The Pros and Cons of Cheap Car Insurance

March 24, 2017


If you’re like most people, you hate overpaying for anything, especially insurance. When it comes to shopping for the cheapest car insurance, you still need the RIGHT coverage.


  • You keep more money in your pocket.

  • You get rewarded for a good driving record.

  • You pay only for the coverage you need.


  • You may get coverage that puts you at risk.

  • You’ll be left without a vehicle in the event of a claim.
  • You can’t properly replace or fix your vehicle if you are at fault.

  • You get bare-bones service when you really need help.

5 Key Considerations.

With any important decision, taking a bit of time to educate yourself is the key to paying now, or paying later. Here are a few things to consider in your search for the cheapest auto insurance in Ontario.

1) The type of
car you buy.

If you are in the market for a new vehicle, it’s a good idea to check premium rates before you buy. For example; insurance rates can fluctuate substantially between a Hyundai Sorento and Volkswagen Tiguan. Car insurance rate groups are determined by things like safety ratings, repair costs and replacement costs. Sometimes the difference in insurance costs can be in the hundreds or thousands each year. Add an extra $500 to your insurance costs over four years and that starts to add up.

2) Ability to pay
cash for repairs.

If you drive an older used vehicle and have the ability to pay out of pocket for accident repairs, then you might decide to simply go with the minimum coverage required by law. This would allow you to save on collision and comprehensive premiums – which pay for physical damage to your car if you are at-fault in an accident or if your car is vandalized or stolen.

 If you are planning to finance a vehicle purchase, then minimum coverage is likely not an option.

3) Choose your

You may not know that in the event of an insurance claim, you will need to pay what is called a deductible. Ontario auto policy deductibles typically range between $250 to $500 and can be increased if you want to save more on your premium. As a rule of thumb, the higher your deductible – the lower your car insurance rate. The downside is that when you have a claim, you have to pay the deductible first before your insurance company covers the remaining cost.

It is important to note, that opting for a higher deductible to get a lower insurance rate may leave you with a heavy financial burden – on top of an already stressful situation.

4) Get smart

Buying insurance policies online is certainly convenient, but they may come with a hidden cost. Without talking to an insurance professional, it’s hard to know if you have coverage you don’t need – or if you are missing something important like a ‘waiver of depreciation’ for new cars or loss of use – which for pennies a day, pays for your car rental if you have a claim.

One other important thing to note – talking to an insurance professional COSTS YOU NOTHING.

5) Compare apples
to apples.

The final consideration when it comes to getting the cheapest price for car insurance is to always ask for a written quote to be emailed – so you can compare coverage. It’s unfortunate, but some insurance brokers and companies will omit certain coverages or make alterations to the coverage limits so that their quote looks like the lowest – when in fact it isn’t. The best way to get the lowest auto insurance rate is to give them the coverages so that you know the price reflects a true comparison.

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