Three Things You Didn’t Know About Car Insurance in Ontario

Useful tips for getting affordable car insurance coverage in Ontario

Car insurance in Canada is a big household expense. In fact, car insurance in Canada is more expensive than in many other countries. Ontario’s auto insurance rates are the highest in Canada – drivers pay, on average, more than $170 per month in premiums.

Complicating the issue is the fact that Ontario car insurance rules are not very straightforward. Ontario uses a hybrid combination of tort insurance (one party can sue the other) and no-fault insurance.

With high rates and seemingly arbitrary rules, what little-known facts about car insurance in Ontario might be useful for you? Read on to find out!

Do not take too much insurance (in some cases)

Robust coverage is good, but it comes at a cost. Think about your risks and insure accordingly. By law, your insurance policy has $200,000 in 3rd party liability, but it is recommended that you carry more than that. Aim for $1,000,000 at least; $2,000,000 is better. If somebody decides to sue you, costs can add up very quickly.

At the same time, however, it is not always necessary to get comprehensive coverage. For example, if you have an older car, you might decide not to get this coverage. Skipping comprehensive coverage on an older car could reduce your monthly insurance premiums.

On a new or leased vehicle, comprehensive coverage is usually a requirement.

Old car coverage can go UP! Classic car insurance rates in Ontario

The older your car, the less value it has, right? In most cases, but not always. There are two scenarios when older cars will have higher rates than new vehicles.

First, some older models of vehicles will be more expensive to insure because some models have a terrible insurance history. For example, they are prone to theft, so insuring them is risky.

Second, at some age (typically 20+ years) cars can be considered classic or antique vehicles, resulting in a special type of insurance coverage, such as classic car insurance or antique auto insurance. Only a few companies offer these types of car insurance in Ontario and, depending on your car and your driving habits (year-long vs. summer months only) car protection rates can be more expensive than mainstream vehicles.

Car insurance and rental cars

Many people are confused about rental vehicle insurance. You may think the insurance attached to your credit card is enough, but it’s not. It doesn’t cover 3rd party liability or damages to other people’s property. You also have to watch out for the rental agency’s collision damage waiver, which may not cover all the costs associated with an accident.

The best approach is to make sure that you have your own car insurance (if you have your own car), and to ensure that it also extends to rental cars – many insurers do that. If you don’t have this extension on your insurance, you can, for approximately $20 per year, buy a rider for your policy that covers rental cars. It is worth the cost since you’ll pay between $15-$20 per day for the same coverage from the rental agency.

Car That Cost $5000 and Runs on Compressed Air

Although gas charges aren’t almost as high as they were a couple of months before, we’re all not joyous about how much it charges to load up up a container at the pump. In answering to this ongoing tendency, the foremost automakers have gradually begun to make some headway into conceiving more energy-efficient vehicles. They’re making them bodily lesser with lesser motors and lighter materials. They’re tossing in hybrid expertise and contemplating biofuels. They’re construction hybrids and so on, but no one of them are rather as environmentally amicable as this creation.

The astonishing thing about the vehicle depicted in the video underneath is that it does not need a lone fall of gasoline. In detail, it sprints on air. No, we’re not conversing about any kind of exceptional fueled air or any thing like that, because you easily peak up the “tank” on this little vehicle utilising a benchmark air compressor.

Why is it, then, that you have not ever perceived of this car? Well, the French business that has been employed on its development for the last 15 years has finished its best to stay away from the mainstream economic scheme, because the banking scheme is highly intertwined with the oil industry. They didn’t desire their concerns to be compromised by a connection with Exxon or Shell in any way.

The compressed air that forces this vehicle is sufficient to get its pistons going and, as a outcome, there are no toxic emissions whatsoever. A full container of compressed air, which charges about $2-$3, can boot this vehicle round village for about 200 km. It’s not the fastest thing in the world, as you can envisage, but the Air Car can approach races as high as 110km/h.

They’ve furthermore kept the cost of the vehicle amazingly reduced as well, setting the cost at round 3,500 Euro for the cheapest model. Based on present exchange rates, that’s under US$5,000.