Buying Your First Car: Did You Remember Insurance?

Buying Your First Car: Did You Remember Insurance?

There’s something special about buying your first car. The excitement and anticipation are at an all-time high, which is why many young drivers tend to get caught up in the euphoria and forget to purchase auto insurance. But in Canada, you can’t legally drive without having insurance on your car. If you’re caught without it, you could face serious fines and other severe penalties. In fact, the first offence starts at $5000 and could reach up to $25,000 along with a one-year suspension. Plus, it’s incredibly dangerous to drive around without insurance –  if you get into an accident, you’ll have to pay all the damages out of pocket. Driving and insurance go hand-in-hand, so be sure to follow these steps below to set up your insurance and get the best rate possible!

Choose The Car Wisely

The type of car you drive can make a difference with the insurance rates you receive. For instance, older cars with exceptional safety ratings often equate to lower premiums. Sports models and pickup trucks, on the other hand, often have higher rates. You should also have a look at the list of most stolen cars in your area – these also come with high premiums due to greater risk.

Determine Who Will Use It

If you plan to share the car with others, it’s important that you put them on the insurance policy as well. It will likely impact your rate, but it’s essential that all drivers are covered. If you lend your car out and they crash it, the claim goes on your policy (not theirs) which will impact your rate.

Find Out If You Can Use Your Parent’s Insurance

If you live at home or still use your parent’s address as your primary one, you may be able to save big. Piggybacking on your parent’s auto insurance policy can help lower your rate substantially, especially if they have good standing driving records.

Figure Out What Other Policies You Will Need

Do you own a home, boat or ATV? You can save money by bundling your policy with other ones. When you buy all your insurance policies from the same company, you’ll likely be offered discounts when you package them all together.

Use An Insurance Broker

Different insurance companies will offer different rates. Quotes for the same service can be drastically different depending on what insurance company you choose. And if you’re not insurance savvy, you could easily end up paying more than you need to. An insurance broker will help you avoid paying any exorbitant fees. Their job is to find a better rate for you by comparing several different insurance policies.

Enjoy your new car – but whatever you do, don’t forget the insurance. Contact our brokerage team at MLS Insurance, and we’ll make sure that you get the most coverage at the lowest rate possible.

More articles...

Busting out the Oldsmobile? Get Antique Vehicle Insurance First
Moving to Canada? The Ultimate Home Insurance Buying Guide
All About RV Insurance in Alexandria, Ontario, Canada