Things You Didn’t Know About Ontario Car Insurance – Cheap Auto Insurance

Things You Didn’t Know About Ontario Car Insurance


Car insurance in Canada is such a huge household expense. Car insurance in Canada is in fact more expensive than in most countries. Auto insurance rates in Ontario are the highest in the whole of Canada with drivers paying on the average over $170 monthly on premiums.

What’s more complicated is the fact that the rules for Ontario car insurance are not straightforward. A hybrid combination of no-fault insurance and tort insurance (one party can sue the other) is used in Ontario.

With seemingly arbitrary rules and high rates, there are some know facts about car insurance in Ontario that may be useful to you.

Do not subscribe to too much insurance

Good coverage is necessary, but it comes at a cost. Consider your risks and take the required insurance. According to law, your insurance policy has $200,000 in 3rd party liability, however, it is recommended that you have above that. Plan for a minimum of $1million, $2 million will be better. Cost can add up real quick if someone decides to sue you.

It is not always ideal to subscribe for a comprehensive insurance. For instance, you may not need this kind of insurance if you have an older car. Avoiding comprehensive insurance for an older car can reduce your monthly insurance premium. Comprehensive insurance is a usual requirement for new or leased vehicles.

Coverage for old cars can increase:

Ordinarily, the older your car, the lesser should be its value. This is not always the case. There are two situations when older vehicles would have higher auto insurance quotes than newer vehicles.

Some older car models will cost more to insure because some of them have a horrible insurance history. For instance, they may be prone to theft hence, insuring them will be risky.

Secondly, at an age of 20+ years, cars can either be considered as antique or classic which gives rise to a special kind of insurance coverage known as antique auto insurance or classic car insurance. Only a few insurance companies such as Shop Insurance Canada North York Location offer these kinds of auto insurance in Ontario and depending on your vehicle and driving habit (summer months only vs. year-long), car insurance rates can cost more than mainstream vehicles.

Car insurance and rental cars

Many individuals are not well informed about rental vehicle insurance. One may think that the insurance which accompany their credit cards is enough. The truth is that it is not enough as it does not cover for damages to other people’s property or 3rd party liability. You also need to look out for collision damage waiver from the rental agency which may not include all the cost related to the accident.

The best thing to do is to ensure that you have personal car insurance if you have a car of your own and make sure that it covers rental cars – this is done by many insurers. If this extension is not on your insurance, you can at an extra cost of $20 per annum, purchase a rider for a policy to covers for rental cars. The cost is worth it since you will pay around $15 to $20 per day for an equivalent coverage from a rental agency.

To get an accurate car insurance quote in North York, Ontario, Canada, please feel free to visit us here:

Shop Insurance Canada

North York Location

2110 – 18 Harrison Garden Blvd

North York, Ontario

M2N 7J7


(416) 543-9959