What types of car insurance are mandatory in Hamilton?
Car insurance is a legal requirement in Hamilton, which means you need to have coverage if you want to get behind the wheel. The specific types of coverage you need to have for your policy to be valid are as follows:
Third party liability coverage
Liability car insurance, or third party liability insurance, is a must in Hamilton. It protects you if you cause an accident on the road. How it can protect you is as follows: If you get into a collision that is your fault, your insurance provider will cover the associated costs. These costs may include legal fees, including defence and settlement fees, as well as any medical expenses incurred due to injuries resulting from the crash and property damage bills resulting from any damage the crash involves. In Hamilton, your auto insurance plan must include no less than $200,000 in liability insurance.
Accident benefits coverage
Accident benefits coverage is also mandatory in Ontario and it covers you if you get into an accident that results in bodily injury. More specifically, if anyone involved in an accident requires medical attention in the aftermath, this portion of your policy will help pay for any medical fees not covered by health insurance. Accident benefits will kick in no matter which driver caused the accident and can cover the medical bills of the policyholder or someone else involved, like a pedestrian or another driver.
Direct compensation - property damage coverage
Direct compensation - property damage coverage is centred on property damage following a collision. For example, if you get into a fender bender and your vehicle is damaged, you can be compensated for the cost of repairs under this portion of your policy.
Uninsured automobile coverage
Uninsured automobile coverage is the last type of compulsory car insurance coverage in Hamilton. Like the others on this list, it is legally required. This type of coverage will protect you if you find yourself in a collision with a driver who is uninsured, underinsured, or unidentified (in the case of a hit and run).
What other types of auto insurance coverage do I need in Hamilton?
As long as you have the four mandatory coverage types listed above, you will be in compliance with local Ontario laws. However, that may not be enough for you depending on your needs. That is why there are a whole host of optional coverages that drivers can add to their policies. Collision coverage, comprehensive coverage, and accident forgiveness coverage are three of the most popular types of optional auto insurance coverage in Ontario, and we discuss each below:
If your car crashes into another car or object on the road, collision car coverage can help cover the cost of any vehicle repairs needed as a result. This type of coverage comes into play no matter if the policyholder was the one who was responsible for the accident. It is worth noting that although collision coverage is optional for most drivers, it might be mandatory if you lease or finance your vehicle. Be sure to read through the terms and conditions of your lease agreement carefully to understand any coverage obligations you are under.
Comprehensive car coverage safeguards drivers and their cars against non-collision-related risks. For this reason, it is sometimes referred to as parked car insurance. It will protect your vehicle against damage caused by theft, fire, glass damage, falling objects, vandalism, and more. The specific types of damage it protects against will be listed in your policy as named perils. Read through this carefully to understand the extent of your coverage. Finally, as with collision coverage, comprehensive coverage is usually optional but may be required if you lease or finance your car.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among drivers in Hamilton 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 if you have an at-fault accident claim. Note: coverage and eligibility varies by province.
How much does a Hamilton auto insurance policy cost?
Many Hamilton drivers want to know how much their car insurance policy will cost. However, this question is difficult to answer since there are so many variables. Car insurance rates vary significantly because insurance companies base premiums on a wide range of factors. Some of the main factors influencing car insurance costs in Hamilton are as follows:
- 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
Given the number of factors that affect auto insurance costs in Hamilton, we recommend obtaining a free quote for a better idea of how much you can expect to pay for your policy. Contact BrokerLink to request a free auto insurance quote today and receive one in just minutes.
How can I cut costs on Hamilton car insurance?
Many Hamilton drivers want to know what they can do to keep their car insurance costs low. Although some factors are out of your control, there are always ways that policyholders can cut insurance costs. The BrokerLink team has put together the following list of tips to help Hamilton motorists save money on auto insurance:
Contact a BrokerLink insurance advisor in Hamilton
One way to cut costs is by enlisting the help of an insurance expert. For that, you can reach out to BrokerLink. One of BrokerLink’s licenced insurance advisors can give you all kinds of ways to save money on car insurance in Hamilton. They can even shop around for policies on your behalf and compare rates to ensure you are getting the most invasive coverage at the cheapest price.
Graduate from a driver’s ed program
When you sign up for and complete an approved driver’s ed program in the province of Ontario, you can save big on car insurance. Insurance companies offer discounts to those who completed these types of courses, which can make a big difference, especially if you are a young driver with high premiums.
Install a telematics device in your car
Telematics discounts are offered by many insurance companies in Ontario. They are best suited to drivers with good driving records and safe driving habits. If you decide to go this route, your insurance company will have you install a telematics device in your car, or download a similar application onto your smartphone. Either way, whether through the device or the application, your driving habits will be monitored.. For instance, it will maintain a record of your speed, acceleration rate, braking, distance, hard cornering, etc. The safer the habits you exhibit, the more your car insurance discount will be. Before enrolling in a telematics program, make sure to brush up on your safe driving tips.
Spend less time on the road
The less time you spend on the road, the lower your rates may be. Driving habits are a big factor in determining your rates, so if you have low annual mileage, make sure to tell your provider. Depending on how infrequently you drive, you could even qualify for an occasional driver discount. Do what you need to do to keep your mileage down, whether that means carpooling, taking public transit, or cycling to the office.
Bundle insurance policies
Bundling insurance policies is smart if you love savings and need to buy more than one insurance product. Bundling policies is when you purchase two or more policies from the same insurance company at the same time. Many insurers allow you to choose from a wide range of insurance products, which means you wouldn’t even need to buy two car insurance policies. For instance, if you also needed house insurance, you could buy one car insurance plan and one property insurance plan. Contact BrokerLink to find out more about the advantages of insurance bundling.
Buy a safe car
Safety matters, especially to insurance companies in Hamilton. So if you’re in the market for a new vehicle, be sure to research safety and reliability. These two factors may result in a lower premium, so if you buy a car that has a high safety rating, make sure to tell your provider. Plus, cars with high safety ratings usually have lower rates of theft, which is another factor that an insurance company will assess when calculating your premium. If you are ever unsure, you can always get a quote before you buy, allowing you the peace of mind that buying a new car may not be as expensive as you expected.
Buy a hybrid or electric car
Save money on car insurance and at the gas pump by going green and buying a hybrid or electric vehicle. To encourage Ontario residents to cut their carbon emissions, many insurers now offer auto insurance discounts if you drive a hybrid or electric vehicle.
We’re in your community
BrokerLink gives back to the Hamilton community every chance we get. You can find us participating in local charitable endeavours and connecting with our customers on a daily basis. Contact us for more insight into our community values.
Local Ontario Insurance Links
If you’re a member of a group or association, you may be eligible for more discounts.
At Hamilton 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. We can also help with other tasks like expired car insurance renewal.
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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Hamilton car insurance FAQs
Do snow tires result in a Hamilton car insurance discount?
Yes, installing snow tires on your vehicle is likely to result in a car insurance discount. For several years now, insurance companies in Ontario have been required to offer an auto insurance discount to any driver who installs snow tires on their car. However, you must meet the insurance company’s conditions to qualify. These vary but usually stipulate that the driver must have the tires installed on their vehicle by a set date each season and that all four winter tires must be the same model.
How do Hamilton car insurance deductibles work?
An insurance deductible is the amount that a policyholder is required to pay if they suffer a loss, submit a claim, and that claim is approved. Once they have paid the required deductible, the insurance company will step in and cover the remaining cost, up to the coverage limit. Here’s an example to clarify: If you got into a car accident that you caused and it results in $5,000 worth of vehicle damage, you would submit a claim with your insurance provider. If the claim was approved, and your deductible was $1,000, you would be required to pay $1,000 out of your own pocket before the insurance company covered the remaining $4,000. It is important to note that car insurance policies often have multiple deductibles since you can choose a different deductible for each type of coverage in your policy. Higher deductibles usually result in cheaper premiums than lower deductibles, as high deductibles mean more financial responsibility on behalf of the policyholder.
I got into a car accident that was my fault. Will my Hamilton car insurance premium be impacted?
Yes. If you get into an accident that you caused, your Hamilton car insurance premium is likely to go up. While being involved in an accident that you did not cause is unlikely to affect your premium, causing an accident will likely lead to an increase in your rates. The only exception to this is if you have accident forgiveness coverage. In this case, if this was your first at-fault accident, your insurance premium would not change. It is also worth noting that accidents typically stay on your record for six years in Ontario.
Does Hamilton car insurance cover personal belongings stolen from my car?
No, most Hamilton car insurance policies do not cover personal belongings if they are stolen from your car. In fact, theft of any kind, including the theft of your vehicle, will not be covered by your policy unless it includes comprehensive coverage. If theft is a named peril in your policy, your insurance provider can reimburse you for the cost of property damage that occurred during the act of thievery, such as if the burglar broke your front window to steal your belongings. The only situation in which the personal belongings in your car may be covered is if the items stolen were permanent fixtures of your vehicle, such as a pre-installed stereo or steering wheel.
How do I know what Hamilton auto insurance policy is right for me?
The Hamilton auto insurance policy that’s right for you is the one that protects you on the road without breaking the bank. It’s important to strike a balance between coverage that provides peace of mind and coverage that is affordable. You also must ensure that your policy meets the minimum coverage requirements laid out by the province of Ontario. Otherwise, you will be in breach of the law.
How can I save money on Hamilton car insurance?
Save money on Hamilton car insurance by bundling insurance policies together, driving safely and maintaining a clean driving record, graduating from an approved driver’s education program, installing an anti-theft device in your car, driving a hybrid or electric vehicle, driving a car with a high safety rating and a low rate of theft, installing winter tires on your car, or choosing high deductibles for your policy.
Do I need an Ontario driver’s licence to buy Hamilton car insurance?
Yes, all policyholders must first have a valid Ontario driver’s licence in order to buy insurance. You will also need to show proof of a valid driver’s licence before registering your vehicle with the Ontario Ministry of Transportation.
Does my Hamilton car insurance policy still cover me when driving in another province?
Yes. If you are temporarily visiting another province, such as going on vacation in Quebec, your car insurance coverage will follow you. However, if you are moving to another province, you will need to purchase a new policy. In the case of a permanent move, make sure to notify your insurance provider as early as possible. They can provide you with any necessary documents and adjust your coverage as needed. If your current insurance provider offers coverage in your new province, you may not even need to switch insurance companies.
What happens if I drive without insurance in Hamilton?
Driving without insurance is extremely ill-advised, not to mention illegal. Since uninsured driving is illegal everywhere in Ontario, if you are caught doing so, there could be serious consequences. Namely, you could be slapped with a fine of up to $25,000 for a first offence and double that, up to $50,000 for a second offence. You could also have your car impounded and your driver’s licence suspended for anywhere from 30 to 365 days. As you can see, driving without insurance is not worth the risk so make sure that you purchase a policy that complies with local laws.
How much does car insurance cost in Ontario?
The cost of Ontario car insurance can vary significantly between policyholders. However, you can generally expect to pay between $1,300 and $1,700 per year.
How do I get a free car insurance quote in Hamilton, Ontario?
Reach out to a local insurance provider or insurance agent near you and request a free quote. Many insurance professionals offer complimentary quotes to customers. You should expect to answer some questions about yourself, your driving habits, and the vehicle you drive. From there, you can receive a quote in a matter of minutes.
If you have any questions, contact one of our local branches.
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