Car insurance in Canada - What You Need to Know
Did you know that car insurance payouts have been on the rise in recent years? It’s true — in 2019, car insurance companies in Canada covered approximately $18 billion worth of vehicle damage. This is a drastic difference from the past. For instance, in 1990, car insurance providers only covered $6 billion in damages.
On the other hand, are you aware that car insurance prices range from province to province? For instance, the average in some provinces is as high as $1680, while in others, it’s as low as $640!
There are three types of car insurance available in Canada. They are:
Collision car insurance:
If you collide with another vehicle or stationary object, you’ll receive financial compensation to cover the cost of the vehicle repair.
Comprehensive car insurance:
You never know what’s waiting around the next turn or bend in the road. Comprehensive car insurance provides peace of mind for those moments. Comprehensive car insurance cover incidents such as:
- Hitting an animal
- Fire or smoke damage
- Theft and vandalism
- Flood damage
Liability car insurance is required, by law, for all drivers in Canada. Liability insurance protects others from damages you cause while driving a vehicle. This covers a variety of losses including property damage, bodily injury and death. The price is based on your personal driving habits, so all of the vehicles you drive will have the same liability insurance rate. This is the cheapest auto insurance available in Canada, which means it has the lowest coverage.
Contact the Surex team to get your personalized offer today.
An insurance premium is an amount one pays per month (or agreed upon term) for an auto insurance policy on their vehicle in Canada. An insurance deductible is the amount of money the insured party is required to pay - out of pocket - before their insurance company will step in and cover damages.
The amount on your policy can vary. A higher deductible usually means a lower premium (per month cost for your car insurance policy). It is essential to make sure you can reasonably afford your auto insurance deductible. In the case of an accident, if you cannot pay your deductible, your insurance company will not be able to help with your overall costs.
The Surex team offers a comprehensive list of discounts to get you cheap auto insurance in Canada.
Some of these discounts include:
- Bundle discount
- Group discount
- Credit discount
- Experienced driver discount
- Short commute discount
- Mature citizen discount
- Hybrid vehicle discount
- Anti-theft discount
- Loyalty discount
- Renewal discount
- Claims-free discount
- New business discount
- Flex discount
- Student discount
- Occupation discount
- Multi-vehicle discount
Most companies have a 24/7 line to contact (check your insurance card for phone number). You can also call or email your Surex Advisor directly to submit a claim.
You will need:
- Time of the accident.
- Date of accident.
- Location of accident.
- Description of the accident.
- Photos of the accident (if possible).
- Police report (if possible).
Every client deserves personal service, our advisors know that providing cheap, discount rates leads to long-term clients. Trust and consistency is imperative in the car insurance industry — that’s why you will deal with the same broker throughout the entire process.
It is important to know that in the unfortunate case of an accident or insurance claim against you, we will compare our insurance company partners to make sure your new car insurance rate is the cheapest we can offer. This is in contrast to dealing with other direct insurance sources (such as banks, co-ops or agents) that may have conflicting interests when it comes to your new insurance rate.
Get your personalized offer today from one of the Surex team members today!
Auto insurance rates vary across different providers and are based on several factors like driving experience, demographics, geography, and previous insurance coverage. It’s important to do your research when choosing the right insurance company to cover you.
Getting the best auto insurance rates requires a couple things:
- It depends on where you live — Different areas in Canada will have higher car insurance rates. You may want to consider this when signing up for auto insurance in Canada.
- A good driving record — Take responsibility and maintain a good record. Not only will it help you stay safe, but maintaining a clean record will also help you save you some money by helping you avoid potential accidents resulting in vehicle damage and injury.
- Asking for higher deductibles — If you’re financially able to do so, increase your deductible so that if something were to happen, you could pay immediately. Higher deductibles generally result in lower car insurance costs.
- Shopping around — Comparing rates will help you choose the best insurance company for the coverage you’re looking for. A licensed insurance advisor can help do the shopping for you and guide you if you have any questions.
- Bundling home and auto — Take advantage of any offers to combine insurances. When you choose to go with the same provider for more than one type of insurance, you can generally get them together for a discounted price.
Here are some other helpful tips:
- Check with your advisor to see if you qualify for any additional discounts
- Considering going to driving school
- Work on improving your credit, some provinces offer aggressive discounts based on having a good credit score.
- Tickets and claims are two large factors insurance companies look at when providing rates. The more years you go without filing a claim the better; most companies give more attractive discounts to those with six (or more) years of claims free road time. For tickets the optimal time frame is three (or more) years.
- Ask for higher deductibles
- Reduce coverage on older car
Auto insurance rates are determined by a few things. The rates are determined by how much and how often you drive, your driving record, the state of your vehicle, the type and amount of coverage, and deductibles.
Insurance companies in Canada also take into consideration where you’ll be driving this vehicle as well as your demographics like age, marital status and gender to gage your level of experience. Having a strong credit score will also help you land the best insurance rate you can get.
Providers may also look at insurance coverage such as renters’ insurance and homeowners’ insurance in addition to the vehicle type, use, and how many kilometres you drive on an annual basis.
You may be thinking you’re stuck between insurance companies. Not to worry, our team has put together a list of tips that can help you choose auto insurance in Canada:
- Do an annual rate check — Insurance rates change year over year which is why it’s important to do an annual rate check.
- Pick a top insurer — Shopping around for insurance will help you pick the right company to get the best coverage for the best price. Take the time and consider your options.
- Set your deductible at the right level — Ensure you set your deductible at the right cost so that you agree to an amount that you would pay on your own. In general, the higher the deductible, the lower the car insurance rate.
- Go over your coverage — Ensure you have enough liability coverage to cover bodily injury and property damage. More coverage means more protection you have.
- Choose the right car — As you now know, insurance companies consider which vehicle you drive and how much you drive it. Because of this, you’re going to want to pick the best one for you in terms of practicality, price, safety features, and drivability.
The following factors are some of the variables that we consider while determining car insurance rates in Canada:
- Years licensed
- License type
- Years insured
- Claims history
- Conviction/suspension history
- Age/type of vehicle
- Coverage requested
- Km's driven daily & annually
- Use of vehicle
There is no right or wrong answer to this question. Today, there are several factors that influence the cost of your car insurance rates. Because of this, there’s no such thing as a "one size fits all" car insurance policy in Canada.
The best thing you can do is shop around and get quotes with the same coverage. If any of the factors listed above change, then it might be a good idea to "refresh" your quotes and see if you can get a better rate.
Despite what you may have heard, age does in fact affect auto insurance rates in Canada. When you’re under 25, you will most likely have less experience than a driver who’s been on the roads for several years. For this reason, your premium will be higher if you’re under 25.
There are a number of minor infractions that might affect your car insurance premium in Canada (if you get a ticket). Some common examples include: speeding, disobeying a sign, traffic light infractions, improper lane changes, not using your seatbelt or not signalling when it is required.
99% of the time, yes, you’ll need full coverage on a leased or financed vehicle in Canada.
Full coverage covers replacement/repair costs associated with your vehicle after you’re involved in an accident which you’ are deemed “at-fault”. If you’re leasing or financing your vehicle, you technically don’t own it until you’ve completed all your leasing or financing payments. Because of this, the overwhelming majority of leased or financed vehicles will require full coverage.
In short, yes. But vehicle age isn’t the only factor. Insurance providers look at the make and model of your vehicle — in addition to your driving history, your demographic, the likelihood of your vehicle being stolen, the cost to repair or replace it, your neighbourhood crime rate, and more — in order to determine the likelihood of you making a claim. The less likely they feel you are to make a claim, the lower your auto insurance rates will be, and vice versa.
In order to secure auto insurance in Canada, drivers need to produce a number of documents, including a valid driver’s license, proof of driver’s education training (if completed), vehicle registration, license plate number, your driving history, current auto insurance policy information, details of all drivers who will use the vehicle, and payment information (credit card, void cheque, banking information).
It is recommended that you speak with an insurance advisor 30 to 60 days before renewing your auto insurance policy in Canada. Doing this allows you to get the cheapest car rate possible.
We compare prices to provide cheap insurance for ATVs, motorhomes, trailers, boats and more. Check online or contact your Surex advisor for a quote.
Many Canadians spend their spare time driving for a rideshare company (Uber, Lyft) to earn some extra money. But you have to remember that you will need extra car insurance coverage when doing so.
Ridesharing coverage is for drivers who use their personal vehicles to transport paying customers. Ridesharing insurance has been available since 2016, making it a new type of coverage for Canadians.
Here are a few reasons why you need this extra coverage in Canada:
- Your personal auto insurance does not cover you if you drive for a rideshare company in Canada and they can cancel your coverage at any time if they find out.
- You may be covered with your rideshare company, but the coverage will be limited. Anything extra will need to be covered by your own personal insurance.
- Ridesharing coverage is affordable (generally less than $100/month). Additionally, ridesharing coverage is cheaper than getting a commercial auto insurance policy used by taxi services. Thankfully, it still gives you and your passengers the necessary coverage.
Yes, as we said earlier, if you own and operate a vehicle, then having auto insurance is mandatory by law. You do not need it to buy a car, but once you get behind the wheel, then you must have valid auto insurance.
If not, you will face penalties such as a fine, licence suspension and/or having your car impounded. Each province may have varying penalties, but in short, you will not be able to operate your vehicle anymore.
- If you get into an accident without insurance then you are responsible for any and all damages and will have to pay out of pocket for any expenses.
- You forfeit the right to sue for any type of accident benefit and lose money that can potentially help cover hospital stays or loss of income.
- If you are driving a borrowed car and get into an accident, then the premium for the owner will increase.
Every province in Canada has no-fault insurance. No-fault car insurance is when the insurance company will pay your claim regardless of who is at fault for the accident. Some people think this is a good system as it prevents delays in claim payments and access to medical care, while others think it's not because it can limit certain compensations as well as protect bad drivers because they cannot be sued for damages.
Comprehensive coverage pays to repair or replace your vehicle if it's been stolen or damaged by something other than a collision or rolling over. Simply put, comprehensive car insurance covers your vehicle when it's not in use. Examples of these types of damages include damage caused by fire, wind, hail, flood, theft, vandalism, falling objects, and hitting an animal would be covered.
Not all drivers require the same insurance coverage, so make sure you talk to a dedicated insurance advisor today to get yours tailored to your personalized needs.
Do you have an old or inexpensive car? If so, comprehensive car insurance in Canada may not be the ideal choice, as it may not be worth spending your money on a vehicle that you didn't pay much for in the first place.
Be sure to reach out to a Surex advisor if you’d like to learn more about comprehensive auto insurance and if it’s the right choice for you.
User-based insurance (also known as pay-as-you-go insurance), is a type of auto coverage that is based on the number of kilometres you drive, combined with technical stats such as how aggressively you drive. This is monitored by an app or a computer mounted to your engine. This can save money for good drivers who don't drive very far or as often. Not every insurance company provides this type of insurance, but you can always inquire as it might be more common now with more people working remotely and not commuting daily.
This is a great question!
Yes, each province has a different system and mandatory coverages, so rates would be vastly different between each one. British Columbia, Saskatchewan and Manitoba have government-provided auto insurance programs; whereas, Alberta, Ontario, the Atlantic provinces and Territories have private car insurance markets. And, Quebec has a hybrid system - the government provides personal injury, while the property damage is done through private insurers.