Lowering Auto Insurance In Ontario: Tips And Tricks

Car insurance in Ontario is more expensive than in most other parts of Canada, with only British Columbia residents paying more. While accident rates are relatively low in Ontario, other factors like severe weather and fraud contribute to high insurance costs. However, there are several ways to lower your auto insurance premiums. Firstly, choosing a safe and practical vehicle with a high safety rating and low repair costs can help reduce your rates. Installing winter tires and approved anti-theft devices can also lead to discounts. Additionally, maintaining a good driving record, free of accidents and convictions, can significantly impact your insurance costs. Other factors that can help lower your premiums include bundling insurance policies, taking defensive driving courses, and increasing your deductible. Shopping around for the best rates and taking advantage of available discounts can also help you save on auto insurance in Ontario.

Choose a safe, practical vehicle with a good safety rating and low repair costs

When choosing a vehicle, safety and practicality should be top priorities. Opting for a car with a good safety rating and low repair costs can significantly lower your insurance premiums. Here's why:

Safety Ratings: Vehicles with high safety ratings are less prone to accidents, which means fewer insurance claims and lower premiums for you. Modern cars with advanced safety features like blind-spot monitoring, lane departure warning, and backup cameras have been proven to reduce collisions. So, when choosing a car, look for one with a strong safety rating and consider investing in additional safety features.

Repair Costs: Some cars are more expensive to repair than others due to rare or high-end parts. Cars with expensive repair costs will likely lead to higher insurance premiums. Before buying a car, research the cost and availability of its replacement parts. Opting for a car with readily available and affordable parts can help keep your insurance costs down.

Vehicle Type: The type of vehicle you choose also matters. Larger and heavier vehicles generally provide more protection than smaller, lighter ones. So, consider choosing a vehicle with a size and weight that offers a good balance between manoeuvrability and safety.

Theft Risk: Cars that are commonly targeted by thieves or have a high theft rate will typically cost more to insure. Before purchasing a car, research its security features and theft statistics. Installing approved anti-theft devices can also help lower your insurance rates.

Age of Vehicle: Newer cars are generally more expensive to insure than older ones. This is because they have a higher value and are more expensive to replace if they are lost or damaged. However, some insurers may offer reduced rates for new vehicles, assuming that buyers with good credit are less likely to have an accident.

When choosing a safe and practical vehicle, it's essential to consider not just the purchase price but also the ongoing costs of ownership, including insurance and maintenance. By selecting a car with a good safety rating and low repair costs, you can significantly reduce your insurance premiums and enjoy peace of mind knowing you've made a wise investment.

Install approved anti-theft devices and winter tires

Installing approved anti-theft devices and winter tires is a great way to lower your auto insurance in Ontario. Here's how:

Approved Anti-Theft Devices

Theft is a significant concern in Ontario, with over 86,000 vehicles stolen across Canada each year. As such, installing an approved anti-theft device can not only deter thieves but also lower your insurance rates. The Insurance Bureau of Canada reports that automobile theft costs Canadians nearly $1 billion annually, with insurers paying $542 million to fix or replace stolen cars. Thus, insurance companies often reward clients who invest in anti-theft devices with discounted rates.

The typical anti-theft discount is 5% off the comprehensive premium, resulting in an average total discount of 1-2%. Additionally, some insurers may offer a reduced deductible on the claim if your car is stolen despite having an anti-theft device installed. It's important to note that only approved after-market anti-theft devices qualify for these discounts, and most newer cars already have anti-theft devices factory-installed. Be sure to contact your insurance company to determine if your device qualifies for a discount.

There are two main types of anti-theft devices: passive and active. Passive devices automatically protect your vehicle without any setup, while active devices require manual activation each time you leave your car. Passive devices are generally recommended as they are more convenient and less likely to be forgotten. Examples of passive devices include immobilizers, which prevent the vehicle from starting, and electronic alarms, which sound an alarm when someone touches or approaches the car.

Winter Tires

Ontario's harsh winters bring icy and snowy roads, increasing the risk of accidents. Installing winter tires can enhance your safety and lead to discounts on your car insurance. Winter tires are made with a special compound that retains elasticity in cold temperatures, providing better traction, stopping power, and handling. They can reduce braking distance on snow-covered roads by up to 25%.

To qualify for the winter tire discount, all four tires must be winter tires, and they typically need to be installed from November to March. While not all insurers offer this discount, those that do provide an average of 5% off your premiums.

By installing approved anti-theft devices and winter tires, you can not only improve your safety on Ontario's roads but also take advantage of potential discounts to lower your auto insurance rates.

Be a safe, law-abiding driver

Being a safe, law-abiding driver is crucial to maintaining affordable insurance in Ontario. Safe drivers tend to make less expensive claims related to at-fault accidents, which helps keep insurance costs down. Here are some ways to be a safe, law-abiding driver and lower your auto insurance in Ontario:

Drive Safely

It is important to always drive as safely as possible. This includes following the rules of the road, obeying speed limits, and avoiding distractions such as using a handheld device while driving. Safe driving helps to reduce the risk of accidents and keeps your insurance rates low.

Maintain a Clean Driving Record

Insurance companies will use your Ontario driving record to determine your insurance rates. Any convictions or violations, such as license suspensions, driving under the influence, or fleeing the scene of an accident, will result in higher insurance rates. Keep your driving record clean by obeying traffic laws and driving safely at all times.

Reduce Your Mileage

Insurers consider commuting during rush hour on a highway riskier than driving around your neighbourhood on weekends. If possible, reduce how often and how far you drive. Carpooling, taking public transit, or working from home can help lower your annual mileage and, consequently, your insurance rates.

Install Safety Features

Vehicles with high safety ratings and advanced safety features like blind-spot monitoring and backup cameras are less prone to accidents and can help lower your insurance premiums. Consider investing in a vehicle with good safety ratings and modern safety features to reduce your insurance costs.

Prepare Your Vehicle for Winter

Driving in winter conditions can be dangerous due to ice and snow on the roads. Preparing your vehicle for winter by installing winter tires and ensuring it is well-maintained can help reduce the risk of accidents. Many insurers offer discounts for vehicles that are properly equipped for winter driving.

Take a Defensive Driving Course

Taking a defensive driving course can help you become a safer driver and lower your insurance costs. These courses teach you how to drive safely in different situations and proactively avoid accidents. Young and student drivers, in particular, are encouraged to take driving courses to build good driving habits.

By following these tips and being a safe, law-abiding driver, you can help lower your auto insurance rates in Ontario and maintain affordable coverage.

Reduce how often and how far you drive

One of the best ways to lower your auto insurance premiums is to reduce how often and how far you drive. Insurers consider commuting during rush hour on a highway riskier than driving around your neighbourhood on weekends. Therefore, reducing your mileage can help you save on your auto insurance. Here are some tips to lower your annual mileage:

Carpool

Ask your family, friends, or coworkers if they would like to carpool. Taking turns as the driver will help everyone save on car mileage, fuel costs, and environmental emissions.

Use Public Transportation

If you have access to a reliable public transportation system, consider using it instead of driving. This will not only save you money on gas and insurance but also give you time to relax, work, or catch up on some reading during your commute.

Walk or Bike

Opt to walk or bike whenever possible, such as when going to the local grocery store or school. In addition to saving on insurance and fuel, you will also get some exercise and fresh air.

Work from Home

If your job allows it, work from home a few days a week to reduce the mileage on your daily commute. Not only will this lower your insurance costs, but it will also save you time and money on fuel.

Take Advantage of Low-Mileage Discounts

Some insurance companies offer low-mileage discounts if you drive under a certain number of miles per year. For example, some insurers require drivers to have under 12,000 kilometres per year, while others may set the threshold at 15,000 kilometres. Be sure to calculate your annual mileage and check with your insurer to see if you qualify for this discount.

Shop Around for Better Rates

Compare quotes from multiple insurance companies, as rates can vary. Some insurers may offer lower rates for drivers who keep their mileage down. By shopping around, you can find the best coverage and rates that fit your driving habits.

Get a higher deductible

The deductible is the fixed amount you pay out of pocket before your insurance coverage kicks in. Deductibles typically range from $250 to $1,000, but they can go as high as $5,000. The higher your deductible, the lower your insurance premium. So, if you're willing and able to pay more when you need to make a claim, you can save money on your monthly payments.

However, it's important to choose a deductible that you can afford. If you're involved in an accident and your repairs cost $10,000, a $1,000 deductible means you'll pay the first $1,000, and your insurance company will cover the remaining $9,000. With a $5,000 deductible, you'd have to pay that amount before your insurance coverage begins.

When deciding on your deductible amount, consider the following:

• Financial position: If you can afford to take more financial responsibility, you can choose a higher deductible.
• Value of your vehicle: If your car is older and not worth much, a high deductible may not make sense. In this case, a lower premium is better, as you won't spend more on repairs than your car is worth.
• Driving habits: If you often make insurance claims, a low deductible may save you more money over time. However, if you have a clean driving record and rarely make claims, you might prefer a high deductible to lower your monthly payments.

Remember, while a higher deductible can reduce your monthly costs, you may end up spending more in the long run if you have an accident.

Frequently asked questions