Just because it’s the cheapest doesn’t mean it’s the best quote. Quotes can be for policies with different limits, deductibles and coverage. Shop around for car insurance, especially if your policy is coming up for renewal or if your driving situation has changed. It could save you a pretty penny.
For this article, our team reviewed FSRA’s auto-insurance shopping checklist, savings guidance, licensed-seller and disclosure guidance, and Ontario Regulation 664.
Read More: How Does Car Insurance Work in Ontario?
How Often Should You Check Auto Insurance Rates?
Check auto insurance rates at least once a year and whenever a significant life change affects your policy. Start several weeks before renewal. FSRA expects insurers to send renewal notices about 30 days before expiry, which gives you time to compare quotes. Material changes may include moving, adding or changing vehicles or drivers, or driving more or less.
Make sure you’re comparing apples to apples by requesting quotes with the same limits, deductibles, benefits and other features. Once you’ve found a policy you want, make sure it begins before terminating your current policy.
Why Your Rate Can Change
Quotes can change if an insurer changes its approved rates or if certain information within your application has changed.
- The make and model of all your vehicles
- The age, gender and marital status of drivers included in your policy
- Your driving record, including previous insurance claims, accidents or traffic violations
- Your postal code
- The amount of time you’ve had your licence
- Your driver’s licence class
- Your annual mileage and daily commute distance
- Your policy’s coverage
Rates vary among insurance companies. Shop around, keeping coverage levels and deductibles the same, to get the best deal.
When to Check Again Between Renewals
If you’ve experienced a major change in life or situation, you may want to compare rates sooner. Otherwise, once a year before your renewal is a good starting point.
Read More: How to Manage a Car Insurance Renewal
Always tell your current insurer about material changes in your situation. This applies whether or not you’re shopping.
Changing Vehicles
Vehicle changes can raise or lower your rate. The latest safety features don’t necessarily mean lower insurance costs.
Changing or Adding Drivers to Your Policy
Adding or modifying a driver on the policy can change the premium. Their age, driving record and experience will determine whether the cost increases or decreases. Disclose any occasional or household drivers. Compare the quotes.
Credit Score Is Not an Ontario Auto Rating Trigger
Changes in your credit score should not prompt you to obtain a new vehicle insurance quote because Ontario prohibits using credit-related information to affect your rates. Ontario also prohibits using indicators such as credit history, credit rating, home ownership status and net worth to assign vehicle risk ratings.
Moving to a Different Address
Be sure to report your new address to your insurer, along with full and accurate information about where the car is kept and how it is driven. Your rates could go up or down because location is one of the factors used to establish insurance rates.
Read More: See How Your Ontario Address Can Affect Car Insurance
Driving Record Changes
There is no one-size-fits-all three- or six-year window for all incidents and all carriers. Ask your insurer, agent or broker what convictions or accidents are affecting your quote and when they will no longer affect it.
Changes to Your Driving Habits
Let your insurer know if you’re driving fewer kilometres each year. Don’t assume you’ll get a discount, even if your shorter commute changes your overall risk exposure.
Where to Check for Better Insurance Rates
Request quotes from licensed insurers, agents or brokers. Be sure to get a copy of each quote so you can review policy details later.
Be aware that the cheapest quotes may not offer the same level of coverage. Using a comparison website such as MyChoice means filling out fewer applications and can help you compare quotes from licensed insurers. Check the policy documents before buying.
Tips to Lower Your Auto Insurance Rate
Here are a few other ideas to help you save some cash:
- Monthly payment charges vary between insurers, as does the amount you can save by paying annually. Work out the overall cost of paying monthly compared with paying annually.
- If the quote is adjusted for an anti-theft device, confirm whether your insurer recognizes the device before purchasing it for insurance savings.
- Keeping coverage types, limits and deductibles the same, compare home and auto insurance rates with and without bundling.
- Check if recognized driver training or usage-based insurance is offered. If so, check the requirements.
- Don’t drop necessary coverage just to reduce your premiums. Evaluate optional coverage based on financial risk and your vehicle’s value.
- Before buying or leasing a particular car, get an estimate for insuring that car.
- Ask about discounts for winter tires. Some insurers offer discounts if you install tires by certain dates. Conditions vary among insurers.
- While there are not necessarily insurance discounts associated with proper vehicle maintenance, it’s still an important practice for safe driving.
Before You Switch
Get the complete quote in writing before switching. Ask about cancellation charges, including short-rate penalties, and any loyalty or claims-free pricing you would lose. Compare liability limits, physical-damage coverage, accident-benefit choices, deductibles, endorsements, annual premiums and instalment charges. Confirm that the insurer, agent or broker is licensed.
Keep proof of insurance as well as cancellation confirmation for your old insurance. Your new policy needs to begin before you cancel your old policy.
Read More: 10 Tips to Lower Your Car Insurance Rate in Ontario