Automotive

Auto insurance factors

  • Last Updated:
  • Jul 5th, 2020 10:10 am
[OP]
Jr. Member
Apr 18, 2010
107 posts
50 upvotes
Toronto-Central

Auto insurance factors

So I want to find out which is the cheapest way to get auto insurance on a new car.
G licensed for 10 years. Been on a secondary driver Insurance for 8 years With my dad but will need to have my own policy from now on. Live in Scarborough, outdoor parking. No tickets, no accident.

Which auto insurance company should I go with?
Also, does the make of car make insurance cheaper. (Not luxury vs non luxury) . For example, would it be cheaper to insure a Toyota Corolla 2020 or a Honda Civic 2020.
14 replies
Deal Addict
Oct 23, 2017
2593 posts
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GTA West
You will need to shop around and get quotes, there is no one "best" insurance company. Their rating algorithms vary quite a bit and will rate you lower or higher depending on the factors that are most important to them.

Yes, a Civic will probably rate higher than a Corolla. Honda Civics are often seen in street racing and all kinds of racing add-ons are sold for them. How often do you see a Corolla doing street racing, and how often have you been cut off by one? They have accident stats on all the cars that they will use in rating. Ask the insurance provider to quote on different vehicles, to see how this impacts the rate.

Your existing insurer is probably a good place to start. Also try an agent - they work with several different insurers and may know where you are the best fit. But also get online quotes from the companies offering them.
Sr. Member
User avatar
Jul 29, 2019
808 posts
668 upvotes
The factors I know are:
  • How long you've had your licence continuously. ie. You always renewed it.
  • Where you live. Eg. a new Driver in Mississauga on their own insurance will be $5,000 vs $3,000 in Burlington.
  • The type(model/trim) of the car you have, not the brand itself. Honda Civic will cost more than a Subaru Impreza with Eyesight. Also, generally, if a car is popular that means the higher chance of accidents which also leads to higher rates. Basically comes down to how safe the car is generally.
  • Having Winter Tires or only All Season.
I heard CAA is good but definitely try your existing insurer because of the loyalty factor. An insurance broker will also be good if you rather not go to each website to get your own quote. Alternatively, you can shop around before talking to your current insurer so you can get an idea what others have quoted which could help you negotiate if you want to stay with the current insurer.
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[OP]
Jr. Member
Apr 18, 2010
107 posts
50 upvotes
Toronto-Central
VanillaDonut wrote: The factors I know are:
  • How long you've had your licence continuously. ie. You always renewed it.
  • Where you live. Eg. a new Driver in Mississauga on their own insurance will be $5,000 vs $3,000 in Burlington.
  • The type(model/trim) of the car you have, not the brand itself. Honda Civic will cost more than a Subaru Impreza with Eyesight. Also, generally, if a car is popular that means the higher chance of accidents which also leads to higher rates. Basically comes down to how safe the car is generally.
  • Having Winter Tires or only All Season.
I heard CAA is good but definitely try your existing insurer because of the loyalty factor. An insurance broker will also be good if you rather not go to each website to get your own quote. Alternatively, you can shop around before talking to your current insurer so you can get an idea what others have quoted which could help you negotiate if you want to stay with the current insurer.

Thanks for the reply.
Do they actually check if you have winter tires on? Can I just lie and say I have winter tires/all season just to decrease the insurance.
Deal Expert
Mar 25, 2005
22218 posts
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stayingfade wrote: Thanks for the reply.
Do they actually check if you have winter tires on? Can I just lie and say I have winter tires/all season just to decrease the insurance.
Sure, if you want to potentially have a claim denied in the winter. You could also say you live in Barrie for cheaper rates.

The FSRA has a summary of factors that may feed a score:
https://www.fsrao.ca/consumers/auto-ins ... ance-rates
Sr. Member
User avatar
Jul 29, 2019
808 posts
668 upvotes
stayingfade wrote: Thanks for the reply.
Do they actually check if you have winter tires on? Can I just lie and say I have winter tires/all season just to decrease the insurance.
My Broker asked to take a picture with the tires on the car. Your mileage may vary.
Deal Addict
Sep 8, 2017
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GTA
stayingfade wrote: Thanks for the reply.
Do they actually check if you have winter tires on? Can I just lie and say I have winter tires/all season just to decrease the insurance.
Off to a bad start already...
Deal Addict
Nov 12, 2004
2562 posts
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Hometown
OP The insurance companies screw you... You do NOT get to dare to try to screw with them, by lying, misleading, prevaricating, or just not giving them the correct information.

They are government sanctioned THIEVES, just like cops they can lie to you about anything. You, however must be 100% honest in all dealings with them. Or you will likely, feel the full weight of the system crashing down on you. If you get caught trying to use deception on them. Mainly up to 6 yrs of being basically being un-insurable, anywhere in Ontario if one company cancels your policy for cause.... Since there is no real competition, EVERY company will punish you as though you lied to them.

In ONTARIO , there is NO chance in hell that any other person's BEST insurance quote will mean anything to anyone but THEM. As stated there are TOO many personal factors involved in how an insurance company determines just how much they are going to rip off each individual customer.
[OP]
Jr. Member
Apr 18, 2010
107 posts
50 upvotes
Toronto-Central
I was just asking if they actually ask for proof if you have any winter tires on...

Also which months of the year do they want you to have winter tires on?

Let’s say I have winter tires on but I take it off in March.
Toronto weather snows sometimes in April. Something happens. Does insurance not cover you because you took of your winter tires too early?
[OP]
Jr. Member
Apr 18, 2010
107 posts
50 upvotes
Toronto-Central
Kasakato wrote: Sure, if you want to potentially have a claim denied in the winter. You could also say you live in Barrie for cheaper rates.

The FSRA has a summary of factors that may feed a score:
https://www.fsrao.ca/consumers/auto-ins ... ance-rates
Thanks for the reply.
What happens if you go over you KM that you say you only drive that year? Let’s say you only thought you’d drive 30,000km/year but you go over it and do 40,000km?

Is this insurance fraud? Lying to the insurance company? Misleading them? Not giving them the correct information?
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Deal Expert
Mar 25, 2005
22218 posts
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stayingfade wrote: I was just asking if they actually ask for proof if you have any winter tires on...

Also which months of the year do they want you to have winter tires on?

Let’s say I have winter tires on but I take it off in March.
Toronto weather snows sometimes in April. Something happens. Does insurance not cover you because you took of your winter tires too early?
You asked if you can lie to insurance.

Each insurer will have their own rules for dates. Majority seem to be Dec to April.
Deal Expert
Mar 25, 2005
22218 posts
3050 upvotes
stayingfade wrote: Thanks for the reply.
What happens if you go over you KM that you say you only drive that year? Let’s say you only thought you’d drive 30,000km/year but you go over it and do 40,000km?

Is this insurance fraud? Lying to the insurance company? Misleading them? Not giving them the correct information?
The difference in driven amount is minimal. My rates are +/- $2/year for 10k km.
Deal Addict
Oct 5, 2009
1170 posts
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Dartmouth
You are asking the wrong question.

Proper coverage
Good service or Cheap

You can have 2 but not all 3.

Location does play a huge factor especially in Ontario so there are certain places that will be relatively expensive compared to other areas due to fraud etc.

But outside of that you can greatly reduce your cost by having only liability coverage and no extras like collisions,loss of use , waiver of depreciation,raising your deductible etc. That’s cheap. BUT
It’s only cheap while you don’t have to use it. So if your purpose is simply I can’t register my car without insurance and breaking the law then you can make it cheap. If you actually have to use the insurance ..say you crash onto a pole and it’s your fault all of a sudden it’s not cheap. You are paying out of your own pocket for a rental, you are paying 1000s to repair the car just so you have something to drive or you are paying monthly payments on a car that can never be driven again because it’s a total loss and you have no coverage,

If you cheap out you may find that the insurance company has no reason to get back to you or help you because you have no coverage.

So maybe change your question to “which insurance company offers the coverage that best suits my needs and appetite for risk for the best price.

I often compare it to tires. If you put the absolute Chinese tires you can find on your car it will be the “cheapest” way to have your car roll down the road. But when you need to buy another set in a year because they wear out 3 times as fast or the sidewalls blow out? Not so. Cheap. When you slide into a guard rail because they have crap traction and need to pay 1000s to fix the car (because you have no insurance coverage) not so cheap.

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