Get Your Auto Insurance License: Toronto Guide

If you're looking to get an auto insurance license in Toronto, you'll need to become a licensed insurance broker. This involves passing the RIBO Entry Level 1 exam, which covers a range of insurance concepts beyond just auto insurance, including home, commercial, and liability insurance. Once you've passed the exam, you can apply for your license and start looking for a job at an insurance brokerage that specializes in personal insurance and has auto insurance contracts.

It's worth noting that auto insurance is mandatory in Toronto, and driving without it can result in your driver's license being suspended and your vehicle being towed. The average cost of auto insurance in Toronto is $2,325 per year, which is significantly higher than the provincial average.

Auto insurance is mandatory in Toronto

Minimum Insurance Requirements in Toronto

In Toronto, there are four types of car insurance that are mandatory:

• Third-Party Liability Insurance
• Accident Benefits Insurance
• Uninsured Automobile Insurance
• Direct Compensation-Property Damage Insurance

Third-Party Liability Insurance

This covers you if you cause an accident that hurts or kills another person, or damages their property. In Toronto, a minimum of $200,000 in third-party liability coverage is required, although most drivers opt for at least $1 million.

Accident Benefits Insurance

Accident Benefits Insurance covers the costs of your own medical expenses and loss of income when injured in an accident. This includes weekly income replacement benefits of 70% of your gross income up to $400 per week.

Uninsured Automobile Insurance

Uninsured Automobile Insurance covers you if you are injured or killed by an uninsured or hit-and-run driver. This coverage also pays benefits to families who lose a loved one in such an accident.

Direct Compensation-Property Damage Insurance

If another motorist causes your accident, Direct Compensation-Property Damage Insurance will pay for the damage to your vehicle and compensate you for its loss. However, this only applies if the other driver is at fault, insured, and the accident took place in Ontario.

Additional Coverage Options

While the above forms of insurance are mandatory, there are other types of insurance that are optional but can provide valuable protection:

• Collision Insurance covers the cost of repairing or replacing your vehicle if you hit another vehicle or object.
• Comprehensive Insurance covers the cost of repairing or replacing your vehicle due to damage or loss from vandalism, fire, or theft.

Getting Auto Insurance in Toronto

When getting auto insurance in Toronto, you can work with an insurance broker, direct writer, insurance agent, or comparison site. It is important to ensure your chosen provider is licensed to sell car insurance in Ontario.

How to compare Toronto car insurance quotes

Step 1: Determine your budget

Before you start comparing quotes, you need to work out your budget, the type of insurance you need, and how much coverage you require. This will help you to quickly weed out overpriced insurance companies and focus on the insurers with the lowest prices. The average U.S. driver pays $135 per month for car insurance, so that’s a good place to start.

Step 2: Gather the relevant information

Make sure you have the right information to hand, such as your:

• Social Security number
• Driver’s license number
• Vehicle identification number (VIN)
• Current coverage details

Step 3: Use an insurance-comparison website

Insurance-comparison websites make comparing quotes faster and easier because you only have to provide your information once. Plus, you can compare prices and coverage options from different companies at the same time. Some examples of insurance comparison sites include Compare.com, Insurify, Jerry, Ratehub.ca, and The Zebra.

Step 4: Research companies with the best quotes

The largest insurance companies won’t always have the best price for your specific needs. Do your research before committing to an insurer. Third-party websites — like J.D. Power and AM Best — analyze insurance companies based on customer feedback and experiences with things like website and mobile performance, the shopping experience, the claims process, and financial strength.

Step 5: Select the best quote for you

After researching, you should have narrowed down your list to a few insurance companies. It’s time to choose which company best meets your coverage needs and budget. Review your auto insurance quotes again and select the best quote for you. Then, complete the application for your new policy.

Step 6: Compare quotes again at renewal

When your policy comes up for renewal, take some time to compare car insurance quotes again to see if your current insurer is still the best deal. You won’t know if you could find lower rates or get a better deal if you don’t get new quotes.

How to get cheap car insurance in Toronto

Car insurance in Toronto is mandatory and can be expensive, but there are ways to save money on your premiums. Comparing quotes from different providers is one of the best ways to ensure you get a good deal. Here are some other tips for getting cheaper car insurance in Toronto.

Increase Your Deductible

If you can afford to pay more towards repairing your car if you have an accident, you can save money by increasing your deductible. Your deductible is the amount you pay out of pocket before your insurance company covers the rest. The higher your deductible, the lower your premium will be.

Pay Annually

You can often get a discount if you pay your premiums annually rather than monthly, as this reduces the insurance company's administrative costs.

Bundle Your Insurance Policies

You can usually get a discount of 5-15% if you buy your home and car insurance from the same company.

Change to Winter Tyres

Let your insurer know if you change to winter tyres; in Toronto, you can get a discount of around 5% for doing this.

Review Your Coverage Regularly

Review your coverage each year and cancel any add-ons you no longer need. For example, if your car is old and not worth much, it might make economic sense to cancel your collision coverage.

Drive Less

The less you drive, the less you'll pay for insurance. If you can switch to using public transport to get to work, you'll see your premiums fall.

Take a Driving Course

Most insurance companies offer discounts for new drivers who have completed an accredited driving course. A defensive driving course may also make you eligible for discounts.

Multi-Vehicle Discounts

Insuring more than one vehicle with the same company will usually get you a discount of 5-15%.

Ask About Employee or Alumni Discounts

If you belong to a professional association, union, or alumni group, you may be eligible for group discounts. It's always worth asking!

Install Safety Features

Installing approved anti-theft devices or other safety features may lead to discounts. Check with your insurance company which devices are eligible for discounts before you buy and install them.

Avoid Adding Secondary Drivers

Only add secondary drivers to your policy if you really need to, as this will increase your premiums.

Shop Around

The rates that insurance companies charge in Toronto for the same level of cover can differ by hundreds of dollars, so it really pays to shop around. Comparing quotes from different providers is the best way to ensure you get a good deal.

How to apply for a general insurance agent licence

To apply for a general insurance agent licence in Toronto, you must apply for a general agent licence with the Financial Services Regulatory Authority of Ontario (FSRA). Here is a step-by-step guide on how to apply:

• Sponsorship by a Licensed Insurer: As a general agent, you must be sponsored by a licensed insurer at all times. Your sponsoring insurer is responsible for confirming that you meet all licensing requirements and managing the application process for your licence. The insurer is also responsible for paying the application fee or, depending on your arrangement with them, you may need to pay it yourself.
• Education Requirement: Before applying for a general licence, you must successfully complete the OTL Agent's Exam from the Insurance Institute, or you can bypass this step if you have a Chartered Insurance Professional (CIP) designation in good standing or have passed the equivalent Registered Insurance Brokers of Ontario (RIBO) exam. The Insurance Institute offers virtual classes and study kits to help you prepare for the exam.
• Checklist for a New Licence: Ensure you meet the following requirements:

• Be sponsored by a licensed insurer.
• Complete the OTL Agent's Exam or have the relevant designation/exam mentioned above.
• Have an Ontario mailing address that can receive registered mail (not a PO box).
• Have a personal email address for FSRA to contact you.
• Be suitable for a licence.

Application Process:

• Ask your sponsoring insurer to set up the new application on your behalf through Licensing Link. They will verify your suitability for a licence and disclose any relevant details to the regulator.
• Your insurer will send you an email with two links: one to complete the rest of the application on Licensing Link, and the other to complete a criminal background check through FSRA's approved vendor, Triton Canada (Triton).
• Submit the application to FSRA through Licensing Link. If you need to pay the fee yourself, you can do so on Licensing Link using a credit or debit card.

After Submitting the Application:

• FSRA will send a confirmation email upon receiving your application.
• It typically takes 10 business days for FSRA to issue your licence. You can check the status on Licensing Link.
• If your application requires additional review, FSRA will send a follow-up email with the contact information for the assigned Licensing and Registration Specialist.

The fee for a new general agent licence application is $150, covering the first two years of your licence.

How to get an auto insurance license in Ontario

To sell auto insurance in Ontario, you need to be licensed as a general insurance broker. Here is a step-by-step guide on how to get an auto insurance license in the province:

Step 1: Pass the Required Exam

To sell auto insurance in Ontario, you need to pass the Registered Insurance Brokers of Ontario (RIBO) Entry Level 1 exam. This exam covers various insurance concepts, including home insurance, commercial insurance, liability insurance, and automobile insurance. You can find study materials and resources on the RIBO website and through other providers.

Step 2: Register for Your License

Once you have passed the exam, you can register for your insurance license. In Ontario, you can apply for a general insurance agent license through the Financial Services Regulatory Authority of Ontario (FSRA). The fee for a new general license is $150, which covers the first two years. You will need to meet specific requirements, including having an Ontario mailing address and a personal email address that FSRA can use to contact you.

Step 3: Find a Sponsoring Insurer

To obtain your license, you must be sponsored by a licensed insurer. Your sponsoring insurer will guide you through the application process and confirm that you meet all the licensing requirements. They may also pay the application fee on your behalf, depending on your arrangement with them.

Step 4: Complete the Application Process

The application process involves verifying your suitability for a license. This includes confirming your knowledge of Ontario's laws regarding licensing general agents, agreeing to carry out business in good faith, and disclosing any relevant information about your character, reputation, and criminal record. You will also need to provide your exam score and other supporting documentation.

Step 5: Start Your Career

Once your license is approved, you can begin your career as an auto insurance broker in Ontario. Remember to stay up to date with the insurance rules and regulations to provide excellent customer service and accurate advice to your clients.

Frequently asked questions