Auto insurance Recent Posts

According to a poll commissioned from the FSRA, nearly 75% of respondents who had an auto policy believed that auto fraud is a prevalent issue in Ontario. 40% of those same respondents were worried they might become a victim. 

Unfortunately, not everyone understands fraud as well as they should. Here’s some common insurance fraud scams and how they could be impacting you.  

When someone lies or gives false information when applying for coverage to get a lower premium, that counts as insurance fraud.  

This can happen in different ways. One of the most prevalent is people lying about their primary address.  

Because insurance prices are rated by postal code, drivers living in areas such as Brampton, Vaughn, or elsewhere in the GTA may be faced with higher car insurance rates because traffic collisions and auto theft tend to be higher in those regions. Some citizens in these areas might state on their policy documents that they live at different address, perhaps in a more rural area, to qualify for lower insurance premiums.  

The premiums that you pay contribute to a “pool” of money that insurance companies use to pay out claims. When policyholders lie about critical information, such as their primary address, they may pay less for their premiums, which is less money overall that goes into that pool. Insurers, by law, always need to have a certain level of funds to ensure they can pay for claims, which may be harder to do when not everyone’s paying the amount they should. As a result, they may raise premiums for everyone – even those that have been honest about their living situation, address, car usage, etc.  

Always ensure your primary address is correct and up to date on your insurance policy. Some brokers and insurance companies will use the term “garage address” over home address, which can be a little more helpful for individuals or families who might be between homes or who may live in multiple different locations at any point. Your policy should reflect the address where your vehicle resides more than 50% of the time. If you change provinces, it’s a government rule that you have 14 days (two weeks) to update your new address.  

Due to rising fraud cases, insurers have been more diligent about investigating claims, and claims made far away from your primary address may signal adjusters to do a more thorough investigation. To expedite the claims process, try to be as cooperative as possible and provide your insurance company with whatever documentation they need to proceed. The sooner you comply, the likelier you are to get your settlement more quickly.  

Not all perpetrators of insurance fraud are policyholders. In fact, some of them are third-party service providers, like contractors, autobody shops, and medical clinics. 

These companies and individuals will take legitimate claims and inflate the costs they bill to insurance companies, alleging services that were never provided, repairs that were never done, etc. Some autobody shops may even intentionally delay service to increase the labour hours, costing the insurance company money and making you wait longer for your vehicle.  

You can be involved in third-party fraud without even being aware of it. Your car could be involved in a scheme where a body shop charges your insurance company an inflated amount for repairs, some of which may not even have taken place. The same could be said of a fraudster medical clinics, who provides you with a legitimate service but charges the insurance company for services you didn’t even receive. 

The more fraud that gets committed and the more falsified or inflated claims that are paid out, the more everyone pays. Year-over-year increases in premiums are a result of many things, but fraud is a huge contributor – whether you’re a perpetrator or not. 

Always use reputable stores, medical clinics, or any services that are “approved” by your insurance company. These companies have an agreement with your insurance company and are often more reputable when it comes to potential insurance fraud. They’re less likely to be involved in schemes when they have the favour of your insurance company potentially at stake. Reputable body shops may also have a faster turnaround time, be quicker with repairs, and you can get back on the road sooner.  

There are sometimes benefits to using your insurance company’s preferred vendors, like a satisfaction guarantee, lifetime guarantee on repairs, etc. Be wary of shops that advertise the opportunity to waive your deductible in exchange for choosing their business. This is usually a red flag that the shop is going to pad their estimate that they later send to the insurance company. 

Staged collisions are an example of premeditated fraud, which is fraud committed with the intention of receiving an insurance payout. Staged collisions generally involve multiple vehicles, often with all drivers being aware of the scam and consenting, but they can sometimes involve unwitting victims.  

For example, a fraudster in their vehicle is driving through a parking lot as if they’re looking for a spot to park. You’re pulling out of a spot, and the fraudster waves you on. When you go to pull out, they quickly drive into you, making it seem like you didn’t look when pulling out. 

Other examples of staged collisions include scenarios involving multiple fraudster vehicles where several participants file claims for exaggerated or non-existent injuries, or who use lemon vehicles (defective vehicles) to write off in accidents for settlement payouts.  

As with any insurance fraud, all policyholders end up paying more for their premiums when fraudsters receive unwarranted claim payments. Unfortunately, though, staged collisions can cause victims more than just money. In scenarios where fraudsters hit unsuspecting third-parties, victims can suffer very real injuries. Plus, victims will have to go through the claims process themselves, may have to pay their deductible (in certain situations), or could even have to pay for the damages out-of-pocket if no coverage is available.  

Dash cams are your friend and can be a great asset when trying to prove that you weren’t at-fault for an accident, which can save you from having that on your insurance record and potentially later inflating your rates. 

If you suspect you’re the victim of a staged collision, and assuming the accident didn’t take place in a totally remote area, try to flag down other vehicles and leverage witness statements. If you are the witness to another possible staged collision, don’t be a bystander. Be willing to step up for someone else. The more fraudsters we catch, the better off we all are. 

For more questions about insurance fraud and how it may be impacting you, or general inquiries about auto insurance, please give us a call at Mitch Insurance.  

Interested in learning who the best car insurance company is for younger drivers in Ontario?

Saving money where possible is crucial in today’s economic landscape, where a week of groceries for a person in their young twenties and living alone costs twice or three times as much as it used to. Car insurance, though a mandatory purchase, can be costly for young drivers, so it helps to save money where possible!

Here’s our list of the best car insurance companies for young drivers in 2024.

Before we get into the individual findings and examples, we’ve compiled our key findings below for those who want to cut to the chase.

Keep in mind that the “best” car insurance company is more than just price. While we highlight some companies based on the lower price profile they offer, there’s so much more that goes into an insurer than their premiums. Check out our list of best Ontario auto insurers of 2024 for pointers on what makes a good insurance company and Google and J.D. Power reviews.

Based purely on price, here is how our top insurance companies stack up against each other:

Creating a list and comparing based on rates without separating between men and women and high-risk markets might not give as clear an indication of how insurance companies price each demographic differently. Most insurance companies price their rates for men higher because men 25 and under are statistically worse drivers.  

High-risk is also a separate category because these drivers have a certain history that makes them statistically likelier to make claims again in the future (usually because they’ve been in multiple at-fault accidents, had speeding tickets, distracted driving convictions, etc.) and so they’ll pay more for their insurance than the regular market. 

Every driver we created on our list of quotes is fictional, so no real people were used to generate these price points. As we’ve mentioned previously, insurance companies have many different qualities to judge beyond simply price, but because we’re comparing between (fictitious) driver profiles that only differ slightly we figured the best way to rank them was on price, since that’s really the only thing that’s changing when comparing companies. 

To determine precisely how insurers compare against one another regarding pricing, we crafted 12 different fictious driving profiles (6 male and 6 female) and pulled quotes for all of them. These drivers are not real; however, their rates do reflect what someone of similar characteristics may expect to pay for their auto insurance.  

We used the same coverages, policy limits, discounts and deductibles for our quotes, used the following guidelines: 

To create this list, we ran quotes for the following (fictional!) profiles for young male drivers: 

For the individuals above, here are our auto insurance quotes: 

To create this list, we ran quotes for the following (fictional!) profiles for young female drivers: 

For the individuals above, here are our auto insurance quotes: 

Yes, as drivers age and gain more experience behind the wheel, their insurance will typically become more affordable. At the times these quotes were run, they’re accurate, but given a few years – or even just a few months- they can vary. Most insurers adjust their rates quarterly, and every insurance company must justify their rate changes by providing evidence with how much they’ve paid out in claims. The rates we’ve used in this article are based on the rates that the companies file per quarter with the Financial Services Regulatory Authority of Ontario, or FSRA. 

Rates can fluctuate if a particular market segment, such as young drivers, has lower claim costs for a certain quarter. In response to this, companies may lower their costs, but keep in mind that the opposite of this is also true.  

Given the ever-changing nature of the market and all the possible ups and downs, it’s unlikely that one auto insurance company will always remain the cheapest option for a specific demographic, and even if one company is cheaper for that demographic for an extended period, oftentimes other companies will reduce their rates to remain competitive.  

Decent drivers, even young drivers, can prove that they’re safety-oriented by opting into their insurance company’s telematics programs. Most insurance companies offer incentives for enrolling in telematics, where good driving can increase those potential savings even more. Telematics are plug-in programs or phone apps that you can install, which then track certain driving behaviours and reward the driver by lowering their insurance premiums. 

This goes without saying, but practicing safe driving behaviours, avoiding tickets and convictions, and generally being an all-around good driver can save you huge. As a young driver, your rates are already high enough, and being high-risk could double or even triple those already expensive rates. A single speeding ticket at a young age could be detrimental for your auto insurance rates. Play it safe – drive responsibly!  

While all the quotes that we pulled in our tables above were standalone policies, we often recommend young drivers, particularly those under the age of 20, gain experience whilst being listed as an occasional driver on their parent’s insurance policy. 

Even a driver with a speeding conviction whose best option is $3k+/year could benefit from being listed on their parent’s policy, which might only increase the cost of their parent’s insurance by $500-$1,000/year – a much more affordable alternative to being insured standalone. This is also highly recommended for those in the GTA.  

Driver’s education courses are imperative to any new driver as it helps to teach critical skills. Taking a course again later in life can also help to refresh these skills. But beyond the skills that these courses teach, many of them qualify drivers for insurance discounts. Talk with a broker about which driver’s education courses may qualify you for a discount.  

Helping drivers in Ontario find the insurance company that’s most suited to their individual needs is our game here at Mitch Insurance. Depending on where you live, who you are, your age and driving record, your “ideal” insurance company could be any one of 6+ companies. 

Working with a licensed brokerage like Mitch is a surefire way to find great coverage. We work with over 70 insurance companies in Canada, meaning we’re sure to find one that’s right for you and offers great prices, unparalleled service, and excellent support. Give us a call and get a free, no-obligation quote today.  

The first question you’ll be faced with when purchasing a car is whether to buy used or new. There are benefits to both, and either can be a good choice depending on your situation. 

There are also the insurance implications to be considered. Here’s how buying new versus used can affect the cost of your auto insurance.  

Buying a new vehicle will often cost several thousand dollars more than a used car of similar make/model. Upfront, this can be daunting and may put off many prospective new car buyers since they may not have the finances to cover the initial price (although leasing or financing can be a good solution).  

That said, new cars come with a range of features, which you can often select and customize at the right dealership. Here’s some pros to buying new:

Here are some downsides: 

Purchasing a used car has its merits as well, and for several Canadian drivers buying used is a “no-brainer” decision. You’d save money on a lot of different fees, but used cars may also come with their own issues. 

Here’s some pros to purchasing used: 

Buying used may also have its negatives. Here are some: 

To start, new cars will usually cost more to replace than used ones. The value of your vehicle is a huge factor in what you’d pay for your insurance costs. In a total loss, the value of your car (minus its depreciation) is how much your insurer would need to pay out for your final settlement.  

Newer cars also tend to have more advanced technology, which can increase insurance costs by up to 30% in some cases. Newer cars can also be more appealing to thieves as their higher-value components might be more intriguing to sell on the black market.  

The following chart compares annual insurance premiums for different makes/models of newly purchased and used vehicles. The same driver profile was used for all quotes. The new cars are all 2023 models, and the used ones are from 2015.   

Driver profile was 35-year-old male, from Whitby, married, clean record.

Note that these figures are not exactly what you’d pay when insuring this make/model of vehicle as premiums will fluctuate based on additional demographics, such as your age and gender, where you live, your driving record, and more.  

In the examples above, you can see that insurance can cost as much as 30% more for new vehicles compared to similar used makes/models. That increase varies depending on the characteristics of the vehicle including its value, safety ratings, theft frequency, and more.  

While we know that insurance costs generally run higher for new cars versus used ones, that increase is only slight in some cases and is just one part of a much larger picture. Used cars also have their flaws and can eat into your savings with maintenance and repairs costs, especially since they are often past their warranty. Used cars may even be more expensive in terms of gas charges as new cars tend to be more fuel efficient.  

As insurance brokers, we’re not inclined to tell you what to do when purchasing a new vehicle – we’re only here to give you the facts. Many people will go “middle of the road” when it comes to purchasing vehicles and will opt for slightly used vehicles that are 2-3 years old with a little bit of warranty. From an insurance standpoint, as well as considering factors like fuel efficiency, maintenance costs, and overall reliability, this option could be an all-around smart choice. Ultimately though, it’s up to you!

Regardless of whether your next car will be bought new or used, we’ll help you find the right insurance coverage at the best price possible. Give us a call for a free quote today.  

Shopping for car insurance as a male driver living in Ontario? Your search ends here. You might have wondered who the best insurance company is for male drivers, and we’re here to tell you that the answer really depends! 

Mitch crafts a list of the best insurance companies for specific demographics each year to help give our customers an idea of how the different companies we partner with “square up.” Although we only looked at cost comparisons in our list, note that there’s much more that goes into an insurance company besides its price. Check out our post on the 2024 best auto insurance companies in Ontario for additional information.  

Auto insurance is divided into two different markets: standard and high-risk. Standard is pretty much anyone with a decent/semi-clean insurance record, and high-risk is for those who have spotty driving records or have a history of cancellation due to non-payment. The latter often sells their plans for higher premiums, so we’ve divided our comparisons into regular and high-risk to make things fairer.  

Table 1. Best regular market insurers for male drivers in 2024 

Table 2. Best high-risk market insurers for male drivers in 2024 

To give you an idea of the kind of rates that men in the province might expect from the various insurance companies that exist, we’ve created our own list of eight fictional male driver profiles. Each driver varies by their driving record, age, location, vehicle, etc., with the only constant being that they’re all male. We also kept coverage, policy limits, discounts, and deductibles the same to ensure that our final prices wouldn’t be influenced by these.  

Here are our drivers: 

If you’ve checked out our list of last year’s best insurance companies for male drivers, you might have noticed our rankings are somewhat different. This is partly because we’ve used different driver profiles than previously (and therefore produced different results), but it’s also because rates change over time. No one insurance company will remain the best option for any one demographic permanently. As time goes on, claim costs will fluctuate and insurers will have to either lower or heighten their premiums to keep their pool of payout money adequate.  

If one insurer is “top dog” for a specific demographic and winning a lot of new customers, chances are another company will follow suit to attract more business. This can also result in insurance companies having a different place on the ranking year-over-year.  

While we can’t tell you who exactly is the best insurance company for male drivers, we can work with you personally to understand your needs and the kind of coverage you need. Plus, with our access, we’ll help to find you the best price. We work with over 70 of the leading insurance companies in Canada, meaning there’s plenty of options for us to search from to find you a great solution.  

Teslas are considered the pinnacle of electric vehicle innovation, merging sleek design with cutting-edge technology. They’re known for many advanced features, from long-range capabilities to impressive acceleration, but they’re also a symbol of eco-friendly luxury in the auto world. 

For Tesla drivers, the importance of selecting an insurance company that understands the value and unique needs of electric vehicles cannot be overstated. But which insurance companies are the best for Tesla drivers in 2024? 

Every insurer is unique and charges different prices for coverage depending on their database of statistics and what they have experienced when it comes to losses involving Teslas.  

To show how different auto insurers price coverage for 2023 Tesla Models 3, S, X, and Y, we ran insurance quotes for a fictional 35-year-old married male who lives in CITY, has a clean driving record and drives approximately 13,000 km a year. 

Some companies may also offer discounts and savings for Teslas. Companies also offer battery coverage (which can hike costs and wasn’t included in our quotes), and so on.  

Teslas tend to be more expensive to insure than gas-powered cars because of their value and repair costs. The price of Teslas may start coming down to be more affordable in the future, but they’re currently still considered luxury vehicles. 

Below are the average price ranges for Teslas, which may give you a better idea as to why these vehicles typically cost more to insure:  

Tesla prices vary depending on the trim and options. As insurance premiums usually factor in replacement cost, the more expensive the trim and the more features your car has, the likelier your insurance costs are to go up. Working with a broker to help you find the best insurance company for your Tesla is essential in helping manage your budget.  

From an outsider’s perspective, Teslas and similar electric vehicles are no different than traditional gas-powered cars apart from the fuel source. Why should the insurance be any different?  

Well, one feature Teslas are rolling out and improving with each passing year is autonomous driving. Current autonomous features include forward collision warning and mitigation, autopilot with lane-keeping assist, etc. Full self-driving capabilities may be on the horizon, however, and with autonomous driving comes the possibility of minimum auto insurance requirements or built-in insurance costs.  

When it comes to Teslas, it’s important to think about their weight. Electric cars tend to be heavier than traditional gas ones, which can make accidents more serious, especially when they involve lighter vehicles. Take Tesla’s Cybertruck, for instance, which weighs about 7,000 pounds (about the weight of an elephant), with around 30% of that being its batteries alone. If you’re in a collision while driving a Tesla, you might be safer than the other vehicle involved, particularly if it’s not an electric one. In such cases, the other vehicle could sustain serious damage and the people inside could suffer severe injuries. 

Mitch works with some of the best Tesla insurance companies in Ontario. If you’re looking for great protection for your Tesla at an affordable price, give us a call and get a free insurance quote today.  

In 2024, everything from rent to groceries is pricier, putting a strain on finances. Female drivers can save money by picking the right car insurance in Ontario. But with so many options, who’s the top choice for them? 

We’ve compared various female driver profiles among some popular insurers we partner with. Remember, while we looked at costs, there’s more to an insurance company than just price. When shopping for auto insurance, other factors matter too. Check out our post on the 2024 best auto insurance companies in Ontario for additional information.  

The auto insurance world is divided into regular market auto insurers that sell coverage to most drivers and high-risk market insurers that sell insurance to those who may have unfavourable driving records or spotty payment histories. High-risk insurers tend to sell their coverage for higher premiums, so to make things fair in our comparisons we’ve separate rankings for both carrier types.  

Table 1. Best regular market insurers for female drivers in 2024 

Table 2. Best high-risk market insurers for female drivers in 2024 

To provide you with an idea of the type of rates that women in Ontario might expect from different insurers, we’ve compiled a list of eight (fictional) female driver profiles that vary by the status of their relationship (married or single), age, location, driving record, and vehicle they own. The drivers we used are fictional, but the prices listed in the table below are a representation of what someone with similar attributes might pay for their auto insurance. 

To ensure that the only variables changing was the age, marital status, vehicle, location, and driving record of the individuals, we kept coverages, deductibles, policy limits, and discounts the same. 

Here are our drivers: 

In our list of the best insurance companies for female drivers in 2023, the results were somewhat different. This is partly because we’ve used different profiles. However, this is also because no one insurance company will remain the “most affordable” option permanently. Insurers keep a close and frequent watch on the cost of their claims and will compare them to the revenue they generate from premiums. They want to ensure that the premiums they collect are sufficient in covering claims, plus a small amount leftover for profit. 

Insurers offering the most competitive rates for female drivers tend to attract more customers based on affordability. This can prompt other companies to adjust their prices to stay competitive. However, if claim costs and frequency increase for female drivers, insurers with lower rates may need to raise prices to maintain profitability and cover expenses adequately. 

We can’t pinpoint the perfect auto insurance company for you as a female driver without understanding your specific needs. However, we’re committed to helping you discover the most competitive rates consistently. Reach out to a broker at Mitch Insurance. We collaborate with over 70 of Canada’s leading insurers and are dedicated to finding you excellent coverage at an affordable price. Contact us now for a complimentary quote with no strings attached. 

March is Fraud Prevention Month, an annual campaign that aims to identify, prevent, and report fraud.  Insurance fraud is a huge issue across Canada and costs policyholders over $1 billion a year in added premiums. Plus, it puts more strain on our health care, emergency service, and court systems. When one person cheats, we all end up paying.  

Recognizing the different types of insurance fraud, what to do if you suspect fraud, and how to prevent fraud are crucial to avoid becoming an unwitting victim.  

Insurance fraud entails the intentional misuse of insurance coverage or its applications to achieve a favourable outcome. This often involves filing an exaggerated or false claim or deceiving your insurer in another way. In short, insurance fraud exploits an insurance contract rather than protecting the insured. 

Here are the five most common types of auto insurance fraud: 

Auto insurance fraud can be broken down into two different categories: opportunistic and premeditated. These are defined as follows: 

Following a legitimate loss, a policyholder seizes the opportunity to make an exaggerated claim to receive an unwarranted insurance payment. Some examples of this are: 

Premeditated fraud involves carrying out intentional, deliberate actions to make a claim for an insured loss event. Premeditated fraud not only raises auto insurance rates for everyone, but it can involve severe bodily injury or even loss of life to unsuspecting victims. Examples of premeditated fraud include:

Over 74% of Canadians are aware that insurance fraud impacts their insurance premiums, showing how much this crime has grown in frequency and severity.

If you didn’t already know, yes, insurance fraud can result in higher taxes and greatly increase your insurance costs. Consider this: who ends up paying for the additional legal bills if an insurance fraud case ends up in court? Whose premiums go into the overall pool of funds used to pay out claims? Whose taxes help pay for police investigations of collisions?

Beyond costs, insurance fraud can also cause:

Given the current economic landscape, it’s more important than ever for all Canadians to remain vigilant and take the necessary steps to protect themselves against fraud. Here at Mitch, we recommend the following to help prevent fraud if you are involved in a collision:

While law enforcement does their best to prevent insurance fraud, everyone can help make a huge difference by reporting fraud if they’ve witnessed or have information about a potential crime.

Follow these steps to do your part in preventing insurance fraud:

In today’s cost of living crisis, saving money where possible is essential. Insurance is a mandatory purchase, but it doesn’t have to break the bank. To save money on your insurance, you’ll want to work with the best auto insurance company. But who’s the best of the best?

Below is a breakdown of the best car insurance companies in Ontario, including what they offer, how they rank by coverage options, price, and more.

There are more than 80 insurance companies in Ontario that sell auto insurance. Each insurance company has its own “offering,” and certain insurers only offer niche auto insurance (such as high-risk, right-hand drive, or classic car insurance).

When you want the best, you need to know what it means to be the “best.” The insurer you choose should be able to:

While an insurance broker’s duty is to help find you great rates, they can also help partner you with an insurer who will find you the best coverage fit. This goes beyond price. There are other ways to rank auto insurance companies beyond their price. Keep the following in mind:

J.D. Power, a software, consumer intelligence, and data analytics company, conducts their own customer satisfaction surveys every year for auto insurance companies. While their rankings may only serve as a general guideline, it’s good to take note of common trends. Note that J.D. Power ratings do have their own limitations, such as:

This is a factor that too few policyholders know about, but it’s important. When insurance companies are smaller, the funds that they have to payout claims also tends to be smaller. The risk that the insurance company may not have enough money to pay out all claims is greater. Larger companies tend to have a more evenly spread risk, and have also likely purchased reinsurance, so there’s less risk for the insured. This, of course, isn’t always an exact science – and sometimes the smaller guys will meet your needs even better than the big guys!

While reviews are not solely about what drivers should go off, they can be an indicator of the kind of service you might expect from an insurance company. They can be skewed because:

The best you can take away from online reviews is how insurance companies “argue” over what’s covered when a claim is filed and how easy they are to contact. Reviews may be able to show how well (or poorly) an insurance company fares for these aspects.

There’s no definitive way to say which auto insurance company is the best. We’ve created the table below to show the differences between different auto insurers. Note that we can only access pricing information from the auto insurers that we partner with:

There is no single best auto insurance company in Ontario that works for everyone, as everybody’s personal insurance needs are just that: personal. What works for Bob and Jerry down the road may not work for you, as your driving habits may be different, your driving experience, the cars you drive, etc. The table below shows pricing comparisons between some of our partners for different demographics:

All drivers with a valid Ontario license are entitled to fair access to insurance. Different insurers will specialize in different types of “risk,” meaning some companies may offer insurance to drivers who would otherwise have a difficult time getting insured through the regular market. In the chart above, we included which companies are open to business in different categories. Here’s a breakdown of those different categories:

Most drivers in Ontario are insured through what is known as the standard market. This means that the companies who offer “standard” insurance will offer it to low or medium-risk drivers, so drivers who don’t use their cars for business usage, aren’t right-hand drive, don’t have modifications, or who don’t have more than three tickets/at-fault accidents on their record.

High-risk auto insurance, also called nonstandard auto insurance, is offered by companies who specialize in insurance for drivers whose risk profile would otherwise be uninsurable by standard market companies. This is usually due to serious driving convictions, at-fault accidents, or having been cancelled due to a history of non-payment.

Some insurance companies specialize in offering insurance to what are known as non-standard vehicles, which are often right-hand drive, classic/collector vehicles, or vehicles that have been heavily modified.

In Ontario, motorcycle insurance tends to rack higher than car insurance on average as accidents can involve severe injuries, and may include the potential for long-term disability. Motorcycle insurance, as a result, can be riskier – even with more experienced drivers.

Few insurers will insure drivers under 25 or who have less than 5 years of riding experience. In this case, they may need to obtain coverage through Facility Association as their only option.

If you use your personal vehicle for ridesharing companies such as Lyft or Uber, and you transport either food or passengers, then many insurers may not agree to work with you, and you’ll have to acquire specialized insurance through a rideshare insurer. This tends to be more expensive than standard auto insurance.

Using a car for business purposes, such as owning a vehicle with business branding, hauling goods, tools, or delivering passengers, calls for commercial auto insurance. Many auto insurers specialize in insuring business vehicles.

There are quite a few options for farmers wanting to insure their farm-use vehicles, with over 40 farm mutuals operating in Ontario. Note a few of these mutuals only operate in their immediate geographic region. Some business vehicle insurers will also cover farm vehicles as well.

While it can be tough to choose a car insurance company that’s right for you, Mitch can help. We partner with many of Canada’s top auto insurance providers, so we’re confident we can help you find a company that fits the bill and for a great rate, too.

On January 1, 2024, Ontario changed direct compensation-property damage (DC-PD) to optional coverage, allowing drivers to sign a form (called OPCF 49) to remove it from their policy. 

DC-PD was mandatory as part of Ontario’s no-fault auto insurance system introduced in 1990. Making it optional was done to allow consumers more control over their coverage and provide an option to reduce costs. However, electing to remove DC-PD can prove more harm than good. Here’s why. 

The cost of having DC-PD in your insurance policy varies by the vehicle, your demographics, how long you’ve been licensed, where you live, etc., but usually it averages between $400-$1,000/year. For most people, the biggest reason for opting out of DC–PD is to save this amount – but many may end up paying more than if they had kept DC–PD in their policy. 

DC-PD covers you if you’re involved in an accident with another driver where you were either only partially at-fault or not at-fault. For example, someone rear-ended you at a red light. DC-PD would trigger and help cover: 

If you sign OPCF 49 to remove DC-PD, you would not have coverage for any of these things in a not at-fault accident. Drivers may be severely financially impacted by vehicle damage if they’re hit by another driver or involved in a partially at-fault accident without this coverage.  

For most drivers, we recommend not signing OPCF 49, especially if you want to cut costs. The endorsement may provide you with more choice, but it puts a lot of financial onus on you if you’re involved in a traffic collision – even one where you’re not at-fault.  

Here are some of the main drawbacks of removing DC-PD from your policy:  

Without DC-PD coverage, you’d be left arranging and paying for the costs to repair your own vehicle, replace the contents left inside the vehicle, rent a car, and cover any additional fees pertaining to storage and towing. 

As signing OPCF 49 removes DC-PD from your policy, you’re likelier to have not at-fault claims rejected as your policy will no longer meet your coverage needs.  

The length of time it takes to repair vehicles is longer nowadays because of chip shortages and supply chain issues. If you’re in an accident, you may need to find a temporary replacement for your car to get to work or do other daily tasks. DC-PD contains coverage for loss of use, but if you’ve removed it from your policy by signing OPCF 49, the price of a rental car is your own responsibility. According to Enterprise, Ontario currently has the longest average billed days (19.5) for rental vehicles where the driver is awaiting repairs. For rentals associated with total losses, the number is a bit higher at 24 days (about 3 and a half weeks) average. 

This can rack up quickly in cost, especially when you consider that an Enterprise mid-sized SUV averages out to around $48.24 plus HST per day, and a pick-up truck will run about $45.74 plus HST. Non-Enterprise vehicle rentals will typically exceed $65/day. 

Yes, signing OPCF 49 and removing DC-PD may allow you to lower your premium by between 5% and 10%. But there’s more to it than that. Without DC-PD, you greatly risk being underinsured, and if money is already tight, OPCF 49 can put you in a worse situation than you would have been in had you not opted out of the coverage.  

Talk with an insurance broker before electing to include OPCF 49 and opting out of DC-PD coverage. 

We’re living in a cost-of-living crisis, and so it’s no wonder people are tempted by this new offering. Saving a few hundred dollars a year can be a huge opportunity for many but removing DC-PD may cost you more than you’d end up saving if you need to repair or replace your vehicle after a not at-fault accident. Here’s some alternative suggestions to removing DC-PD coverage from your auto insurance to help you save money: 

One alternative to removing DC-PD coverage altogether is to raise your deductible on it. DC-PD coverage automatically comes with no deductible, meaning in a not at-fault collision you’d pay nothing for the repairs to your car, but you can elect to raise that amount. Doing so will lower your rates, but it will also mean you’ll be responsible for a certain amount out-of-pocket if you’re involved in an accident. Choose this option with care. 

Bundling your insurance is one of the easiest ways to save money on your coverage; in fact, what you save may equal or even exceed what you’d save by dropping DC-PD. If you have a home or renters policy, you can save hundreds of dollars on your auto insurance by insuring them through the same provider. Talk with one of our insurance brokers for more information about this option. 

Usage-based insurance is a program through which you agree to have your driving behaviours tracked. Good driving behaviour can result in savings, and many programs will offer you an initial 5%-10% discount for just signing up. Some programs can save you up to 30% on your insurance. 

If you’re considering OPCF 49 to remove DC-PD from your policy, give us a call. Mitch works with over 70 of Canada’s top insurers and can help find you an affordable alternative without needing to sacrifice much-needed coverage.