Liability coverage is mandatory in the province of Ontario, and it can help protect you financially if you’re at fault in an accident and cause damage or injuries. This type of coverage provides compensation for third-party property damage or bodily harm. In most cases, the liability coverage limit is $200,000, but it can be increased to $2,000,000 according to your preference.
Collision coverage is optional coverage that can be added to your liability insurance policy. This coverage will pay for damages to your vehicle after a collision. Suppose you’re involved in an accident and your car needs significant repairs or even replacement. In that case, collision coverage can help you avoid any substantial out-of-pocket expenses.
Comprehensive coverage is also optional, and it offers a more expansive level of protection than collision coverage. It covers damage caused by things other than a collision, like theft, fires, storms, or falling objects. If you live in an area with a substantial risk of theft or other non-collision damage, comprehensive coverage is worth considering.
Uninsured Motorist Coverage
As the name suggests, uninsured motorist coverage provides compensation for damages if you’re involved in an accident with an uninsured driver. Unfortunately, the number of uninsured drivers on Ontario roads is significant. If you’re involved in an accident with an uninsured driver and you don’t have this coverage, you’ll have to pay for the damages and treatment out-of-pocket.
Personal Injury Protection
Personal injury coverage helps to cover medical bills and loss of income if you’re involved in an accident, regardless of who’s at fault. This kind of coverage will pay up to $65,000 for necessary medical expenses and lost wages, and it’s not subject to a deductible.
A clean driving record is a major factor in determining the cost of auto insurance premiums in Bancroft, Ontario. Car owners with a history of accidents or traffic violations are considered high-risk drivers and are likely to pay higher premiums. For this reason, it is important to maintain a clean driving record by obeying traffic laws and avoiding accidents.
Type of Car
The type of car you drive also plays a key role in determining the cost of car insurance premiums in Bancroft, Ontario. Generally, sports cars and luxury vehicles are expensive to insure compared to economy cars. This is because sports cars and luxury vehicles are more expensive to repair and replace.
Age and Gender of Driver
The age and gender of the driver also plays a significant role in determining the cost of car insurance premiums. Younger drivers and male drivers are considered high-risk drivers and are likely to pay higher premiums. This is because younger drivers are less experienced and more likely to get into accidents, while male drivers are statistically more likely to engage in risky driving behaviour.
Where you live and park your car also plays a role in determining the cost of car insurance premiums in Bancroft, Ontario. Car owners residing in areas with high rates of car theft, vandalism, or accidents are likely to pay higher premiums than those residing in areas with lower rates.
Deductibles and Coverage
Finally, deductibles and coverage levels are also major factors that determine the cost of car insurance premiums. A higher deductible translates to a lower premium, while a lower deductible means a higher premium. Similarly, a higher coverage level results in a higher premium, while a lower coverage level results in a lower premium.