In Ontario, the minimum liability coverage required by law is $200,000. However, this may not be enough coverage to fully protect you in the event of a serious accident, especially if you have a new or expensive vehicle.
It is recommended that drivers consider purchasing more liability coverage than the minimum required by law, as well as additional coverage options such as collision and comprehensive coverage. Collision coverage can help pay for damage to your own vehicle in the event of an accident, while comprehensive coverage can help pay for damage from events such as theft, vandalism, or natural disasters.
When determining the amount of coverage you need for a new vehicle, you should consider the value of the vehicle, the cost of repairs or replacement, and the likelihood of an accident or other damage occurring. Additionally, you should consider your personal financial situation, including the amount of savings you have available for unexpected expenses and the amount of money you would be able to pay out of pocket in the event of a claim.
It’s important to keep in mind that the more coverage you purchase, the higher your premium will be. However, having adequate coverage can help protect you financially in the event of a serious accident or loss, so it’s important to find a balance between coverage and cost that works for you.
Is insurance cheaper on newer cars?
Insurance premiums for newer cars can be more expensive than for older cars, but this varies depending on a number of factors.
Some insurance companies consider newer cars to be a higher risk because they are more valuable and may be more expensive to repair. Additionally, the latest safety features and technology in newer cars can also increase the cost of repairs.
However, newer cars also often come with advanced safety features that can make them safer to drive and less likely to be involved in an accident. This can lower the risk for insurance companies and result in lower premiums.
The make, model, and trim level of a new vehicle can also affect insurance premiums. For example, sports cars or luxury vehicles may have higher insurance rates due to their higher cost and likelihood of being stolen.
Ultimately, the cost of insurance for a newer car will depend on a variety of factors, including the age and condition of the vehicle, the driver’s record, the coverage options selected, and the insurance company. It’s always a good idea to compare quotes from multiple insurance providers to find the best coverage and rates for your new car.