Auto insurance acts as a safety net for the unexpected; even the best drivers can have a fender bender or get sideswiped in a parking lot. Mandatory throughout Canada, each province dictates the minimum coverage drivers need to have on their vehicles, a base policy that covers a lot of hazards that can happen. But is a basic policy the right one for you? We have compiled our years of experience to offer you the best car insurance coverage advice, with our list of common mistakes people make when purchasing auto insurance.
Not Doing Your Research
There are plenty of insurance companies out there, and each one has different and unique policies for all kinds of drivers. It is important to shop around and find the right policy for you that covers your needs and provides you with the best deal. Use online tools to compare plans before you make a phone call or send an email. And when you do reach out, always ensure you are working with an FSCO licensed general insurance broker.
Only Having the Minimum Coverage
In Ontario specifically, drivers need to have at least $200,000 in third-party liability coverage. This protects you if you are sued for a physical injury or damage to someone else’s property. However, this coverage can be increased substantially, which many drivers prefer to cover their bases more fully. You are also required to have direct compensation, uninsured automobile, and accident benefits coverage. While these policies protect you in numerous ways, most are directly related to accidents. Drivers should consider increasing their coverage to specific perils or all perils which cover a wider range of damages including fire and theft, as well as natural disasters.
Increasing Your Deductible to Reduce Your Premium
It might be tempting to increase your deductible so you are paying less out-of-pocket month to month. This is a tactic that can work for some people, such as those who are infrequent drivers or live in traffic-calmed areas. However, if you are simply increasing your deductible because you think it will end up costing you less in the long run, that isn’t always the case. A high deductible means you assume more risk when damages happen, and you could be paying an amount that exceeds the cost of repairs simply because you wanted to save money. Find a balance of what you are comfortable paying monthly and as a deductible so you aren’t caught in a tough spot if an accident does happen. At Tanner Insurance, for instance, we offer affordable car insurance rates that are designed to save you money, without compromising your coverage.
Failing to Ask Questions About Your Policy
More often than not, insurance is something you purchase because you need it, you might set up your base policy and forget about it until you need to file a claim. We recommend that once you have decided on an insurance provider, you should be prepared to ask plenty of questions about your policy. Inquire about the ways you can increase your coverage, if you have a good driver policy, and what to do if you need to contact them after-hours. The more information you know ahead of time will not only add to your peace of mind, but help you feel more prepared in the event you need to use your policy.
When it comes to auto insurance, you should choose a local company that knows the area(s) you could be driving in. At Tanner Insurance, we are experts when it comes to car insurance coverage advice and working with our clients and finding policies that fit them. Contact us to learn more about how we can help answer your insurance policy questions!