How Can You Get Cheap Car Insurance in Thunder Bay?
You can get cheap Thunder Bay car insurance by finding the best deals. Here are several tips to help you do so:
Compare Rates Between Insurers
Thunder Bay has a highly competitive auto insurance market, so insurers are constantly vying for your business. When insurers try to give you the best deals, it’s you who wins. Compare rates and shop around to see which insurance provider fits your auto protection needs affordably.
Take Bundled Policies
One of the best ways to save money while shopping is to buy a package deal, and insurance is no different. If you bundle home and auto insurance from the same company, you’re much more likely to get lower rates.
Ask For A Higher Deductible
You must pay a deductible on insurance claims before your carrier covers the remaining expenses. A higher deductible means paying extra if something happens to your car, but it also means you’ll get lower insurance premiums.
Request Group Discounts
Many insurance companies deal in group discounts for companies and other organizations. If you’re shopping for auto insurance in Thunder Bay for work, ask your agent about group deals and discounts.
Pay Annual Premiums
Paying annual insurance premiums might look expensive initially, but it’s generally cheaper than paying them monthly. Ask your insurers about half-year premiums if you can’t afford annual premiums.
Motor vehicle offences and accidents stay on your record for years. Unfortunately, any driving violation on your record will considerably increase your insurance rates. However, this also means you’ll get lower auto insurance rates if you have no offences on record.
Consider Taking Usage-Based Insurance
Usage-based insurance (UBI) or pay-as-you-go insurance tracks your driving behaviour to determine how much you must pay for insurance. Taking UBI lets you save up to 30% on your annual premiums, so it’s a good option if you consider yourself a safe driver.
Take Driving Courses
Accredited driving lessons make you a safer driver and let you earn discounts on auto insurance in Thunder Bay.
Choose the Coverage You Need
Naturally, more insurance protection leads to higher rates. While some auto insurance coverage is mandatory, you have optional insurance coverage like at-fault accident and theft protection. Review your policy and skip unnecessary optional coverage to save on insurance premiums.
Buy Affordable Cars
Cars that are expensive and hard to replace tend to get hit with higher premiums. If possible, buy affordable and reliable cars that are more common and easy to repair or replace if you want lower insurance rates.
Quick Facts About Auto Insurance in Thunder Bay
- Thunder Bay car insurance is LESS expensive than the Ontario average.
- The average annual car insurance cost in Thunder Bay for a driver with a clean record is around $1,290.
- Drivers without a clean record in Thunder Bay can pay up to $2,843 annually, depending on factors like driving and claim history.
- Comparing Thunder Bay auto insurance quotes with MyChoice can save you up to $916 annually.
Who Provides Car Insurance Quotes in Thunder Bay?
Insurance brokers, agents, aggregators, and direct writers provide car insurance quotes in Thunder Bay. Here’s an overview of these four insurance quote providers:
Insurance brokers are independent professionals who help you shop for the best rates by comparing deals from multiple insurers. Because they have a bird’s-eye view of the current Thunder Bay insurance landscape, they can show you which companies offer the best insurance deals and answer any questions you may have.
Brokers take a commission from insurance companies, which could increase your rates. You might spend more money than if you had found an insurer yourself.
Like insurance agents, direct writers only sell insurance products from one company. Direct writers are typically found online and are cheaper because they don’t have physical offices.
Insurance agents work for a certain insurer, so they can only offer their employer’s insurance products. However, they know their insurer like the back of their hands and might even give you discounts that brokers don’t have access to.
Additionally, insurance agents can close insurance sales independently, meaning you can purchase insurance from them right then and there.
An insurance aggregator website like MyChoice compiles rates from various insurance brokers, companies, and direct writers in one place. You can browse aggregator websites to find the best deals from the top insurance companies and get quotes instantly.
Better yet, insurance aggregators are accessible online and entirely free for customers, so you can look up insurance rates without spending a single penny or leaving the house.
The Best Car Insurance Brokerages in Thunder Bay
Working with an insurance broker can make getting cheaper insurance rates easier. Brokers can directly negotiate with insurers to get a quote that suits your budget.
Below are some of the best car insurance brokerages in Thunder Bay:
|214 Red River Rd
Thunder Bay, ON P7B 1A6, Canada
|1139 Alloy Dr Suite 110
Thunder Bay, ON P7B 6M8, Canada
|Jones & Associates Insurance
|521 Memorial Ave
Thunder Bay, ON P7B 3Y6, Canada
|Youngs Insurance Brokers Inc
|905 Tungsten St
Thunder Bay, ON P7B 5Z3, Canada
How Does Car Insurance Work in Thunder Bay?
Car insurance in Thunder Bay works by providing financial coverage in case something bad happens to you or your car, depending on the protection you choose. Auto insurance in Thunder Bay is mandatory by local laws, which means you need car insurance to avoid fines or driver’s licence suspensions.
Worse still, if you get convicted of driving without insurance, you’ll get higher premiums from carriers. This makes driving again prohibitively expensive or even nearly impossible after being caught driving without insurance. That’s why getting auto insurance is essential before buying a car or driving in Thunder Bay.
Here’s a breakdown of the key elements of your auto insurance policy:
The mandatory car insurance requirement for Thunder Bay drivers are:
Third-Party Liability (TPL) Coverage
This insurance component provides financial compensation if you cause an accident that results in car damage or somebody getting hurt or killed. Per Financial Services Commission of Ontario (FSCO) regulations, you need at least $200,000 in TPL coverage.
Statutory Accident Benefits Coverage
This insurance component pays for your medical bills, rehabilitation, and possible funeral expenses if you get hurt or killed in a car accident, regardless of who’s at fault. Accident benefits coverage also offers income replacement worth 70% of your gross income, capped at $400 per week.
Uninsured Automobile Insurance
Uninsured automobile insurance covers your medical bills and funeral expenses if you’re struck by uninsured vehicles or hit-and-run drivers. Additionally, it compensates for vehicular damage caused by uninsured drivers.
Direct Compensation – Property Damage (DC-PD) Insurance
DC-PD insurance compensates you for the damage other drivers cause in an accident. However, DC-PD only kicks in if the other person is at fault, they’re also insured, and the accident takes place in Thunder Bay.
Since minimum car insurance only goes so far, we’ve got some extra Thunder Bay car insurance recommendations for you:
Extra TPL Coverage
The mandatory $200,000 insurance minimum can be too small, so many drivers choose to get coverage up to $2 million if they cause property damage or hurt somebody in an accident.
Additional Statutory Accident Benefits
Many people get additional coverage for medical bills and funeral expenses in their statutory accident coverage. You can also get extra income replacement protection if 70% income capped at $400 a week seems too limited.
More Comprehensive Property Damage Protection
DC-PD coverage has very specific coverage terms like the other driver also needs to be insured, and the accident must occur in Thunder Bay. To cover their bases, many people purchase extra insurance that still protects them even when the other driver is uninsured, and the accident happens in other provinces.
In addition to mandatory insurance coverage outlined by the FSCO, you can take optional insurance coverage like:
Specified Perils Protection
Specified perils insurance coverage protects you from loss or damage due to a specific cause. The most common perils insured are:
Many insurers also offer comprehensive auto insurance in Thunder Bay if you want protection from all these perils.
Insurers usually raise your premiums if you’re at fault for causing an accident. If you’ve been a safe driver for several years, you can take extra accident forgiveness coverage so you won’t get higher premiums if you cause an accident. Note that accident forgiveness only works on your first accident, and subsequent violations will still raise your rates.
Limited Depreciation Waiver
If you take a limited waiver of depreciation, you can receive your car’s purchase price as compensation if it’s been stolen or deemed a total loss after an accident.
How Your Car Insurance Quotes Are Calculated in Thunder Bay
Your car insurance rates are calculated based on how risky you are to insure. Naturally, drivers more likely to get into accidents will have higher premiums than those less likely to be in an accident.
Here are seven factors that influence your Thunder Bay car insurance quotes:
Age, Gender, and Marital Status
Your personal demographics influence auto insurance premiums in Thunder Bay because different people have varying accident risks.
Younger people tend to get higher premiums because insurance companies see them as more accident-prone than older people. Generally, your car insurance rates start decreasing when you hit 25 years old as long as you keep a safe driving record. However, insurance premiums increase again for people aged 65 and older because they’re more likely to be injured or killed in traffic accidents.
Women often get lower insurance rates because they’re seen as more careful drivers and don’t take as many risks as men.
Marital status also determines your rates because most insurance companies see married people as more financially stable and less-risky drivers. Married couples also tend to bundle home and auto insurance, saving more on premiums.
People who live in urban areas often see higher insurance premiums because they’re more prone to car accidents and theft.
Car Make and Model
Expensive cars are more costly to repair or replace, so insurance premiums are usually higher than more common vehicles. You can install security features like anti-theft devices if you have an expensive car and want to save on insurance premiums.
People who drive safely are rewarded with lower premiums because they’re usually less likely to get into a traffic accident. Conversely, people who have gotten into multiple accidents get higher premiums because they’re more likely to be involved in another accident down the line.
Logic dictates that people who drive frequently are more likely to get in an accident. Therefore, kilometres driven is one of the determining factors that set your Thunder Bay auto insurance rates.
Insurance Coverage Chosen
Your coverage options influence your insurance rates because taking more coverage gives you more protection. Naturally, the more coverage you choose, the higher your rates.
Getting discounts can lower your auto insurance rates and make them more affordable. You can typically get discounts by bundling home and auto insurance or asking for a group discount for your workplace or organization.
Most Expensive Postal Codes in Thunder Bay
Car insurance costs an average of $1,290 in Thunder Bay. Prices are well below the provincial average of $1,385, so Thunder Bay car insurance is relatively inexpensive. P7A is the Thunder Bay postal code with the most expensive car insurance rates. Here’s a look at the most expensive areas for auto insurance in the city:
|Average annual car insurance premium
Least Expensive Postal Codes in Thunder Bay
Car insurance costs within Thunder Bay have only a slight variance, so any differences in insurance rates by postal code will be minimal. P7G is the cheapest area for car insurance in Thunder Bay – here’s a more detailed look:
|Average annual car insurance premium
Car Insurance Cost in Thunder Bay by Age
Your age can play a significant role in how much you pay for car insurance.
Generally, younger drivers pay higher premiums because they lack experience on the road. Fortunately, there are ways for student drivers to keep these rates low, including enrolling in driving school, applying for student discounts, or getting listed as a secondary driver on a parent’s existing policy.
Senior drivers also tend to pay higher insurance rates because of an increased likelihood of severe injury after an accident.
Take a closer look below at how your age can affect car insurance premiums:
|Average annual insurance cost
|Average savings with MyChoice
Car Insurance Cost in Thunder Bay by Driving History
A bad driving record can significantly increase your insurance premiums. In fact, an at-fault accident can result in higher premiums for up to 10 years.
On average, Ontario speeding tickets remain on your record for up to three years. After they get expunged, insurers can no longer penalize you for them. In comparison, more severe convictions, such as distracted driving or collisions involving injury, can lead to the cancellation of your policy.
Check out how various driving violations can affect your insurance rates:
|Average annual car insurance rate
|Clean driving record
|Insurance cancellation due to non-payment
|Licence suspension for alcohol-related offences
Other Factors That Affect Car Insurance Prices in Thunder Bay
We’ve covered several factors that influence car insurance rates in Thunder Bay. Aside from those, several extra factors play a part in determining your Thunder Bay auto insurance premiums:
Vehicle Model Accident Rates
Some cars are just more accident-prone than others. Even if you have a spotless driving record, owning a car model infamous for having high accident rates will increase your insurance premiums.
Naturally, older cars are more expensive to insure because they may not have all the safety features of newer vehicles. If you insist on driving a vintage car everywhere, make sure you can pay the insurance premiums.
Vehicle Repair Costs
The harder it is to repair a car, the more expensive it is to insure. You can expect high insurance premiums on luxury cars and foreign cars that don’t have a large dealership or service centre presence in Canada.
Vehicle Primary Usage and Annual Mileage
You may spend more or less time on the road depending on what you use the car for. Car usage influences insurance rates – generally, the more you use it, the higher your premiums. For instance, insurance premiums on a car you use as an Uber will be higher than on a car you almost exclusively take on weekend cruises.
A good way to measure how much somebody uses a car is by its annual mileage. If your car has low annual mileage, insurers may determine that this car is low-risk and thus grant you more affordable insurance rates.
Local Crime Rates
Living in high-crime areas means your car is at higher risk of being stolen or vandalized. If you live in an area where theft or vandalism often occurs, you may get higher car insurance rates.
Past Insurance Claims
Any auto insurance claims will drive your premiums up, regardless of who’s at fault. If you make many insurance claims, the insurer will see you as a high-risk policyholder and give you higher rates.
Many insurance companies reward long-term customers with discounted rates. If you’ve been a policyholder at the same insurance company for several years, ask for a rate reduction or discount when you renew your policy.
Driving in Thunder Bay
Thunder Bay is situated in the upper North Western parts of Ontario and is a geographical crossroad for travellers. While public transportation is adequate, most people must get around by car. Here are a few things you should know about driving in Thunder Bay:
- Major highways: Thunder Bay Expressway, Harbour Expressway
- Public transit options: Thunder Bay Transit (bus)
- Ridesharing services: Uber, Lyft
- Parking space providers: City of Thunder Bay, private lots
- Top tourist attractions: Fort William Historical Park, Hillcrest Park, Terry Fox Monument, Mount McKay, Blue Point Amethyst Mine, Marina Park
- Busy intersections: Arthur Street to James Street South, Central Avenue to Memorial Avenue, Balmoral Street, Golf Links Road
- Airports: Thunder Bay International Airport
Main Mode of Commuting in Thunder Bay
88.5% of Thunder Bay commuters choose to travel by car, truck, or van. Despite the city’s adequate public transit, it’s just the third-most popular mode of commuting with 1,500 users. Pedestrian commuters edged out public transit users for the second spot by around 300 people. Learn more about Thunder Bay’s mode of commuting from the table below:
|Main mode of commuting
|Total – 25% sample data
|Car, truck or van
|Car, truck or van – as a driver
|Car, truck or van – as a passenger
Commuting Duration in Thunder Bay
More than half of Thunder Bay’s commuters get to work within 15 minutes. In fact, over 90% of the city’s commuters spend less than 29 minutes on the road, which makes commute times in the city relatively fast. Here’s a detailed breakdown of the commuting duration in Thunder Bay:
|Total – 25% sample data
|Less than 15 minutes
|15 to 29 minutes
|30 to 44 minutes
|45 to 59 minutes
|60 minutes and over
Driving Conditions in Thunder Bay
The Thunder Bay area is occasionally prone to dangerous driving conditions because of flash flooding and an abundance of wildlife. In addition, Thunder Bay experiences a lot of off-road traffic, so you’ll want to be aware of your surroundings.
Here’s some more information about the driving conditions in Thunder Bay:
- Average daily commute time: 17.5 minutes round trip
- Average annual rainfall: 21.33 mm
- Average annual snowfall: 1,631 mm
- Rainy days per year: 33 days
- Rainiest month in Thunder Bay: June
- Driest months in Thunder Bay: December – March
- Snow days per year: 63 days
- Snowfall months in Thunder Bay: October – May
Traffic in Thunder Bay
Because Thunder Bay is susceptible to volatile weather, expect to run into traffic or dangerous driving conditions occasionally.
Keep these other critical facts about traffic in Thunder Bay in mind:
- Population: Roughly 110,172 people live in Thunder Bay.
- City area: The Thunder Bay city limits span 447.5 km2.
- Busiest highways: The busiest highways in Thunder Bay are the Harbour Expressway and the Thunder Bay Expressway.
- Average number of collisions: Roughly 2,012 collisions occur in Thunder Bay each year.
The Most Common Questions About Car Insurance in Thunder Bay
Is ridesharing insurance available in Thunder Bay?
Yes, ridesharing insurance is available in Thunder Bay through Economical.
How much does Thunder Bay insurance cost?
Thunder Bay insurance costs an average of $1,290 a year or $107 monthly.
Which cars get the lowest car insurance premiums in Thunder Bay?
Compact hatchback cars get the lowest car insurance premiums in Thunder Bay. The Mitsubishi Mirage is currently the cheapest vehicle to insure within the area.
Why should you compare car insurance rates in Thunder Bay?
You should compare car insurance rates in Thunder Bay because quotes constantly change. You might find that another insurance provider can offer a lower insurance premium than your current carrier.
Does my Thunder Bay insurance work in the US?
Yes, your Thunder Bay insurance will work in the US. However, most insurers recommend getting additional coverage in case of an accident, as costs may vary.