Car insurance in Newcastle

If you need help finding a car insurance plan, let an insurance broker in Newcastle help you find a great policy. We will shop around on your behalf to ensure you find the right types of auto insurance at a great price.

Mandatory car insurance coverage in Newcastle, Ontario

What does mandatory car insurance look like in Newcastle, Ontario? If you want to legally drive your car in Newcastle, you will need to have the following types of coverage:

Third party liability coverage

Third party liability coverage will pay for the cost of a policyholder's at-fault accident. Given how expensive at-fault collisions can be, this kind of coverage is extremely useful. It is recommended that customers purchase more than the mandatory coverage requirement, though you should have no less than $200,000 on your policy.

Accident benefits coverage

Accident benefits coverage will reimburse you for the cost of medical expenses, like physical therapy or prescription medication, if someone is injured in a car accident. It can also pay for lost income if someone is unable to work due to their injury or funeral fees if the accident is fatal.

Direct compensation coverage

Direct compensation coverage can pay for you to repair your car if it is damaged in a collision. For example, if you get into an accident that is not your fault and your car suffers damage, you can receive a payout from your insurer via the direct compensation portion of your policy.

Uninsured automobile coverage

If you are involved in an accident with an at-fault driver who is uninsured, underinsured, or who is anonymous, then the type of auto insurance claim you will file is an uninsured automobile claim. This can pay for medical expenses or repair bills associated with a hit and run accident or an accident with a driver who does not have car insurance.

Optional auto insurance coverage in Newcastle, Ontario

Now that we’ve covered mandatory coverage in Newcastle, let’s dive into optional coverage. As the name suggests, Newcastle motorists are not legally required to purchase the types of protection listed below, but that doesn’t make them any less important. If you want to be protected against the widest range of risks, we highly recommend adding one or all of the following coverages to your Newcastle car insurance plan:

Collision coverage

Collision car coverage is a type of optional property damage coverage that can pay to repair or replace your car if it suffers extensive damage. For example, if your car collides with another vehicle, an animal, or a grounded object on the road and is severely damaged or even totalled, you can file a collision claim to help you cover the cost of the loss. A policyholder can file a collision claim whether they caused the accident or not. Keep in mind that you might not have a choice as to whether to add collision coverage to your policy if you lease or finance your car in Newcastle.

Comprehensive coverage

Comprehensive car coverage is a type of optional coverage that provides financial security in the event that your parked car is damaged or stolen. Whether it is vandalized, damaged in a fire, or a tree branch falls on it, you can file a comprehensive insurance claim to cover the cost of the damage. More specifically, comprehensive coverage can pay for losses relating to theft, vandalism, falling and flying objects, explosions and riots, fire, and weather-related incidents, like water damage and hail. Although it is optional for most Newcastle drivers, this may not be the case if you lease or finance your car. If your vehicle is subject to a lease agreement, make sure that you review your contract in case you are required to purchase comprehensive coverage until your lease is up.

Accident forgiveness coverage

One more type of optional car insurance coverage popular among drivers in Newcastle 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 vary by province.

Loss of use coverage

The purpose of loss of use coverage is to reimburse policyholders in the event that they are without their cars due to damage. For example, if your car is in the shop for a week being repaired following a collision, loss of use coverage can alleviate the financial burden and inconvenience of being without your vehicle. How? It can pay for you to rent a car, take public transit, or hire ride-shares or taxis. Please note that loss-of-use insurance will only cover you up to the coverage limit.

Factors that impact how much you pay for Newcastle car insurance

The following is a list of factors that most Ontario insurance companies will consider when calculating your Newcastle car insurance rates:

  • Where you live
  • Age
  • Gender
  • Vehicle type
  • How you use your vehicle
  • Driving record
  • Driving experience
  • Past claims
  • Prior insurance coverage
  • Number of kilometers you drive
  • Type of coverage on your policy
  • Your deductible(s)

By now, it should be clear to you why Newcastle car insurance rates vary so widely. The above is just a list of the most common factors that insurance companies include. Some insurers may consider additional factors, like your credit score, as well as weigh these factors differently. Find out more about how car insurance affects credit scores and what other factors might be assessed by contacting BrokerLink today.

Further, even though insurance brokerages like BrokerLink do not set rates - insurance companies set these - we can still provide you with a free insurance quote to give you an idea of how much a policy will cost you. All BrokerLink quotes are free, accurate, and reliable. Reach out to us today to receive a free quote in five minutes or less.

We’re in your community

When you choose BrokerLink as your insurance brokerage, you get integrity, generosity, respect, and excellence. Since we were founded over 30 years ago, we have made it our mission to provide a customer-driven insurance experience. This means matching all customers with the right insurance policies for them. Contact us today to find out more about our core values and top-notch insurance services.

Contact us

At Newcastle 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 you adjust or renew your policy down the road.

You can reach us by phone, email, or in person at any one of our locations across 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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Newcastle car insurance FAQs

How do I renew car insurance in Newcastle?

You can renew car insurance in Newcastle with help from an insurance agent or broker. The first step is to let your insurer know that you want to renew your policy. They will confirm whether you are allowed to do so. From there, they will let you know about any changes to your premium and give you a chance to update your policy if you wish to do so. Ways that you might want to update your policy include adding or removing coverage, upping or reducing your coverage limits, or changing your deductibles.

Can I drive with expired car insurance?

No. Driving with expired car insurance is the same as driving with no insurance at all, which is illegal. This is why you must renew your policy before it expires. Otherwise, you run the risk of an uninsured driving penalty. Plus, if you have a gap in coverage, it will cost you more to purchase coverage in the future.

Will I receive a Newcastle car insurance discount for installing snow tires on my car?

You might. For years now, insurance companies in Ontario have been required to offer car insurance discounts to policyholders who install winter tires on their cars. This is the government’s way of incentivizing drivers to outfit their cars with snow tires due to the added protection they offer against winter conditions. Winter tires offer greater traction, which decreases brake time and helps drivers avoid accidents in icy or snowy conditions. Since a driver with snow tires might be less likely to get into an accident, an insurer will reward you by giving you a cheaper rate so long as you meet their conditions. If you need new tires, consider buying a new set of snow tires. Just make sure that all four tires are the same model, as this is usually a requirement if you want to qualify for a winter tire car insurance discount.

What is a car insurance deductible and how do they work in Newcastle?

A car insurance deductible is the amount of money that a policyholder must pay if an incident occurs and they need to file a claim. Before your insurance company will compensate you, you must first pay your deductible. From there, your insurer will issue a payout that helps cover the remaining costs. For example, if you get into an accident with damage that amounts to $4,000 and you have a $1,000 car insurance deductible, you will need to pay your $1,000 deductible, and then the insurer will pay the remaining $3,000. Since deductibles determine the financial responsibility of the policyholder versus the insurance companies, insurers will often reward policyholders who choose higher deductibles with lower premiums.

I got into a collision and it was my fault. What will happen to my Newcastle car insurance premium?

It will likely go up. The reality is that when policyholders get into at-fault accidents, it is likely to impact their rates. Specifically, it will cause your rates to go up the next time that your policy is renewed. Your rates may remain increased for six years while the collision is on your driving record. The only exception to this is if you have accident forgiveness coverage and your collision is eligible for this type of coverage. It must have been your first at-fault accident to claim this type of coverage.

If my wallet is stolen from my car, will my Newcastle auto insurance plan cover me?

Car insurance in Newcastle typically does not cover personal items stolen from a car, such as a wallet, smartphone, jewellery, or laptop. That said, if you add a form of extra protection known as comprehensive coverage to your policy, then you may be covered in the event that permanent items in your car are stolen. Permanent items or fixtures in a car may include the steering wheel, a built-in stereo, or the catalytic converter. Further, comprehensive coverage will pay to replace your car if it is stolen. However, personal belongings in your car will not be covered. Review the terms of your home insurance plan in case it provides coverage against items stolen from your vehicle.

When do Newcastle car insurance rates start to drop?

When does car insurance go down in Newcastle? The answer to this question varies, but generally speaking, rates start to decrease after a driver has been driving for seven years with no infractions on their record. Whether the driver begins to drive at 16 or 26 the rates would still reflect a new driver on the policy, once the driver builds a clean driving record they may see a decrease in their rates. That said, this depends on how much driving experience you have and what your driving record looks like. Another time that your car insurance rate will drop is when a driving infraction leaves your record. For instance, at-fault collisions stay on driving records in Ontario for six years. After six years, they will no longer be on your record, and therefore, your rates are likely to decrease.

What types of car insurance coverage can a Newcastle insurance broker help me find?

An insurance broker in Newcastle can help customers find all kinds of policies, from first-time car insurance plans to experienced driver car insurance plans. More specifically, a broker can help you add both mandatory and optional coverage to your policy, including but not limited to third party liability, accident benefits, direct compensation, uninsured motorist, collision, comprehensive, waiver of depreciation, loss of use, roadside assistance, and accident forgiveness coverage.

How can I save money on my Newcastle car insurance plan?

There are plenty of ways that you can save money on your Newcastle car insurance plan. Buying an insurance bundle is one way to do so. Installing winter tires, an anti-theft device, or a telematics device in your car are a few others. You might also qualify for an occasional driver discount if you spend a below-average amount of time on the road each year. Driving safely can help keep rates low and even help you qualify for a safe driver discount. Learn how accidents affect car insurance rates by reaching out to an insurance professional. They can explain why maintaining a clean driving record is so important. Lastly, driving a car with a high safety rating or a hybrid or electric car can also help you reduce your premium.

Do I need an Ontario driver’s licence to buy Newcastle car insurance?

Yes. Be sure to obtain a valid Ontario driver’s licence before attempting to purchase car insurance as without a licence, you will be unsuccessful at purchasing insurance. A licence is one of the first things that an insurance broker or agent will ask for when you contact them about purchasing coverage.

Does my Newcastle car insurance policy still cover me when driving in another province?

Yes, if you are driving in another province temporarily. Car insurance coverage typically follows the driver anywhere in Canada or the United States if they are visiting temporarily. However, if you plan to permanently relocate to another province, you will likely need to switch policies and maybe even providers. At the very least, you will need to inform your provider of your new home address so that they can update your information. Your insurance rates will likely change as well since they are partially dependent on location. If your insurance provider offers coverage in your new province, you might be able to stay with the same provider. Still, again, you will probably need to update your coverage, especially if your existing coverage does not meet the minimum coverage requirements in your new province.

What happens if I drive without car insurance in Newcastle?

This is not a good idea, as driving without car insurance is illegal. The penalties for doing so range from maximum fines of between $25,000 and $50,000 to the impoundment of your vehicle and the suspension of your driver’s licence.

How do I get a free car insurance quote in Newcastle?

You can obtain a free car insurance quote in Newcastle by asking an insurance provider or broker near you for a complimentary quote. Quotes are generally free of charge and obligation-free.

If you have any questions, contact one of our local branches.