Since car insurance is mandatory in order to operate your vehicle legally on Ontario and Canadian roadways – it is important to be as prepared as possible when comes to securing the proper & necessary insurance coverage. That being said, a very good place to approach this process from is through the understanding of how exactly Ontario auto insurance is calculated.
It is important to first note that each company will have a personalized method of calculating their insurance prices, as they will weigh certain criteria each in a slightly different manner. To begin however, here are the most common factors that will be weighed when an individual’s car insurance premium is calculated in Ontario.
Factors taken into consideration in Ontario:
Where you reside
The type of car you drive (brand & model)
The number of drivers living in your household
Your age, your gender and your marital status
The number of years you have held a license to drive
For new drivers, who have completed a driver training course – this looks favourably on your insurance premiums.
The number of accidents you have been held ‘at-fault’ for in the last 10 years
The number of convictions and licence suspension you have had in the last 3 years
The number of kilometres you drive per year that are based on a breakdown of the following driving habits: driving for pleasure, commuting, and driving for business
The amount of protection coverage you deductible you opt for, including third-party liability at 1 million vs. 2 million.
To further illustrate the contract between various insurance pricing spread out across the province of Ontario, here is a list based on some insurance price scenarios in various cities that may be near you. It is also important to take note of the specific factors, including the age of the driver, the Ontario city, the vehicle make and model, etc.
Scenario #1: 25-year-old living in Ottawa driving a Toyota Corolla. The difference is $590.
Scenario #2: 30-year-old living in Peterborough driving a Hyundai Elantra. The difference is: $533.
Scenario #3: 35-year-old living in Cambridge driving a Ford Escape. The difference is: $442.
Scenario #4: 40-year-old living in Toronto driving a Honda Civic. The difference is: $1,125.
Scenario #5: 45-year-old living in Ajax driving a Dodge Grand Caravan. The difference is: $603.
Scenario: #6: 50-year-old living in London driving a Chevrolet Equinox. The difference is: $471.
As you can see, the opportunity to save money on auto insurance across Ontario is absolutely possible. Furthermore, if you are now ready to start searching for some ideal insurance prices in your area – there is more than one way to go about it. In fact, one easy method of finding these prices is to utilize the online insurance calculators, that have been made so readily available to you. To get you started, here is a little bit of information about this process.
Online Auto Insurance Calculators:
Using online resources that calculate auto insurance rates can be a very straightforward and fast approach to locating the ideal insurance plan for you. From these online platforms, you can compare different car insurance prices, acquiring a number of quotes from various insurance companies and providers. Since each company will have their unique calculations, these quotes again will range in price rather significantly.
Some distinct information you want to have with you as you move forward with gaining these quotes may vary from site to site, and from vehicle to vehicle. For example, if you are looking for prices for a used car or instead for a newer vehicle here are some specific details.
For a new car: you will typically need to have on hand the following details: the type of vehicle, including the brand, model, the year it was manufactured, location of registration and finally your own personal details.
For a used car: you will need to also provide details that are likely to include, your car brand, registration number, fuel type, any changes in car ownership details, existing car insurance policy details and any claim reports that have been previously made.
Lastly, even if you already have insurance, the reality is that no two companies will offer the same prices. Therefore, you can keep striving to find a premium that will be the most appropriate for your current needs, as the insurance coverage you had from company from several years ago may not meed your needs as they stand now. The good news is you can log onto your computer or mobile device now and find this out within only minutes.
All in all, your time will be well spent as you look into these prices a little bit further. In fact, you can even save thousands of dollars on auto insurance fees by finding the right one. Now, I’m sure this is music to your ears, especially if you are working through a bad credit situation. By saving money on your auto insurance, you can free up some extra income that can be used to help fend off more debt and remain more financially stable.
