Compulsory auto insurance in Richmond Hill, Ontario
Before we dive into the different types of car insurance coverage available to Richmond Hill drivers, it’s important to understand which coverages are mandatory. Auto insurance is provincially regulated in Canada, and it is legally required in Ontario. Therefore, you must ensure that you purchase a car insurance policy with the following four types of mandatory coverage:
- Third party liability coverage
- Direct compensation - property damage coverage
- Accident benefits coverage
- Uninsured automobile coverage
Before buying a car insurance policy, Richmond Hill drivers should be prepared to provide their full driver’s abstract, which is a record of their driving history, as well as a copy of their driver’s licence and information about any other people who may be driving your car.
Consequences for driving without insurance in Richmond Hill, Ontario
Since car insurance is mandatory in Richmond Hill, making the decision to drive without is illegal. If you are caught driving without insurance, you could face the following consequences:
- A fine of $5,000 to $25,000 for a first offence
- A fine of $10,000 to $50,000 for a second offence
- The suspension of your Ontario driver’s licence for anywhere from 30 to 365 days
- Your car being impounded for up to three months
To make matters worse, in accordance with the Provincial Offences Act, there is an additional surcharge of 25% added to any fine that the driver is issued.
Explaining mandatory coverage types for Richmond Hill drivers
Now that you know what types of coverage are government-mandated, we are going to explain what these different types of insurance cover. From third party liability insurance to accident benefits, keep reading for a rundown of how each type of compulsory Ontario car insurance coverage works:
Third party liability coverage
Liability car insurance can protect drivers who are involved in a car accident that they are at fault for. Richmond Hill drivers must include at least $200,000 of third party liability coverage in their policies, which can cover anything from legal fees to medical expenses, repair bills, etc.
Accident benefits coverage
Accident benefits coverage can compensate policyholders for medical expenses if someone require medical attention following a collision. No matter who caused the collision, whether you are or another driver, you can still claim accident benefits. This coverage may pay for medical attention required by you or someone else affected by the collision, such as a passenger, pedestrian, or another motorist.
Direct compensation - property damage coverage
Direct compensation - property damage coverage comes into play if you get into an accident that you did not cause, and if that accident results in damage to your car. Under the direct compensation portion of your policy, you can be directly reimbursed by your insurance company for any necessary vehicle repairs.
Uninsured automobile coverage
Uninsured automobile coverage protects drivers against the possibility of being involved in an accident with a motorist who is uninsured or underinsured. With this type of coverage in your policy, you can still receive compensation even if the person you got into a collision with doesn’t have adequate insurance. It also offers financial protection against hit and runs.
Possible add-ons for Richmond Hill car insurance policies
There are all kinds of add-ons, endorsements, and riders you can add to your Richmond Hill car insurance plan. Some of the most common types of optional auto insurance coverage in Ontario are as follows:
Collision coverage
Collision car coverage will pay for the cost of car repairs if you are involved in a collision and your car suffers damage. Even better, this type of optional Ontario car insurance coverage can be claimed regardless of who caused the collision.
Comprehensive coverage
Comprehensive car coverage can protect you from the financial consequences of your car being damaged while parked. Sometimes referred to as parked car coverage, comprehensive coverage will reimburse you for damage to your car so long as the damage was caused by a named peril in your policy. Named perils vary but may include fire, wind, water damage, theft, vandalism, falling objects, and more.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among drivers in Richmond Hill 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 varies by province.
What factors will determine my Richmond Hill auto insurance rate?
The following factors are likely to include how much you pay for car insurance in Richmond Hill. For a complete list, contact BrokerLink:
- 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
- Marital status
- Gender
Stop overpaying for car insurance by following the tips below
If you want the most out of your Richmond Hill car insurance coverage, you are not alone. The way to do this is by finding a policy at a reasonable rate. A BrokerLink insurance advisor will ensure that you never overpay for auto insurance coverage again. Start saving today by taking advantage of the following broker-approved tips:
Seek advice from a BrokerLink insurance broker
The first way that you can stop overpaying for car insurance is to seek advice from an insurance broker in Richmond Hill. BrokerLink is a customer-driven insurance brokerage, which means we always put our customers’ needs first, and their needs include their budgets. We work with each and every one of our Richmond Hill customers to ensure we find a policy that suits your coverage needs and your wallet.
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Sign up for a defensive driving course in Ontario
Signing up for a defensive driving course in Ontario is one way to qualify for cheaper rates. As long as the driving school you attend is approved or recognized in the province, an insurance provider will likely offer you a car insurance discount upon graduation. This discount can make a big difference, especially for young drivers who tend to have some of the highest auto insurance rates.
Inquire about telematics insurance discount
Did you know that some insurance companies allow customers to install telematics devices in their cars, and if they maintain good driving habits, will offer them an auto insurance discount? It’s true. If you are a responsible driver, it might be worthwhile to inquire about possible telematics discounts with your insurance broker or agent.
Outfit your Richmond Hill car with snow tires
If you want to save 5% on car insurance and make your vehicle safer to drive during the winter, consider installing snow tires on your car. Since snow tires will reduce your odds of a car accident, some insurers are willing to offer discounts. Just make sure that you meet all the conditions to qualify for this type of discount, which an insurance broker can explain to you.
Buy an eco-friendly vehicle
Buy an eco-friendly vehicle and you could save up to 10% on your car insurance policy. As a way of incentivizing drivers to go green and keep their carbon footprints to a minimum, many insurers now offer discounts to policyholders who drive hybrid or electric vehicles.
Cut down on how much time you spend behind the wheel
The less you drive, the more likely you are to qualify for an occasional driver discount. Occasional drivers are typically those who drive less than 11,000 kilometres per year, though this threshold varies between insurance companies. If you think you might qualify for such a discount, contact an insurance broker right away. They can explain the details and even give you tips on how to ensure your mileage stays below the threshold, such as getting into carpooling or choosing public transit when possible.
Buy policies from one insurance provider
Buying more than one policy from one insurance provider could make you eligible for a discount of 15% on each policy through a method called bundling. Insurance bundling is simply when a customer purchases multiple insurance products at once from the same company. If you need more than one insurance plan, contact a broker about bundling options.
Keep your record clean
Your driving record is a major factor in calculating the cost of car insurance. The cleaner you keep your record, the cheaper your rates are likely to be. A clean record indicates to an insurance provider that you are a safe and responsible driver who is at lower risk of getting into an accident. Therefore, by practicing safe driving and maintaining a clean driving record, you could save money on Richmond Hill car insurance. Get in touch with BrokerLink for safe driving tips that may help you qualify for a lower auto insurance rate.
Consider several factors before buying another vehicle
The type of car you drive is another factor that can have a significant influence on how much you pay for Richmond Hill car insurance. There are several vehicle-related factors that can lead to higher rates. For example, driving an expensive or luxury car may lead to more expensive insurance. Similarly, driving a car with a high theft rate can also increase your premium. Conversely, driving a vehicle with a high safety rating or one that is outfitted with an anti-theft device can actually reduce your car insurance premium. For more information on the vehicle-related details that can affect your auto insurance premium in Richmond Hill, give BrokerLink a call.
We’re in your community
BrokerLink Richmond Hill places the needs of the community above all else. We are committed to helping our Richmond Hill customers find quality car insurance coverage at reasonable rates. Learn more about our core values by contacting BrokerLink today.
Local Ontario Insurance Links
If you’re a member of a group or association, you may be eligible for more discounts.
Contact us
At Richmond Hill 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 on Richmond Hill car insurance
How do I get a Richmond Hill car insurance quote?
Obtaining a Richmond Hill car insurance quote is easy and free. Contact an insurance broker to receive an auto insurance quote in minutes. Some brokers offer convenient online insurance quotes. However, you can also request a quote over the phone.
How do I find the best auto insurance provider in Richmond Hill?
You can find the best auto insurance provider in Richmond Hill by reaching out to an insurance broker. Insurance brokers have knowledge of the local insurance industry in Richmond Hill and are familiar with the insurance products offered by a wide range of companies. They can assess your needs and match you with a policy that meets them.
If I get into a car accident, will it affect how much I pay for insurance in Richmond Hill?
Depending on the circumstances of the accident, namely if you were responsible or not, getting into a collision could
affect how much you pay for insurance. If you are deemed at fault for the accident, then chances are your rates will increase. There is one exception to this, which is if you purchase accident forgiveness coverage and this is your first at-fault accident. In that case, your Richmond Hill car insurance premium would not increase. However, if you got into a second at-fault accident, your rates would likely go up.
Will my car insurance cover me if items are stolen from my vehicle?
If your car insurance policy features comprehensive coverage, then your insurer may reimburse you for the cost of damage if someone breaks into your vehicle and damages it in an attempt to steal items from it. However, comprehensive coverage does not typically cover the cost of repairing or replacing any personal belongings stolen from your vehicle. Instead, these items may be covered by your home insurance policy, depending on your coverage.
How do I know what car insurance coverage I need?
The best way to determine what coverage to add to your car insurance policy is to contact an insurance broker. An insurance broker can assess factors like your location, age, the type of car you drive, and your budget to determine your ideal coverage. Keep in mind that you will need to choose a policy that meets the minimum coverage requirements in the province you live in. For instance, if you live in Ontario, then you are legally required to purchase third party liability coverage, accident benefits coverage, uninsured automobile coverage, and direct compensation - property damage coverage. Beyond that, it is up to you and your broker to decide whether any auto insurance add-ons, like comprehensive coverage or accident forgiveness coverage, are worthwhile.
Will my Richmond Hill car insurance policy renew automatically upon expiry?
In most cases, your car insurance plan will automatically renew when at the end of the policy turn. However, you can turn off this setting, either by calling your insurance provider or by logging into your account online. Whether you choose to sign up for automatic renewals or not, we recommend reviewing your policy every time it is up for renewal. This will give you an opportunity to update your coverage or even shop around for a new policy if you are no longer satisfied with your current coverage or rate. Don’t hesitate to contact an insurance broker to help with any part of the
expired car insurance renewal process.
Do I need to buy car insurance coverage in Richmond Hill?
Yes, if you drive a car in Richmond Hill, then you need to purchase car insurance because it is a legal requirement. If you drive without car insurance, you can be fined, your car could be impounded, and you could have your licence suspended.
What is the best way to find auto insurance at a reasonable rate in Richmond Hill?
The best piece of advice for finding Richmond Hill car insurance at a reasonable rate is to contact an insurance broker. An insurance broker has the necessary expertise and resources to find you the coverage you desire at a price within your budget.
I am buying my first car insurance policy. Do I need a valid driver’s licence to do so?
Yes, when you buy car insurance, you will first be asked to show proof of a driver’s licence in your province. So make sure that your licence is valid and up-to-date. You will also need to show a copy of the driver’s licences of any other drivers you wish to add to your policy.
Am I covered by my car insurance plan if I drive out of province?
Yes, your coverage will extend to another province, if you are temporarily visiting another province and driving your car there. That said, if you plan to move to another province permanently, you will need to transfer your driver’s licence to that province, register your vehicle with that province’s transportation body, and notify your insurance provider to update your policy. Otherwise, you will not be covered by your car insurance plan.
What are the consequences for uninsured driving in Richmond Hill?
The consequences of driving without insurance in Richmond Hill are severe and may include fines of up to $50,000, a suspended driver’s licence, an impounded car, and a surcharge of 25%. Given that the average car insurance in Ontario costs between $1,300 and $1,700, most people would agree that uninsured driving is not worth the risk.
Will an insurance provider raise my premium if someone I let borrow my car gets into a collision?
Car insurance follows the car, not the driver. So if you let someone borrow your vehicle and they get into an accident that they are at fault for, your insurance premium may go up. However, if the person borrowing your car is not deemed at fault for the accident, then your rates may not be affected.
If you have any questions, contact one of our local branches.
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