Auto Insurance

Yes, auto insurance is mandatory by law. This protects all individuals who may be involved in a motor vehicle accident. There are many costs associated with accidents like replacing or repairing vehicles and healthcare or rehabilitation expenses. Plus, there is compensation for victims of accidents. Insurance is there to help cover much of these costs.

If you’re caught driving without valid insurance, you will face fines, can have your driver’s license suspended and your vehicle impounded. You may also be held personally responsible if an accident results in death or injury.

Each Canadian province has minimum coverage requirements too. These minimum requirements are often not even enough to cover legal expenses in lawsuits. Your New World Insurance broker will be able to walk you through your options and explain the legal requirements to ensure you are as protected as possible.

There are quite a few elements that could affect the cost of your policy, so we’ll summarize the most common factors insurance companies use when determining your rate.

• The age of a driver impacts insurance rates as younger drivers tend to have more accidents. As you get older and more experienced, your insurance premium is likely to decrease.
• Your driving history also plays a role. Tickets and/or accidents as well as how long you’ve had your license will be reviewed and taken into consideration by insurance companies. A good driving record lowers your insurance rate.
• Where you live can make a difference in your cost too, as more highly populated cities pose more risk than less populated rural areas.
• The amount you use your vehicle is another factor. That’s because those who drive to and from work every day increase their chances of being exposed to risks compared to those who don’t.
• Some vehicle types and brands can be more costly to insure than others, so your vehicle’s make and model influences what you’ll be paying every month. Some vehicles are more prone to theft whereas others have rare or more expensive parts, so insurance companies make note of these trends and adjust their rates accordingly.
• And finally, how much coverage you choose will impact your cost.

Here are some common ways you can save on insurance:

• Bundling multiple policies such as your auto and home insurance can help you save.
• Ontario offers a ton of discounts on insurance such as one for renewals as well as winter tires. Call us to ask about safe driving discounts or others that may be available too.
• Review your policy with your broker because if you have a safe driving history and rarely make claims, you can be rewarded with reduced rates.