What is a Car Insurance Calculator?
A car insurance calculator is a free tool that will help you find the best possible coverage for your car. However, they can be intimidating to use if you’re not familiar with industry jargon. Like all industries, the insurance industry has its own unique set of terms that can be difficult to understand at first. Deductibles, premiums, liabilities, the list goes on and on. That’s where BrokerLink comes in. We don’t want anyone to struggle with using an Ontario car insurance calculator, which is why we’re taking this opportunity to explain all there is to know about car insurance quotes in Ontario.
Below, we’re going to provide more information on how car insurance rates are calculated in Ontario, as well as how to choose a policy that’s right for you. And if by the end you still have questions for us, we’d love to speak with you! BrokerLink’s team of car insurance specialists are always available to answer your questions and put your mind at ease. At the end of the day, we just want you to find a car insurance policy that’s right for you.
How Car Insurance Rates are Calculated in Ontario
Where you live and work can significantly impact your insurance premium. Each province has different regulations pertaining to car insurance. However, rates can also vary within provinces, largely depending on whether you live in an urban or rural area. Typically, those who live in high-population density areas of Ontario, such as Toronto or the GTA, will have higher rates. This is because, with more people comes more cars, and a greater number of cars on the roads increases your chances of getting in an accident.
In contrast, if you live in a rural part of Ontario, you may pay a lower insurance premium. Other location-related factors that may affect how your Ontario car insurance rate is calculated include if you live in a lowland area prone to storms or natural disasters or if you live in or frequently travel to areas of the province with higher crime rates.
Insurance providers rely on data, so if the data reveals that married drivers are less likely to get into an accident than unmarried drivers, then your marital status could impact your car insurance rate.
As mentioned above, insurance companies look at the data, which is why if the data shows that certain age groups are more likely to get into an accident on the road, those age groups may have to pay higher premiums. Typically, young and elderly drivers are required to pay the highest premiums.
Rules and regulations surrounding car insurance are set provincially, meaning each province enacts its own laws on the minimum amount of coverage required. In Ontario, you are legally required to carry $200,000 in third party liability coverage.
Responsibility: Some car insurance companies will consider one’s general level of responsibility when calculating your rate. Factors that may speak to responsibility include credit score and grades at school. In essence, the more responsible you appear to be in your everyday life, the more likely you are to be eligible for discounts.
Type of Car
The make and model of your car can also affect your car insurance rate. Insurance providers will consider the odds of your car being stolen, as well as how much it would cost to repair should it be damaged. Generally speaking, your insurance rate might be higher if you own a new vehicle or a sports car, however, it can be lowered if your car is equipped with safety features.
The frequency with which you drive your car may also affect your rate. If you only drive on the weekends, or use your car to drive to your mother’s house once a week, then the wear and tear on your vehicle will be minimal. From the insurance company’s perspective, the less time you spend on the road, the less likely you are to get into an accident. In contrast, if you’re constantly on the road, driving at all hours of the day and on major highways, your chances of getting into an accident go up, and so too will your insurance premium.
The More Driving Experience You Have, the Better
While the factors above will all be taken into account when calculating your Ontario car insurance rate, your driving history and experience also plays a significant role. To keep your rates as low as possible, always drive the speed limit, drive defensively (as opposed to offensively), and reduce your use of drugs and alcohol. Keeping accidents off your record is crucial to receiving the best possible auto insurance rate. As soon as an accident is on your record, whether it was ultimately deemed your fault or not, insurance providers can use it as an excuse to raise your rate. Do your best to avoid speeding tickets, getting into an accident, or being charged with a DUI. All of these incidents will negatively impact your insurance rate.
Length of Car Ownership Matters
Another important factor in calculating your auto insurance rate in Ontario is the duration of car ownership. How long you’ve owned your car matters. On the declarations page of the policy is where you will be required to list the names of the other people who drive the vehicle (such as your partner or child). If you’ve all shared the same car for a long time without incident, this is a green flag for insurance providers. On the other hand, if you purchase new cars each year and your partner and child each have their own car, you are likely to pay more.
How to Lower Car Insurance Premiums in Ontario
No one wants to pay more than they have to for car insurance (or anything for that matter!). When it comes to calculating your Ontario auto insurance, there are a few choices you can make that will help you save money.
Insure all cars together
If you own multiple cars, insuring them together can save you between 15% and 20% on each vehicle’s car insurance.
Combine different insurance policies
Many insurance companies will offer a discount (sometimes a significant one of up to 15%) if you purchase multiple policies from them at once. So if you’re looking for home insurance or business insurance, as well as car insurance, buying them all from the same provider could lower your rates.
Invest in winter tires
Ontario offers a car insurance discount to those who invest in winter tires. The exact discount varies based on the insurance company, but it could be up to 5%.
Review your coverage annually
Car insurance companies frequently change their rates, so just because one company gave you a good rate last year doesn’t mean they will this year. For this reason, it’s important to review your coverage annually and make sure you’re still happy with the rate you’re receiving. If your renewal rate is much higher, consider shopping around and comparing quotes to see if you can get a better rate somewhere else.
Choose a broker
A broker’s job is to find you the best insurance rate possible. They can easily help you shop around, compare quotes, and even find special discounts you may be eligible for. If you’re looking to save money on your car insurance in Ontario, working with a reliable broker like BrokerLink is the way to go.
Buy an eco-friendly vehicle
Investing in a hybrid or fully electric vehicle will not only save you money at the gas pump but also on car insurance. A growing number of providers across Ontario are offering discounts to owners of environmentally-friendly cars.
Mandatory Car Insurance in Ontario
Car insurance is regulated at the provincial level, which means it’s the government of Ontario that dictates whether it is mandatory or not. In this case, Ontario has made auto insurance compulsory, so every vehicle registered in the province must be insured. In order to register a vehicle, and even in order to purchase a vehicle, you must show proof that you have the necessary insurance coverage.
Further, to obtain car insurance in Ontario, you must have a valid driver’s license. Other information that be required to purchase car insurance includes a drive abstract (your BrokerLink insurance broker can help you with this), as well as information about any other people who will be driving your car (for example, if your partner or teenager plans to drive the car regularly, you will need to state this).
The Consequences of Driving Without Car Insurance
As mentioned above, car insurance is mandatory in Ontario, which means you can face serious consequences if caught driving without insurance. The first time you are caught driving without car insurance in Ontario, you can be fined anywhere between $5,000 and $25,000, in addition to a 15% surcharge.
For a second offense, the fine can go up to $50,000. Thus, driving without car insurance is simply not worth the risk. Do yourself a favour and call a broker to find a car insurance plan that works for you.
Shopping for Car Insurance Just Got Easier
It pays to shop around for car insurance - literally! Working with a trusted car insurance broker will save you both time and money. Unlike car insurance companies, brokers like BrokerLink work for you, the customer. Finding you a car insurance policy is the broker’s top priority, and it’s their job to shop around for you. Your BrokerLink Insurance Advisor will work tirelessly to find you the best possible car insurance coverage at a rate that’s within your budget.
Even better, car insurance brokers are experts in their field and are always pleased to offer their unbiased advice. So whether you’re new to the world of car insurance and want advice on buying your first-ever policy, or a seasoned veteran who’s looking for the most comprehensive coverage at the best price, BrokerLink’s team of car insurance experts can help.
It’s also important to remember that car insurance companies change their rates all the time, which means just because your current policy is within budget doesn’t mean it will be upon renewal. For this reason, we recommend speaking with a local broker when purchasing a new car insurance policy, but also when your existing policy is up for renewal. Again, you can always trust BrokerLink to put you and your needs first, finding you the best possible insurance policy time and time again.
Compare Auto Insurance Quotes in Ontario
The best way to ensure you’re getting the best possible rate and coverage on your car insurance is through a broker. BrokerLink’s experienced team of Insurance Advisors is always on hand to help you learn more about the coverage options out there and to discover which ones best suit your needs. They will ask you about your location, driving history, age, marital status, driving habits, duration of car ownership, and more, all so that they can provide you with the most accurate and competitive rate possible. We can also give you the inside scoop on discounts and benefits, ensuring you’re never paying more than you have to for car insurance.
Ultimately, our #1 goal is for you to walk away with a car insurance policy that gives you peace of mind. Whether you prefer to shop online or at your local BrokerLink branch, we can help with all your car insurance needs.
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