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What to know about car insurance quotes
By Sandra MacGregor on June 21, 2024
Estimated reading time: 7 minutes
Car insurance costs have risen steadily in recent years, making it increasingly important to find the best price for the coverage you need. Combined with other driving expenses such as fuel, securing an affordable policy can have a meaningful impact on your overall vehicle budget.
Comparing quotes across insurers in your province or territory is one of the most effective ways to reduce costs. Shopping for insurance can take some time, but comparing multiple offers often uncovers savings and helps you choose coverage that fits both your driving habits and your wallet.
MoneySense insight
Recent consumer research shows many drivers have experienced premium increases and are unsure why. The survey revealed several common responses to rising costs:
- Many drivers switched providers after seeing their premiums rise.
- Some drivers consider dropping optional coverages to lower costs.
- To manage premiums, drivers compare quotes, maintain clean driving records, bundle policies and sometimes raise their deductibles.
One factor behind higher premiums is an increase in auto theft and related claims, which drives up payouts and insurance costs overall. Insurers and industry groups have reported notable increases in theft-related claims in recent years.
—Jaclyn Law, managing editor
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What is a car insurance quote?
A car insurance quote is an estimate from an insurer that outlines the expected cost of coverage based on your vehicle and personal profile. To prepare a quote, insurers typically evaluate factors such as your age, driving experience (including any accidents or tickets), the make and model of your car, your annual mileage or commuting habits, and where you live.
Each company weights these factors differently, so quotes for the same driver can vary widely between insurers. That’s why gathering multiple quotes is essential to ensure you’re getting the best value for the coverage you need.
How to get cheap car insurance
Finding lower car insurance premiums starts with research and comparison. Be prepared to provide details such as your age, driving history, vehicle details, estimated annual mileage, and who will be listed on the policy. Your quotes will reflect the accuracy of that information.
Beyond comparing prices, these practical steps can often reduce your insurance costs:
- Get multiple quotes: Use comparison tools or work with a broker to gather offers from several insurers. Make sure you compare equivalent coverage levels, deductibles and limits so you know you’re weighing similar policies.
- Raise your deductible: Increasing your deductible lowers your premium because you assume more of the cost for any claim. Ensure you can afford the higher out-of-pocket amount if you need to claim.
- Bundle policies: Many insurers offer discounts when you bundle auto insurance with home or tenant insurance from the same company.
- Search for discounts: Ask about available savings through alumni associations, employer benefits, or professional groups; some insurers also offer discounts for safety features, low mileage or membership programs.
- Choose a practical vehicle: Insuring a used or economy model is typically less expensive than a new luxury vehicle. Repair costs, theft risk and parts availability influence premiums.
- Drive safely: Maintaining a clean driving record is one of the most reliable ways to keep premiums low over time.
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What factors determine your quote?
Insurers review a range of variables when calculating your premium. The most common factors include:
- Driver profile such as age and gender
- Your vehicle’s make, model and age
- Your location—urban areas typically carry higher rates than rural regions
- Your driving history and record
- How much you drive annually
- Previous insurance claims
- Market factors such as inflation and repair costs
Who provides car insurance quotes?
In Canada, you can obtain car insurance quotes through three main channels:
- Insurance brokers: Brokers are independent professionals who can shop across multiple insurers on your behalf. They gather information about your needs and present several quotes so you can compare coverage and price.
- Insurance agents: Agents represent a single insurance company and will provide quotes only for that insurer’s products. This can be convenient but makes it harder to compare offers from different companies.
- Comparison sites: These online tools let you enter your details and generate quotes from multiple insurers quickly. After you select a policy, you’ll either be directed to the insurer’s site or contacted by a representative to complete the purchase.
Frequently asked questions
Yes. An insurer can refuse to provide coverage if it considers you a high-risk driver. High-risk factors include a history of license suspensions, frequent speeding tickets, or involvement in insurance fraud. If one company declines, you may still obtain coverage from another insurer, but expect higher premiums until you build a record of safe driving.
You can change or cancel your car insurance policy at any time, but terminating a policy mid-term may incur cancellation fees. If you switch insurers after an accident, the new provider will consider the incident when offering a quote, which often means you won’t receive a lower rate than before. Also, your current provider generally cannot raise your premium until renewal unless specific contract terms apply.
Read more about car insurance:
- Does driving school lower insurance for Canadian drivers?
- How much is insurance for a new driver?
- How much does it cost to insure an electric car?
- Everything you need to know about your car insurance deductible
Table of contents
- What is a car insurance quote?
- How to get cheap car insurance
- What factors determine your quote?
- Who provides car insurance quotes?
- Frequently asked questions
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