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Buying car insurance is an important part of getting a new vehicle. To get the right policy for you, it’s essential to understand all insurance information on buying a car. This quick guide will walk you through some important things to know about buying an auto insurance policy in Canada.
If you’re thinking you should just save money and skip on car insurance, know that you may not have a choice in the matter. Canada requires all car owners to have insurance on their vehicles.
There are multiple types of car insurance available, and the first step to buying one is to choose which one can provide you with the coverage that you need. Here are the most common options:
It may seem convenient to get your car insurance at the same dealership from where you’re buying your car, but this is usually not a very cost-effective option. Dealerships will most likely only be working with select insurance providers, which limits your options. It’s best to check out rates from various car insurance companies and then obtain your policy directly from them for a better deal.
Once you’re ready to buy car insurance, you’ll need to gather some personal information about yourself and any other drivers that will be listed on your plan. These include:
Car insurance is typically more expensive if you’re a first-time car owner or a new driver. This is because you’re more of a risk in the eyes of insurance providers because they have little information about how you’ll do on the road. You’re also more likely to file a car insurance claim than an experienced driver might be.
First-time car owners, particularly those who have newer vehicles, will also get higher premiums because newer cars are usually more expensive to fix than older ones. Other factors that can affect the price of your car insurance include your age, marital status, postal code, and credit score, among others.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.