Ask the experts and they will tell you a few ways to get the most affordable insurance quote from your Canadian broker. A short list would include maintaining a good driving history, avoiding accidents or tickets that mar your record, choosing a higher deductible, understanding your Province’s mandatory coverage, and knowing how your car affects the quote (i.e. if you want a cheap insurance rate, don’t drive a Porsche!). While these common sense approaches to the cheapest car insurance quotes for Canadians are some of the most obvious, there is a bit more to the matter.
Things That Make Insurance Cheaper in Canada
If you are thinking cheap and affordable as you speak with your insurance broker about a quote, there are other things to keep in mind.
- Understand that agents and brokers are very different – Did you know that your broker can only look at the quotes offered through a limited number of companies? According to experts, a broker can only offer quotes from the companies they actually represent. That is usually less than five companies, and not an accurate representation of the marketplace. Neither, though, is a quote directly from an agent, since he or she can only give you a single quote from a single source, which is their current firm. Obviously, your best bet is brokers who have multiple sources for cheap and affordable insurance quotes, but even then, be willing to refer to more than one.
- Loyalty will never automatically translate to a discount – Be skeptical of firms that promote the idea of “loyalty discounts” or a similar concept. Why? These can distract you from one big truth. What is that? There could be a broker with a much more affordable quote elsewhere because those loyalty discounts may be applied to higher than average rates or inflated rates.
- And about those rates…If looking for cheap and affordable quotes from a broker, remember that it is not their fault if the four of five firms consulted provide wildly varying prices. Insurance companies use a unique perspective and formula, and one firm might be okay if you are deemed a higher risk due to a lot of accidents, traffic tickets, and so on. Another firm might be uncomfortable with even modest risk. That is why you may see diverse quotes for identical policies.
So, brokers are one of the fastest routes to a cheap car insurance quote in Canada, but let’s take a closer look at what your rate involves and how to make the right choice.
Tips for Choosing the Best Rates
You may already know that it is not good enough to be a safe driver with a clean record if you want a lower insurance rate. By now, you understand that you will need to consult more than a single broker about cheap and affordable quotes; so, be very alert to tricks like “loyalty” discounts to conceal higher than average quotes.
Of course, one of the best tools in your arsenal is the actual car insurance professional or broker. Because Canadian auto insurance can have so many “optional” features, and can be affected by factors like past claims, additional licensed drivers in the household, and traffic offences, you may find it incredibly confusing to do even a simple side by side comparison without expert help.
There are certainly reliable websites that you can plug in data and get quotes, but it is far more effective to run the various scenarios with your preferred broker. They are obliged to give you thorough explanations about any particular aspect of a policy and how it provides some sort of return for the premium you are going to pay. The experts can also show you gaps or risks where coverage is not adequate and where you may have failed to meet your mandatory standard of coverage (liability, uninsured insurance, accident benefits, and so on) in your Province.
As an example of this, did you know that your insurance in Ontario is set at a minimum liability of $200k? Did you know that drivers in Nova Scotia have to carry $500k for third party liability alone? You need to know these factors for your specific Province, but also understand how increasing minimum coverage might impact premium prices.
The Final Factors
Once you are clear on your Provincial requirements, you may be tempted to invest in optional coverage such as increased personal liability, accident benefits, death and funeral coverage, comprehensive, roadside service, waivers of depreciation, family protection, loss of use, accident waiver and more. A good broker will help you understand if these additional fees are relevant and if you can enjoy a discount by bundling your auto insurance with a home or personal insurance policy.
Your broker is a key to getting and choosing the cheapest and best quotes for car insurance in Canada.
Article Submitted By Community Writer