Auto insurance Recent Posts

While cars today are certainly becoming safer, accidents will happen—and they can impact your car insurance rates.

Your insurance rates can increase after an accident, especially if you’re found at-fault, unless you have an accident forgiveness waiver. As to how much, well, it depends. Let’s get into it. 

When you’re involved in an accident, your insurance company will determine your level of fault. It can be anywhere from 0% (not-at-fault) to 100% (at-fault), and anything in-between means you have partial responsibility for the incident. Fault is usually assigned as 100%, 75%, 50%, 25%, or 0%.  

Being 100% at-fault means you’re fully responsible for the accident. This could happen if you ran a red light, rear-ended someone at a stop sign, merged into an adjacent lane without checking your blind spots, and so on.  

*Note: If the police assess your level of fault at the scene of an accident, this only determines whether you’ve violated the Highway Safety Act. It has no bearing on your insurance company’s decision. 

Ontario’s Fault Determination rules are set out in the Insurance Act and provide the principles for assigning fault in automobile collisions. There are over 40 scenarios outlined to help determine fault in virtually every possible accident. 

Fault determined by insurance adjusters can be disputed. If you disagree with your insurer’s decision, you can challenge it through a dispute resolution process that’s defined in the Insurance Act. This may involve arbitration, mediation, or a hearing before what’s known as the “License Appeal Tribunal. “Technology plays a big role in fault determination, so any evidence you have supporting your claim—such as dashcam footage or video from another recording device—can significantly strengthen case.  

Unless you are assigned 25% or less fault, you will have to pay your deductible on DC-PD coverage. (DC-PD coverage is coverage that activates for not at-fault accidents to cover property damage to your vehicle, loss of use, and any contents inside your car. It is typically included in most standard auto plans.)

Luckily, most drivers usually have a $0 deductible on DC-PD coverage. If the damages are covered under collision insurance instead, and you have that coverage, you’ll be responsible for the deductible amount specified in your policy.  

With coverages that have a deductible, your percentage of fault will determine the portion of your deductible you’ll be required to pay. For example, if you’re assigned 50% fault in an accident, your collision coverage will apply to half of the claim and your DC-PD will cover the remainder. If your collision coverage deductible was $500, you’d be required to pay 50% or $250 of that. 

Sound a little complicated? Sometimes, it can be. If you need to make a claim after an accident, an insurance broker can walk you through the process, explain your coverages, and help you understand what’s required. They can also advocate on your behalf to ensure you receive a fair and just settlement. 

Any percentage of fault—from 1% to 100%—can impact your insurance rates. For example, if you were changing into the right lane without checking your blind spot, and a car merging had done the same, both of you might be assigned some level of fault and your rates may be impacted. This is true regardless of the payout or total claim cost.  

It’s tough to say exactly how much your insurance rates will increase after an accident. Insurance companies all have their own specific criteria and will look at factors such as the type of accident, your existing rates and history, and more. With virtually all insurers, having three or more at-fault claims will land you in the high-risk category and you could wind up paying double or triple your pre-accident rate. In some instances, being labelled high-risk will mean your current provider will no longer insure you and you’ll have to find coverage from another carrier. 

To give you an idea of how much rates may change after an at-fault accident, let’s look at some comparisons. Take Mr. James Worth, our entirely fictional driver profile of a 40-year-old married man who drives a 2020 Nissan Kicks to work each day. He lives in Whitby, Ontario, has been licensed since 2000, and up until this very experiment he’s had a clean record. Let’s see how his rates change when we quote him with a clean record, as having one at-fault accident, two, and then three.

As you can see, some insurance companies in our list would no longer offer a premium to Mr. Worth after his third at-fault accident, and some wouldn’t even after his second. As our fictious driver racks up the accidents, he becomes less and less insurable. If he were to be involved in yet another at-fault (whether 25%, 50%, 75%, or 100%) accident after the third, he might find his only options are through high-risk markets.

More commonly known as accident forgiveness or sometimes accident protection, OPCF39 is an insurance add-on that protects you from a rate increase following your first at-fault collision. 

This endorsement works only one time, and after that it cannot be used again. If you had this endorsement and got into an accident where you were at-fault, either entirely or mostly, your premiums wouldn’t increase if you stayed with the same insurer. Note that your rates are only immune from rising if you were 100% not-at-fault, so this endorsement could help even in the case you were assigned so little as 25% fault. 

If you change insurers, this collision would still be on your record for up to six years, so your rates could rise. Having just one at-fault collision on your driving record can significantly impact your rates and may remove any claims-free discount you have, so accident forgiveness can be a good safety net—even if you’re a good driver.  

Getting into any kind of accident is discouraging, but having your rates increase following one or more at-fault accidents can be detrimental. It can even push you into the high-risk market, which can mean double or triple your current rates. 

If your rates have gone up after an accident or you’re curious about OPCF39, give us a call here at Mitch Insurance. We can help find you affordable insurance and discuss additional coverage to protect your driving record.  

A 2023 study said only 47% of Canadian students live at their parent’s home while attending school, meaning over half will go away. When living away from home for the first time, unexpected events can occur. That’s why having insurance is essential for your child while they’re away at school. But when they move out, you might wonder: do they need their own insurance?  

If any of the following is true, then it makes the most sense to insure your child under your existing insurance policy: 

This means your child may not need their own insurance policy—tenant or otherwise—to be covered. Just like they were covered when they were living at home, they’d be covered at school, too. This is true regardless of if they’re in Ontario or attending school in another province, or even in another country.  

Some post-secondary institutions will require students to carry insurance, like if your child is living in a dorm on campus or a university residence. Getting insurance for your child is as easy as contacting your broker. In some cases, you may want to increase your contents coverage limits through a rider to ensure all belongings will be adequately covered. Usually, contents coverage will contain a sublimit for belongings away from home—between $5,000 to $25,000, depending on the policy. 

For children living away from home whose belongings are covered under their parents’ home or tenant insurance policy, it’s important to make an inventory of all their belongings. Since the onus of proof usually falls on the policyholder, having a detailed list of their property as well as physical evidence (like receipts, warranties, etc.) can speed up the claims process and ensure a swift and fair settlement. Be sure to include all electronics, clothes, appliances, textbooks, and furniture in this list, as the overall value of these can add up very quickly.  

It’s important to remember that any claims your child files under your home or tenant policy will affect your insurance. If you prefer to avoid this, you may want to consider a separate policy.

Some car insurance providers offer what’s called a “student away from home discount,” which can reduce the cost of adding a student to your policy by up to 50%. That said, the discount can vary depending on how far away your child will attend post-secondary. Be sure to ask your insurance broker if your situation qualifies you for any discounts.  

On the topic of auto insurance discounts for students, some providers also offer reduced premiums for full-time students with a certain grade average. Some auto insurance providers have found a correlation between academically successful individuals and good driving behaviour, and may reward good students with cheaper auto insurance. 

For students moving away permanently or who only go to school part-time, are financially independent, or are living off-campus, it may make more sense to have their own insurance. If your child will be living with roommates, each roommate will likely benefit from having their own policy as they may not be covered by one another’s insurance. 

In this case, students moving out permanently may want to buy their own tenant insurance. Tenant insurance includes liability coverage, additional living expenses, and content coverage. Your child’s landlord may also require them to have tenant insurance before they can sign a lease. 

When you throw a car into the mix, whether it belongs to your child or one of your own, insurance can get more complicated. What if they’re going to the US for college? Will the car be covered out-of-province? Does it make more sense for your child to have their own auto insurance policy? 

Unless your child is entirely financially independent and planning to move out permanently, insuring them under your own auto policy may still make the most sense budget-wise. If they are out-of-province or out-of-the-country, they’ll need to return home once every six months to remain covered under an Ontario auto insurance policy. Having your child’s vehicle insured under your policy can qualify you for discounted rates, allow for more simplified paperwork, and offer flexibility in who can drive what car.  

In summary: if your child is bringing a vehicle with them to school and they’re not financially independent or planning to move out permanently, you can still insure their vehicle under your existing auto policy.  

Your child should, ideally, have their own auto policy if they’re permanently moving out. Also, if your child is not bringing the car but will drive your vehicle when they’re visiting or back for the summer, they’ll still be covered under your auto policy when they return. 

Our team of brokers are happy and prepared to discuss the insurance needs for you and your child during this transitional period. If you are concerned about coverage, want to discuss adding a rider, or are confused about what kind of protection your child may need while away at school, give us a call. 

Buying your first car is exciting! While it’s a huge responsibility to own, maintain, and take care of your own vehicle, it’s also an opportunity for you to enjoy greater independence and the freedom of being able to go wherever you want whenever you want. 

Before you get behind the wheel your new ride, like all drivers in Ontario, you’ll need to purchase auto insurance. Here’s what you need to know about insuring your first car. 

Although this might be the first time you’re insuring your own car, you may have been insured before under someone else’s auto policy. Insurance companies will count your driving history from when you were first insured, regardless of whether you were the one who purchased the policy, until now. 

Lapses in coverage or a gap where you weren’t insured can affect your rate – but only if it was because of a cancellation, license suspension, fraud, or another negative cause. If your lapse was for an innocent reason, such as  or working from home temporarily without the need to drive, you may not be subject to a rate increase.  

If you were previously insured under someone else’s policy, another thing you’ll need to keep in mind is that you will now be responsible for making your own payments. If you elect to do automatic withdrawals, you’ll need to always ensure that your bank account always has sufficient funds. Cancellation due to non-payment can seriously impact your future insurability and the price of your coverage.  

When getting insurance for your first car, you’ll need to make decisions about the kind and amount of coverage you want. If you’ve bought your car from a dealership brand new, odds are that your lease agreement will require you to purchase “full car coverage.”  

While there’s no such thing as “full car coverage,” most dealerships and financing companies require their customers to purchase collision and comprehensive insurance. There is a tremendous difference in protection between purchasing the bare minimum, provincially required insurance (accident benefits, uninsured motorist, third-party liability, etc.) and purchasing a policy with “all the fixings,” including optional coverages like collision and comprehensive. Collision insurance ensures that even in an at-fault accident, the driver is covered for the physical repairs for the vehicle, where comprehensive coverage reimburses the driver for damages due to hail, fire, flooding, vandalism, and theft. 

Other optional endorsements that are often highly recommended (but not legally required) for new car owners are accident forgiveness (OPCF 39) and a limited waiver of depreciation (OPCF 43). Accident forgiveness prevents a first at-fault claim from impacting your insurance rates, whereas a limited waiver of depreciation ensures your insurance company does not deduct depreciation for your vehicle for up to three years after its purchase. This means that if your car is written off after being deemed unrepairable, you’d get the full purchase amount back to replace it with a similar make/model.  

New drivers insuring their first cars may face higher insurance premiums due to their lack of experience. This might lead to the temptation to opt for just liability coverage to meet the provincial mandatory requirements and avoid extra costs.  

Doing so usually isn’t recommended, since you’d be left without coverage if you caused an accident or were even partially at-fault. If you’d opted out of DC-PD coverage as well, you would have very limited physical protection altogether and may be left with having to pay the repair costs out-of-pocket.  

Work with a broker to find affordable, yet robust insurance to protect you in all situations. A broker can advise you on what the best course of action would be for your situation.  

Before speaking with a broker to buy insurance for your first vehicle, be sure to have the following information on-hand – both for yourself and anyone else who will be driving the car: 

Chances are that if you’re a new driver (and especially if you don’t have your full G license yet), or you’ve only driven someone else’s car for a couple of years before purchasing your own, you’ll end up paying more for your auto insurance. The less driving experience you have, the more likely you are to make mistakes – or at least you are in the eyes of the insurance company.  

In addition to your driving experience and record, insurance providers will also price your coverage based off the following information: 

If you’re new to buying insurance, you might have heard a few myths about what influences the cost of your coverage. To straighten some things out: no, the colour of your car has no effect on your rates. Your race, education, and having parking tickets also will not affect your insurance rates.  

One of the best things we can recommend for first-time car buyers is to work with an insurance broker when getting their policy. Our insurance brokers have plenty of experience working with individuals who might be new to insurance and can recommend all the best ways to save on your coverage.  

If you’ve been there, you know the feeling. You’re driving, maybe late at night, and suddenly there’s a scrap of tire or a tree branch on the road that you didn’t see, and you hit it. The damage isn’t huge, but it’s still frustrating. Good thing you have insurance to cover it, right? 

Well, here’s the thing: in certain scenarios, like hitting debris on the road or being the victim of a hit-and-run, you may not be at-fault, but you’ll still be responsible for paying your deductible.  

Standard car insurance doesn’t cover at-fault damages or collisions with debris, stationary objects, road fixtures, and in certain scenarios, other cars. This is where collision insurance comes in. However, it’s optional coverage, meaning that unless you’ve elected to add it to your policy it won’t be included.  
Collision insurance covers damages to your vehicle if you’re at fault in an accident. This includes hitting another car or a stationary object, like a street lamp or guardrail, and even situations like rolling into a ditch. It also applies if you slip on icy roads or hit unexpected debris. With collision insurance, you need to pay your deductible before your insurance covers the rest of the repairs. 

This also applies in hit-and-runs. While uninsured motorist coverage is mandatory in all Ontario auto insurance policies, it only insures against collisions where the other driver has been identified but is underinsured or uninsured. In a hit-and-run, the other driver cannot be identified, and so you would only be covered for the damages if you had collision insurance.  

As mentioned, with collision coverage you’ll need to pay a deductible. Common deductible amounts range between $250-$1,500. Your insurer will cover the damages minus your deductible. Choosing a higher deductible will usually lower your insurance premiums but will mean a smaller payout after a claim.  

It can be extremely frustrating to find yourself in a situation where you thought your insurance would cover you, only to learn you’ll be required to pay your deductible. And if you don’t have collision insurance, you won’t have any protection at all. 

Here are some example scenarios that we’ve seen at Mitch where the driver was either required to pay their deductible, or found they didn’t have coverage at all: 

Debris on the road can be hard to avoid if there’s poor visibility, it’s winter, or you’re driving at night. One of the more common situations we’ve seen at Mitch is when salt and sand trucks leave piles of debris on the road. When it’s dark, drivers can hit these piles, causing severe damage to their vehicles.  

Because this was a stationary object struck on the road, coverage would apply through your collision insurance, and you’d have to pay your deductible. Your insurance rate may also be impacted, or you could wind up losing your accident forgiveness waiver (which prevents your first claim from raising your insurance rates).  

Keep this in mind: if you hit something on the road, it’s considered a collision and falls under your collision insurance. We’ve had clients hit all sorts of objects on the road, including chunks of tire, construction cones, landscaping material, and more. Unfortunately, even though it wasn’t your fault that the debris was on the road, you’ll end up paying for it. With insurance you’re expected to exercise “care and control,” even if you didn’t see the debris or it had flown off a truck earlier.  

This one’s a frustrating one for a lot of people, but hit-and-runs aren’t covered by uninsured auto insurance, or any other coverage except collision insurance. Luckily, you’re not considered at-fault for these incidents, but in many cases you’ll be responsible for your deductible. Unless you can somehow identify the driver (check security footage if possible), you’ll need to rely on your collision coverage or pay out of pocket for the damages.  

Hit-and-run accidents might not impact your insurance rates if you report them to the police. If the other driver is later found, you can inform your insurance company and potentially end up having your damages paid for without being responsible for your deductible.

Weather events are another point of contention. Even though you didn’t cause the icy road conditions, insurance expects you to exercise care and control. If your car slides into a ditch because of ice, that’s technically an example of you not doing that and you’d be considered at fault. Again, this would fall under your collision insurance, and you’d be required to pay your deductible.

Flooding is one of the biggest causes of insured loss in Ontario and affects both homes and cars. Many policyholders are surprised to learn that they’ll need to pay their deductibles for flood damage to their vehicles. However, depending on the cause of the flooding, there are two types of coverage that might apply to the damage. 

If you drive into flood water and your vehicle gets damaged, it will be covered under collision insurance, because you intentionally put your car into that situation. As with the previous scenarios, you’ll have to pay your deductible and your insurance rates will probably go up. 

Flood damage is covered under comprehensive insurance if you didn’t put the car in that situation. For example, if flooding in your underground parking damages your car. Like collision, comprehensive insurance is optional and comes with a deductible, plus it could increase your rates.  

So how do you avoid scenarios like these and save money? Unfortunately, if you hit something on the road or are involved in a hit-and-run, it’s unlikely you’ll be able to convince your insurance provider that you aren’t responsible for paying your deductible. In rare instances, you may be able to find fault with a third-party, such as having a municipality take accountability for a construction site leaving cones out on the road which damage your car, but it can be a long, arduous process to do so. With hit-and-runs, it’s always best to report the incident to the police and check security camera footage where possible, but sometimes the person responsible for the accident is never found. 

Our advice? If you can, pay for smaller damage yourself instead of filing a claim. If it’s only a few scratches or other minor cosmetic damage, financially you’re much better off handling it on your own rather than facing the deductible cost plus the potential rate increase. 

Also, be aware of what you’re covered for. All of the scenarios above are insurable under collision and comprehensive coverage, which are both optional but can cover a lot. Ask your broker about what you’re covered for if you’re unsure. 

Give us a call if you have questions about claims, collision and comprehensive insurance, or anything else. We’d be happy to put your mind at ease.  

Cannabis use in Canada has been on the rise since legalization in 2018. We all know that driving under the influence is dangerous and highly illegal. But smoking a joint or enjoying an edible can’t get you anywhere near the level of impaired as a couple drinks can—right?  

The 2024 National Drug Driving Study by the University of British Columbia analyzed blood samples from drivers across multiple provinces from 2018 to 2023. It found that cannabis has started to replace alcohol as the most frequently detected impairing substance in drivers’ blood after crashes. Driving after cannabis use is becoming an emerging problem. People may not feel as “intoxicated” after using cannabis as they do with alcohol, making it easier to underestimate their impairment. 

Cannabis works when THC, the main chemical compound found in cannabis, attaches itself to receptors in several parts of the brain. In doing so, it interferes with normal functioning and communication between different areas. For example, THC can attach to receptors within the brain’s amygdala, causing sensations of anxiety and fear. It can also prevent normal communication and signaling in the hippocampus, resulting in short-term memory impairment for a temporary duration.  

But the most notable impairment related to driving is THC’s interaction with the cerebellum. The cerebellum is your brain’s fine-motor hub, controlling balance, coordination, and their sense of time. When a driver is high, their normal functioning may be altered such that their driving is severely and dangerously impacted.  

British Columbia researchers have been examining the impacts of cannabis on human behaviour since 2012, suggesting that cannabis use can: 

With this study, it was also suggested that habitual users do develop some tolerance to these effects. However, the impact of cannabis can vary based on factors such as the amount consumed, what the person ate that day, how long it’s been since they last used it, any drug interactions, and more. It’s impossible to predict how someone’s driving will be affected by cannabis, even if they are a regular user.

Alcohol and weed are frequently used in combination. Both of these drugs have comparable impacts on the body and brain, resulting in slowed reflexes, shifts in judgement, drowsiness, and more. In addition, combining these can increase the effects of both drugs. It’s been proven that those who mix cannabis and alcohol are likelier than those who just drink alcohol to engage in “sensation seeking behaviour.” In short, simultaneous usage can contribute to alterations in judgement and reduced cognitive function. 

According to data from the Fatality Analysis Reporting System, the percentage of crashes involving cannabis increased from 9% to 21.5% between 2000 and 2018. With this, the percentage of deaths involving both cannabis and alcohol more than doubled from 4.8% to 10.3%. The same study suggests that cannabis and alcohol are being increasingly used together, and drivers may not be aware of their potential when combined. After all, one or two drinks alone may not do much, nor will a few puffs, but together? The results can be deadly.  

If you didn’t already know, driving while you’re high can land you with an impaired driving or DUI charge. It has the same potential penalties as if you were caught driving drunk. 

Having a DUI conviction on your driving record can impact both your insurance and your future insurability. Many insurance companies, if not all, will now consider you high-risk, and many major carriers will not cover high-risk drivers. This may mean you’ll need to shop around to find a provider who will insure you. 

When you can find insurance again, your rate will likely have doubled, if not tripled from what you were paying. This isn’t so much a punishment for the driver as it reflects the harm a DUI—and potentially another future one—can do. Insurance is based on risk, and drivers with a DUI in their history are viewed as potential future re-offenders. Here are some sample rates from G license and G2 license drivers, two with clean records to show a baseline, and two with DUIs to show the rate increase.

If you’re fully licensed and have operated a motor vehicle with a blood alcohol concentration (BAC) of more than 0.08, over 5 nanograms (ng) of THC, or a combination of over 2.5 ng and a BAC of 0.05, you could be convicted of a DUI. This is considered a criminal offence and will show up on your driving record, labelling you a high-risk driver. Even having blood alcohol or THC levels in the “warning range” (the level of intoxication that you could have that would warrant a physical warning from the police) could mean serious consequences. 

If you have a learner’s license (or its equivalent where you live) there is a zero-tolerance policy for alcohol or THC (or any presence of drugs). You can get in serious trouble if you’re found with any level of drugs or alcohol in your system, and insurance companies may view this as the equivalent of having a DUI. 

There’s many misconceptions around cannabis use and too much downplaying of the severity that comes with driving high. No, it’s not “harmless” or “nowhere near as bad as alcohol.” Impaired driving poses serious risks with significant consequences.. If you’re drinking or using cannabis, don’t drive. And never get into a vehicle with someone who has been drinking or doing drugs.  

If you have questions about your auto insurance or need coverage after a DUI conviction, please call us. We’d be happy to help you find a plan that works for you.  

Car insurance doesn’t provide coverage for engine failure in most circumstances, unless that failure is a result of something else covered by your insurance. 

Confused? Knowing what your policy covers is key, especially when you’re unsure about potential losses. Understanding insurable items can prevent gaps in coverage, saving you both stress and money. 

Engine failure may be covered if it resulted from an insured event, like a crash or rollover. The critical point here is ‘insured’: engine failure isn’t inherently included or excluded from any policy per se, but specific insured events and causes for engine failure are. 

Engine failure can happen for many reasons. One of the most common causes is lack of maintenance. Failure to regularly change your oil, replace filters, and perform other routine maintenance tasks can result in engine wear and eventual failure.  

Overheating is another common reason for engine failure, and this tends to happen when the engine is being operated at excessively high temperatures. This may also be due to coolant leaks, malfunctioning cooling system, faulty thermostat, etc.  

Over-revving can also cause engine failure. This is because the engine is excessively or consistently operating at high RPMs, which over time puts undue stress on internal components and may contribute to eventual failure. Car insurance is designed for accidental, unexpected damages. Because all the issues above can be attributed to lack of maintenance, inattention to the condition of the vehicle, and general user misuse, they won’t be covered by insurance.  

Engine failure can also be caused by collisions, weather-related accidents, theft, vandalism, acts of nature, and road hazards – all of which, with the right coverage, are insurable. 

An auto insurance policy that includes the mandatory coverages (uninsured motorist coverage, third-party liability, accident benefits) as well as DC-PD, collision, and comprehensive coverage is likely to cover instances of engine failure due to collisions or non-collision damages (like weather events).  

For example, if you hit an animal while driving late at night and it caused your engine to break down, your comprehensive coverage may pay for the claim and help you repair your engine. If you got into a fender-bender with another car and the damage was so bad your engine gave out, your collision coverage could help pay for the repairs. 

We recommend reviewing your policy to be sure you have the right coverage for any unexpected events. Being aware of what your insurance policy includes can give you peace-of-mind knowing that, if something does happen, you’ll be covered. It also ensures that you’re likelier to identify any coverage gaps before they become an issue. Not sure how to do this? Ask a Mitch independent insurance broker for their advice.  

Beyond insurance, there are also warranties that could cover your car for things like engine failure. This may not be applicable if you’ve purchased your car used or from a private seller, but if your car has low kilometers or was purchased brand new consider asking about it. Dealerships may offer one of two kinds of warranties. 

The first option is a manufacturer or factory warranty. This comes directly from the company that manufactured the vehicle and is usually included as part of purchasing a brand-new vehicle. Depending on the manufacturer, this warranty could last up to five years or until a certain mileage is reached (usually 60,000 to 100,000 km). These warranties cover costs related to electrical and mechanical breakdown, including unexpected engine failure. 

Buying an extended warranty is another option to help cover repair expenses after the manufacturer’s warranty expires. It’s an optional warranty that can be purchased from the car manufacturer or third-party providers. This is a great option if you have budget constraints where a future repair could be a huge burden on your finances, but keep in mind that warranties do not replace insurance. Insurance is required by law and if you are ever pulled over, police won’t accept your warranty in place of your insurance. A combination of insurance and warranties can be a great way to maintain your peace-of-mind as a driver.  

Looking to save on your car insurance or have questions about your current coverage and what it includes? Speak with a Mitch insurance broker today. 

EVs aren’t new to the market, but they are gaining traction due to their lower running costs, environmental benefits, and other features. While some EVs on the market today can run a little pricier, there are models that are more affordable. But how much do these cost to buy car insurance for? 

Some major car manufacturers are ramping up the production of EVs, with General Motors promising to only make electric vehicles by 2035, Ford stating that all its European vehicle sales will be electric by 2030, and VW declaring that 70% of its sales will be electric by 2030. Luxury brands, like Jaguar, Volvo, and Lotus are all making similar promises, dedicating all or the majority of their sales to electric by a certain date. This isn’t pertaining to a fad or trend, but rather it’s related to the gradual worldwide eventual ban of petrol and diesel-powered vehicles. Many countries are setting targets to replace their current gas-powered vehicles with EVs as part of a larger initiative to reverse climate change. For example, Canada’s own EV mandate has required that all sales of passenger cars, SUVs, crossovers, and light trucks be either hydrogen-powered, electric, or hybrids by 2035. 

But this doesn’t really answer the question: should you buy an EV? Well, right now EVs may still present an overall higher upfront cost than gas-powered alternatives, and are generally less available at your average dealership, but they are gradually becoming more commonplace. Public charging stations aren’t nearly as widely available as gas stations, but availability may increase with Canada’s EV mandate for 2035. 

The perks of buying EVs? EVs can cost less to maintain, present less stress on the environment due to limited CO2 emissions, are cheaper to fuel, and often come with the latest technology. Plus, with the possibility of gas-powered cars being phased out in the future, EVs may become the more widely available option in years to come.  

Before we get into insurance costs, let’s see which EVs rank as most affordable in Canada: 

Check out a breakdown of each vehicle by power, battery size, and estimated range on Driving.ca for a more detailed comparison that goes beyond price. 

Does “cheap car” always equal cheap insurance? Not necessarily. While the value of the car is a significant factor in what it will cost to insure, several other factors also play a role in determining the overall cost of your coverage. 

Cheap cars may not necessarily have the advanced safety features of more expensive vehicles, which can translate to higher insurance premiums. You’ll want to ensure your EV has good safety ratings—for your wallet, and your peace-of-mind! 

Just because an EV is affordable, doesn’t mean it’s cheap to repair. If parts are in high demand for repairing damaged EVs but in low supply, they may cost more to repair. This can translate into a higher insurance premium as well. Also, some mechanics will charge more for repairing EVs due to the specialized skills required. 

Finally, usage, demographics, driving record, and more all also influence your insurance premiums. If you’re a high-risk driver, having a cheaper EV won’t necessarily lower your rates. While the car’s model and make are significant factors, they’re just one piece of a much bigger pie.  

 We ran insurance quotes for Canada’s cheapest EVs using four fictious drivers. All our drivers are from Whitby, ON and have a clean driving record with the same levels of coverage, limits, and deductibles.

SUVs, minivans, and smaller pickups often come with smaller insurance price tags than other types of cars. Generally, unsafe cars, cars with more powerful engines, and extras will cost more to insure. Overall, EVs tend to cost more to insure than gas-powered cars as well.  

That said, insurance costs between different makes and models of cars can range from $5 to hundreds of dollars. While it’s important to consider insurance costs, especially if you’re managing a tight budget, you should also choose the car that best fits your lifestyle.  

If you’re deciding between a few options, give Mitch a call and our insurance brokers can run quotes for the different vehicles so you know how much insurance premiums will be. Different insurance companies will evaluate EVs on varying levels, so finding the best car insurance company in Ontario for your chosen electric vehicle can be tedious. We can help!

The name of the game with Mitch Insurance is affordable insurance. You don’t have to pay an arm and a leg for great coverage. Our brokers will compare rates from some of the top providers to help you find a great price—for your EV or otherwise! 

Give us a call today. 

Car theft is a huge problem in Canada right now, so it makes sense you’d want to take measures to be proactive about your car’s security. One of the best ways to do that is to invest in anti-theft devices. 

Is Tag the best anti-theft device for deterring auto theft? Which device the best for getting you a discount on your car insurance? Let’s explore.  

A car is stolen every 14 minutes in Ontario, and this issue continues to escalate as thieves become more sophisticated in their efforts. Due to a high influx of insurance claims for stolen vehicles, insurers have had to take measures to offset these costs, including raising rates for cars that are considered high-theft or that are in “high-risk” areas. This being is done to ensure that they continue to maintain a sufficient pool of funds to pay out claims for their policyholders. 

One of the ways insurers are trying to fight auto theft is by incentivizing their policyholders to better protect their vehicles. They do this by discounting their insurance when approved anti-theft car devices are installed. While plenty of tools exist, few qualify for insurance discounts. One of the main systems insurers approve and will discount is Tag.  

Tag is a theft recovery system used to prevent theft and support police efforts in recovering stolen vehicles. For most insurance providers, Tag has become the favoured system for combatting auto theft. Insurance companies all have their own lists of vehicles that are considered high theft, which are makes and models that they experience the most theft-related claims for. Depending on the insurer, vehicles on those lists may be subject to a surcharge, which can be removed if the policyholder elects to install Tag or another approved system. 

Here are some of the insurance companies we work with that are surcharging high-theft vehicles along with their approved anti-theft devices and any discounts that may be provided for them. 

Please note that the data in the chart is accurate as of the publication date but is subject to change. For the most up-to-date info, check with your broker or insurance carrier. 

Tag has three layers for how it works. 

First, there is a physical etch on the front driver and passenger side windows that features the company logo. This acts as a visual deterrent for potential thieves, showing that the car is protected. 

Second, the vehicle is electronically etched with “nanotags.” These are as small as a grain of rice and usually placed on parts of the car that are typically dismantled and then sold for parts by thieves. Each of these nanotags is encrypted and has its own unique Tag number. 

Third, there are multiple water-proof tracking units that are designed with anti-jamming tech. These are installed on both the interior and exterior of the vehicle. 

Tag’s installation takes around an hour and while the cost is around $400, some insurance carriers are offering it for free or at a discount. Even at its full value, the installation of Tag pays for itself in high-theft vehicles by removing the surcharge that many carriers have.  

It depends on the insurance company. While Tag is the most widely approved and accepted means of theft deterrence, Domino and KYCS Locate are also commonly approved. Some companies will also offer smaller discounts (usually between 10-15%) for other approved aftermarket theft deterrence devices, like alarm systems.  

From an insurance perspective, most carriers would consider the best device for anti-theft as one that can help track and recover stolen vehicles – namely Tag or its equivalents. This is because systems like Tag greatly increase the odds that police will recover a stolen vehicle, plus the visual identifiers can be a significant deterrent to prospective thieves. If theft is a concern of yours, consider investing in a system like Tag – or ask an insurance broker which devices they’d recommend.  

Work with an insurance broker, like the ones from Mitch. A broker can recommend all the best ways to save on your insurance, even if your vehicle make/model is on the high-theft list. They can compare quotes from different insurers to find you the best rate, plus suggest aftermarket anti-theft devices that can help you save (and deter thieves). Give us a call today for a free quote.  

With auto theft claims surpassing $1 billion in Ontario, it’s more important than ever that drivers find the right means of protecting their vehicles. 

For many insurance companies, Tag has become the favoured choice for deterring car thieves. However, some drivers are hesitant to install this vehicle tracking and recovery system. Let’s explore the benefits of Tag along with some common misconceptions. 

Tag is an aftermarket theft recovery device that can be installed in a vehicle. When a driver’s car is stolen, they report the theft to Tag (as well as the police, of course) and Tag’s “Tracking Central” contacts law enforcement to dispatch a tracking team to find the vehicle. Tag is self-sufficient and autonomous, meaning it works without connecting to a vehicle’s electrical system.  

Although Tag presents a great opportunity to deter theft in Canada, some people are skeptical about the product. Here are some of the more popular myths about Tag, broken down: 

Tag’s installation is straightforward, safe and takes no more than 30 minutes. Plus, the installation of Tag is the only cost you will be responsible for (and some insurance providers offer free Tag installation as well!) as there are no monthly or annual monitoring fees for a five-year period.  

Tag does not track any of your driving behaviours. In fact, Tag’s tracking function isn’t active until you report your vehicle as stolen, and at that point it serves as a beacon for law enforcement to find. Its wireless devices activate discreetly upon a car being reported as stolen, and even before any theft attempt its logo etching acts as a deterrent to thieves.  

Tag has stated that the installation of its tracking system will not impact your vehicle’s warranty and usually won’t impact leasing agreements. This is because Tag is self-sufficient and doesn’t modify any part of your vehicle, operating wirelessly without any need to attach to your vehicle’s electrical system. It doesn’t interfere with your vehicle’s functionality. 

While Tag confirms its installation won’t impact a car’s warranty, lease terms can vary. If you’re concerned, we advise reaching out to your leasing company for confirmation.  

Even without considering the potential savings you’d receive from your insurance company, Tag is worth it for its theft mitigation services alone. Not only does it help with your vehicle’s recovery after it’s stolen, but it also deters potential thieves through a visual logo etching. Tag proactively prevents theft, saving you from having to make a claim and protecting your valuable time. With its theft deterrent capabilities, Tag can also help you avoid potential rate increases from having multiple comprehensive theft claims on your record.   

Then, of course, there’s the removal of the high-theft surcharge that many insurance providers apply for vehicles on the high-theft list. Some also grant drivers discounts for implementing Tag, whereas some offer a discounted installation fee. This varies by provider, so be sure to ask your insurance broker what you qualify for when it comes to the installation of Tag.  

Again, this couldn’t be further from the truth. While there is no actual modification to your vehicle itself that prevents theft from occurring, Tag’s installation comes with a logo engraving. This visual marker can deter thieves from attempting to steal your vehicle altogether. Thieves will almost always choose the path of least resistance; stealing cars with limited defenses in isolated areas, that are left unattended and running, and so on. Tag’s windshield etchings demonstrate that the vehicle is protected, so thieves are less likely to want to go through the hassle of potentially having their efforts squandered if the car is later found by law enforcement.  

Tag is more than just another aftermarket theft-deterrent tool. It’s a tracking device that activates to support the efforts of law enforcement in recovering stolen vehicles, all while serving as a visual deterrent to thieves to prevent theft from happening altogether.  

For many insurers, Tag is also considered the “industry gold standard” in preventing vehicle theft. It’s often the only theft recovery device that insurance companies approve of to remove their high-theft surcharge. Curious about the installation of Tag, or want to know how it can help you save on your auto insurance? Give us a call here at Mitch Insurance. We’d be happy to find you a cost-effective solution for your auto insurance today.