Car insurance in Kitchener
Car insurance in Kitchener is mandated by law, same as in the rest of Ontario. The Financial Services Regulatory Authority of Ontario (FSRA) is the regulatory body responsible for making sure that auto insurance providers’ rates are fair and affordable. It requires both agents and companies to be licensed and follow specific legal guidelines. It also protects car buyers’ rights by reviewing their complaints to ensure insurance providers obey all the rules.
The good news is that car insurance in Kitchener isn’t nearly as expensive as it is in other parts of Ontario, so you should be able to find an affordable rate. Consider using LowestRates.ca to find the lowest auto insurance rates in your area.
Mandatory coverage for Kitchener drivers
If you intend to drive in Kitchener and the rest of Ontario, you must purchase basic car insurance.
Here are the coverages you’re required to carry by law:
Third-party liability: If you get sued for getting someone killed or injured, or for damaging their property (because of your driving), this will cover you up to the limit of your stated coverage. Legally, your third-party liability coverage must be at least $200,000. If you want, you can increase it, but it can’t be below that.
Statutory accident benefits: If you get into an accident and sustain an injury – regardless of whose fault it is – this will cover you. The coverage includes supplementary medical, rehabilitation and attendant care, as well as caregiver, non-earner and income replacement benefits. As is the case with third-party liability, you can always increase this coverage, if you choose.
Direct compensation for property damage: Also known as DCPD, this coverage will pay for the damage to or loss of your vehicle and its contents, if you are not the one who caused the accident. As the name suggests, you collect the payout directly from your insurance company.
Do note that this coverage applies only if the accident takes place in Ontario and if only one other vehicle is involved in the accident – insured by a company that is either licensed in Ontario or has a special signed agreement with FSCO.
If you don’t meet these conditions, you can use your optional collision coverage to make a claim, or if you don’t have it, you may attempt to gain coverage from the at-fault driver.
Uninsured vehicle: If an uninsured driver damages your vehicle or injures or kills you in a hit-and-run, this will cover the associated costs.
Optional coverage for Kitchener drivers
As you can tell, a lot can happen to you or your vehicle, and a lot of it will not be covered by your basic insurance. As a result, you may purchase additional coverage. Here are some of your options:
Additional third-party liability: You can increase your legally required minimum coverage of $200,000 to $500,000, $1 million or $2 million for a relatively low price.
Additional accident benefits: You can build on top of your statutory accident benefits by buying additional benefits. For example, income replacement benefits can offer you weekly income replacement that’s 70% of your gross income (up to $400, $600, $800 or $1,000).
You can also get benefits covering medical, rehabilitation and attendant care expenses, with the standard maximum amount being $65,000. If it’s a catastrophic injury, the amount is $1,000,000. You can increase both amounts for additional fees.
Other accident benefits cover caregiving, housing and home maintenance as well as death and funeral expenses.
Dependent care benefits: If you incur additional childcare expenses due to an accident, this will cover you for up to $75 a week for the first dependent and $25 for every additional one. However, you can’t claim this money if you didn’t have a job at the time of the accident or if you are covered by the above-mentioned caregiver benefit.
Indexation: This pays you for an annual adjustment for inflation for benefits like income replacement, medical, rehabilitation, attendant care and several others.
Specified perils: If your vehicle ends up damaged by fire, theft, lightning, windstorm, hail, earthquake, explosion or a similar unforeseen disaster, this will cover you.
Collision or upset: If your car collides with another vehicle or a trailer attachment covered by your insurance, this will pay for the losses. This will also pay for the loss or damage to your car if it rolls over due to the surface of the ground or objects in or on the ground.
Comprehensive: This will pay for losses not covered by collision or upset coverage. This includes the items listed under ‘specified perils,’ as well as falling or flying objects, missiles and vandalism.
All perils: In addition to covering everything under ‘collision or upset’ and ‘comprehensive’ coverages, this will cover the costs of having your vehicle stolen by someone who lives with you or by an employee who drives, uses, services or repairs your vehicle (e.g. someone working at a repair shop).
Factors that determine your car insurance rates in Kitchener
Whether you’re in Kitchener or anywhere else in Ontario, there are certain factors that will affect your car insurance rate. Here are some of the biggest ones:
Driving record and mileage: If you’ve had plenty of traffic tickets (not parking tickets – those don’t count) and filed several car insurance claims, then expect a higher premium. Traffic tickets matter to insurers because they paint a broader picture of your driving habits. For instance, if you have many speeding tickets, statistically, you’re more likely to get into an accident and file a claim. Incidentally, how much you drive (aka your mileage) can do just the same, as high mileage also makes you more at risk of getting into an accident (no matter how safely you drive).
Vehicle: Depending on the make and model of your car, your insurance rate may either be higher or lower. Every car in Kitchener (and Canada as a whole) carries a Canadian Loss Experience Automobile Rating (CLEAR), determined by the likelihood a claim will be filed for it as well as repair and replacement costs. Generally, the ‘safer’ your car is, the lower its insurance premium will be. One of the ways to make your car safer is to ensure it has safety features like anti-lock brakes, driver assist, snow tires and an anti-theft system. These will not only reduce the probability of an accident, but protect your car from theft, which is something insurers also factor into your premiums.
Age and experience: If you are a new driver (young or old), you don’t have an insurance history that insurers can use to assess your driving habits. That’s why they charge a higher premium. In addition to inexperience, a certain age bracket automatically makes you a ‘new driver.’ If you’re below 25, your insurance premium will be higher than that of someone older and more experienced. That’s because young age is mostly tied to the lack of experience. The younger you are, the less experienced you are likely to be as a driver (at least, statistically). However, like any inexperienced driver, you can build your insurance history over time, and later, secure a lower premium.
Where you live: Your location – specifically, your postal code – plays a role in determining your premium as well. Providers group insurance rates by the Forward Sortation Area (FSA), or the first three symbols of your postal code, which denote your district. So, if your postal code is tied to an area with a lot of traffic accidents as well as car theft and vandalism incidents, then your premium will be higher. Unfortunately, there’s not much you can do about this, other than move somewhere else. The good news is that Kitchener postal codes are not associated with overly high insurance rates – according to our data – so it shouldn’t be too big an issue in your case.
Sex: According to Insurance Institute for Highway Safety (IIHS), males are more likely than females to be involved in a major car accident and engage in unsafe driving practices, such as neglecting to wear a seat belt, driving while impaired by alcohol or speeding. This makes male drivers riskier than their female counterparts and results in higher premiums. More so than location, this factor is completely outside of your control. Fortunately, it becomes less relevant once you’re over the age of 30.
Car insurance rates for Kitchener seniors
Drivers as young as 50 can start looking into senior car insurance rates. Generally, the rates are lower for drivers who are in their 50s and 60s, since insurance companies deem this age group the safest of all. However, the rates do go up slightly once drivers hit their 70s and 80s.
This shouldn’t stop you from hunting for lower rates, however, especially if you have a long driving history and a relatively clean driving record (meaning few to no tickets or insurance claims). So, either talk to your current provider to secure a discount or shop around using a service like LowestRates.ca to find the lowest car insurance rate on the market. Just remember, your age isn’t the only factor that determines your insurance rate, as all of the above-listed factors still apply (some less so than others, of course).
Car insurance rates for students in Kitchener
If you’re a student who drives and pays tuition fees, then you’re likely looking for ways to lower your insurance rate. The problem is – you're probably under 25 and are considered a ‘young’ driver. Insurers view young drivers as inexperienced, and thus, high-risk, which makes their rates higher.
Of course, this doesn’t mean there is nothing to be done. You can, for instance, bundle your car insurance with your home or tenant insurance. Or, if you haven’t done so already, you can enroll in a government-approved driving program to get a driving certificate. Doing so could lower your rate. You can also increase your deductible – though be careful, because a car accident may end up costing you a lot of money down the line. In addition, consider using comparison tools like LowersRates.ca to secure the lowest student insurance rate.
Finally, don’t give up. Continue driving and building a consistent driving record. Drive carefully and follow all the basic driving safety rules, such as wearing a seat belt, avoiding driving while intoxicated and obeying speed limits. If you want your rates to go down, you must maintain a clean driving record and avoid filing insurance claims (by not getting into accidents).
Car insurance for new immigrants in Kitchener
Though as a newcomer to Canada you may have a valid driver’s license from your previous country of residence, you’ll still have to apply for a Canadian driver’s license. And you’ll have to do it within 60 days of your arrival.
Once you secure your class G2 or G license, you’ll need to purchase car insurance. If you intend to drive in Ontario, you’ll need it regardless of whether you own a vehicle or not. Do note that if you don’t have an insurance record from your country of origin, insurers will treat you as a ‘new’ or ‘inexperienced’ driver, which will increase your auto insurance rate.
However, you do have options to lower it. You can bundle your car insurance with your tenant or home insurance. You can also enroll in a government-approved driving program, which will not only help you familiarize yourself with Canadian driving rules but lower your premium. Increasing your deductible will reduce your premium as well. However, if you experience a major car crash, you may have to pay for the consequences out of pocket.
Lastly, don’t be afraid to shop around. Car insurance rates vary due to many different factors. This means that no insurer will offer you the same price. Try using tools like LowestRates.ca to compare and find the lowest rates possible.
As you keep driving, be sure to maintain a clean driving record – meaning no traffic tickets or filed claims – and you'll eventually see your insurance rates go down.
Car insurance for high-risk drivers in Kitchener
If you’ve had many traffic tickets and at-fault accidents, then you’re a high-risk driver. As a result, your car insurance premium is probably also high, and for a good reason – you’re more likely to file an insurance claim than most drivers.
To deal with this, your best bet is to analyze your driving habits and try to reduce your risk factors. Drive carefully and obey all the basic safety rules, including wearing a seat belt, following speed limits and not driving while under the influence of alcohol or other substances.
If you’re having trouble getting insurance in the first place, you may want to use the Facility Association – an insurance pool that includes all auto insurance companies and provides insurance to those who can’t get it on the regular market. Note that while individual providers can refuse to sell you insurance if you’re deemed high-risk, the insurance industry as a whole is obligated to provide you with basic insurance for as long as you hold on to your driver’s license.
You can also compare quotes using LowestRates.ca to find the best rates for high-risk drivers.
We can help you find cheap car insurance quotes in Kitchener.
Kitchener is the largest region in Ontario’s Tri-City, located approximately 100 kilometres southwest of Toronto. A growing community, the city is surrounded by a number of highways.
With so many high-density transport routes in the area, it’s no wonder Kitchener drivers are looking for the cheapest rates on auto insurance. Once you get closer to downtown Kitchener, streets can get very congested due to the roads narrowing near the centre of town.
While car insurance rates in Kitchener are cheaper than in many Canadian cities, you can make sure you secure the best possible rate by comparing quotes on LowestRates.ca. Luckily, there are lots of auto insurance companies serving Kitchener that may be a perfect fit. The best way to find out is to compare the market. At LowestRates.ca, you can find the cheapest car insurance prices from Kitchener car insurance brokers in your area — just like that.
