Auto Insurance – What You Need To Know

Saving money on automobile insurance is important, but so is having the right coverage for your vehicle. There is a balance that should be managed to help you get the appropriate coverage while at the same time keeping more money in your wallet.

Auto Insurance Premiums

One of the first things most people look for when shopping around for car insurance is the premium amount. How much is that policy going to cost? It’s easy to choose the insurance provider with the lowest premium, but there are a number of missed opportunities and potential expenses that could be incurred down the road.

A lower premium now could mean paying more money out of pocket, should you have an accident to report. No one ever plans on getting into an accident, but they happen every day all over the country. No matter how safely you drive, there is always that chance. In order to be protected in the long-term, it’s a good idea to understand your options and select the coverage that best suits your needs.

Important – When comparing premiums, always ensure you are also comparing the coverage and limits.

Auto Insurance Coverage

There are a number of coverage options to choose from. There are accident benefits, comprehensive, and collision coverages, and limits that can affect the amount of your premiums. The type of vehicle that you choose will also determine what kind of coverage you will need.

Newer vehicles may require more coverage or a lower deductible, especially if a lending institution is financing them. Older vehicles may not require as much coverage.

It’s important to understand the various options that are available when it comes to auto insurance coverage so that you can make the best decision and be protected financially in the event of an accident.

Factors That Affect Auto Insurance Price

There are numerous factors that can affect the premium on any policy. The type of vehicle that you drive is one of the most important factors. The value and safety rating of your vehicle will weigh heavily on the cost of the policy. The more highly valued your car is, the more your premiums will be.

Where you live and how much you drive on a daily, weekly, and yearly basis will also be important contributing factors in determining the price of your policy. If you live in a populated region, where more cars congest the roads, your rates will likely be higher than if you are living in a rural areas.

The more miles you drive on a regular basis will also affect your premiums. This is because more time spent driving, means that the chances of getting involved in an accident also increase.

Your driving record, including any accidents that you may have been involved in, or recent traffic tickets you may have received, will affect your premiums as well.

Be Thorough

It’s important to be thorough when choosing the right automobile insurance policy for your vehicle. If you have any questions about the various coverage options available or how you can reduce your premiums without losing valuable coverage, contact us and we will be happy to answer any questions you have.

Motorcycle Insurance

One of the great advantages of having your motorcycle coverage through us is that you can save money through multiple policies. James Campbell Insurance will be able to help calculate how much money you can save.

You also may be able to save money on your premiums if your motorcycle is stored in a garage, if you belong to certain rider groups, or if you have taken a safe rider course sponsored by the Motorcycle Safety Foundation. Call James Campbell today at 1-888-354-6444 for more information.

The coverage that is required by law consists of four parts:

  • Third-party Liability (also called Public Liability and Property Damage, or PL & PD) coverage in case the driver of your vehicle injures or kills someone or damages someone’s property.
  • Uninsured Automobile coverage, in case the owner of the vehicle that injured you or caused damage to your vehicle does not have insurance or is not traceable (hit-and-run driver).
  • Statutory Accident Benefits coverage, which provide for a basic level of income replacement (disability benefits), supplementary medical and attendant care benefits, death and funeral benefits. Some of these benefits are only provided if you have no other wage replacement or supplementary medical benefit plan. Death benefits are only paid if you have a surviving spouse and/or dependent.
  • Direct Compensation for Property Damage coverage, allows you to claim from your own insurance company for damage to your vehicle caused by someone else. To the extent that you are not at fault in an accident with another vehicle in Ontario, your own insurer will pay for damage to your vehicle.

Riding without the mandatory insurance levels can result in certain fines, depending upon the vehicle involved, the history of the person stopped, and other factors. The judge has some latitude in what final amount is assessed and it can apparently be lower than the guidelines.

You can reduce the direct compensation portion of this mandatory premium by taking a higher deductible (indicating that you will pay the deductible amount of any accident damage to your motorcycle caused by someone else).