Auto insurance requirements in Strathroy, Ontario
Auto insurance is required in Strathroy, and you should never risk driving without it. Car insurance offers a whole host of benefits to drivers - namely, financial protection in the event of an accident. Thus, even if it weren’t a legal requirement, it would still be important to purchase this type of coverage. A BrokerLink insurance broker can help you find a Strathroy auto insurance policy that includes all four of the mandatory coverage types, which are listed below:
If you want to legally drive in Strathroy, you will need to buy the four types of auto insurance coverage above. In addition, there may be certain amounts of each coverage that you must purchase. For example, the Government of Ontario stipulates that all drivers must always hold at least $200,000 in third-party liability coverage. However, many drivers choose to purchase more than this.
Driving without car insurance in Strathroy
Driving without car insurance is a terrible idea. First, it’s illegal, and second, you could face a wide range of penalties and consequences if caught. Ontario has some of the harshest penalties for motorists who are caught driving without insurance. An uninsured driving charge could result in a fine worth tens of thousands of dollars. $50,000 is the maximum fine, to be specific.
On top of this, you would be required to pay a 25% surcharge on the fine incurred, your driver's licence could be suspended for up to a year, and your vehicle might be impounded. As you can see, these consequences are severe and could end up costing you a lot of money down the line. That is what makes purchasing a valid auto insurance policy from the get-go so important.
In addition, if you choose to drive without car insurance and get into an accident, you would be on the hook for the accident, which is likely to cost more than what you would pay for a policy. If you are ready to purchase car insurance in Strathroy, contact BrokerLink today. A BrokerLink insurance advisor can also help you renew your car insurance before it expires, as renewing expired car insurance is more difficult.
How does Strathroy car insurance coverage protect me?
The four types of mandatory car insurance in Strathroy, Ontario, will protect you in the following ways:
Third party liability coverage
The primary purpose of third party liability coverage is to protect drivers who get into at-fault accidents. If you cause a car accident and someone’s property is damaged or another person suffers bodily harm, you can file a third party liability claim to pay for the associated costs. This type of coverage, of which you must have $200,000 in Ontario, could go toward legal fees, medical fees, or vehicle repair bills.
Accident benefits coverage
Accident benefits coverage is for when someone is injured in a car accident. If you, a passenger, or a pedestrian is injured in a collision, you will need medical attention. However, medical costs can be high, especially those not covered by health insurance. That’s where accident benefits come in. It can compensate policyholders for medical fees not covered by health insurance, such as prescription medications or physical therapy. It can also cover related expenses, like funeral fees and lost income.
Direct compensation coverage
With direct compensation coverage, you can receive a payout directly from your insurer if your car is damaged in an accident. Please note that you can only file this type of claim if you were not at fault for the accident.
Uninsured automobile coverage
Uninsured automobile coverage will pay for the cost of a collision if you are involved in an accident with a driver who falls into one of these categories: uninsured, underinsured, or anonymous. In other words, if you collide with a motorist who does not have car insurance, who does not have enough insurance to pay for the cost of the accident, or who flees the scene, you can file an uninsured automobile claim to pay for the damage.
What other types of car insurance coverage can I buy in Strathroy?
Strathroy drivers may decide that basic car insurance coverage isn’t enough for them. Thankfully, insurance companies throughout Ontario offer a wide variety of extra protection for drivers to take advantage of. From collision coverage to accident forgiveness coverage, keep reading for a list of valuable optional coverage options:
Collision coverage
Collision car coverage can help pay to repair or replace your car if it is damaged in an accident. For example, if your car is severely damaged or even totalled, you can file a collision claim that helps you pay for the cost of fixing your car. The good news with collision coverage is that it can be claimed whether you caused the accident or not, as well as whether the collision was with another car, object, or animal on the road.
Comprehensive coverage
Comprehensive car coverage is another type of extra protection that many Strathroy motorists opt for. Why? It protects against risks other than collisions. Where most types of car insurance are designed to protect drivers from the financial burden of collisions, comprehensive coverage deals with the risks of a parked car. Remember that your car is at risk of loss or damage even when it is parked or in storage. Comprehensive coverage will safeguard you against theft, vandalism, and damage caused by falling or flying objects, explosions or riots, fire, and other weather-related incidents. Review the list of insured perils in your policy to confirm what risks you are protected against.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Strathroy 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
A waiver of depreciation, which is sometimes referred to as replacement car insurance, is an extra endorsement that can be added to Strathroy car insurance plans. It comes into play if your car is totalled in an accident and your insurer deems it a write-off. When your insurance company issues you a payout to help you replace your written-off car, it will likely be much higher with a waiver of depreciation.
Comparatively, actual cash value coverage, which takes into account depreciation, will result in a much smaller payout. This coverage is typically only offered to brand-new vehicles within one model year, as they will depreciate the most in value.
Loss of use coverage
Loss of use coverage can come in handy for many Strathroy drivers. Specifically, it comes into play if your car is damaged in a collision and needs to go into the shop for repairs. During this time, you would be without your car, which is not only inconvenient but could be expensive if you are forced to take taxis or rent a car in lieu.
That’s where the loss of use coverage proves worthwhile. With this type of coverage added to your policy, you can be reimbursed for any transportation expenses incurred while your car is in the shop, ranging from rental car bills to taxi or rideshare receipts.
What factors influence Strathroy car insurance rates?
Insurance companies use a variety of factors to determine Strathroy car insurance rates, which is why premiums vary so much, even among those who live in the same region. To give you a better idea of what insurers will look at when assessing your risk level, we have put together the following list of factors. Keep in mind that each insurance company uses its own risk-calculation formula and thus may weigh these factors differently. They may also use additional factors to calculate rates. Regardless, the following is a list of the details that matter most:
- 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 how many factors influence Strathroy car insurance rates, it might be easier for you to understand why premiums differ so much between drivers. For this reason, it’s hard to estimate how much your policy will cost you unless we know more details about you. Thus, we recommend contacting BrokerLink to request a free insurance quote. BrokerLink is proud to offer free car insurance quotes to all customers. These quotes are accurate and reliable and do not come with any strings attached. Reach out to us today to learn more.
Save money on your Dundas car insurance policy with these tips
Do you want your car insurance rates to go down ? We feel you. That is why the BrokerLink team will do everything in our power to ensure your car insurance policy costs as little as possible. We never want our customers to overspend on car insurance. To help you save money on coverage, read the list of tips below. For even more advice on how to lower your Strathroy car insurance premium, contact BrokerLink today:
Bundle your home and auto insurance policies in Strathroy
If you want to save money on car insurance, as well as home insurance, consider bundling them together. Insurance bundles are when you buy two or more policies simultaneously. Many insurers allow customers to buy two or more car insurance policies or mix and match them by combining a car insurance policy with a home insurance policy, such as tenant insurance or homeowner’s insurance. You might even be able to mix recreational vehicle or motorcycle insurance with car insurance. Learn more about insurance bundles and how they can save you money by reaching out to BrokerLink today.
Install an anti-theft device in your car
Equipping your car with an anti-theft device is another way to qualify for a discount and lower your Strathroy car insurance premium. Anti-theft devices with audible alarms and GPS tracking capabilities will reduce the odds of your car being stolen. If it’s stolen, it can also help you recover it. As such, an insurer may lower your rates if you can prove that your car has an anti-theft device.
Signing up for an approved driving course in Ontario
Taking a driver’s education course in Ontario is another way to reduce your rates. Doing so will usually result in a discount since insurers believe that these classes shape people into better drivers.
Drive safely and obey the rules of the road
Driving responsibly will keep you safe and result in a cheaper Strathroy car insurance policy. Driving safely makes you less likely to get a traffic ticket or get into an accident. In turn, this means that you will have a clean record and be less likely to file an insurance claim. Insurance companies may offer you a cheaper rate or even a safe driver discount as a reward. Learn more safe driving tips by contacting BrokerLink.
We’re in your community
BrokerLink has been serving Ontario customers for over 30 years. From car insurance to home insurance to business insurance, we can help Strathroy residents find the insurance coverage they are looking for. Here at BrokerLink, we take a dynamic, customer-driven approach to insurance that ensures your coverage will be personalized. Find out more about our core values by getting in touch today.
Contact us
At Strathroy 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 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 Strathroy auto insurance
Will my Strathroy car insurance policy be cheaper if I drive a used car?
It depends. It won’t automatically be cheaper because you drive a used car. That said, since used cars are usually less expensive than new cars, your premium could be lower since it will cost the insurance company less money in the event that you need to repair or replace your car.
Conversely, used cars usually do not have as many safety features as new cars, which could negatively influence your rates. For more information on used cars, including the importance of test driving a used car, contact an insurance professional near you.
If I get into an at-fault collision in Strathroy, how will my premium be affected?
At-fault collisions usually result in increased insurance premiums. This is because when you have an at-fault accident on your record, you will be viewed as a riskier driver, and thus, your premium will be raised. The only exception to this is if you have accident forgiveness coverage as part of your policy. In this case, your rates would stay the same after your first at-fault accident.
However, they would go up if you got into a second or subsequent at-fault accident. Please note that at-fault accidents stay on Ontario driving records for six years, which means your rates might be higher for a period of six years following an at-fault collision.
What types of auto insurance can a Strathroy insurance broker help me find?
A Strathroy insurance broker can help you find all kinds of car insurance coverage. First, they will ensure you have all mandatory coverage types included with your policy. Second, they will recommend extra protection that might be worthwhile. In all, the types of coverage that an insurance broker in Strathroy can help you find include accident benefits, third-party liability, uninsured motorist, direct compensation, collision, comprehensive, waiver of depreciation, loss of use, roadside assistance, and accident forgiveness coverage.
Where can I get a free car insurance quote in Strathroy?
You can obtain a free car insurance quote from most insurance professionals, including both insurance brokers and insurance companies. Simply give them a call or visit their website to request a quote. Most quotes are obligation-free and can be obtained in a matter of minutes.
Do I need a driver’s licence if I want to buy Strathroy car insurance?
Yes, you cannot buy Strathroy car insurance without showing proof of a valid Ontario driver’s licence.
How can I save money on auto insurance in Strathroy?
You can save money on Strathroy auto insurance in all sorts of ways. You can qualify for a discount, bundle policies, take a driver’s education course, choose a higher deductible, remove extra coverage, or install winter tires on your car.
If you have any questions, contact one of our local branches.
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