Is car insurance mandatory in Peterborough, Ontario?
Yes, auto insurance is mandatory everywhere in Ontario, including Peterborough. Car insurance is provincially regulated in Canada, which means each province and territory sets its own regulations on car insurance.
Ontario has made auto insurance compulsory, which means you cannot register your vehicle without proof of insurance. The Government of Ontario also requires that car insurance policies meet the minimum coverage requirements.
These include a minimum of $200,000 in third party liability coverage, as well as uninsured automobile coverage, accident benefits coverage, and direct compensation coverage.
To purchase car insurance in Peterborough, drivers must hold a valid driver’s license. You may also be asked to provide an Ontario driver’s abstract (a record of your driving history), and information about any other drivers who will be driving your car, such as your partner. To find out more about compulsory auto insurance in Peterborough, contact BrokerLink today.
Driving without car insurance in Peterborough
Since car insurance is mandatory in Ontario (and everywhere in Canada, for that matter) driving without insurance is a criminal offense. If caught committing the illegal act of driving without insurance in Ontario, you could face serious penalties.
Specifically, Ontario drivers can be fined between $5,000 and $25,000 for a first offense and between $10,000 and $50,000 for a second offense. Plus, your license may be suspended temporarily and there is an extra surcharge that you will be required to pay.
Therefore, driving without insurance in Peterborough is simply not worth the risk. To avoid the consequences that come with uninsured driving, purchase a valid car insurance policy. If you are currently driving without insurance or your existing policy is about to expire, contact BrokerLink. We can help you find a policy that not only complies with provincial law but meets your needs.
Required car insurance coverage for Peterborough drivers
As mentioned, Ontario has strict rules when it comes to car insurance. In order for your auto insurance policy to be valid, it must meet the minimum coverage requirements set by the province.
In Ontario, basic auto insurance policies must include the following four types of coverage: third party liability coverage, accident benefits coverage, direct compensation - property damage coverage, and uninsured automobile coverage. We outline each of these mandatory coverage types and what they protect against below.
Third party liability coverage
Third party liability coverage provides legal protection if a driver injures another person or causes property damage to another person’s car while driving. Under this portion of your policy, you can receive compensation to pay for medical expenses associated with injuries or repairs of a damaged vehicle, as well as legal fees, court fees, and settlements up to the coverage limit.
Peterborough drivers are required to carry a minimum of $200,000 in third party liability coverage at all times.
Direct compensation - property damage coverage
Direct compensation - property damage coverage is another type of mandatory coverage in Ontario. It protects an insured vehicle and its contents from the costs of property damage, so long as the policyholder is not at fault for the accident that caused the damage.
With this type of coverage, the insurance company often provides direct payment for the repair or replacement of your vehicle. To be eligible for direct compensation coverage in Ontario, the collision must meet the following criteria: it occurred in Ontario, it involved multiple cars, and it involved at least one car that participates in the provincial car insurance program.
Uninsured automobile coverage
Uninsured automobile coverage is required for all drivers in Ontario. This coverage is designed to protect you and any passengers in your vehicle if you get into an accident with an at-fault driver who is either uninsured or underinsured.
This type of coverage can also protect the policyholder should they be the victim of a hit-and-run. Uninsured automobile coverage can help pay for the costs of bodily injuries, car damage, lost wages due to the accident, and more.
Accident benefits coverage
Lastly, if you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. This type of coverage is applicable no matter who was at fault for the collision. It may help pay for loss of income, medical expenses, such as prescription medications, physical therapy, or rehabilitation, and more.
Optional car insurance coverage for Peterborough drivers
The most basic car insurance policies in Peterborough only include the types of car insurance required by law (those listed above). However, these aren’t the only coverages available to Peterborough drivers.
There are several types of optional coverage that you can choose to include in your policy. While not mandatory, they may benefit a wide range of drivers. If you’re interested in learning more about optional insurance coverage for Peterborough drivers, keep reading.
Collision coverage protects the policyholder if they get into an accident with another vehicle or object on the road, no matter who is at fault for the accident. Under the collision coverage section of your policy, you can receive compensation to help pay for any property damage that resulted from the collision, such as a damaged vehicle.
Many Peterborough drivers choose comprehensive coverage for the peace of mind it offers. Though standard auto insurance coverage in Ontario provides a certain degree of protection against collisions, it does not protect motorists from other unforeseen incidents associated with driving.
That’s where comprehensive coverage comes in. As the name suggests, this type of coverage can protect you from all kinds of unfortunate circumstances, like theft, vandalism, water damage, fire, and more.
Accident forgiveness coverage
One final type of optional car insurance coverage popular among Peterborough 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 varies by province.
How car insurance rates are calculated in Peterborough
Canadian insurance companies take a wide range of factors into consideration when calculating insurance rates. Peterborough drivers might find it helpful to understand exactly which details matter when it comes to their insurance premiums.
Below is a list of the most common factors impacting the cost of car insurance in Peterborough, Ontario:
- Where you live (and work - if you drive to work)
- Make and model of vehicle
- Past claims
- Annual mileage
- Driving experience
- Driving record
- Prior insurance coverage
- Your deductible
- Local laws
- How you use your vehicle
- Marital status
How to save money on Peterborough auto insurance
Car insurance doesn’t have to break the bank, and BrokerLink will help ensure it doesn’t. Our expert insurance advisors are always happy to provide tips for saving money on car insurance in Ontario.
Below is a list of ways you can get cheap auto insurance in Peterborough:
- Purchase car insurance for more than one vehicle from the same provider (savings of up to 20%)
- Buy multiple insurance policies (home insurance, business insurance, leisure vehicle insurance, etc.) from the same provider (savings of up to 15%)
- Install winter tires on your vehicle (savings of up to 10% in Ontario)
- Purchase a hybrid or electric vehicle (savings of up to 5%)
- Increase your deductible
- Enrol in driving school (for young drivers)
- Pay car insurance annually rather than monthly
Work with a Peterborough insurance brokers
If budget is your main concern, we recommend contacting BrokerLink. For over 30 years, the BrokerLink team has been dedicated to finding car insurance policies that meet the needs and budgets of our customers.
We can find a policy to suit any budget and always strive to match drivers with competitive policies at the lowest rates. How do we do it? We are insurance experts, which means we can unlock discounts and shop around on your behalf to ensure you’re getting the most bang for your buck.
For quality Peterborough car insurance that doesn’t break the bank, get in touch with BrokerLink today.
Contact BrokerLink for a free quote on Peterborough car insurance
Want to learn more about Peterborough car insurance? You’re in the right place.
The BrokerLink team is available to take your calls, answer your emails, or chat with you in person at any of our locations in Ontario.
No matter how you choose to contact us, a BrokerLink insurance advisor will be pleased to assist you.
We also invite you to take advantage of the free car insurance quotes we offer Peterborough drivers. All BrokerLink quotes are 100% obligation-free, and obtaining one is the first step in finding the best auto insurance policy for you.
Contact BrokerLink to kickstart your Peterborough car insurance journey today.
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