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Getting Your First Car Insurance Policy

Nov 27, 2020 6 minute read

Getting Your First Car Insurance Policy

Choosing the right car insurance policy can be a challenging and daunting task. Especially if you are a first time buyer or a new driver. Many customers don’t know where to look or how to start when searching for an insurance policy.

If you’re buying insurance for the first time, here are some common mistakes to look out for: not getting enough coverage, not familiarising yourself with your individual policy and limits, not utilizing the discounts that you may qualify for, not disclosing your prior claims and ignoring or missing your financing terms and agreements.

Did you know that choosing the right car insurance is one of the top ways to reduce your insurance policy costs? That is, if you know how to do it right. That’s where we come in to help! We’ve compiled a list of questions you should be asking yourself while looking for a car insurance policy. These questions will help you find the best coverage!

What Kind Of Coverage Do I Need?

Before you pick up the phone and call an insurance advisor to get a quote, it is super important that you take the time to decide what kind of coverage you actually need. Every single policy will be different. This is because everyone’s individual needs and wants are different.

There are many different kinds of coverages you can have on your policy. Some are mandatory and some are optional. Mandatory coverages are different from province to province. Make sure you understand which coverages you need in your province.

Some of the coverages you might need include:

Liability

This coverage helps to pay for other drivers’ property and bodily injuries if you’re found at fault in an accident. It may also help to cover any legal fees you might incur as a result of an accident.

Direct Compensation

This coverage compensates you when you or your car is damaged in an accident where you are not at fault. It is called direct compensation because you deal directly with your insurance provider to acquire any compensation following a claim.

Collison

Just like direct compensation, this coverage will protect you if you are involved in an accident with another vehicle. However, it also extends to cover you against damages caused by collisions with objects, such as poles, fences or debris on the road.

Accident Benefits Coverage

Unfortunately, costs associated with an accident don’t end right after the accident occurs. You, or the other people involved such as passengers or pedestrians, might require medical or rehabilitative attention following the accident. Accident benefits coverage will cover these costs.

Uninsured Automobile Coverage

Even though insurance is mandatory in Canada, some people choose to get behind the wheel without it. This coverage protects you and any of your passengers if you are involved in an accident with a driver who is at-fault and is either uninsured or doesn’t have enough coverage.

Comprehensive Coverage

This coverage is essentially a combination of all the other coverage types, as it protects you against all types of damages that can be caused to your vehicle. This can even include things such as theft, vandalism, riots and natural disasters.

Depending on which province you live in, some of these coverages will be mandatory and some will be optional. Having all of these coverages on your policy can make it quite expensive. By understanding exactly what you need and don’t need, you can build an insurance policy at a more affordable price point.

If you would like more information regarding car insurance in Canada, and how it truly works, check out our blog post on how car insurance works.

How Do I Choose The Right Insurance Company?

It is extremely important that you choose the right insurance company for you and your specific wants and needs. Every insurer is different, and can offer their clients different benefits. Some insurance companies may have strengths in their claims department, while others might have better digital options. It’s up to you to determine what’s more important to you.

Regardless of which company you choose, your insurer should have a good reputation for claim settlement. That is why it’s important for you as a potential customer to do some research, read client testimonials and reviews, and shop around. Request quotes from multiple auto insurance companies and find the policy that is right for you and your budget.

If you don’t have time to read reviews, do research and shop around, consider talking to an insurance advisor. They will do all the hard work for you and will present you quotes from multiple companies in a matter of seconds. Even if you do have the time, you might find all the options overwhelming, especially if this is your first time buying car insurance. An insurance advisor will take the time to explain everything and make sure you get the insurance you need. Find an insurance advisor near you.

Is My Insurance Policy Coverage Right For Me and My Needs?

Before agreeing to and signing a policy, it is important for you to re-read and double check everything in order to make sure that you understand your policy’s agreements and specifications. Double check to make sure that you have enough coverage for both bodily injury and property damage.

Take the time to go over your policy so that you know what’s included on it and what’s affecting your rate. For your reference, some key factors that commonly influence car insurance rates can include:

  • Location
  • Age
  • Driving Experience
  • Marital Status
  • Driving Record

How much will my first car insurance policy cost?

If you’re buying insurance for the first time, you might be concerned about the price tag. If you don’t have a lot of driving experience, you might have to pay more for insurance. (The exact price varies from person to person.) As you keep driving and gain a few years of experience, you might notice your rate start to go down! In the meantime, we have a few tips and tricks that can help you save in other ways. Check our tips on how to save money on your car insurance.

Consult A BrokerLink Broker Today

It doesn’t matter if it’s your first insurance policy or your tenth! At BrokerLink, our insurance advisors are experts when it comes to all stages of insurance. Consulting with an insurance advisor can potentially help you save money – they know where all the great insurance deals are hiding! To get started, give us a call, visit one of our locations across Canada, or complete a quote online.

First Car Insurance Policy FAQs

Can I get temporary car insurance?

Depending on the province that you are located in, you may be able to get temporary car insurance. Some provinces have stricter insurance regulations than others, and do not allow for temporary insurance policies. Please speak to a broker to learn more about the regulations in your province.

Can I get another insurance policy for my second hand car if it's already been insured before?

When purchasing a used vehicle, whether or not it has a prior policy in its previous owner’s name, you will need to get your own insurance policy. You will need a policy in your name in order to legally drive in Canada.

Can I get car insurance for multiple cars and drivers?

Yes you can! If you have more than one driver or vehicle at your home, it is actually recommended that you look into getting one policy for all instead of separate ones. Having multiple cars and drivers on one policy can help to save you money, as you may qualify for a “multi-vehicle” discount. Speak with a broker today to learn more about the benefits of insuring multiple vehicles on one car insurance policy.