Many factors can affect the price of your car insurance premium, and the type of car you own or rent is one of these factors. If you are looking to save money on car insurance, it is important to take into consideration the estimated insurance premium you will be required to pay when buying or renting a new or used vehicle.
Many desirable cars are among some of the most affordable to insure in Ontario, so you will have many options to choose from if you are trying to save some extra money on your insurance!
Some of the Most Affordable Cars to Insure in Ontario Include:
Subaru Forester 2.5I
Honda CR-V LX
What Factors Determine Your Car Insurance Rates?
As mentioned above, the type of car you drive is one factor that helps to determine your car insurance premium. However, this is not the only information that is used to determine your rate. Here are some other factors that are used to determine the cost of your car insurance.
Your Driving Record
Your driving record plays a large role in the amount you pay for car insurance; however, this factor is largely in your control unlike some of the other variables. If you have a clean driving record, your premium may be lower. If you are a driver who has been involved in accidents or traffic violations, you may have an increased premium as it is statistically proven those who have had incidents are more likely to be involved in accidents or violations again.
Where You Live
Location is a big factor when it comes to determining your car insurance premium. As some cities have higher rates of crime and traffic, you may be more at risk of making a claim when living in these areas. Insurance companies use crime and traffic statistics specific to your postal code to help determine how much you will pay for your car insurance premium.
Car Usage and Mileage
The more you drive your car, the more your risk of being involved in an accident or making a claim increases. This then results in insurance companies viewing you as a higher risk driver, therefore they may increase your insurance premium to allow for appropriate coverage and protection. The insurance company may also factor in if you are using your car for personal or commercial or business reasons.
Your Insurance History
You may qualify for a lower car insurance premium if you have a record of having continuous insurance, without a lapse, and pay your premiums on time.
Your Age, Gender, & Marital Status
Mature drivers tend to be involved in fewer accidents than those who are less experienced. Specifically, teenagers are usually in the age range of highest accidents, so insurance companies often charge teenagers and those under 25 a higher rate. Women are also statistically involved in fewer accidents, so men are often required to pay a higher premium. Marital status may also impact your premium as spouses living in the same household often both drive the insured vehicle. Having two drivers can lead to a change in risk profile, sometimes resulting in a higher premium.
Your Chosen Deductible
A deductible is an amount you are required to pay in the event of a claim. The amount you have agreed on as your deductible directly affects the cost of your premium. So, if you decide to pay a higher deductible amount, this may result in a lower insurance premium.
Your Amount of Coverage
If you opt for additional coverage and protection, your auto insurance rates may also increase. However, some of the additional coverage options may be very useful for your personal driving experience and lifestyle. Some of these extra coverage options include but are not limited to:
• Comprehensive coverage
o This coverage protects you against theft, vandalism, and weather such as hail, and even explosions. This coverage can also help with the repair costs of windshield cracks or chips.
• Collision coverage
o This portion of your policy covers you if your vehicle experiences a collision with another object.
• Additional third-party liability protection
o This type of coverage is what protects you if you have been threatened to be sued or are being sued for physical injury of an individual or property damage due to an at-fault crash.
• Additional standard accident benefits coverage
o This is the section of your insurance policy that covers you if you have experienced injuries, despite who the individual deemed at fault is.
• Policy endorsements
o Policy endorsements add extra coverage to your policy or alter your standard policy contract for specific situations, types of damage, or perks.
What is Required in a Car Insurance Policy in Ontario?
It is important to remember that all auto insurance policies in Ontario must include the following coverages:
-Uninsured Automobile Coverage
- Statutory Accident Benefits Coverage
- Third-Party Liability Coverage
- Direct Compensation - Property Damage (DC-PD) Insurance
Personalizing your auto insurance policy is the best way to ensure you are protected and covered for your individual driving needs. Speak with your Youngs Insurance Broker today to find out which additional coverages are best for you and your insurance policy.
What Factors Determine Which Cars are the Most Affordable to Insure?
Make and Model
Certain vehicles reflect a driver’s intended usage of that vehicle, as well as their personal driving experience and lifestyle. An easy example to display why certain cars are categorized as more affordable to insure is when we look at the typical usage of a minivan. It can be assumed most minivan owners are married and/or have children. This vehicle is often used to transport children to and from school or extra-curricular activities. Individuals who have children as passengers are more likely to partake in safer driving habits, therefore they may be seen as lower-risk drivers by insurance companies.
Replacement or Repair Costs
Insurance companies consider how much it will cost to repair or replace the vehicle if damaged. Cars with a higher cost to replace or repair may have a higher insurance premium.
Chance of Theft
Some cars are stolen at a higher rate than others. If your car model has a high rate of theft, you may pay more for your insurance.
The safety rating a car has is one of the most important factors in determining its insurance premium. The safer the car, the cheaper it is to insure. A safety rating is a score that is assigned to a vehicle to reflect how safe it is when it is involved in a collision or accident. It also communicates to insurance companies how effective it will be in avoiding crashes.
How Are Car Safety Ratings Determined?
Safety ratings tend to improve year by year as the technology and safety features cars are equipped with are improved upon. Two main factors go into determining a vehicle’s safety rating, crash protection, and crash avoidance.
This factor indicates how well the vehicle will protect the driver and passengers in the event of a crash. Airbags, frame design, crumple zones, and rollover resistance are all measured under crash protection to help determine the vehicle’s safety rating.
Accident avoidance is a great way to ensure the safety of the driver, passengers, and other drivers on the roads. Recent technology has allowed for many new car features to aid in crash avoidance. The more crash avoidance features your vehicle has, the higher it may rank on a safety rating. Some of these features include:
• Back-up parking assistance
• Blind spot detection
• Forward collision warning
• Lane departure warning
• Automatic emergency brakes
• Adaptive cruise control
• Adaptive headlights
As each vehicle and individual’s driving lifestyle will result in varying auto insurance premiums, being aware of which vehicles are the least expensive to insure in Ontario in 2022 can help you determine the best vehicle for you.
Youngs Insurance Brokers assesses your individual driving experience and your vehicle’s safety statistics to determine the best auto insurance policy that will keep you covered and protected. Get your free car insurance quote here with SnapQuote!
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Disclaimer: The information provided on this blog is for educational purposes only and is not intended as professional insurance advice. The coverage, terms, and conditions of each insurance policy are unique and subject to individual circumstances. The information provided does not guarantee the availability or suitability of any insurance policy for your specific needs. You should not rely on the information in the blog as an alternative to professional advice from your insurance broker or insurance company. If you have any specific questions about any insurance matter, please consult a licensed insurance broker for personalized advice and guidance.
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