Mandatory car insurance in Toronto
Car insurance coverage is mandatory in Toronto. So before getting behind the wheel, you must make sure that your policy features the four types of mandatory auto insurance in Ontario:
If your policy does not have all four of these coverages or does not have enough of them you will have to add more coverage to your policy. Toronto drivers must carry a minimum of $200,000 in third party liability coverage at all times, you are considered to be uninsured, and driving would therefore be illegal. As such, it is crucial to make sure that you abide by the coverage requirements in Ontario. Remember that a gap in coverage is the same as no coverage at all, so be sure to renew your policy before the expiry date.
Driving without car insurance in Toronto is illegal
Since car insurance is a legal requirement in Toronto, driving without it is illegal, and the consequences of doing so are severe. In fact, Ontario has some of the biggest penalties for driving uninsured. For a first offence, you can be fined up to $25,000. This amount doubles to $50,000 for a second or subsequent offence. You are also required to pay a 25% surcharge on top of any fines incurred. Further, getting caught driving without insurance can also result in your vehicle being impounded and your Ontario driver’s licence being suspended for one month up to a full year. Given car insurance costs in Ontario, purchasing coverage is definitely the way to go. Getting caught and fined one time for driving without insurance will cost you far more than a policy ever would.
What required car insurance coverage looks like in Toronto, Ontario
This is the minimum coverage required in order to legally drive a vehicle on the road in Ontario. Whether you lease, finance, or own your car, this coverage is designed to protect you, your passengers, your car, and other drivers:
Third party liability coverage
Liability car insurance helps pay for other drivers’ property and bodily injuries if you’re found at fault in an accident. In addition to damages and injury, this coverage can help pay for your legal defence and court fees. Although the coverage is mandatory across Canada, the minimum amount varies across provinces.
Accident benefits coverage
If you, a passenger, or a pedestrian requires medical or rehabilitative attention following a car accident, the accident benefits section of your car insurance policy will cover the cost; it doesn’t matter who is at fault in the accident. Keep in mind, there are limits to what’s covered and coverage amounts. Talk to your advisor about your options for increasing coverage for accident benefits.
This mandatory coverage provides you with compensation when you or your car is damaged in an accident where you are not at fault. It’s called ‘direct compensation’ because you deal directly with your insurance company to recover any compensation following a claim.
Uninsured automobile coverage
This protects you and your passengers if you’re involved in an accident with an at-fault driver who is uninsured or under-insured. It can also protect you against hit and run accidents, providing you with compensation to cover the cost of repairs or bodily injury if you get into a collision with a driver who flees the scene.
Increased coverage in Toronto and across Ontario
Depending on your situation, the bare minimum may not be enough for full peace of mind on the road. Here are a few of the most popular options that Toronto drivers add to their policy to enhance their car insurance coverage:
Collision car coverage helps pay for damages sustained to your vehicle if it’s involved in a collision with another driver, animal, or object. Collision coverage also comes into effect if your vehicle is damaged due to a hit and run accident. This type of coverage is usually an option. However, your leasing or financing company may require you to purchase it if you drive a leased car.
Comprehensive car coverage applies to damages sustained outside of an auto accident. Some expenses that might be covered by comprehensive coverage include theft, vandalism, fire, and water damage. Ultimately, the expenses that are covered will depend on the perils included in your policy. You will only be reimbursed for damage that is caused by a named peril in your policy. Please note that comprehensive car insurance is optional for most drivers but may be obligatory if you lease or finance your Toronto vehicle.
Accident forgiveness coverage
One more type of optional car insurance coverage popular among drivers in Stephenville 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
If you purchase a new vehicle, you should definitely consider adding this coverage. With this option on your policy, you’re covered for the value of your vehicle without depreciation. So in the event of a theft or total loss claim, you’ll be reimbursed for the full value of a brand new vehicle.
Loss of use coverage
Loss of use coverage is one final type of extra protection Toronto drivers can add to their auto insurance policies. This form of coverage will protect you if you get into an accident that damages your vehicle and your vehicle needs to be repaired. While your car is in the shop, loss of use coverage will pay for you to take other modes of transit, whether that be public transportation, ride shares, or even renting a car. In the end, this type of coverage can save you a lot of money, especially if your vehicle is badly damaged and in the shop for multiple days or weeks.
Compare car insurance quotes in Toronto
The best way to find out how much your Toronto car insurance policy will cost you is to request a free quote. Before purchasing a policy or even requesting a complimentary quote from your local BrokerLink insurance office, it’s important to know the following information about auto insurance in Ontario:
Bundle with home insurance and save
Insure your car and home together with the same company and save big on both policies! Not in the market for home insurance? You can also insure a recreational vehicle or another precious item and still benefit from the same bundling savings. Plus, you’ll only pay one deductible in the event of an insurance claim involving both your home and car. Further, if you choose to pay for both policies annually, you will only have one renewal date to keep track of.
Whether you prefer monthly, annual, semi-annual, or quarterly, we offer flexible payment options to suit your needs. Paying monthly? Choose any day within the month to make your payments! Just remember to always make your insurance payments on time. If you are in danger of falling behind, be sure to contact your Toronto insurance broker as soon as possible to work out a new payment plan.
Consider adding accident forgiveness to your Toronto auto insurance policy. With this type of coverage, your insurance company will act as if your first at-fault accident didn't happen. This means that your premium won't rise following the accident.
my Drive app
Reward yourself for having a good driving history with lower auto insurance premiums and additional discounts based on how you drive. If you’re an Intact customer, you can save up to an extra 25% off already low car insurance rates by using the Intact my Drive App. Enrol and start saving today!
You love saving money, and we love finding you discounts! Take advantage of all the discounts available to new and existing clients including loyalty, away at university, claims-free, multi-vehicle, family discounts, and more!
The right approach to insurance
Getting the right car insurance at an amazing rate is just like anything else; it takes hard work to get results! You need to put in the time and effort to obtain quotes from several car insurance companies to lock in a policy you’re happy with, and hopefully educate yourself along the way.
But how are you supposed to know which car insurance companies are the best options for your individual needs? Do those companies even work directly with consumers? And do you have time in your busy day to compare quotes from several different companies?
It pays to shop around for car insurance coverage
Working with respected car insurance brokers in Toronto is a smart choice. It’s really simple - car insurance brokers work for you and not the insurance companies. Your satisfaction is a broker’s top priority. That’s why they work tirelessly to help find you the coverage and price you’re looking for. You can rely on a reputable insurance broker to do the shopping for you so you don’t have to.
Plus, brokers have the expertise to help you make the best decision for you and your family, all while providing you with expert unbiased advice.
Car insurance rates can vary significantly from one company to another. And because these providers are constantly underwriting behind the scenes, rates can change every year. That means that the company that offered you the best rate last year may not have the most competitive offer on renewal.
When you utilize the expertise of a professional insurance broker to help you shop around, you’re able to quickly and easily access the best offers from multiple insurance providers every year.
How to get the lowest car insurance rate in Toronto, Ontario
Nobody wants to pay more for any product or service. The good news is you have some control over the amount you pay for car insurance. Here are a few things you can do to lower your premium and save money on Toronto car insurance:
Avoid administrative fees that some companies will charge for monthly payment plans by paying your premiums annually in one lump sum. If you aren’t sure whether your current insurance company charges extra for monthly plans, ask them!
Increase your deductible
Going with a higher deductible can reduce your overall premium. Consider increasing your deductible to at least $1000 if it isn’t already. This will instantly result in a lower rate. Just make sure not to raise your deductible too high, as if you can’t afford to pay it, you will be in trouble if you end up needing to file a claim.
Insure all cars together
Is there more than one vehicle in the household? Insuring all of your cars under one policy could save you a large amount on each policy.
Bundle insurance policies
If you are also looking for property insurance, whether it be homeowner's insurance or tenant insurance, consider combining your property insurance policy with your Toronto auto insurance policy. Doing so could result in major savings. You might also be able to bundle your car insurance with your recreational vehicle insurance, if you own a snowmobile or ATV.
Ask about car insurance discounts
Ask an insurance broker or agent about car insurance discounts that may apply to you. There are tons of discounts out there and insurance companies are constantly updating and adding new car insurance discounts.
Get winter tires
If you use approved winter tires every year, you’ll be eligible for a discount of up to 5% depending on the insurance company. Why? Snow tires are far more reliable in winter road conditions, such as ice and snow, which means that your odds of getting into an accident will be lower than if your car is equipped with all-season tires. As such, your insurer will offer you a discount if you install winter tires on your car.
Review your coverage
Make it a habit to review your policy every year. What coverage do you have? Does it still fit your needs? If not, how much could you save if you removed or reduced the coverage amounts?
Attend driving school
Have a new driver in the household? It’s a good idea for all new drivers to register for driving school and receive professional training. Not only will this provide them with the experience and training needed to become a confident driver, it will also save them a lot of money on car insurance. In fact, the savings you receive on your first year of car insurance alone could cover the cost of a typical driving course.
Improve your driving habits
Many car insurance companies have apps that will score your driving habits and reward you with additional discounts for safe driving. Improving your driving skills could save you up to 25% more on your car insurance.
Go hybrid or electric
Times are changing and new hybrid and electric vehicles such as Tesla cars are paving the way for more insurance discounts! Now, driving a hybrid or electric vehicle won’t just save you money at the gas pump, you may actually save on your car insurance too.
Insurance shopping, but way better
We make buying insurance easier by showing you the best options available and helping you find the perfect policy at a great price. Let BrokerLink take the guesswork out of buying and renewing your car insurance. Whether you prefer to shop online or at a community branch, we’ll get to know you and build a plan that fits – nothing more, nothing less. Our team of Insurance Advisors will give you the inside scoop on discounts and benefits that can save you the most money, and help you feel good about what you’re buying.
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How car insurance rates are calculated
It’s helpful to understand some of the key factors that commonly influence car insurance rates. How each detail impacts your rate will ultimately depend on the company, but here are a few of the most common rating factors for car insurance:
- Where you live
- Marital status
- Vehicle type
- How you use your vehicle
- Driving record
- Driving experience
- Past claims
- Prior insurance coverage
- Number of kilometres you drive
- Type of coverage on your policy
- Your deductible
As a team of car insurance brokers in Toronto, BrokerLink does not actually set your car insurance rate. Instead, our professional advisors search the market to help find the best insurance options for you based on your budget, current circumstances, and needs.
Compare auto insurance quotes in Toronto
When looking for auto insurance, it is extremely important to shop around and compare prices. However, this task can be difficult and time-consuming. Why not let us do it for you? Working with a Broker makes comparing auto insurance quotes so much easier and stress-free. A broker will be responsible for every step of the process, ensuring you get the best quote possible. At Brokerlink, we will find you the perfect policy, the best prices, and the most discounts.
Navigating through the minefield of your insurance policy can be exhausting. Why take the chance? Lean on Brokerlink to support you in protecting your greatest financial assets. One of our brokers is always available to help!
We’re in your community
BrokerLink is a proud member of the Toronto community. Through our involvement in the community and our unbeatable insurance services, we are constantly giving back to our customers. Find out more about how BrokerLink came to be the leading brokerage in Ontario by contacting us today.
Local Ontario Insurance Links
If you’re a member of a group or association, you may be eligible for more discounts.
Want to learn more? Let us be your resource for all things car insurance. From start to finish, our brokers handle the legwork to make sure you walk away satisfied. Get a quote today or give our brokers a call today and we’ll find the car insurance coverage that works best for you.
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FAQs about car insurance Toronto
How do I renew my Toronto car insurance policy?
Renewing car insurance in Toronto is easier than you might think. In fact, if you’re enrolled in automatic renewals, then you might not have to do anything to have your policy renewed. But if not, all you have to do is notify your provider, either by phone, email, or in person, that you would like to renew your policy. Make sure to review your coverage and your new premium to determine if it still suits your needs. If not, spend some time shopping around and comparing car insurance quotes before renewing your policy with your existing provider.
If I get into an at-fault car accident in Toronto, will my car insurance premium go up?
Yes. Most of the time, your insurance provider will increase your auto insurance rates if you get into an at-fault car accident. However, if your policy features accident forgiveness and this is your first at-fault accident, then your rates may not rise due to the accident though they may change due to other factors. Accident forgiveness is an optional type of car insurance that can be added to policies in Toronto. They offer many benefits to drivers, namely the fact that your premium will stay the same after your first at-fault accident.
If my phone is stolen from my car, does Toronto auto insurance cover me?
Not typically, no. If you have comprehensive coverage as part of your Toronto car insurance policy and your entire vehicle is stolen, your insurance company can help pay to replace it. The same goes for if a permanent fixture of your car, like the steering wheel, is stolen. However, if personal belongings, like a phone, wallet, or laptop, are stolen from your vehicle, your car insurance plan is unlikely to protect you. It can, however, pay for the cost of repairing any damage to your car that was caused during the break-in, such as a smashed window or door. Depending on the terms and conditions of your home insurance policy, if applicable, you might be covered for the cost of your stolen belongings under that policy.
Do I need an Ontario driver’s licence to buy Toronto auto insurance?
Yes, you will need a valid Ontario driver’s licence if you want to buy auto insurance coverage in Toronto. If you plan on adding other drivers to your policy, such as a spouse or adult child, be prepared to provide a copy of their driver’s licences as well. If your licence is about to expire, make sure to renew it before purchasing insurance. You can learn more about renewing your licence here.
What types of insurance can car insurance brokers in Toronto help me find?
Car insurance brokers in Toronto can help you find everything from mandatory insurance coverage in Ontario to optional coverage, like comprehensive car coverage or collision car coverage. With their expertise, they can also help find coverage for all types of drivers, from seniors to student drivers.
Can I get a free car insurance quote in Toronto?
Yes, reach out to a local insurance agent or broker to request a free car insurance quote today. Nowadays, Toronto car insurance quotes can be obtained online, over the phone, or in person.
What is the most expensive car to insure in Toronto?
The most expensive cars to insure in Ontario are typically the most valuable. In other words, expensive cars translate to expensive insurance, since the cost of replacing or repairing the car would be more expensive. That said, insurance rates depend on so much more than the type of car you drive, which is why someone with a more expensive car may still end up paying less for auto insurance Toronto than someone with a budget friendly car.
How can I keep car insurance rates low in Toronto?
Ways of lowering car insurance premiums in Toronto include selecting a high policy deductible, bundling insurance policies together, such as by buying multiple auto insurance policies, or taking advantage of auto insurance discounts like hybrid or electric car discounts, winter tire discounts, telematics discounts, group insurance discounts, and more.
If someone borrows my car and gets into an accident, are they covered?
If someone has an accident in your car, your car will be covered, since auto insurance Toronto follows the vehicle, not the driver. The only instance in which you would not be covered is if the person driving your car was committing an illegal act at the time of the accident or if they are listed as an excluded person on your car insurance policy.
Do speeding tickets impact car insurance rates in Toronto?
Yes, speeding tickets impact car insurance premiums in Ontario. Since speeding tickets are a form of driving infraction, having one or multiple on your record can increase your premium. However, your premium won’t increase right away. Instead, it is likely to go up when your auto insurance Toronto policy renews. To avoid an insurance premium increase, take care to adopt good driver habits.
Why did my Toronto insurance premium change?
Insurance companies are constantly underwriting behind the scenes, which is why you will notice changes to your insurance premium year after year. Plus, the provincial government has made several Ontario car insurance changes, which also impact auto insurance Toronto rates.
How much should I pay for car insurance in Toronto per month?
That depends on your particular circumstances. Your rate will depend on different factors including your address, your driving history and the type of vehicle you drive. To get a better idea of what you should be paying, talk to an insurance broker.
What is the cheapest car to insure in Toronto?
There is no one cheapest car to insure in Toronto. Two people with the exact same car might have different insurance rates. That’s because insurance companies consider things like your driving experience, claims history and address in addition to the type of car. We suggest you pick a car you like, then talk to an insurance broker to find the best possible rate.
Is there a best car insurance company in Toronto?
Different insurance companies offer different products and have different specializations. We suggest talking to an insurance broker. A broker will shop around different insurance companies to find a solution that fits your specific situation.
Who shops for car insurance in Toronto?
Anyone can shop for car insurance in Toronto! However, we suggest getting a broker to help you. Brokers are insurance experts. That means you’ll have confidence you have the coverage you need.
What affects your Toronto car insurance rate?
Many different factors affect your car insurance rate in Toronto. Some of those factors include: where you live, your driving experience, your claims history and the type of car you drive.
What are the different types of car insurance in Ontario?
In Ontario there are many different types of car insurance. The four mandatory coverages are liability, accident benefits, direct compensation and uninsured automobile coverage. In addition, you can purchase things like collision, comprehensive and accident forgiveness.
If you have any questions, contact one of our local branches.
More Ways to find a great car insurance rate in Ontario