Different types of insurance in Ontario
Before you shop around for car insurance, it is important to understand the different types of insurance in Ontario.
What factors impact your car insurance rates?
It’s important to be prepared when shopping for insurance. You should understand what factors affect your rates.
How do you get cheap insurance in Ontario?
Least expensive cities for Ontario car insurance
- Brockville – $1,016
- Cornwall – $1,016
- Kingston – $1,017
- Cobourg – $1,018
- Napanee – $1,018
- Port Hope – $1,018
- Petawawa – $1,024
- Kenora – $1,048
- Belleville – $1,066
- Trenton – $1,066
Ontario insurance rates compared
- British Columbia – $1,680
- Ontario – $1,445
- Alberta – $1,251
- Newfoundland & Labrador – $1,132
- Manitoba – $1,080
- Northwest Territories – $978
- Nunavut – $963
- Saskatchewan – $936
- Nova Scotia – $842
- New Brunswick – $819
- Yukon – $812
- Prince Edward Island – $796
- Quebec – $661
Is car insurance mandatory in Ontario?
Yes, it is required by law for every driver in Ontario to have car insurance. While the mandatory requirements for car insurance vary by province, in Ontario, drivers must have a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, which covers costs that exceed provincial health care should the driver be injured in a crash. If your car isn’t insured you are at the risk of facing a fine starting at $5000 at first conviction. With so many private insurance companies in Ontario, you can shop around and compare in order to find the best rate.
How much is the average insurance cost in Ontario?
In Ontario, the average cost of car insurance is $1505 ($125 monthly). While this is a good starting point, your rate will also vary based on a wide variety of factors including the type of car you drive, where you live, your driving record, and otherwise.
How do I choose the right coverage?
With so many factors being considered, choosing a car insurance policy can be an overwhelming process if you don’t know exactly what you need. Everyone in Ontario is required to have a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, however some drivers may wish to have added coverage for peace of mind. This is recommended as the minimum requirements leave drivers with a thin level of protection and a high potential of out-of-pocket expenses should an accident occur. While $200,000 may seem like alot, you might be surprised when you see the costs that can result from serious collisions. It is always better to be safe than sorry and as a result many drivers opt for additional coverage such one or two million in third-party liability as well as comprehensive and collision coverage.
Before choosing a policy, be sure to carefully consider what you will be comfortable paying in the event of an accident or if you can afford to replace or repair your vehicle due to theft, natural disasters, vandalism, or otherwise. It might be worth paying a higher premium now in order to save down the road.
Do I need insurance if I’m an Uber driver or I drive for another ride-sharing service in Ontario?
If you drive for a ride share service such as Uber or Lyft, you will receive commercial insurance through your company while you are providing the service, however, you are still required to have your own insurance for when using your vehicle for personal uses. You will still need to comply with the mandatory insurance requirements in Ontario which includes a minimum of $200,000 in third-party liability as well as Accident Benefits insurance, which covers costs that exceed provincial health care should the driver be injured in a crash.
In Ontario, Uber provides two million dollars of liability coverage and uninsured/underinsured motorist coverage. They will also provide drivers with contingent collision and comprehensive coverage but only if the same coverage is included on the driver’s personal policy. Uber also insures drivers in Ontario when they’re on the clock, but have yet to accept a trip. Lyft has similar offerings.
When getting your insurance, it is crucial that you let your insurance company know that you will be using your vehicle for commercial purposes. This way, if anything were to occur, you will have coverage regardless of whether you were working or not.
While many assume that insurance companies will charge higher rates for Uber drivers, this is not always the case. If they do, the extra premium you face will still be less expensive than the bills you’d have to pay out of pocket after an accident.
What is short term insurance?
Short-term car insurance can mean coverage for a rental car. It can mean temporary insurance while you transport a recently purchased vehicle. It can even mean a policy that only lasts six months – instead of a traditional insurance policy that lasts one year. Short-term insurance policies are useful for people that want to drive a friend’s car, borrow a family member’s car, or test drive a vehicle that they are interested in purchasing.
