. Be prepared to answer basic questions about yourself and the type of policy you're looking for to receive the most accurate quote possible.
If you have any questions, contact one of our local branches.
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