Insurance For A New Car: Everything You Need To Know About Insuring A New Vehicle

Car Insurance For A New Car 

Have you purchased a new car? Are you thinking of buying one? Before you get behind the wheel, you must have new car insurance in Ontario.  

When looking for a new car, you likely visit a reputable car dealer to determine which vehicle meets your lifestyle needs and budget. The same applies when buying new car insurance coverage: Go to a top-rated insurance broker to get auto insurance that meets your needs and budget.  

When you contact an insurance broker, you can get competitive insurance quotes for a new vehicle. You will receive professional guidance on the best car insurance for a new car to protect your investment. The icing on the cake is that an insurance broker makes insuring a new car quick and easy.  

What Coverage Do I Need for New Car Insurance in Ontario? 

Insuring your new vehicle is not only essential; it is required by law in Ontario. The province of Ontario has four mandatory new car insurance coverage: third-party liability coverage, accident benefits coverage, direct compensation property damage coverage, and uninsured automobile coverage.  

Third-party liability coverage protects the insured driver when someone is injured, killed, or property is damaged. Third-party liability pays for defence costs to settle legal claims against you to a stipulated limit. Due to the high costs associated with lawsuits and settlements, at least $2 million in liability coverage is highly recommended for new car insurance in Ontario. Why? A court determines you must pay $1 million to an injured person following a motor vehicle accident. If you have $200,000 in third-party liability coverage, the insurance company will pay $200,000 of the $1 million. You must pay the rest of the money.  

Accident benefits cover costs not covered by OHIP if you are injured in an accident. Some benefits are income replacement, dependent care, caregiver, medical, rehabilitation and attendant care, death, and funeral costs. There are statutory coverage minimums for accident benefits coverages; however, there are options to purchase increased limits for your new car insurance in Ontario.  

Direct compensation property damage is a new car insurance coverage that specifically addresses the costs associated with damage to your vehicle caused by an accident where another driver is at fault. This coverage not only takes care of the repairs needed for your vehicle but also includes compensation for any belongings that may have been damaged inside the car. Additionally, it also covers the expenses incurred due to the loss of use of your vehicle while it is being repaired.  

Uninsured automobile coverage provides financial protection in case you or your family members are involved in an accident with a driver who doesn't have insurance or who flees the scene. This part of your new car insurance in Ontario helps with medical expenses and vehicle repair or replacement for the driver and passengers affected by the accident when an uninsured driver causes it.  

Additional Types of New Car Insurance Coverage 

Suppose you would like more protection for you and your new vehicle. In that case, you can increase the limits and purchase optional coverages, such as collision coverage, comprehensive coverage, and waiver of depreciation coverage, that can be added to your new car insurance in Ontario.  

Collision coverage - Collision coverage offers protection for your vehicle in the event of damage resulting from collisions with other cars, fixed objects like poles or fences, or hit & run claims subject to your deductible. It provides financial assistance for repair or replacement costs, helping alleviate the financial burden of these types of accidents.   

Comprehensive coverage protects against theft, fire, vandalism, falling objects or glass claims. These are non-collision-related losses. Comprehensive coverage is good to have with your new car insurance in Ontario. Suppose your windshield is damaged by one of these perils. Many windshields in new cars have the technology to make driving safer, such as built-in defoggers, and repairs can be costly.  

Waiver of Depreciation - We recommend a waiver of depreciation coverage when buying new vehicle insurance because the value of the vehicle begins to fall as soon as you drive your new car off the dealership's lot. Some say a new vehicle's value may drop by 10% in the first month alone and more than 20% in the first year after purchase. The waiver of depreciation protects against depreciation when settling a claim for loss or damage from 24 to 60 months after the purchase date, depending on which insurance company insures your vehicle. The waiver places a value on your car for a period. In case of a claim, you will receive whichever is the lowest of these three: the amount you paid for your new vehicle, the manufacturer's suggested retail price of the automobile or the cost to replace the vehicle with a new one of the same make and model. This amount includes applicable taxes.  The waiver of depreciation is not to be confused with GAP Insurance.  

Accident forgiveness coverage isn't available if your new car happens to be your first car, but if you're replacing an older vehicle and already have accident forgiveness in place with your preferred insurance carrier, it can typically be applied to your new car insurance in Ontario. This essentially means that your first at-fault collision will be "forgiven" by your insurance provider, and they will not increase your insurance premiums due to the loss

Your best bet is to speak with an insurance broker about new car insurance in Ontario. They are available to answer questions and provide guidance to ensure you, and your new car, are properly protected.  

When Should I Get Car Insurance for a New Car?

It's important to obtain insurance for your new car as soon as the sale is completed, especially if you're still awaiting the delivery or pick-up date. Dealerships typically require proof of insurance before allowing you to take possession of the vehicle, so it's best to have this in place ahead of time.  

When you call a reliable insurance broker at Morison Insurance, we will quickly get you several competitively priced insurance quotes for new car insurance in Ontario and help you get new car insurance that meets your needs. Your insurance broker will also work with the dealership to ensure your insurance is in place when you get your new vehicle so you don't have to worry about coverage gaps or trying to get your new vehicle home without the proper new car insurance in Ontario.  

How Do I Compare Quotes for New Car Insurance Coverage?

You can compare insurance quotes for a new vehicle by contacting your insurance broker at Morison Insurance. Your broker will then use their insurance expertise to shop around on your behalf for numerous quotes from several insurance companies. Shopping around for the right new car insurance in Ontario allows you to carefully evaluate the different coverages and prices available, enabling you to find the best value for your needs. A broker can play a crucial role in this process by helping you understand the various quotes, addressing any concerns you may have, and ultimately guiding you toward the most suitable policy.  

How Do I Get Car Insurance For A New Car?

Get car insurance for your new car by contacting an experienced insurance broker, such as the professionals at Morison Insurance, who will look after you and make the process quick and easy.  

Your insurance broker will ask for information about you, such as your driving history, where you live, and how much you drive. They will also ask for details about your new vehicle, such as the make and model. If needed, the broker will also contact the dealership to get details on your vehicle, such as the financing information, a copy of the purchase or lease agreement and the ownership.  

Once you provide the necessary information, the insurance broker will promptly gather multiple insurance quotes and review the various coverage options and costs with you. Any inquiries you have will be addressed by the broker, who will also offer advice on potential savings. After making your choice, the broker will proceed to secure insurance for your new vehicle.  

How Much Does It Cost for New Car Insurance in Ontario?

he new car insurance cost in Ontario can usually range between $800 and $4,000 annually. The cost of your auto insurance depends on many factors, some of which pertain to your car and others which are specific to the driver. Factors such as your new car's year, make, and model, purchase price, safety features, age, driving record, years licensed, where you live, how far the car is driven, and more will determine your new car insurance price.  

To get an accurate quote for your new vehicle, contact an insurance broker who will compare quotes from dozens of insurance companies to ensure you have the best insurance coverage for your new car.  

Is New Car Insurance Coverage More Expensive?

In most cases, the insurance cost for new car insurance in Ontario is higher. New vehicles are equipped with more built-in safety technology to improve safety, and these features are costly to repair and replace. New vehicles also often have more luxurious features, such as heated seats, blind-spot detectors and backup cameras. These features can make replacement or repair following even an accident—even, in some cases, a seemingly minor fender bender—more complicated and expensive.

Can I Get Discounts On New Car Insurance Rates?

Potentially, yes. There aren't discounts specifically for new car insurance in Ontario, but that doesn't mean you're not possibly eligible for some type of discount on your auto insurance premiums. How you qualify, and if a discount is available at all, will depend on your insurance provider and other factors such as your age, driving record and, in some cases, willingness to take a defensive driving course. Contact your Morison Insurance broker to find out more about any discounts on car insurance for a new car that you may be eligible for.  

What Happens To My Current Car Insurance When I Get A New Car?

Your current car insurance will change when you get a new car.  

If you are replacing a vehicle or trading in a car currently on your auto insurance policy, you will need to tell your insurance broker the date when the replacement car will be ready or the trade-in will take place. At that time, the insurance broker will replace your existing vehicle on your auto insurance policy with your new car.  

If you are adding a new vehicle to your auto insurance policy, your insurance broker will discuss what insurance coverages and deductibles you want on the car and ask about the vehicle's usage. The broker will then contact the insurance company that provides your auto insurance to determine the price to add the new vehicle. The insurance broker will inform you of the additional cost, and you can add the vehicle to your auto policy. Adding a new vehicle is often less expensive than cancelling an existing insurance policy, where penalties may apply. Tell your insurance broker where you purchased your new car so the broker can collect additional information to ensure your new car insurance is in place on your pick-up date.  

If you sell or want to remove a vehicle listed on your auto insurance, always let your insurance broker know so you can remove it from your policy.  

Where Can I Get A Quote for New Car Insurance in Ontario?

Morison Insurance offers new car insurance coverage and peace of mind. We are insurance experts who provide outstanding coverage and service. Our brokers will get you multiple auto insurance quotes and discuss your lifestyle needs. Contact us today by calling 1-800-463-8074 or by filling out the form on our website for more information on new car insurance in Ontario.