Do I need auto insurance in Ontario?
Yes. If you wish to drive in Pelham, then you do not have a choice when it comes to purchasing car insurance. Auto insurance is compulsory for all drivers in Ontario. The Government of Ontario even specifies the exact types of coverage that motorists must have. Anything less, and your policy will not be valid in the province. Thus, you must make sure that your Pelham car insurance plan includes the following:
- Third party liability coverage (a minimum of $200,000 of it)
- Accident benefits coverage
- Direct compensation - property damage coverage
- Uninsured motorist coverage
Compulsory auto insurance coverage for Pelham drivers
Of all the types of auto insurance out there, it is important to know which ones are mandatory, especially if you want to drive in Ontario. As you now know, driving without insurance is illegal, so if you want to avoid the serious consequences that come with uninsured driving, you will need to purchase a policy that contains the four types of compulsory car insurance coverage below:
Third party liability coverage
Liability insurance comes in handy anytime you get into a car accident. This type of coverage, of which you must have $200,000 in Pelham, can reimburse policyholders for a wide range of costs associated with at-fault or not at fault collisions, including but not limited to legal fees, medical expenses, and repair bills.
Accident benefits coverage
Accident benefits coverage comes into play if you get into an accident that injures someone, whether that person be yourself or another involved in the accident. Specifically, accident benefits can cover medical fees that health insurance does not, like prescription medication or rehabilitation, as well as loss of income related to bodily injury.
Direct compensation - property damage coverage
Direct compensation - property damage coverage is for when you get into a car accident that damages your vehicle. Car repairs can be expensive, but with direct compensation - property damage coverage, you can receive a payout directly from your insurer to help pay for the cost of repairing your damaged car, rather than dealing with a third party insurance company.
Uninsured motorist coverage
Finally, uninsured motorist coverage, which is also known as uninsured automobile coverage, offers protection should you find yourself in a collision with a driver that fits into any of the following three categories:
- An uninsured driver: a driver who does not have auto insurance.
- An underinsured driver: a driver who does not have enough coverage to pay for the cost of the collision.
- An unidentified driver: a driver who is anonymous since they fled the scene of the collision, e.g. in the case of hit and run accidents.
Optional auto insurance coverage for Pelham drivers
Just because it’s not compulsory, doesn’t mean it isn’t important. In fact, many policyholders will likely tell you that the optional coverage they chose to add to their policies benefits them just as much, if not more, than their mandatory coverage. To find out more about the other types of auto insurance available in Pelham, the BrokerLink team highlights four of the most popular optional coverages below:
Collision car coverage offers extra insurance protection if you get into a collision that causes property damage to your vehicle. Where collision coverage differs from direct compensation - property damage coverage is that it can be claimed no matter who caused the accident. It can also be claimed whether the damage was caused by a collision with another car, animal, or object on the road.
Comprehensive car coverage provides protection from non-collision-related damage, which makes it one of the most beneficial forms of optional auto insurance in Ontario. This type of coverage protects your vehicle from a wide range of risks while it is parked. The specific risks comprehensive coverage protects against include fire, wind, water damage, theft, vandalism, falling objects, and more. You can also purchase all perils coverage, which combines the perks of collision and comprehensive coverage for the broadest form of protection, under a single deductible.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Pelham 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.
Loss of use coverage
Loss of use coverage is one final type of optional auto insurance coverage that Pelham motorists might like. With this type of coverage, you can rest easy knowing your insurer will cover you if your car is damaged and needs to be repaired, leaving you without a vehicle temporarily. Should this happen, your insurance company can reimburse you for any alternate transportation costs incurred during this time, like the cost of taking the bus, renting a car, or using a rideshare service, such as Uber or Lyft.
Breaking down how Pelham car insurance premiums are calculated
Ever wonder how an insurance company calculates your premium? You may have noticed that no two Pelham car insurance premiums are the same. That’s right, even among policyholders who live in the same part of Ontario, rates differ. This is because insurance companies take into account a ton of different factors when calculating rates, ranging from a driver’s age and record to their past claims history, average mileage, and the type of car they drive. Understanding how premiums are calculated can give you a better idea of why your auto insurance policy costs what it costs. Keep reading to discover some of the main factors an insurer will consider when determining your Pelham car insurance rate:
- Where you live (and where you regularly commute)
- Make, model, and year of vehicle
- Past claims
- Average mileage
- Driving experience
- Driving record
- Insurance history
- Deductible amount
- Regulatory bodies
- How you use your vehicle
If you still have questions about how car insurance rates work in Pelham, or if you want to receive a free quote from a licenced insurance broker, contact BrokerLink now.
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Tips for finding affordable car insurance in Pelham, Ontario
If you’re tired of overpaying for car insurance, this list is for you. The BrokerLink team never wants your Pelham car insurance policy to break the bank, which is why we are always happy to provide tips to help you keep insurance costs low:
- Do what you need to do to ensure that you make all insurance payments by the set deadline
- Only purchase the auto insurance coverage that makes sense for you and take care to update it yearly
- Select deductible amounts that you can afford to pay but that are also as high as possible
- Take a defensive driving course or an approved driver’s education program in Ontario
- Spend less time on the road by taking other forms of transit, walking, or carpooling when possible
- Improve driving in the winter and qualify for a discounted auto insurance rate by installing snow tires on your car
- Maintain a clean driving record by obeying all local traffic laws in Ontario
- Equip your car with an anti-theft device to lower the chances of your car being stolen
- Do something good for the planet and your wallet by purchasing a hybrid or electric car
- Ask about any car insurance discounts that may be available to you, like occasional driver, telematics, or winter tire discounts
- If you have more than one car in your household, insure them together by buying multiple auto insurance policies or try bundling insurance policies to qualify for a discounted rate
- Prioritize buying a vehicle with a high safety rating and a low theft rate
- Ask a licensed insurance broker in Pelham for tips on how you can save money on car insurance
We’re in your community
BrokerLink is a customer-driven insurance brokerage with decades of experience in the insurance industry. But more than that, we are committed to the community. We foster community everywhere we operate, from Pelham to Yarmouth. . Learn more about what makes BrokerLink the go-to insurance brokerage in Canada 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 Pelham 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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FAQs about car insurance in Pelham
How can I renew my Pelham auto insurance policy?
Renewing car insurance in Pelham is fairly simple, so long as your policy has not expired. If your policy has yet to expire, contact your insurance provider by phone, email, or in person to let them know that you want your policy to renew at the end of the term. Odds are, your insurance company will approve your request in a matter of minutes. If your premium has changed, they will inform you of this. Renewing an expired car insurance policy is also possible but the process may be different. Plus, with expired car insurance renewal, your rates are more likely to increase since there was a gap in coverage (this is especially true if the gap in coverage was long). Before renewing your Pelham car insurance plan, take a moment to review it and ensure that it still works for you. You may decide that you want to update your coverage or shop around to make sure that your current provider is still offering you the best deal.
How do collisions affect car insurance rates in Pelham?
It depends. Not all collisions impact car insurance rates, but those that do are typically at-fault fault collisions. Unless you have accident forgiveness coverage included in your policy, which prevents your insurance company from raising your rates following your first at-fault accident, an at-fault collision almost always results in an insurance premium increase. Collisions that you are not at fault for may not have any affect on your car insurance premium though. To find out exactly how collisions affect Ontario car insurance rates, contact your provider.
If my smartphone is stolen from my vehicle while parked, will my Pelham car insurance policy reimburse me for the cost of replacing it?
It is not likely that your Pelham car insurance plan will reimburse you for the cost of replacing a smartphone stolen from your car. Auto insurance policies do not feature contents coverage, so while you can be reimbursed for the cost of replacing your entire car if it was stolen, you likely are not covered for any personal belongings stolen from your car. Further, you will only be covered in the event that your car is stolen if your policy features comprehensive coverage. That said, if a thief breaks into your car and steals a personal belonging, like a smartphone or wallet, your insurance company may compensate you for the cost of repairing any part of your car that may have been damaged during the break-in. If a personal item was recently stolen from your vehicle, try contacting your home or tenant insurance provider in case your property insurance plan covers contents stolen from your car.
Do I need an Ontario driver’s licence in order to buy Pelham car insurance coverage?
Yes. An insurance agent will not sell a car insurance policy to you unless you can show proof of a valid driver’s licence. You also won’t be able to register your vehicle with the Ontario Ministry of Transportation without a valid licence, which is another requirement in order to buy car insurance.
Does Pelham car insurance cover me when driving outside Ontario?
Most likely, though we recommend reading the terms and conditions of your insurance policy carefully. Generally speaking, Ontario car insurance plans will continue to cover drivers when they drive outside the province. However, only if they are driving outside the province temporarily. If you are planning to move to another province or leave Canada entirely, you will need to let your provider know and update or cancel your coverage. If your current provider operates in your new province or country, you might be able to stick with them, though your coverage and premium will likely be affected. If your current provider does not operate in your new province or country, you will need to begin the process of cancelling your existing policy and searching for a new provider and policy.
Is it illegal for me to drive without auto insurance in Pelham?
Yes. Auto insurance is mandatory throughout Canada, , which makes driving without it illegal. As you might suspect, getting caught committing an illegal act can have serious consequences. In fact, Ontario has some of the strictest punishments for uninsured driving in Canada. If caught driving without a valid car insurance policy in Pelham, you can face the following penalties:
- Maximum fines of between $25,000 and $50,000
- A 25% surcharge on any fines incurred
- The impoundment of your vehicle
- The suspension of your driver’s licence for a period of 30 to 365 days
Given these severe consequences, purchasing a valid car insurance policy is strongly recommended. Remember, it’s also the law.
Can I get a complimentary car insurance quote in Pelham?
Yes! Car insurance quotes are often free. All you have to do is search “free car insurance quote Pelham,” and you will find several insurance companies and brokerages that offer complimentary estimates to customers. Whenever you want to request a free quote, gather the necessary information, as you will be asked several questions about your insurance history, driving habits, the type of car you drive, and what coverage you want.
I want to buy car insurance coverage in Pelham. Where can I buy it?
You can buy Pelham car insurance from an insurance company or an insurance broker. Both insurance agents who work for insurers and insurance brokers are licensed professionals who will be able to match you with coverage and help you finalize your policy. No matter which option you choose, you can likely buy coverage over the phone, online, or in person. Nowadays, many customers like to buy insurance online due to the convenience it offers.
How much does car insurance cost in Pelham?
Customers want to be informed about any purchase they make. With car insurance, they want to know how much coverage will cost them. So how much is car insurance per month in Ontario? The average cost of auto insurance per month in Ontario is $125 to $158. These rates change significantly between drivers, so the best way to know how much your Pelham premium will be is to reach out to an insurance broker or agent near you and request a free quote.
Do I need liability coverage in order to drive in Pelham?
Yes. You need liability coverage in order to drive anywhere in Ontario. Specifically, you must purchase a minimum of $200,000 in liability coverage if you want to drive in Pelham. Purchasing a policy that does not have liability coverage or features less than $200,000 of liability coverage is the same as driving uninsured, and this is illegal.
Will my credit score impact my car insurance premium in Pelham?
Possibly. Credit scores can impact car insurance premiums in Pelham, but it isn’t guaranteed. Unlike factors, such as age or location, your credit score is not something that all insurance companies will look at when determining your rates. However, if an insurance company asks about your credit score, chances are they need help discerning your level of financial responsibility. In this scenario, a high credit score will serve you well and can even lower your rates, whereas a poor credit score could hurt you in the long run, leading to more expensive rates.
If you have any questions, contact one of our local branches.
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