Mandatory auto insurance in Woodstock
Car insurance is mandatory in Ontario, which means all Woodstock drivers are legally required to have valid auto insurance at all times.
If you choose to drive without purchasing car insurance or you let your existing car insurance expire, you run the risk of being slapped with a major fine because this activity is illegal.
For a first offense in Ontario, you can be fined a minimum of $5,000 and up to $25,000. There will also be a 15% surcharge. For a second offense, you can be fined up to a maximum of $50,000.
Compulsory car insurance coverage
As mentioned above, auto insurance is compulsory in Ontario and not just any type of insurance will do. To be able to drive in Woodstock, your car insurance must include multiple elements, which we will explain below. And remember, the necessary coverage set by the provincial government is to ensure the safety of all drivers, passengers, and cars on the road and is mandatory, whether you lease, finance, or own your vehicle, and whether you’re a permanent resident or visitor of Woodstock.
Liability coverage helps cover the cost of bodily injury or property damage if you get in a collision that you are deemed at fault for. This type of coverage can also help cover the cost of legal defense and court fees, if necessary. Liability coverage is mandatory in all Canadian provinces, and the minimum amount drivers are required to carry in Ontario is $200,000.
In contrast to liability coverage which deals with at-fault accidents, direct compensation helps cover the costs when you suffer an injury or your car is damaged in an accident that was not your fault (where the other driver is deemed at fault). To recover the money, you contact your insurance provider directly (hence the name “direct” compensation).
Accident benefits coverage
Accident benefits provide coverage if you, a passenger, or a pedestrian require medical attention following an accident. With accident benefits coverage, it doesn’t matter who is at fault for the collision. You can still recover money from the insurance company to cover the costs. That said, there are limits to the types of incidents covered, as well as the coverage amount, so be sure to read your policy closely.
Uninsured automobile coverage
Uninsured automobile coverage protects you and any passengers in your vehicle if you get into an accident that isn’t your fault, with a driver who is uninsured or underinsured.
How insurance brokers determine your Woodstock insurance rate
Car insurance rates are calculated based on a wide variety of factors. From age to car type, insurance providers take into account a range of factors when determining your premium. Keep reading to understand some of the key factors that will determine your Woodstock insurance rate.
One of the most significant factors in determining your insurance premium is your driving history. The cleaner your driving record, the lower your premium will be. So, if you’re a safe driver who always drives the speed limit and drives defensively rather than aggressively, your car insurance may be lower. Conversely, if you have multiple speeding tickets, accidents, or DUIs on your driving record, insurance providers will likely charge you more.
How frequently you drive your vehicle is another factor that insurance companies consider. If you’re constantly driving, day and night, then your car insurance might cost you more. Alternatively, if you only drive a few times a week or exclusively on weekends, then your chances of getting into an accident are lower which affects your insurance premium.
From an insurance company’s perspective, there is a direct correlation between age and experience. The younger you are, the less driving experience you have, and the more likely you are to get into an accident. This is why young drivers typically have higher premiums than older drivers. Conversely, elderly drivers are considered at a greater risk of getting into an accident, so their insurance rates are typically higher as well.
Home and workplace locations
Where you live and work (i.e. where you’ll be driving the most) can affect your Woodstock car insurance rate. Living in or close to a high-density urban area increases your risk of getting into an accident, which increases the cost of your insurance. In contrast, living in a rural area with fewer cars can lower your rates.
Beyond population density, the weather patterns of the area you live in may also be taken into account. For example, if you live in an area prone to climate related incidents, such as flooding, your car insurance could be higher.
Type of car
The make and model of your vehicle matters when it comes to car insurance. Insurance providers need to know the type of car you drive in order to assess the likelihood of your vehicle being stolen and how much it would cost to replace or repair it. Typically, the more expensive or newer your car is, the higher your premium will be. However, if your car is new but has safety features, discounts may be available.
An insurance company may ask about your marital status when determining your Woodstock car insurance rate. For a variety of related reasons, including age and lifestyle, married people are seen as more financially stable and safer drivers than their unmarried counterparts. Though it might not seem fair, often married drivers pay less than unmarried drivers for car insurance.
Get started with your Woodstock auto insurance today
Are you ready to buy car insurance, or so you simply want to learn more about the options available? BrokerLink has got you covered.
Our team of experienced insurance advisors is available to answer your questions in person, or via email, at one of our many locations.
We offer free car insurance quotes to all Woodstock drivers, and the process is simple. One of our skilled car insurance specialists will begin by asking you some questions about yourself, your vehicle, and the type of auto insurance you’re looking for. In an effort to provide the most accurate quote possible, you may be asked about your driving history, age, marital status, the type of car you drive, your car insurance history, and your location. Once we have the answers we need, we will be able to provide you with a competitive quote.
Please note that all BrokerLink quotes are complimentary and 100% obligation-free.
Contact BrokerLink today and start your auto insurance journey.
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