It’s finally the day where you go and pick up your new car after spending weeks searching for that perfect one for you and your family. Before you can drive off the lot, there is something that you need first, car insurance.
When you are getting car insurance for the first time, it can be daunting when you don’t know what to expect or how to go about it. Will Marshall Insurance Brokers has developed this guide to help new and old car owners better understand what they need to know about car insurance and what to expect when getting a new car insurance policy.
What Is Car Insurance?
Car insurance is a policy that covers your car just like your home insurance covers your home. If you purchase car insurance, you ensure that the insurance provider will cover some or all of those expenses if you are involved in an accident or damage to your vehicle. The coverage depends on what you choose for your car insurance policy and figures out your coverage range.
Now, if you aren’t sure what kinds of damage is covered, this may depend on the car insurance policy you go with, but typically you would be covered from car theft, collision damage, vandalism and weather damage. It’s important to understand the coverage scope, so review your contract prior to signing it. In the event that you are unable to understand your contract, get in touch with your insurance provider, and they will be able to help you.
Who Needs Car Insurance?
Everyone who owns, financed or is leasing a car is required to own car insurance that has a certain amount of coverage. In general, the amount of coverage you need will depend on where you live and usually includes accident benefits, liability coverage, uninsured carmobile coverage, and direct compensation coverage.
It’s important to make sure you have car insurance before you drive, as in Ontario, you can be fined from $5,000 to $50,000 for a single offence; in addition to being fined, your driver’s license can also be suspended, and your car impounded.
How Much Does Car Insurance Cost?
Depending on the policy and on your own circumstances and needs, the cost of your car insurance will always differ as it is unique to you. Car insurance companies use some universal factors like the kind of car you have or your age. So let’s take a look at all the factors in more detail.
Your Vehicle’s Physical Attributes
The physical attributes of your car are taken into account, like the make, model, and model year of your vehicle are a big part of the premium costs. Like if you had a sedan, you wouldn’t be paying as much as someone who has a sports car.
If your car isn’t a new one, they will also consider if the vehicle has been in any previous accidents, and if it has, it will affect the coverage amount.
Private or Commercial Use
Whether you intend to use the vehicle for commercial or personal use, you will have different coverage options.
Place of Residence
The province you live in, and if you live in a rural or city area, will affect your car insurance rates. An example of this would be that you might have a higher risk of hitting a deer if you live in a rural area compared to a city.
Age & Gender
As the insurance industry is one of the few that can legally discriminate based on age and gender for pricing, both will play a role in your coverage.
Driving Record
Your insurance coverage will also be affected if you’ve been driving for a while and are a safe driver.
How Much You Drive
If you like to travel by car and take a lot of cross-country vacations, your car’s wear and tear will be considered.
When it comes to car insurance, Will Marshall Insurance is the company to call; contact us today for more information.