Signing up for auto insurance Toronto is a big deal, especially if it’s the first time you’re doing such a transaction. Auto insurance is an obligation which doubles as your security blanket in case something happens to the car or to the driver. It’s highly likely that you’ll be overwhelmed with all the available packages especially when they seem to get better and better as the premium amount rises. Remember, opting for the most basic package can be a mistake and the same goes for those that automatically go for the priciest package; always go for what’s ideal in your particular situation.
Study the Coverage
Taking into account the kind of vehicle you drive and the value that it has, consult your agent or broker regarding the specific kind of coverage that’s applicable. Let’s say that you’re currently driving an older car model then it may be more practical to remove the comprehensive and collision coverage; these coverages make up a significant part of the premium that you’ll ultimately pay for.
What We Call the ‘Porsche Factor’
As we mentioned Insurance providers typically look into the kind of car you’re driving in determining the rate of your premium. Generally, newer cars come at higher premiums compared to the older ones. For example, sports cars will definitely cost more to insure than family your average family sedans. Insurance companies will also consider the statistics of safety ratings, theft and claims history of every car type or model as they finalize the rates. By visiting the Insurance Bureau of Canada, you can access the various frequencies and chances of theft and claims that specific car models have. Here, you’ll understand just how much your premium rate will be affected when the car you want to insure has a high theft rate.