What is a car insurance calculator?
First, you may be wondering exactly what a car insurance calculator is. As the name suggests, an auto insurance calculator is an estimation tool that will give you an idea of how much car insurance coverage will cost you at various insurance companies across Canada. Thus, this resource can help you determine which insurance provider offers the best coverage for your car at the most affordable price. To learn 5 ways to save on car insurance, contact BrokerLink.
How does a car insurance calculator work?
Car insurance calculators work using complex algorithms that consider several important factors about you and your driving history. They analyze the information you provide to give you a car insurance quote that is as accurate and reliable as possible.
The questions that you will be asked when using a car insurance calculator range depending on the company. However, generally speaking, the more questions you answer and the more information the calculator has about you, the more accurate your estimated price will be. Pieces of information that car insurance calculators typically ask users to provide include their age, gender,, home address, the make and model of their car, their driver’s licence level and the date they received it, and more.
It’s worth noting that even with the more complex car insurance calculators, if you’ve already gathered the necessary information, you can usually receive your quote in as little as five minutes. Plus, nowadays, car insurance calculators can be found online for free, which makes them extremely accessible.
How to use a car insurance calculator
To benefit from a car insurance calculator, be sure to answer every question it asks in as much detail as possible. Below is a list of questions that a car insurance calculator may ask you and the types of answers that you should provide, along with a breakdown of the final steps in the process:
1. What type of car do you drive?
Nearly every car insurance calculator out there will ask about the type of car you drive. You should be prepared to provide the make, model, trim, and year. However, it may also ask you to input other information about your driving habits, such as the average amount of time or average distance of your commute.
2. Who drives your car?
Provide a clear list of all drivers who regularly drive your car. If you are the sole driver of the car, then you only need to list yourself. Provide the driver’s licence information, including the licence numbers and classifications, for every drive that you list.
3. What is your driving history?
A car insurance calculator will need to know a bit of information about your driving history in order to provide you with an accurate estimate. Therefore, now is the time to be completely honest about your record. If you’ve been in accidents, whether you were at fault or not, received speeding tickets or careless driving tickets, or have other infractions on your record, state it here.
4. Find out what car insurance discounts you are eligible for
Once you have answered all of the calculator’s questions, it will let you know what car insurance discounts you are eligible for. Using key information like your age, driving record, and the type of vehicle you drive, the algorithm can inform you of any discounts you qualify for. These discounts could be through union, alumni, or membership affiliation, or they could be other types of discounts like bundling discounts.
5. Receive your estimated car insurance rates and compare them
Last but not least, after inputting the necessary information into the car insurance calculator and learning about the discounts that you may be eligible for, it’s time to receive your free car insurance quote. Car insurance calculators typically break down rates by the provider that offers them. This gives you a chance to explore the auto insurance policies offered by a multitude of different providers. From there, you can be connected directly with the provider to ask questions, receive a firm quote, and finalize your coverage.
Types of car insurance policies in Canada
When reviewing the different auto insurance estimates that the calculator tool provides you, it’s important to consider the various types of auto insurance policies out there. There are three main types of policies in Canada. The first is a standard policy that meets the minimum coverage requirements set by the province you live in. The second is an enhanced policy which features optional coverage and endorsements, like comprehensive coverage, collision coverage, accident forgiveness coverage, and loss of use coverage. The third and final type of car insurance policy is a custom policy, which includes the specific types of extra coverage that your car needs.
What is standard car insurance coverage in Canada?
Standard car insurance coverage varies between provinces, as each province has its own list of minimum coverage requirements that must be met. That said, there are similarities between what standard auto insurance coverage looks like across Canada. Using Ontario as an example, the following is a list of the four types of coverage that you will find on any basic car insurance plan in the province:
Driving without car insurance in Canada is against the law
Please note that driving without car insurance anywhere in Canada is against the law. Auto insurance is government-mandated by every provincial and territorial government in Canada. Thus, if you choose to drive without it, you will be in breach of the law and could be penalized accordingly. Punishments vary between provinces but typically include hefty fines, jail time, the suspension of your driver’s licence, and the impoundment of your vehicle. Ontario has some of the harshest penalties for uninsured driving, with fines running up to $25,000 for a first offence and $50,000 for a second or subsequent offence.
Driving with expired car insurance or with insurance that does not meet the coverage requirements in your home province, such as driving with less than $200,000 of third party liability coverage in Ontario is the same as driving with no insurance at all.
Make sure that you purchase adequate car insurance before hitting the road. If you aren’t sure what mandatory coverage looks like in your province and whether your current policy complies with these requirements, contact BrokerLink today.
Required car insurance coverage in Ontario
There’s a reason that Ontario requires all drivers to purchase car insurance. It is so that all drivers, passengers, and cars on the road are protected. Each type of mandatory coverage provides a different form of protection related to collision. We outline how the different coverages can protect you below:
Third party liability coverage
Third party liability coverage is designed to cover the cost of an accident that you caused. If you are found to be at fault for a collision, the liability portion of your policy will kick in to help pay for the damage done. Whether the accident results in bodily injury or property damage, third party liability insurance will cover expenses like medical fees, legal fees, and repair bills. All Ontario drivers must have no less than $200,000 in third party liability coverage.
Accident benefits coverage
Accident benefits coverage kicks in if you get into an accident that results in bodily harm. No matter what kind of harm it causes - whether you break your wrist or the other driver suffers a concussion - accident benefits will help pay for any medical costs incurred. This type of coverage can be claimed whether it was you, a passenger, or a pedestrian involved in the accident that required medical or rehabilitation attention in the aftermath. Examples of expenses that accident benefits coverage may pay for include funeral fees, lost income, physical therapy, and prescription medication.
Direct compensation - property damage coverage
Direct compensation is another component of basic car insurance in Ontario. It can help policyholders pay for the cost of repairing their vehicle if it is damaged in an accident. Please note that this type of coverage can only be claimed if you were not at fault for the accident.
Uninsured automobile coverage
Finally, uninsured motorist coverage protects policyholders and their passengers if they are involved in an accident with a driver who is uninsured, underinsured, or anonymous. Given the latter, it can protect drivers from the high cost of hit and run accidents, whether the accident results in bodily injury or property damage.
What is enhanced car insurance coverage in Ontario?
A car insurance policy becomes enhanced when it features additional coverage that goes above and beyond standard coverage. Some of the most popular forms of additional coverage are listed below:
Collision car coverage will help pay for your car to be repaired if it suffers extensive damage in a car accident. Collision coverage can be claimed whether the accident was with another vehicle, an animal, or even a grounded object on the road, as well as whether you were found to be at fault for the accident or not.
Comprehensive car coverage covers policyholders for damage or losses that occur due to circumstances other than accidents. For instance, if your car is parked and a tree branch falls on it, the cost of repairing or replacing it might be covered by the comprehensive coverage portion of your policy. Comprehensive coverage protects drivers against damage caused by insured perils only. These perils vary between policies but may include fire, theft, vandalism, falling objects, explosions and riots, wind, and water damage.
Accident forgiveness coverage
Another type of optional car insurance coverage popular among drivers 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.
Waiver of depreciation
A waiver of depreciation is an endorsement you can add to your enhanced coverage that will help pay for you to replace your vehicle if it is totalled. This type of coverage is strongly recommended for owners of new or expensive cars, as without a waiver of depreciation, your insurer will only issue a payout for the value of your car after depreciation.
Loss of use coverage
Loss of use coverage is one last type of enhanced car insurance coverage. It will pay for the cost of taking alternate transportation if your car is damaged in an accident and needs to be repaired. During the time that it takes to be repaired, loss of use coverage will reimburse you for extra costs incurred, like that of renting a car, taking taxis or ride shares, or buying a public transit pass.
How to save money on car insurance coverage in Canada
If you aren’t happy with the estimate provided to you by the car insurance calculator, there are ways that you can lower it. Below, the BrokerLink team has put together a list of tips to help you save money on car insurance coverage in Canada:
Raise your deductible
Raising your deductible is a quick way to save money on auto insurance. By raising your deductible to $1,000 or $2,000, your premium may be lowered.
Bundling is a second tip for cutting insurance costs. When you bundle more than one insurance policy, you will save money on all policies. Examples of insurance products that you can bundle include home insurance, auto insurance, and recreational vehicle insurance.
Install winter tires
Installing snow tires on your car not only makes driving safer but it can result in a car insurance discount. Most provinces offer winter tire discounts as they know how much safer driving in the snow and ice becomes with winter tires. To qualify, review your insurance company’s terms and conditions and make sure you meet them, such as ensuring all four winter tires are the same make and model.
The less time you spend on the road, the cheaper your policy is likely to be. Calculate mileage in advance so that you have an idea of how many miles you drive each year. If you drive a below-average amount, you could qualify for lower rates.
Attend driving school
Graduating from a driver’s education program is another way to save money on auto insurance. It can be especially useful for new drivers who tend to pay the most for car insurance. Research approved driving courses in your province and sign up for one to learn the rules of the road.
Improve your driving habits
The safer you drive, the better your record will be, and the cheaper your car insurance rates will be. If you want to save money on car insurance, put in the work to improve your driving habits. You could take a defensive driving course or simply do some independent research and practice becoming a safer driver.
Driving a hybrid or electric vehicle, like a Tesla, could save you money on car insurance. This is because many insurance companies now offer green discounts to drivers to incentivize them to reduce their carbon footprints.
Use BrokerLink’s free car insurance calculator today
If you want to find out how much money car insurance costs you in Canada, take advantage of BrokerLink’s car insurance calculator today. It is completely free, not to mention accurate and reliable. Visit our website to use our online quote tool today. Answer a few questions about yourself, your driving habits, and the type of coverage you’re looking for, and we’ll provide you with a free estimate.
If you have other car insurance needs, such as you want advice on renewing car insurance or safe driving tips from an expert, BrokerLink can help with that too. We are a full-service car insurance brokerage, and we take our customers' needs seriously. Learn more about how a licensed insurance broker at BrokerLink can help you find quality auto insurance coverage on a budget today.
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FAQs about car insurance calculators
Where can I find a car insurance calculator?
Car insurance calculators are available online. They can usually be found on websites for insurance companies, insurance brokers, or other third parties.
Is it free to use a car insurance calculator?
Yes, most car insurance calculators that you find online are free of charge to use.
How long does it take to receive a free car insurance calculator quote?
You can receive a free quote from most car insurance calculators in a matter of minutes. If you have already collected the necessary information to answer the questions that the car insurance calculator asks, you can receive a quote in as little as five minutes. Generally speaking, the process will not take more than 15 minutes.
How can I keep car insurance rates low?
You can save money on car insurance policies in Canada in various ways. For example, you can bundle policies or buy multiple auto insurance policies, or you can qualify for an insurance discount, such as a hybrid or electric car discount, winter tire discount, telematics discount, group insurance discount, and more.
If you have any questions, contact one of our local branches.
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