If you’re a new car owner, or perhaps this is your first time purchasing a car brand-new, there’s a few different things to note about insuring a novel vehicle. You already know that it’s illegal to operate a motorized vehicle in Ontario, and the rest of Canada, without insurance – that’s a no-brainer. There are significant penalties for drivers who are caught without insurance, and uninsured drivers can cause insured drivers’ premiums to rise to cover the cost of claims country wide. In fact, driving without insurance can cost you as much as $25,000 for a single offense, and your license will be suspended for 30 days. For a second offence, you’re looking at a year-long suspension and a fine of between $10,000 to $30,000. Your vehicle may also be taken away for up to 3 months.

You need insurance on a new car, bottom line. Here’s how to get it:

Step-by-step: how to add insurance to a new car.
Before you apply for a quote, be sure to collect the following information to have at the ready:

Write down your new car’s year, make, and model.
Note the VIN (vehicle identification number.)
Do some math – your prospect insurance carrier will want an average annual commute distance to gauge your typical overall travel.
Summarize your driving record and past claims.
Note any additional drivers, such as your partners or licensed children.
Determine your overall coverage needs, including third-party liability coverage and options for collision and comprehensive. The latter two coverages are always debatable, but they’re worth their price over and over for a new vehicle.
Now, you’ll need to apply for a quote. Excalibur Insurance Group offers a great way to get quotes through our Rate Reducer, where you can get your 10 lowest auto rates in real time online.

Adding an additional car to your existing policy.
If this is not your first time owning a car and you already own a vehicle, you might be wondering how to go about adding an additional vehicle to your policy. Typically, when you have an existing policy, carriers will automatically provide coverage for 2 weeks. That being said, if you want to be on-top of things, you should call up your insurance broker or representative about the fact that you are adding a new vehicle to your policy before you even pick up the shiny new one.

Sold your old vehicle? Tell your broker. Especially if your vehicle is older, your existing policy is not likely to be sufficient to cover your current car. Moreover, you’ll want to be sure you’re meeting Ontario’s auto insurance requirements.

Can’t I just put the old license plate onto the new one?
Transferring your license plate does not transfer your coverage. You can technically transfer plates, which a dealership can do for you, but this has nothing to do with insurance.

This is because your coverage and rates are determined by the car you drive. Your new car is likely a different make, model, year, etc. – so it needs insurance for adequate protection.

Dealerships will require you to have insurance before leaving the lot.
A dealer may have insurance for the cars in their lot, but they’ll have you provide proof of your insurance before you are allowed to leave the lot, especially if you are going to be leasing or financing your vehicle (where you might be required to carry specific coverages.) If you aren’t sure if your new car has enough insurance, Excalibur Insurance Group’s experts are willing to discuss your vehicle and your needs with you. It is highly advised that new vehicles come with the added purchase of a Limited Waiver of Depreciation Endorsement, which will protect you against the loss of depreciation to your new car in the event you are involved in an accident where the vehicle is written off.

Leasing is an excellent option if you want to drive a new car but you’re on a tighter budget. Leasing only requires you to pay for the value of the car that will depreciate over your leasing period. However, with leasing, a lending company may require you to carry specific coverages – namely, collision and/or comprehensive. This is to ensure that their asset is secure.

If you’re looking to purchase a new vehicle, great! It’s an exciting time. Give Excalibur Insurance Group a call to discuss how to go about insuring your shiny new ride or start by applying for a quote.

Bodily injury liability coverage. If you’re involved in an accident that results in an injury to another driver or their passengers and you’re at fault, this coverage will help pay any associated costs up to the limits on your policy.
1
It is required in 49 states and the District of Columbia.
2
(The exception is New Hampshire, which allows drivers to forgo insurance but “strongly recommends” that they buy it. However, there are circumstances that proof of insurance is required.)
3
Property damage liability coverage. This covers any damage you cause to another driver’s vehicle or other property, such as a neighbor’s fence. It is also required in virtually every state.
Collision coverage. Collision insurance can cover damage to your vehicle in the event of an accident. It is optional in every state.
Comprehensive coverage. Also known as “other than collision,” comprehensive covers damage to your vehicle from causes such as flooding, a fallen tree, or a fire. It also covers you if your car is stolen. Like collision coverage, it is optional.
Medical payments (MedPay)/personal injury protection (PIP). Mandatory in some states, MedPay or PIP covers medical bills and related costs if you or a passenger in your car are injured in an accident.
Uninsured or underinsured motorist coverage. If you’re ever in an accident with someone who doesn’t have car insurance or whose insurance isn’t sufficient to cover the damage they have caused, this insurance can cover that shortfall. It is mandatory in some states.
2
Progressive. “Car Insurance Requirements by State.”

If you’re leasing a car or have an outstanding auto loan, you might also consider a separate type of policy known as gap insurance. In the event that your car is declared a total loss after an accident, gap insurance will cover any difference between what your auto insurance company pays you and what you still owe on your lease or loan.
4

In addition to the coverages above, many insurers also offer more specialized types of policies, such as antique or classic automobile insurance and ride-share insurance for people who drive for companies like Uber or Lyft.

Note that if you use your car for work purposes, you may need a commercial car insurance policy rather than a personal one.

How Much Does Car Insurance Cost?
According to AAA, annual premiums for full-coverage insurance (liability plus collision and comprehensive) averaged $1,515 to $1,694, depending on the size of the vehicle, in 2022.
6
Still, your costs could be much higher or lower.

The cost of car insurance depends on a wide range of factors, including the buyer’s driving record, where they live, and the value of their car. Prices can also differ from company to company for the same coverage.

A major variable is the policy’s levels of coverage. States that mandate certain types of coverage also set minimum required amounts for them. For example, a driver in Ohio must have at least $25,000 per person and $50,000 per accident in bodily injury liability coverage plus $25,000 in property damage liability coverage, often expressed as 25/50/25.
7
That’s just the minimum; drivers can and often should buy more coverage than that, especially if they have significant assets to protect from a lawsuit. For example, rather than 25/50/25, a driver might buy 100/300/100 or 250/500/100, which will naturally cost more.

Still another factor in the case of collision and comprehensive coverage is the deductible the policyholder chooses. That’s how much the policyholder has to pay out of pocket before their insurance kicks in, and the lower the deductible, the more their insurance will cost. For example, a policy with a $500 deductible will be more expensive than one with a $1,000 deductible.

How to File a Car Insurance Claim
If you’ve been in an accident or your car has been damaged in some other way, you should notify your insurance company as soon as possible. It will assign a claims adjuster, whose job is to assess the damage and determine how much the insurer is obligated to pay you under your policy. (If you disagree with the amount, you can challenge it.)

Ask your insurer what information it needs to process your claim. It might, for example, request that you send photos of your damaged car via text, email, or through the insurance company’s app. You should also save any documentation, such as a police report if there is one, and a receipt if you had to pay for your car to be towed. If another driver was involved, you’ll want to provide their name and insurance information to your insurer.

Your insurer may have a list of approved repair shops that it works with, although you are also free to choose your own.
8
When your car is repaired, the insurance company may pay the shop directly or reimburse you if you pay. Either way, you’ll be responsible for covering your policy’s deductible.

SPONSORED
Trade on the Go. Anywhere, Anytime
One of the world’s largest crypto-asset exchanges is ready for you. Enjoy competitive fees and dedicated customer support while trading securely. You’ll also have access to Binance tools that make it easier than ever to view your trade history, manage auto-investments, view price charts, and make conversions with zero fees. Make an account for free and join millions of traders and investors on the global crypto market.

What Is Car Insurance?
Car insurance is effectively a contract between yourself and an insurance company in which you agree to pay premiums in exchange for protection against financial losses stemming from an accident or other damage to the vehicle. Auto insurance can offer coverage for:

Vehicle damages, including your car or another driver’s vehicle
Property damage or bodily injuries caused by an accident
Medical bills and/or funeral expenses associated with injuries sustained in an accident
The exact details of what’s covered depend on the minimum coverage requirements for your state and any additional coverage options you choose to include. Every state except New Hampshire requires drivers to have a minimum amount of bodily injury liability coverage and property damage liability coverage.

How Auto Insurance Works
In exchange for paying a premium, the insurance company agrees to pay your losses as outlined in your policy. Policies are priced individually to let you customize coverage amounts to suit your exact needs and budget. Policy terms are usually six- or 12-month timeframes and are renewable. An insurer will notify a customer when it’s time to renew the policy and pay another premium.

Regardless of whether they mandate having a minimum amount of auto insurance, nearly every state requires car owners to carry bodily injury liability, which covers costs associated with injuries or death that you or another driver causes while driving your car. They may also require property damage liability, which reimburses others for damage that you or another driver operating your car causes to another vehicle or other property.

A number of states go a step further, mandating car owners carry medical payments or personal injury protection (PIP), which reimburses medical expenses for injuries sustained by you or your passengers. It will also cover lost wages and other related expenses.
1

Uninsured motorist coverage reimburses you when an accident is caused by a driver who does not have auto insurance. Underinsured motorist coverage is designed to protect you when you’re involved in an accident with a driver who has some insurance but not enough to cover the full cost of a claim.

Who Does Auto Insurance Coverage Protect?
An auto insurance policy will cover you and other family members on the policy, whether driving your car or someone else’s car (with their permission). Your policy also provides coverage to someone who is not on your policy and is driving your car with your consent.

Personal auto insurance only covers personal driving. It will not provide coverage if you use your car for commercial purposes—such as making deliveries. Neither will it provide coverage if you use your car to work for ride-sharing services such as Uber or Lyft. Some auto insurers now offer supplemental insurance products (at additional cost) that extend coverage for vehicle owners that provide ride-sharing services.

The Way You Pay Matters More Than You Think
Some insurance companies may require you to pay a certain amount of money upfront, while others begin charges the next month of service. Some might prefer you pay them an annual fee, while others allow monthly payments or both types of payment. Depending on how much your premium is, you might find that one method of payment is more convenient for your budget than the other.

If you’re paying an annual fee, you’ve paid for your insurance for the entire year already. While this sounds great, it can be a pretty big amount in the beginning. If you choose to pay monthly, it will be a smaller amount but you’re going to have to fit the monthly balance into your budget. Make your decision based on whatever is best for your budget at the moment.

How you Can Lower Your Chances of an Accident
There are many things that you can do to keep your insurance on the back burner. In other words, you can give yourself your own version of auto insurance by taking extra steps to seriously avoid any chances of getting into an accident.

There are hundreds of products that you can purchase online to better protect your car from inevitable damage. Car covers, car umbrellas, paint protection film, and steering wheel locks are just some of the things that you can invest in to further protect yourself from theft, damage, and accidents of any kind.

Besides buying products, of course it is always wise to practice safe driving methods. You can go as far as you’d like with this. Got road rage? Try practicing meditative breathing exercises while you drive. Always speeding and in a rush? Leave 30 minutes to an hour early whenever you have to be somewhere at a certain time. Personal development and self awareness can also prevent serious accidents.

The Best Time to Purchase Auto Insurance
It is obvious that you should get car insurance when and if you have a car, but what if you’re a newbie, or in between choosing another car? When you’re first getting a car, you should wait until after your purchase to purchase auto insurance. If you start your plan too soon, you might end up with a bill for a car you don’t even own yet.

Your Particular Type of Vehicle Does Matter
If you’re in a higher tax bracket, you might be driving a pretty nice car. High-end models will most likely require you to pay a higher premium and endure other costs that may be higher than you’re used to. Only invest in something if you can truly afford it, as this can have a big impact on what comes out of your pocket. Even if your company is covering the costs of an accident or medical bill, your vehicle’s brand can still raise or lower your monthly or annual payments.

You Can Get Rewarded, Depending on the Company
Some insurance companies will reward drivers for driving safely, staying with the company for a certain amount of years, and other things. You might get things like free towing, money back for certain things, etc. This is something you should definitely discuss with your insurance professional.