Is auto insurance mandatory in Scarborough?
Yes, car insurance is mandatory in Scarborough and everywhere in Ontario. Auto insurance is provincially regulated in Canada, which means it’s up to each province and territory to set its own car insurance regulations. Ontario has made auto insurance compulsory and all drivers must ensure their policy complies with the minimum coverage requirements set by the province. For example, one such requirement is that Scarborough drivers must carry a minimum of $200,000 in third party liability coverage at all times.
In order to obtain auto insurance in Scarborough, all drivers must have a valid driver’s license. You may also be asked to provide a driver’s abstract (a record of your driving history), as well as basic information about any other people who may be driving your car, such as your spouse or teenage child. If you require more information about mandatory car insurance in Ontario, contact a Scarborough insurance broker today.
Uninsured motorists in Scarborough
Uninsured motorists in Scarborough can face serious consequences. As car insurance is mandatory, driving without insurance is illegal and you could incur a hefty fine if caught.
Specifically, Ontario drivers can be fined between $5,000 and $25,000 for a first offense and up to $50,000 for a second offense. Plus, there is an additional 15% surcharge that the driver is also required to pay.
In short, you do not want to be caught driving without valid car insurance in Scarborough, or anywhere else in Ontario. To avoid this, invest in quality auto insurance and remember to renew it annually, or purchase a new policy before your current one expires.
Standard car insurance coverage for Scarborough drivers
At the very least, all Scarborough drivers are required to buy a standard car insurance policy that meets the minimum coverage requirements set by the provincial government of Ontario. All standard car insurance policies in the province are made up of the following four types of coverage: third party liability coverage, accident benefits coverage, direct compensation - property damage coverage, and uninsured automobile coverage. Keep reading to learn more about each type of mandatory coverage in Scarborough.
Third party liability coverage
Third party liability coverage provides legal protection in the event that a driver injures someone else or causes property damage to another person’s property, such as their car. This type of coverage can help pay for medical expenses associated with injuries or repairs of a damaged vehicle, as well as legal fees and settlements up to the coverage limit, if applicable. In Ontario, car insurance policies must include a minimum of $200,000 in third party liability coverage.
Direct compensation - property damage coverage
Direct compensation - property damage coverage protects an insured vehicle and all the items inside of it from the costs of property damage, so long as you were not liable for the accident that caused said damage. Under this type of coverage, the insurance company will likely provide direct payment for the repair or replacement of your car. To be eligible for direct compensation coverage, the collision must meet the following circumstances: it occurred in Ontario, it involved multiple vehicles, and it involved at least one vehicle that participates in the province’s car insurance program.
Uninsured automobile coverage
As the name suggests, uninsured automobile 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 uninsured or underinsured. This type of coverage also protects the policyholder in the event of a hit-and-run. Uninsured automobile coverage may help pay for the costs of injuries, vehicle damage, lost wages, and more.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical attention following a collision, accident benefits coverage can help. Protection is offered regardless of who was at fault for the accident and can help cover loss of income, medical expenses, such as prescription medications, physical therapy, or rehabilitation, and other associated costs.
How car insurance rates are calculated in Scarborough
Many factors are considered when calculating Scarborough car insurance rates. Ontario motorists may find it helpful to understand the main factors that influence insurance premiums. As not all insurance companies weigh the factors below equally, it’s important to consult with a Scarborough car insurance broker who can help you shop around for the best rate. Despite this, you can generally expect these factors to be taken into consideration when calculating your auto insurance rate.
- 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 get cheap car insurance in Scarborough
No one likes to pay more than they have to, and this principle extends to car insurance. Luckily, there are several ways you can reduce the cost of Scarborough auto insurance. From bundling insurance policies together, to installing winter tires on your vehicle, a list of BrokerLink’s top tips for getting cheap Scarborough car insurance is as follows:
- 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
Partner with an insurance broker
If budget is a major concern, we recommend contacting one of the many insurance brokers in Scarborough. For example, if you choose to consult with an experienced broker from BrokerLink, we will ensure you find the right car insurance for you. Our team of experienced insurance advisors knows the ins and outs of the industry and will have no trouble finding you a great policy at an affordable price. We will unlock discounts on your behalf and let you in on the industry’s best-kept secrets for saving money on car insurance. For quality car insurance that doesn’t break the bank, contact BrokerLink today.
Top tips for new drivers in Scarborough
Driving can be stressful, especially if you are new to the road. But with patience and practice, you’ll be comfortable behind the wheel in no time. To make those early months of driving a little easier, we’ve compiled a list of the top four tips for young drivers in Scarborough.
Attend driving school
Enrolling in an approved Ontario driving school is a fantastic way to learn about the rules of the road while getting some practical driving experience. Plus, driving with a professional instructor may be less nerve-wracking than practicing with a family member. Even better, young drivers who complete driving school may be eligible for discounts on their car insurance (a huge bonus as insurance premiums are often highest for young drivers).
Leave extra room
Just like time, space is your friend. Always give yourself extra space on the road. If you’ve ever taken driving lessons, then you may have been taught to leave two car lengths between you and the vehicle in front of you at all times. This is a good rule of thumb to follow, however, keep in mind that this distance should be even greater if you are driving at high speeds, such as on a major highway. Extra room is especially important when driving in inclement weather when brake times could be delayed. Ultimately, the more space between you and other vehicles, the less likely you are to get into an accident.
Check your mirrors
Drivers should be aware of their surroundings at all times. While keeping your eyes on the car in front of you is important, your eyes should never be so fixated on the vehicle ahead that you lose track of what’s happening around you. To make sure you know what’s going on behind and beside you, as well as in front of you, check your rear-view and side mirrors every few seconds. When looking ahead, remember to scan all lanes for vehicles and potential traffic hazards.
Compare car insurance quotes with insurance brokers in Scarborough
Shopping for car insurance can be overwhelming - unless you enlist the help of a broker, that is. BrokerLink has an entire team of Scarborough insurance brokers ready to help you find your perfect car insurance policy.
With the help of a trusted insurance broker at BrokerLink, your auto insurance experience can be entirely hassle-free, especially since we do all the heavy lifting.
By letting us shop around for car insurance on your behalf, you can spend your free time doing what you love, whether that’s travelling, spending time with your family, or binge-watching the latest Netflix series.
Meanwhile, your dedicated BrokerLink insurance advisor will be browsing coverage options, obtaining and comparing quotes, and unlocking discounts, all to find the best Scarborough car insurance.
Save time and money by partnering with a Scarborough insurance broker today.
Get in touch
Still have questions about auto insurance in Scarborough? Want to learn more about mandatory car insurance in Ontario or discuss the coverage options available to you?
BrokerLink’s knowledgeable and friendly insurance advisors will be happy to assist you. Get in touch today by phone, email, or in person at one of our nearby locations.
So what are you waiting for? Start your Scarborough auto insurance journey by contacting BrokerLink today.
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