How to Know You're Paying Too Much for Car Insurance in Ontario

I can't think of anyone who likes having to buy car insurance, particularly when the cost is way too high. Because you have many choices of insurance companies, it can be impossible to locate the lowest price insurance company.

It's important to do rate comparisons periodically due to the fact that insurance rates are constantly changing. If you had the best price last year a different company probably has better rates today. Block out anything you think you know about car insurance because you're about to learn one of the easiest ways to find the best coverage while lowering your premiums.

These discounts can lower your rates

Companies that sell car insurance don't always list every available discount very well, so we took the time to find both the well known and the harder-to-find savings tricks you should be using. If you don't get every credit you qualify for, you are throwing money away.

Anti-lock Brake System - Cars that have steering control and anti-lock brakes prevent accidents and therefore earn up to a 10% discount.
Passive Restraints and Air Bags - Vehicles with factory air bags or motorized seat belts can receive discounts of 20% or more.
Military Rewards - Being on active duty in the military can result in better rates.
Resident Student - Kids in college who attend school more than 100 miles from home without a vehicle on campus can be insured at a reduced rate.
Anti-theft Discount - Cars that have factory anti-theft systems are stolen less frequently and therefore earn up to a 10% discount.
Driver's Ed - Make teen driver coverage more affordable by requiring them to take driver's ed class in high school.

As a disclaimer on discounts, most discounts do not apply to the entire policy premium. The majority will only reduce the price of certain insurance coverages like comprehensive or collision. So even though they make it sound like you can get free auto insurance, car insurance companies aren't that generous.

Why some people pay less for insurance in Ontario

Smart consumers have a good feel for the different types of things that come into play when calculating the rates you pay for car insurance. When you know what positively or negatively impacts premium levels allows you to make educated decisions that can help you get lower car insurance prices.

The list below includes a few of the "ingredients" companies use to determine your rates.

Your credit rating is important - Your credit rating is a huge factor in determining your rates. Drivers with high credit ratings tend to file fewer claims and have better driving records than drivers who have lower credit scores. If your credit score can use some improvement, you could potentially save money when insuring your by improving your rating.
Your car's features help determine rates - Owning a car with anti-theft technology or alarm system can help lower your rates. Anti-theft devices like GM's OnStar, tamper alarm systems and vehicle immobilizers can help prevent car theft.
Older drivers pay less - Youthful drivers in California tend to be less responsible behind the wheel so car insurance rates are higher. If you've ever had to add a youthful driver to your policy can break the bank. Older drivers tend to be more responsible, tend to file fewer claims and get fewer tickets.
Bundling policies can get discounts - The majority of insurers give discounts to insureds who consolidate policies with them, otherwise known as a multi-policy discount. Even if you're getting this discount it's in your best interest to compare other company rates to make sure you are getting the best deal.

Different people need different coverages

When it comes to buying the right insurance coverage for your vehicles, there really is no perfect coverage plan. Everyone's situation is unique so your insurance should reflect that For instance, these questions may help highlight whether you would benefit from an agent's advice.

Does my insurance cover a custom paint job?
Should I drop comprehensive coverage on older vehicles?
Am I covered when pulling a rental trailer?
Do I need PIP (personal injury protection) coverage in California?
What are California no-fault laws?
Can I get a multi-policy discount for packaging my home and auto coverage?

If you're not sure about those questions but you know they apply to you then you might want to talk to an agent. To find an agent in your area, fill out this quick form or click here for a list of car insurance companies in your area. It's fast, doesn't cost anything and may give you better protection.

Are you falling for claims of savings?

Consumers in California get pounded daily by advertisements for cheaper car insurance by companies like Allstate and Progressive. All the ads make an identical promise about savings if you move to them.

But how can every company claim to save you money? This is how they do it.

All companies have a certain "appetite" for the type of driver that earns them a profit. For example, a preferred risk might be between 25 and 40, a clean driving record, and has great credit. Any driver who meets those qualifications gets the lowest rates and as a result will probably save a lot of money.

Potential customers who are not a match for this ideal profile will be charged higher prices and ends up with the customer not buying. Company advertisements say "drivers who switch" not "everybody who quotes" save money. That is how companies can truthfully advertise the savings. That is why drivers should get quotes from several different companies. You cannot predict which company will give you the biggest savings.

Even more information can be found at the California Department of Insurance website. Visitors are able to find out industry alerts, view a list of available companies, read enforcement actions against agents and companies, and read consumer alerts.

Also read more on NAIC.org's Understanding your Policy and this directory of Ontario insurance agents.

Best coverage at the best price

As you prepare to switch companies, do not skimp on coverage in order to save money. Too many times, someone dropped physical damage coverage only to regret at claim time that the small savings ended up costing them much more. The aim is to buy the best coverage you can find for the lowest price, not the least amount of coverage.

We just presented many tips how you can reduce car insurance prices online. The key concept to understand is the more quotes you get, the better chance you'll have of finding lower rates. You may be surprised to find that the most savings is with a smaller regional carrier. Regional companies may have significantly lower rates on certain market segments than the large multi-state companies such as .