Whether you’re located in Ontario or anywhere else in North America, you’re required to have auto insurance by law before you get behind the wheel. There are many factors that impact the cost of car insurance in Ontario. Some of the most common include your driving experience, location and age. Here’s more about the typical factors that will impact what you pay each month for a car insurance policy.
Your Driving Experience
One of the main factors that impact the cost of car insurance is your driving experience. If you’re a new driver and you don’t have much experience behind the wheel, you should expect to pay a higher premium compared to someone who has been driving for a long period of time. As a newly licensed driver, there is more uncertainty and risk since you’re learning and becoming more comfortable being on the road.
The area in which you live will help determine the cost of your car insurance. Insurance rates will vary based on everything from your province to your city to even your postal code. Insurance providers will look at traffic conviction and theft rates, among other location-based factors. For example, someone who lives in a busy downtown core will likely pay more in insurance than an individual living in a rural neighbourhood with quieter roads and a lower theft rate.
The Age of Your Vehicle
Older cars will set you back more as well since they don’t include many of the upgrades and tech that make newer vehicles safer on the road. If you have an old clunker that you plan to drive, it might be worth trading it in.
The purpose of your driving also matters when it comes to insurance. So if you’re planning on using your vehicle to generate some additional side income, like with Uber drivers, your costs will differ from someone who merely uses their vehicle for basic commuting to and from the office.
Using winter tires is safer when you’re navigating through the intense Canadian winter weather. But there are still many drivers who decide not to use them. To help incentivize more drivers to use winter tires during the winter season, a new Ontario law is allowing discounts on insurance. It’s a simple way to stay safer on the roads and get a lower premium. It’s a win-win!
Bundling Insurance Products
In many cases, you can benefit from a discount when you opt for multiple insurance products from the same company. So if you need another type of insurance (such as home insurance), talk to your insurance broker to see what kind of savings they can offer you.
Did you attend a driving school? If it was a recognized facility and you received a certificate, this could be reflected in lower insurance costs. If you’ve been driving for less than three years, this could be applicable to you.
How Long You’ve Owned the Car
The duration of car ownership plays a role in your premiums. If you’ve owned and have been driving the same vehicle for a few years, this will be calculated into your insurance rate. For someone who just bought a new vehicle, this can be higher in comparison.
Young drivers are less experienced when driving, are more likely to be reckless on the road and are more prone to being involved in an accident. If you’re between the age of 18-25, expect to pay more for your auto insurance. Conversely, as you get older, your cost will typically decrease.
Some insurance companies offer loyalty rewards to show their appreciation for customers who have stuck with them for their insurance needs. This will be reflected in your cost.
If you’re looking for car insurance in Ontario, get in touch with us at Tanner Insurance. Our expert team of brokers will make sure you get all the coverage you need at the best rates.