Choose the Right Vehicle… and the Right Insurance!
Looking to buy a new vehicle? Take a moment to review these tips regarding new car insurance before you set out to purchase your next vehicle. More than any other factor, the type of car or truck you drive can have a significant impact on your insurance costs. What’s more, just as it matters which vehicle you choose, it’s equally important which insurer you opt for.
Every Vehicle Is Different
Your car insurance premium is affected by a number of factors related to the vehicle you buy. For example, a sports car costs more to insure because the risks of theft and accident are generally higher. You can consult the website of the Insurance Bureau of Canada for more information about risk levels associated with different makes, models and categories of vehicles. Taking some time to learn about the risk level associated with the vehicle you’re looking at buying will help you know what to expect in terms of new car insurance and allow you to make an informed decision.
Another sure way to lower your car insurance premiums, while increasing security for you and your passengers, is to opt for a vehicle equipped with security features. Air bags and ABS brakes reduce the risk of accidents and injury, for example, and will be factored in to your premiums. An antitheft system that is approved by Transport Canada can also lower your premiums. For more ideas on how to reduce your new car insurance costs, consult our section offering tips on lowering insurance premiums.
Not all security equipment is offered standard on all vehicle models. Consult with your dealership and with your insurer about which models offer what security equipment as standard features.
Choosing Your Insurer
Your annual costs for new car insurance represent a significant portion of the money you spend every year on a vehicle. By choosing your vehicle and your insurer wisely, you can minimize that annual cost.
Insurers are divided into three categories:
- The insurance broker, who works independently, shopping for you among several car insurance companies to find you the plan that best fits your needs, at the best price possible.
- The insurance agent, who represents a specific insurance company and who can also advise you regarding which car insurance plan is best for you.
- A direct insurer, whereby you obtain car insurance online or by phone from an insurance company without going through an agent or broker.
Be vigilant! Certain fraudulent operators can and do take advantage of the trust and credulity of consumers to commit fraud. Be wary of offers that sound too good to be true! Do proper vigilance in researching the insurance company the agent or broker claims to represent. It is possible that the company does not exist. Never make any payments if you have any reason to doubt the legitimacy of the agent or broker you’re dealing with.
Associations and Organizations That Protect Consumers Like You
Insurance companies in Canada are regulated on a federal level by the Office of the Superintendent of Financial Institutions, an independent governmental agency.
In Canadian provinces, insurance companies are also regulated by supervisory governmental departments or independent councils. You can find links to these regulatory bodies on our links and resources page.