Three Things You Didn't Know About Car Insurance in Ontario

 Helpful Tips For Getting Affordable Car Insurance In Ontario

Car insurance is a big household expense in Canada. In fact, car insurance is more expensive in Canada than in many other countries. Ontario car insurance rates are the highest in Canada - drivers pay more than $ 170 a month in insurance premiums on average.

Complicating matters is the fact that Ontario’s car insurance rules are not very simple. Ontario uses a hybrid combination of tort insurance (one party can sue the other) and defect insurance.


What little-known facts about car insurance in Ontario can be useful to you because of high prices and seemingly arbitrary rules? Read on to find out!

Don't take out too much insurance (in some cases)

Solid coverage is good, but it costs money. Think about your risks and insure accordingly. By law, your insurance has a $ 200,000 third party liability, but it is recommended that you include more. Aim for at least $ 1,000,000; $ 2,000,000 is better. If someone decides to sue you, the costs can rise very quickly.

At the same time, however, it is not always necessary to have comprehensive coverage. For example, if you have an older car, you may decide not to get this insurance. Skipping comprehensive insurance coverage for an older car can reduce your monthly premiums.

In a new or leased vehicle, comprehensive insurance is usually a requirement

Coverage of old cars may increase! Classic car insurance rates in Ontario

The older your car, the less value it has, right? In most cases, but not always. There are two scenarios where the prices of old cars are higher than those of new vehicles.

First, some older vehicle models are more expensive to insure because some models have a terrible insurance history. For example, they are prone to theft, so insuring them is risky.

Second, at some age (usually 20 years), cars can be considered classic or antique vehicles, leading to special insurance coverage, such as classic car insurance or antique car insurance. Few companies offer this type of car insurance in Ontario, and depending on your car and your driving habits (year-round vs. summer months only), car protection rates can be more expensive than regular vehicles.

Car insurance and rental cars

Many people are confused about rental car insurance. You may think that the insurance attached to your credit card is enough, but it is not. It does not cover third party liability or damage to other people's property. You must also be careful not to let the rental company deal with collision damage, which may not cover all the costs associated with the accident.

The best way is to make sure you have your own car insurance (if you have your own car), and make sure it extends to rental cars as well - many insurance companies do that. If you don’t have this extension on your insurance, you can buy a rider for about $ 20 a year for rental car insurance. It’s worth the price because you pay $ 15 to $ 20 a day for the same coverage from a rental agency.

We hope you take these insights into account when getting car insurance in Ontario. These tips are provided by Alexey Saltykov of InsurEye, Canada’s largest insurance appraisal platform, and your portal to get cheap car insurance in Ontario and other provinces.

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