Is car insurance a legal requirement in Ontario?
Yes, car insurance is mandatory all across Ontario, and that includes Gravenhurst. Specifically, the Government of Ontario requires all motorists to purchase policies that include the following four types of coverage:
- Third party liability coverage (at least $200,000 of it)
- Accident benefits coverage
- Direct compensation - property damage coverage
- Uninsured motorist coverage
Failure to purchase a policy that meets the criteria listed above can result in severe fines, vehicle impoundment, and the suspension of your driver’s licence.
Mandatory types of auto insurance in Gravenhurst
The types of auto insurance that are mandatory in Ontario are outlined below. As you will quickly learn, compulsory car insurance is designed to protect you should you get into an accident on the road:
Third party liability coverage
Liability insurance, also known as third party liability insurance, offers coverage to drivers if they cause a car accident. For example, if you accidentally hit someone while driving, the liability portion of your policy can pay for the associated costs, whether they be legal fees, medical bills, or property damage repair bills.
Accident benefits coverage
Accident benefits coverage kicks in if you get into an accident and it causes bodily harm or injury. For example, if you end up with a concussion following a car collision, accident benefits can help pay for any medical fees that aren’t covered by your health insurance plan. So if you are prescribed medication for your concussion, the accident benefits portion of your policy may cover the cost.
Direct compensation - property damage coverage
Direct compensation - property damage coverage is for when you get into a car accident that you did not cause and that accident damages your car. Whether it’s a dent, scratch, or something bigger, you can receive a payout directly from your insurance provider to pay for the cost of any necessary repairs.
Uninsured motorist coverage
Lastly, uninsured motorist coverage or uninsured automobile coverage is for when you get into a collision with a driver who fits into one of the following three categories:
- Uninsured: does not have car insurance.
- Underinsured: does not have sufficient car insurance to cover the cost of the accident.
- Unidentified: an anonymous driver who you were unable to learn the identity of, such as in the case of a hit and run.
Optional types of car insurance in Gravenhurst
Now that you know all about mandatory car insurance coverage in Gravenhurst, let’s dive into optional car insurance coverage. The following types of optional coverage offer all kinds of advantages to Gravenhurst drivers, such as protection against damage while your vehicle is parked and protection if you are unable to use your vehicle temporarily:
Unsurprisingly, collision car coverage deals with collisions. Specifically, it deals with property damage stemming from collisions. So if you get into a car accident and your vehicle is damaged, collision coverage can help pay to repair it.
Comprehensive car coverage offers broad protection against damage while your vehicle is parked. The specific types of damage it protects against depend on which perils you choose to name in your policy. Named perils that you frequently see in comprehensive car insurance plans are fire, windstorms, water damage, theft, vandalism, and falling objects, though others can be added as well. It is important to note that if you finance or lease your vehicle in Ontario, you may be obligated to add comprehensive and collision coverage to your Gravenhurst car insurance policy.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Gravenhurst is accident forgiveness. Accident forgiveness is additional coverage that can be added to your car insurance policy as an endorsement, to protect your driving record and to help prevent your insurance premium from increasing as a result of an at-fault accident claim. Note: coverage and eligibility varies by province.
Loss of use coverage
Loss of use coverage is another type of optional coverage popular among Gravenhurst drivers. When you add this type of coverage to your policy, your insurance company can reimburse you for any transportation costs incurred during a period when your vehicle is out of commission. For instance, if your car was dented in a collision, loss of use coverage will compensate you for the cost of alternate transportation that you had to use while your car was in the shop for repair. As with any type of coverage, loss of use coverage has limits, so you must choose your alternate modes of transit carefully. Examples of fees that loss of use coverage can cover include ride shares, public transportation, and even the cost of renting a car while yours is unusable.
Understanding the cost of Gravenhurst car insurance
To understand the cost of Gravenhurst car insurance, you must get into the mindset of an insurance company. An insurance company’s job is to assess risk. The riskier you seem as a driver, the more your insurance policy will cost. To evaluate risk, an insurance agent uses all kinds of factors. They will ask about a prospective customer’s age, home address, driving experience, average mileage, driving record, and more. Below is a list of some of the key factors an insurer will use to determine your Gravenhurst car insurance rates. Keep in mind that some of these factors are within your control, such as the deductible amount you choose, while others are completely out of your control:
- Where you live (and where you regularly commute)
- Model, make, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
Contact BrokerLink to receive a free Gravenhurst car insurance quote or to learn more about how insurance companies in Ontario calculate auto insurance premiums.
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Pay less for Gravenhurst car insurance with these tips
Pay less for car insurance in Ontario by taking advantage of the following tips:
- Don’t miss your insurance payment deadlines.
- Ask an insurance broker in Gravenhurst for help.
- Only purchase the coverage you need.
- Choose the highest possible deductibles you can afford to pay for your Gravenhurst car insurance policy.
- Enrol in a driver’s education course in Ontario.
- Keep annual mileage low by taking other forms of transportation, like walking, cycling, public transit, or carpooling.
- Have winter tires installed on your car in the fall and don’t take them off until the spring.
- Follow the rules of the road, like the posted speed limits, to reduce your chances of getting into an accident and increase the odds of a clean driving record.
- Install an anti-theft device in your car to minimize the chances of it being stolen.
- Go green and buy a hybrid or electric car to qualify for a car insurance discount.
- Inquire about car insurance discounts you may be qualified for, like occasional driver or winter tire discounts.
- Buy multiple auto insurance policies or try bundling insurance policies, like car insurance with property or motorcycle insurance.
- Buy a vehicle that is known for its safety and reliability.
We’re in your community
BrokerLink has been committed to uplifting local communities since we were founded in 1991. That means that for over 30 years, we have been prioritizing corporate social responsibility above all else. You can find out more about BrokerLink’s community endeavours, like the local events and fundraisers we participate in across Ontario by getting in touch today.
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If you’re a member of a group or association, you may be eligible for more discounts.
At Gravenhurst BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible.
You can reach us by phone, email, or in person at any one of our locations throughout Ontario. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.
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Car insurance Gravenhurst FAQs
Are there snow tire car insurance discounts available in Gravenhurst?
Yes, there are. Snow tire discounts are when you install winter tires on your car, and as a result, your insurance company offers you a discount on your policy. Insurance companies across Ontario have been legally required to offer auto insurance discounts to policyholders who install winter tires on their cars for years now. It was introduced to motivate drivers to swap out summer or all-season tires for winter tires, due to their superior capabilities on snowy and icy terrain. To qualify for this discount, make sure you notify your insurance provider that you intend to install winter tires on your car. From there, ask them about the specific terms that must be met to qualify. For instance, some insurers stipulate that all four tires must be the same model or that the tires must be installed by a certain date.
Is renewing auto insurance in Gravenhurst easy?
Yes, most of the time, renewing car insurance is a fairly easy process. To start, reach out to your insurance company or broker and inform them of your intention to renew. From there, they will notify you of any changes to your premium, if applicable, and possibly ask you to sign a new contract. In most cases, car insurance policies in Ontario can be renewed over the phone or online, which means you won’t even need to visit your local insurance office unless you want to. It is worth noting that the process of renewing a car insurance plan that has expired can be a little bit more complicated. With expired car insurance renewal, you are likely dealing with a lapse in coverage, and therefore, it can take more time to renew the policy. Further, coverage gaps can lead to increased rates so you should prepare for the possibility of a higher car insurance premium.
Do car accidents impact Gravenhurst auto insurance premiums?
Not always, but sometimes. It depends on the circumstances surrounding the accident. Namely, were you at fault for the accident? If so, then your insurance premium is likely to increase at renewal time, unless you have accident forgiveness coverage. With accident forgiveness, your insurance company cannot raise your premium, so long as this was your first at-fault accident. However, any subsequent at-fault accidents you get into can result in a premium increase. Please note that at-fault accidents typically stay on driver’s records for a period of six years in Ontario. If you get into an accident that you were not liable for, then your rates probably will not be affected. It’s always best to speak directly with your insurance provider about accidents and insurance rates, as different insurance companies have different protocols.
If my laptop is stolen from my car while parked on the street, does Gravenhurst car insurance cover it?
The odds are slim that your Gravenhurst car insurance policy would cover the cost of replacing your laptop if it was stolen from your car. Why? Auto insurance does not cover the theft of personal items. Some home insurance policies do, but you will need to consult the terms and conditions of yours to see if it would cover you in this particular scenario. Although car insurance is unlikely to pay for personal belongings stolen from your car, it can pay for the cost of repairing any damage to your vehicle if it was harmed in the process of a thief breaking into it. If your policy includes comprehensive coverage, you will also be covered if your car is stolen.
Do I need an Ontario driver’s licence before I can buy a Gravenhurst auto insurance policy?
Yes. No insurance agent or broker will allow you to purchase Gravenhurst car insurance unless you can provide proof of a valid driver’s licence. Thus, make sure that you hold a valid Ontario driver’s licence before contacting an insurance provider.
Will my Gravenhurst car insurance policy cover me if I leave Ontario?
Yes, but only if you plan to drive outside the province temporarily. If you are planning a permanent move somewhere, whether to another Canadian province or a different country, you will not be covered by your Gravenhurst policy for long if at all. Thus, before moving, make sure you contact your insurance company and discuss your options. They will let you know whether they offer coverage in the place you are moving to. If so, you might be able to stay with your current provider, though you will need to update the address on your policy and possibly adjust your coverage, especially if minimum coverage requirements are different in your new home province. Alternatively, if your current provider does not offer coverage where you are moving, then you will need to cancel your policy and find a new provider who does offer coverage in the place you are moving to.
Is driving without auto insurance illegal in Gravenhurst, Ontario?
Yes, which is why the punishments for driving without car insurance are so high in Gravenhurst. Anywhere in Ontario, if you are caught driving without insurance, you can face any of the following penalties:
- Maximum fines of between $25,000 and $50,000
- A 25% surcharge on any fines levied
- Vehicle impoundment
- The suspension of your driver’s licence for a period of 30 to 365 days
Therefore, it is strongly recommended that all drivers purchase a valid car insurance policy in Gravenhurst before getting behind the wheel.
Are car insurance quotes free for Gravenhurst customers?
You will need to do some digging to find out which insurance companies and brokers in your area offer free quotes, but chances are, you are bound to find somewhere that does. From there, simply let them know that you are looking for a free auto insurance quote, answer the questions they ask, and you should receive your complimentary quote in minutes.
Where can car insurance be purchased in Gravenhurst?
Car insurance can be purchased from an insurance company or an insurance broker. The process can be completed online, in person, or even over the phone while speaking with a licensed professional. Buying insurance from insurance agents and insurance brokers both offer their own unique benefits. Either way, you can rest easy knowing that insurance in Ontario is highly regulated, making both options safe and secure.
What is the average cost of car insurance in Gravenhurst?
Many customers are curious to know: how much is car insurance per month in Ontario? The average monthly cost of auto insurance for Ontario drivers varies based on a number of factors. That said, car insurance rates change frequently, so the most reliable way of finding out how much auto insurance in Gravenhurst will cost is by contacting an insurance professional for a complimentary quote. An insurer can explain how car insurance rates in Ontario work, including which factors are likely to impact how much you pay for a policy, such as your age and location.
Is liability coverage required in Gravenhurst, and if so, how much do I need?
Yes, liability coverage is one of the four types of mandatory car insurance coverage in Gravenhurst. Specifically, the Ontario government has mandated that all drivers must carry no less than $200,000 in third party liability coverage at all times. Driving without this is the same as driving without insurance, which is illegal in the province.
Does credit score matter when it comes to car insurance in Gravenhurst?
Some insurance companies might consider it, but it is not guaranteed. Unlike other factors like your age and location, your credit score is not something that every insurance company is going to take into account. If your insurance company asks about your credit score, chances are they want to get a better idea about your level of responsibility. Credit scores can help an insurance agent determine your risk level. From their perspective, the higher your credit score, the less risky an investment you will be. Thus, if you have a high credit score, you may benefit from a lower insurance rate.
If you have any questions, contact one of our local branches.
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