Buying auto insurance in Ontario, as anywhere else, comes with pitfalls that car owners must watch out for.
Or, you keep dithering on buying insurance for the car you recently bought. That’s the first and costliest car insurance pitfall to avoid.
Whether the decision is forced on you by your financial situation or a belief that you don’t need it, not buying auto insurance is a bad idea. Never mind also that the law requires that every car owner must have minimum liability insurance.
That said, you may never get to enjoy the cover you expect if you are not mindful of the auto insurance pitfalls we will discuss below:
Common Auto Insurance Pitfalls Every Car Owner Must Avoid
- Settling For The Cheapest Deal You Can get
We are all looking to save money where we can. But aiming for the cheapest car insurance you can get is a common but often costly mistake.
Always imagine the worst-case scenario and ask yourself if your cheap policy would cover you. You will inevitably pay more upfront, and out-of-pocket if you get involved in an accident.
Where the damages you caused by the accident can’t be covered by your policy, you should expect to pay the difference yourself. Shop around for good deals but always look beyond the cost of the premiums and consider the extent of coverage the policy gives you.
- Not Understanding A Policy’s Terms.
Car owners often buy insurance hurriedly, many times because the law requires them to. As a result, many do not read these forms thoroughly to understand their terms. This is a fatal error.
The problem is auto insurance application forms are often long, with many of the important information written in fine print.
Know what’s covered from what’s not before signing on the dotted line. For example, coverage for car theft may only apply for vehicles that are fitted with tracking devices.
- Not Aiming To Get Full Cover
Ontario has compulsory third-party liability insurance for all the vehicles a person owns. But this insurance barely covers you in the event of a serious auto crash. Aim to get comprehensive cover, even though it may seem expensive.
Most minimum coverage policies don’t cover collision insurance. This means you will be saddled with a huge car repair bill – and God knows what other claims that can be made against you – in the event of an accident.
Seriously consider the add-ons your insurer offers, like passenger cover, roadside assistance, civil commotion coverage, personal effects and pet injury insurance. The advice here is to not leave anything to chance.
- Leaving Your Auto Insurance To Lapse
The consequences of leaving your auto insurance policy to lapse are often severe. Even if we excuse the fact you will be breaking the law, you will be opening yourself up to serious personal liability if involved in an accident.
There is also the heavy burden of a ‘high-risk’ classification, which will hurt you the next time you go to buy insurance. While it may seem so, selling your car is not a good reason to default on your auto insurance premiums.
- Some Car Insurance Policies Only Apply When The Policyholder is Driving
Your claim may be turned down if it’s found out that the car was being driven by a person who is neither the policyholder nor named on the policy.
Ask your insurer if you should register all the people who will be driving the vehicle. Often, that will also affect the amount you will have to pay in premiums, especially where you’re adding teen or inexperienced drivers.
So a policy may appear cheap until you find out that it only applies when it is the actual policyholder who is behind the wheel when an accident occurs.
Able Elite is an auto insurance brokerage trusted by car owners across Ontario. You can rely on us to find you the best auto insurance deal for your situation. Contact us for a free quote.