Kanetix Forum

I'm thinking about buying my first car. What do I need to know about car insurance?

Congrats on the new car! You'll soon be feeling the rush and freedom of driving your own car on the open road -but first comes the paper work. Insurance is not an option. Car insurance is the law in Canada so no matter what, you must be covered with certain minimum compulsory coverages.

You didn't specify if you are a new driver or an experienced driver, but getting insurance as a new driver will, unfortunately, likely be expensive. In order to get the best premium, you have to build a history showing you're not a high-risk driver, which takes time. As a new driver though, one way you can ensure you¿re rate is as low as it can be is to take an approved driver¿s education course.

If you've been driving for quite a while, part of what will determine your insurance premiums are your driving details like the number of years you've been licensed to drive, your past insurance experience, and your number of tickets or at-fault accidents.

The type of car you drive will affect your car insurance premium as well. Like individual drivers, vehicles are rated differently even among their own class (e.g. SUV, sedan, or pick-up). Insurance works this way because theft rates, injury rates, the history for collision and comprehensive claims, and vehicle values vary significantly.

Add to all this where you live, how you use your vehicle (are you driving to and from work, for business purposes, or do you only use it on the weekend) each of which will impact the premium you pay differently.

So good luck and remember, insurance rates vary greatly between companies. There are a wide range of car insurance premium prices out there for essentially the same coverage. Drivers who don¿t shop around may really be doing a disservice to themselves and ultimately paying a lot more than they have to for their auto insurance; only shopping around can ensure you are getting the lowest premium available.