Car insurance is fundamental to all car owners in most parts of the world; laws governing the insurance thus vary. This article will focus on Ontario car insurance in Canada. The article will provide with the essential information on various aspects of car insurance to both the citizens and foreigners like a tourist who require mcdougallinsurance.com/auto-car-insurance, insurance services during their visit to Canada.
The Ontario car insurance cover has three levels;
The third party; it is the minimum requirement that covers other people but not you, it is cover that sustains damaged caused to other peoples cars, property or person caused by the insured driver.
A collision policy; it is a cover for the damages that may cost repairing or replacing after an accident that is your fault.
Comprehensive; it is the highest level that covers in case of theft, third party benefits and accident that caused damage to your car regardless of whether the fault is yours. It is usually expensive, but compared to the benefits included it becomes the cheapest.
Factors considered by insurance companies when calculating premiums
• Demographic factors; age and gender
• Model of the car
• How often you use your car
• Driving record
• Claim history
• Type of policy you choose
• Amount deductible
• Where you live
How one can reduce the insurance rates that they pay?
• Complete a higher driving course to obtain a high-level driving license
• Keep a clean driving record; this means not being involved in careless driving like speeding and others
• You may consider changing the amount deductible to something that is cheaper.
• Shop around for other companies with reasonable but effective offers.
• Consider moving to safe places, with secure parking or areas with less car theft incidences.
Ways to get cheap insurance for new or young drivers
• Go for the models of cars that are cheap to insure, research on most affordable vehicles to guarantee.
• Not all new or young drivers are reckless but to prove that you can install a black box to monitor driving behavior or car usage.
• Avoid car modifications because they cause premiums rates to increase if you need to modify, do it on cheaper parts
• Consider adding an extra named driver to the policy of a person who is older and more experienced as a parent.
• It is cheaper to pay per year than on a monthly basis, therefore consider paying for the whole year in advance.
Forms of car insurance settlement options
When you make a claim, the insurance company through the adjust will review your case and decide on how they can settle; it is by;
Repair or replacement; it is applicable if your car can be fixed or rebuild to the same condition.
Betterment; the settlement only fixes the car to what it was prior the accident, any other additional repairs you will be responsible for the payment.
Write-off; happens when the cost of repair is more than the value of the car before it was involved in the accident, the company will give a cash settlement equal to the value of the vehicle before the accident.
Car insurance process is as complicated as buying it; however, the above tips will ease the understanding process.