Newcomers to Ontario ask us how to save on auto insurance. Everybody that arrives here soon realizes that auto insurance is expensive. The annual premium for insuring one vehicle for personal use can vary widely from approximately $1,000 per year to $6,000 or more.
A new driver can take these 6 steps that can help save on auto insurance:
- Letter of Experience from previous insurer(s) – this works as proof of prior insurance and establishes the duration of claim-free status for that driver.
- Driver License history/Driver’s License Abstract – it is important for verifying the length of time that the driver has been licensed to drive.
- Photocopy of prior Driving License(s) – its useful when establishing license-held duration for a client that has moved from one state to another state within the U.S. Typically, the insurers in Ontario don’t access a driver’s U.S. driving license and claims history for insuring a personal vehicle.
Selection of vehicle
- Insurers continuously study claims data to assess how safe a certain vehicle would be for the occupants in the event of an accident. They also regularly update their estimates regarding the cost of repairing or replacing vehicles using numerous metrics.
- Sometimes it makes more sense to buy a better-quality vehicle to save on the insurance premium. For example, a Toyota Camry of the same model year may be cheaper to insure than a Toyota Corolla. Apparently, in the event of a collision, the Camry is safer for the occupants than a Corolla.
- Some vehicle manufacturers have started installing autonomous emergency braking system in their vehicles. You may get a significant discount if your vehicle has this feature.
- Some vehicle manufacturers allow a ‘Green’ vehicle discount for vehicles powered by hybrid fuels.
Driver Training Course
The Graduated Licensing program was successfully introduced in Ontario in 1994. This program lets new drivers get driving experience and skills gradually. Most insurers allow a discount if a driver has recently completed an approved driver training course and does not have a traffic conviction or an at-fault claim.
Bundling auto insurance with property insurance
Insurers offer additional discount on your automobile insurance if you also insure your residence with them. This discount can offer you from 5% to 17% or more savings on auto insurance.
Participating in Telematics program
If you think you are a safe driver and are willing to share your driving habits and car location data with the insurance company, then you can enrol in this program to get a discount of 10% right away. This personalized discount can go up as high as 25% on your next policy renewal depending on the recorded driving data.
Installing winter tires
Most insurers allow a discount if you use a complete, separate set of winter tires on your vehicle during the winter months.
Although as a newcomer to Ontario you might not be able to do these 6 things all at once, by doing them one at the time you will still be able to save on your auto insurance.
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Disclaimer: The information provided above is of general nature and has been compiled from the published information available in the public domain. Its purpose is to provide helpful knowledge on the topics discussed. It is not intended to provide any professional insurance advice. Levitt Insurance Brokers Ltd., it’s subsidiaries, affiliates, employees and/or representatives do not accept any responsibility or liability, either implied or specific, for any damages that may arise from using or relying on the information above. Please contact a licensed insurance professional to obtain insurance advice tailored to your individual needs.