Car Insurance: Why cheaper isn't always better

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Although driving can be a great convenience, it can also be quite expensive. Besides the initial cost of buying or leasing a vehicle, drivers also have to consider the ongoing costs of paying for things like license plates, vehicle maintenance, repairs, parking, gas, and insurance. With such a list of varying expenses, it's understandable that most drivers would try to reduce their vehicle-related costs as much as possible. However, considering the annual rate of car accidents in Canada, is cheap car insurance really the way to go?

You Get What You Pay For

When it comes to getting car insurance, especially cheap insurance, it's always better to proceed with caution. Cheap car insurance rates may cost you less up front, but could end up costing you much more in the long run by not offering the full coverage you really need. Instead, look for a balanced combination of affordability and adequate coverage.

Key Considerations:


  1. Minimal coverage means minimal protection. While minimum liability coverage may seem tempting and affordable, will it really be enough in case of a serious and unexpected accident? Sometimes the cheapest policy excludes coverage that would be good to have in the event of an accident.
  2. Higher deductibles can mean more out-of-pocket expenses. Increasing your deductibles might save you a bit off of your monthly insurance bill, but it also means that if you do make a claim you will responsible for more of the cost.
  3. Lower limits often lead to increased liabilities. At first glance, available limits for limited or minimum car insurance coverage may appear to be more than enough. But it's often surprising to see how quickly those limits can be reached and breached if you should ever find yourself in an at-fault accident. If you reach your policy limits you may be  on the hook for the excess costs.

Better Ways to Save

When looking for more affordable insurance rates in Canada, consider asking if the policy you are looking at includes some of the following sensible discounts that you may be eligible for:

  • Claim-free discount
  • Multi-car discount (particularly interesting for two-car families)
  • Homeowners discount
  • Good driver discount
  • Vehicle safety discount
  • Retiree discount

Please check out our other money saving tips for even more great ways to save on your auto insurance.

Besides the year, make, and model of the vehicle you drive, the frequency with which you drive will also impact your insurance rates. The less time you are on the road the lower your risk of being in an accident. Using alternate transit options might just be one of the soundest ways of saving on your car insurance without having to jeopardize the amount and quality of your coverage.

PC insurance Brokers can help you find an affordable option that will give you the coverage you need, depending on your unique driving situation. Do you drive every day? Do you have a long commute? Do you share the driving with your spouse or child?

Get a PC auto insurance quote today, to see how we can help you get the car insurance coverage that suits you best.

How to make a claim

Call 1-877-251-8656 to speak with a Claims Advisor.

Renewing your policy

Call 1-877-251-8652 for information regarding policy renewal.

Buying a new policy

Call 1-866-660-9035 for information on obtaining a quote.

Need help?

Take a look at the top 5 FAQs:

  • What are my choices in terms of auto coverage?

    What are my choices in terms of auto coverage?

    If you own or drive a vehicle in Canada, you must be insured. Different provinces have different requirements, but the four mandatory elements of auto insurance are:

    1. Liability - if you cause an accident and someone sues you
    2. Accident benefits - if you or someone in your vehicle is hurt in an accident
    3. Direct compensation – property damage (Ontario only)- if your vehicle gets damaged (and it's determined you're not at-fault or only partly at-fault)
    4. Uninsured motorist - if you're in an accident with an uninsured or hit-and-run driver
  • How do I reduce my insurance costs?

    How do I reduce my insurance costs?

    There are several things you can do to reduce your insurance premium costs:

    1. Work on your driving record
      Here's an easy, yet effective way to bring down your insurance costs: build a consistent accident and conviction-free track record with an insurance company.
    2. Choose your automobile wisely
      Do your research before you invest in a new car. Read consumer reports, and check with your insurance company to find out which cars tend to be targets for theft and vandalism. Remember, if you buy a car with a high theft rate, your premium will be higher.
    3. Adjust how you use your car
      By adjusting the way you use your vehicle, you can also bring down the cost of your insurance rates. If you live in a metropolitan area:
      • can you take the subway, train or bus to work?
      • has your job changed, or have you moved recently?
      • do you use your automobile to drive a short distance to work?
      • does your vehicle get used for low annual kilometers?
        If you answered yes to any of these questions, you may be entitled to lower insurance costs. Another consideration is whether you let others use your car. It is sometimes possible to exclude certain high-risk drivers from your policy so that good drivers are not penalized with a higher premium.
    4. Choose a higher deductible
      If you choose a higher deductible up front, your premiums will be lower.
    5. Review your coverage
      Take a closer look at your coverage to make sure you're not paying for things you don't need.
  • How can I earn PC® points?

    How can I earn PC® points?

    When you use your President's Choice Financial® MasterCard® to pay your PC auto insurance premium, you'll get 20 PC points per dollar of your premium. If you use your President's Choice Financial bank card to pay your PC auto insurance premium, you'll get 10 PC points per dollar of your premium.

  • Are other drivers insured to drive my car?

    Are other drivers insured to drive my car?

    Yes, as long as he/she has your permission to drive the vehicle, has a valid driver's licence and has not been specifically excluded from driving the vehicle. However, all licensed drivers in your household must be listed on your policy—regardless of how often they use your vehicle.

  • What is a deductible?

    What is a deductible?

    A deductible is the amount that you agree to pay towards the repair or replacement of your vehicle before your insurance pays the rest. You choose your deductible amount when you purchase your auto insurance. The higher your deductible, the lower your premium.

See all Auto Insurance FAQs

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