One of the biggest mistakes that many people make is to think that all insurance companies are the same. Especially when it comes to their vehicle insurance. Canada has many different insurance companies to choose from. But, although similar they are not all the same.

The Similarities

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Regulations

The Insurance Industry in Canada has strict rules that they each Insurance Company must follow. These are the provincial laws. They pertain to the provinces and territories in which they sell insurance. The Insurance Bureau of Canada represents the Insurance industry in Canada.

Differences by Provinces

There are some significant differences in Insurance Companies according to provinces. In some provinces, vehicle insurance, as well as other insurance, is sold through private insurance companies. These companies have to have licences. In a few of the territories, there are government-run insurance companies. These provinces are Manitoba and Québec as well as British Columbia and Saskatchewan. But they sell limited amounts of insurance. It is only enough to meet the basic requirements. It is those put in place by Canadian officials for insurance.

Differences Among Companies

The basic insurance will not differ. As it pertains to those provinces that have government insurance.

Some will see the vast differences. Referring to those who use private insurance companies.

There is competition.  It is among private insurance companies.  But, It is essential to know this. As such, it is the driving force why there can be differences among them.

The Difference in What They Have to Offer

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Each insurance company will have their selection of insurance products that they offer. They will all pretty well cover the standard forms of insurance. Which is the collision and comprehensive. There can be differences between these packages as well. For example, in the comprehensive insurance, there are usually deductibles. These can vary from company to company.

Difference in Rates

Rates is one of the most significant differences. When it comes to the insurance companies is their rates most people focus on.

It is an area people often get confused. Many believe that every insurance company is going to charge them the same rate. Vehicle insurance is personalized on many different levels. The insurance company takes into account a lot of different factors. These include the driver and then their particular circumstances. Such as their age and gender and where they live. Plus some components of the vehicle that they are driving. Each insurance company may look at these metrics differently.

Leniency

For example, one insurance company might be more lenient. When it comes to the make and model of the vehicle compared to another. The insurance companies will rely on a lot of external resources to help them. It helps them to reach their premium conclusions. Aside from that, they will also rely on internal data. Again this is what helps to make the insurance companies different. They will rely on their claims information. One company may have a different type of claims compared to another. So, their metrics are going to be different. Based on this there are policy prices will also differ.

Operating Costs

With each insurance company being a separate business they have their costs. They are in the business of making money. Money that comes from the premiums. There is money loss from the claims that they have to pay out. They also have operating costs that they have to deal with. These will differ, and they will factor into how lenient they can be with their premiums. Larger more established companies may have more playing room. When it comes to what they can charge for their insurance.

Size

It also means that insurance companies differ in their size. But, just because a company happens to be big doesn’t make it the best. There are a lot of other factors that play into having good vehicle insurance. Individuals want to deal with companies that are going to honour their claims. They want this done in a quick and efficient manner. They also want to deal with companies that are going to be offering excellent customer service. These are all factors that lend to the individualization of each insurance company

The Discounts

Every business likes to have some uniqueness about it. The same applies to the insurance companies. The best way they can do this is by offering a series of discounts. Many of the discounts found at the insurance companies will be similar. Some may be more lenient with the specific ones that they are offering. For example, some companies will provide accident forgiveness insurance while others will not. Some will offer loyalty discounts and again there will be others that don’t.

How to Take Advantage of the Differences

Those that are shopping for insurance need to know what their specific needs are. Once the requirements are met, then they can look at their wants. The wants are most applicable to the insurance discounts that may be available. Drivers want insurance that is going to give them good coverage with a low premium. Then added to this they want to be able to reduce the premium cost. They can do this with the different types of discounts that are going to be available to them.

Everyone has a different approach to the vehicle insurance that they want. Some individuals want to go just with the basics. Then there are others that want full coverage to ensure their vehicle is well covered. They also want to know that in case of a liability that they are not going to end up having to pay out of pocket.  As could be the case in the event of an accident.

Shopping the Right Way

shopping

Knowing that there are such big differences in the insurance companies, it is an incentive. It encourages shoppers to be more involved. It is quickly done when one has access to being able to get insurance quotes. Just the same as it’s essential to shop for insurance it is important to use the right resources for quotes. Insurance quote allows for choices. When there are choices, then comparisons can be made. Comparisons allow the insurance shopper to make the best decisions. Ones that apply to their specific needs.

Resources

http://www.consumerinformation.ca/eic/site/032.nsf/eng/01246.html
https://www.fsco.gov.on.ca/en/auto/brochures/pages/brochure_autoins.aspx
http://www.ibc.ca/nu/insurance-101/public-versus-private-auto-insurance