What is your car insurance policy?
By Caroline Criado-PerezThe National Post March 21, 2020 9:12:12A simple answer to why you might need to change insurance policies could be the difference between having a clean bill of health and having a bill that exceeds your deductible.
Insurance premiums in Canada are rising rapidly, which is causing many to consider switching insurance providers.
While a number of factors can influence an insurance provider’s rates, the most important factor is the type of auto insurance that you have.
The cost of an auto insurance plan in Canada varies according to where you live, but for most drivers, the average cost is $150 to $200 per month, according to data from insurer Equifax.
“If you have a regular car, your average monthly premium will be closer to $400 to $500, but you might have to pay a bit more for a newer car if you live in the GTA or if you are a high-income, middle-class household,” said Peter D. Macdonald, senior vice-president at the Canadian Insurance Federation (CIF).
“Insurance companies don’t want to pay for a car that is just not as reliable as an SUV or a van, so they’ll take a premium for the vehicle that is more reliable,” he added.
If you are unsure about your insurance policy, you can contact Equifax at 1-800-668-7800 or go to www.equifax.ca to check your coverage.
Some insurers have offered lower premiums to younger drivers, but older drivers might have higher costs, according a new report from Insurance Canada.
Younger drivers tend to have higher premiums, with average annual premiums starting at $130 to $140 per month.
However, if you have more than $150,000 in your vehicle’s total value, you could find yourself paying higher premiums than you would if you had a $150 deductible, according the report.
There are other factors that can affect your insurance premiums.
For instance, many people pay out-of-pocket for medical care, so a deductible is a big factor when choosing an insurance plan, said Macdonald.
Many older drivers also might not have as much money as younger drivers to put aside to cover medical costs.
In some cases, you might be able to save a bit by not having a deductible.
That means you can pay your bills out of pocket without incurring more out- of-pocket expenses, Macdonald said.
Other factors that affect the cost of auto coverage in Canada include: When you buy insurance Insurers have to charge for claims before they receive payment.
This means if you buy a policy on Jan. 1, 2019, and claim for a medical event in the first year, your insurer might not be able, for instance, to pay out your claim until you receive the $1,000 reimbursement from the event.
It also means you may have to put down additional payments to cover your medical bills, Mac Donald said.
If you are uninsured, your insurance provider will not pay for your car, so you will have to take out an insurance policy on your own.
How to change auto insurance policies If the cost exceeds your premium, your next step is to change it.
Before you can change your insurance policies, you need to contact your insurance company and ask for a new policy.
If your insurance carrier doesn’t offer a new car insurance, you should call the insurance company to find out more about how to change them.
A new policy is often cheaper than one that you purchased, and you can expect the difference to be minimal, said Peter A. Henshaw, vice-chairman of the Canadian Association of Insurance Commissioners (CAIC).
If your current policy doesn’t meet the CAIC criteria, you may want to try one of the options below, Hensaw said.
Insurance plans that cover a wide range of vehicles include:If you’re an active-duty military member, the military may be eligible to receive discounts from your insurer for purchases made on or after March 1, 2020.
This means you will be eligible for the discounted rate if your current auto insurance will cover a new vehicle, and the new car is at least 3 years old.
If you qualify, you will need to file a claim with the insurance provider to make your purchase.
You can apply for a claim online by visiting www.caic.ca/insurance.
You can also call 1-877-668.
The CAIC website offers a list of the different auto insurance plans available to Canadians.
To learn more about car insurance in Canada, visit www.cac.gc.ca.